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UNITED STATES**SECURITIES AND EXCHANGE COMMISSION**
  Washington, 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, 2006

[   ] 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.

14,612,366@ $1.32 = $19,288,323

(1)Represents the price at which our shares were
last traded on the OTC BB on March 30, 2007. 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.

14,612,366 common shares issued and outstanding as of March
  30, 2007.

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 as that
term is defined in Section 27A of the United States Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These statements relate to
future events or our future financial performance. In some cases, you can
identify forward-looking statements by terminology such as may, should,
expects, plans, anticipates, believes, estimates, predicts,
potential or continue or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors, including the risks in the section
entitled Risk Factors, that may cause our companys or our industrys actual
results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.

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

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

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

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

Overview

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

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

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

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

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

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

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

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

Our Current Focus  BioLED Technology

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

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

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.

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Microfluidics can automatically guide a test sample through the
various stages of an assay, perform multiple functions including sample
purification, mixing with analytes, labeling, reaction and separation of
products. Microfluidics can also be designed to guide the processed test sample
to the integrated detection component of a Point-of-Care testing device.

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

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

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

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

Market Potential

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

Diabetes Management (Kidney Health Markers):

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

Cardiovascular Diseases (Cardiac Markers):

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

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Sexually Transmitted Diseases:

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

Substances of Abuse:

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

COMPLIANCE WITH GOVERNMENT REGULATION

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

The Regulatory Process

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

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

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

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

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

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

Establishment registration on form
FDA-2891,

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Medical Device Listing on form
FDA-2892,

Quality System (QS) regulation,

Labeling requirements, and

Medical Device Reporting (MDR)

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

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

Product Approval in the United States

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

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

Product Approval in Europe

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

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

DISTRIBUTION METHODS FOR OUR PRODUCTS

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

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STATUS OF PRODUCT

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

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

DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS

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

EMPLOYEES

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

RISK FACTORS

Much of the information included in this annual report includes
or is based upon estimates, projections or other forward looking statements.
Such forward looking statements include any projections and estimates made by us
and our management in connection with our business operations. While these
forward-looking statements, and any assumptions upon which they are based, are
made in good faith and reflect our current judgment regarding the direction of
our business, actual results will almost always vary, sometimes materially, from
any estimates, predictions, projections, assumptions or other future performance
suggested herein.

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

Shares of our common stock are speculative, especially since we
are in the 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 commercialise our future Point-of-Care testing
  devices. Our primary source of funds has been the sale of our common stock.
  We cannot assure that we will be able to generate any significant revenues or
  income. These circumstances make us dependent on additional financial support
  until profitability is achieved. There is no assurance that we will ever be
  profitable, and we have a going concern note as described in an explanatory
  paragraph to our consolidated financial statements for the year ended December
  31, 2006.

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

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

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

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

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

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

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

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

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

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

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

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

We intend that our potential products will be used as an
alternative to the specialized laboratories equipped with bulky and expensive
equipment. Current methods of laboratory testing have been widely practiced for
a number of years, and our technology and products may not be accepted by the
marketplace as readily as these or other competing processes and methodologies.
Additionally, our BioLED Technology may not be employed in all potential
applications being investigated, and any reduction in applications would limit
the market acceptance of our technology and our potential revenues. As a result,
even if we obtain all required regulatory approvals, we cannot be certain that
our BioLED Technology will be adopted at a level that would allow us to operate
profitably.

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

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

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

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

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

---

11

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

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

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

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

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.

---

12

RISKS RELATED TO OUR COMMON STOCK

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

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

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

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

**ITEM 2.      DESCRIPTION OF
PROPERTY.**

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

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

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, 2006.

---

13

PART II

ITEM 5.      MARKET FOR COMMON
EQUITY, 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, 2005
    $4.25
    $2.25June 30, 2005
    $6.16
    $3.60September 30, 2005
    $5.80
    $3.55December 31, 2005
    $5.90
    $3.80March 31, 2006
    $4.70
    $2.40June 30, 2006
    $3.25
    $1.80September 30, 2006
    $2.45
    $0.87December 31, 2006
    $1.20
    $0.35


Holders of our Common Stock

As of December 31, 2006 , there were 206 registered
shareholders of our common stock.

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.

---

14

Recent Sales of Unregistered Securities

On September 15, 2005, the Company commenced a private placement
  of up to 1,000,000 common shares at $4.00 per share. Through to December 31,
  2005, the Company received subscriptions for 925,125 common shares totaling
  $3,700,500 from accredited investors in the US and overseas, which were sold
  pursuant to Regulation D promulgated by the SEC under the Securities Act of
  1934, and the private placement was closed. Commissions in the amount of 80,337
  shares of common stock were issued and cash commissions in the amount of $24,900
  were paid in connection with this private placement.

The sales and issuance of 704,663 of the shares referred to
above as being made pursuant to Regulation S were offshore transactions since
all of the offerees were not in the United States and the purchasers were
outside the United States at the time of the purchase. Moreover, there were no
directed selling efforts of any kind made in the United States neither by us nor
by any affiliate or any person acting on our behalf in connection with any of
these offerings. All offering materials and documents used in connection with
the offers and sales of the securities included statements to the effect that
the securities have not been registered under the Securities Act of 1933 and may
not be offered or sold in the United States or to U.S. persons unless the
securities are registered under the Act or an exemption therefrom is available
and that no hedging transactions involving those securities may not be conducted
unless in compliance with the Act. Each purchaser under Regulation S certified
that it is not a U.S. person and is not acquiring the securities for the account
or benefit of any U.S. person and agreed to resell such securities only in
accordance with the provisions of Regulation S, pursuant to registration under
the Act or pursuant to an available exemption from registration. The shares sold
are restricted securities and the certificates representing these shares have
been affixed with a standard restrictive legend, which states that the
securities cannot be sold without registration under the Securities Act of 1933
or an exemption there from and we are required to refuse to register any
transfer that does not comply with such requirements.

The 220,462 shares were sold to the 23 investors located in the
U.S. pursuant to Regulation D promulgated by the Securities and Exchange
Commission under the Securities Act of 1933. Neither we nor any person acting on
our behalf offered or sold these securities by any form of general solicitation
or general advertising. The shares sold are restricted securities and the
certificates representing these shares have been affixed with a standard
restrictive legend, which states that the securities cannot be sold without
registration under the Securities Act of 1933 or an exemption therefrom. Each
purchaser represented to us that he was purchasing the securities for his own
account and not for the account of any other persons. Each purchaser was
provided with written disclosure that the securities have not been registered
under the Securities Act of 1933 and therefore cannot be sold without
registration under the Securities Act of 1933 or an exemption therefrom.

On May 4, 2006, we granted options to purchase an aggregate of
200,000 of our common shares to two officers at an exercise price of $2.50 per
share, exercisable until May 3, 2016. The options may be exercised , in whole or
in part, at any time on or after the date of Grant, but not after the Expiration
Date. 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

Recent sales from Private Placements

On February 12, 2007, the Company 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 the Company at $1.00 for a period of one
year. The Company also issued 20,000 units as a finders fee for this placement

On March 5, 2007, the Company 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 the Company at $2.00
for a period of eighteen months.

---

15

On March 23, 2007, the Company 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 the Company at
$1.50 for a period of one year.

Recent Grants of Options

On March 22, 2007, the Company granted 600,000 common share
purchase options exercisable at $1.00 per share expiring on March 22, 2012, to
the President of the Company for his services. These options vest as follows:

Shares
    Vesting300,000
    September 22,
      2007300,000
    March 22, 2008600,000


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

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.

Equity Compensation Plan Information

As at December 31, 2006 we do not have any compensation plans
in place.

Notes:

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, 2006.

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, 2006, 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.

---

16

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

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

At the same time, we also intend to work with Molecular Vision
Limited to begin setting up the prototype Point-of-Care testing device for
diabetes management. In this regard, we plan to begin evaluation and selection
of chemiluminescence assay. We also plan to fabricate our first Point-of-Care
device and hopefully by the summer of 2007 we will be able to conduct our first
chemiluminescence based albumin and creatinine detection with urine samples.
When we are ready to begin regulatory activities, we may begin the process by
determining exactly what we need to do and who we need to contact, for
submitting all relevant files to the Food and Drug Administration (FDA) for
approval.

We have not generated any revenues and our operating activities
  have resulted in a loss of $2,480,288 for the year ended December 31, 2006.
  This negative cash flow is attributable to our operation expenses, including
  but not limited to, research and development expense and the payment of our
  audit fees and legal fees. We anticipate that our operating expenses will increase
  as we intend to conduct detailed development of our first prototype Point-of-Care
  diagnostic device and work towards its completion. We estimate our expenses
  in the next twelve months will be approximately $3,600,000, generally falling
  in two major categories: research and development costs and general and administrative
  expenses.

Research and Development Costs

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

General and Administrative Expenses

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

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

---

17

Results of Operations

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

However, we have been successful in attracting potential
investors and shareholders through various private placements. This has allowed
our company to meet all of our overhead obligations as well as maintaining our
continuous pursuit to complete our product research and development. During 2006
we sold 317,334 common shares in a private placement @ $0.75 per share for
proceeds of $238,000.

We incurred operating expenses in the amount of $2,480,288 for
the year ended December 31, 2006, compared with expenses of $14,154,145 the same
period from the previous year. The operating expenses of $2,480,288 incurred
during the year ended December 31, 2006 included, $72,000 for rent and
management fees, $1,277,780 for research and development, $102,593 for office
expenses, travel, bank charges (net of interest income), transfer agents, and
foreign exchange, $100,000 for public relations, $206,731 for appraisals,
accounting, auditing and legal fees, $191,511 for consultations, and $529,673
for stock-based compensation.

Financial Condition and Liquidity

We had cash on hand of $4,552 as at December 31, 2006, compared
  with $1,741,998 as at December 31, 2005. We had a working capital deficit of
  $185,025 at December 31, 2006, compared to a working capital surplus of $1,533,889
  as at December 31, 2005.

Our present cash reserves of $4,552 are not sufficient to meet
our cash requirements for the next six months. We will have to raise additional
funds from the private placement of our securities to meet our budgeted
operating expenses of $3,600,000 for the next twelve months.

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.

---

18

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, 2006 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
      dated March 30, 2007;                                                                                                           
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                               
|2. | Balance Sheets as at December 31, 2006 and December 31,
      2005;                                                                                                                           
|   |                                                                                                                                                                                               
|3. | Statements of Operations for the years ended December 31,
      2006 and December 31, 2005 and for the cumulative period from date of
      organization August 17, 1999 to December 31, 2006;
|   |                                                                                                                                                                                               
|4. | Statements of Cash Flows for the years ended December 31,
      2006 and December 31, 2005 and for the cumulative period from date of
      organization August 17, 1999 to December 31, 2006;
|   |                                                                                                                                                                                               
|5. | Statements of Stockholders Deficiency for the period
      from inception, August 17, 1999 to December 31, 2006; and                                                                         
|   |                                                                                                                                                                                               
|6. | Notes to Financial
Statements.                                                                                                                                                                

---

ACRONGENOMICS, INC.

(A Development Stage Company)

REPORT AND FINANCIAL STATEMENTS

December 31, 2006 and 2005

(Stated in US Dollars)

---

|A PARTNERSHIPOFINCORPORATEDPROFESSIONALS | AMISANO HANSON      
|---------------------------------------- | --------------------
|                                         | CHARTEREDACCOUNTANTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
  FIRM

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

We have audited the accompanying balance sheets of Acrongenomics,
  Inc. (A Development Stage Company) as of December 31, 2006 and 2005 and the
  related statements of operations, cash flows and stockholders equity (deficiency)
  for the years then ended and the period 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 audits.

We conducted our audits 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 audits provide 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 2005 and the
  results of its operations and its cash flows for the years then ended and the
  period 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 no established source of revenue 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, except as to Note 12 which is as | Chartered Accountants
|of March 23, 2007                                |                      





750 WEST PENDER STREET, SUITE 604
      TELEPHONE:
      604-689-0188VANCOUVER CANADA
      FACSIMILE:
      604-689-9773V6C 2T7
      E-MAIL:
      amishan@telus.net


---

ACRONGENOMICS, INC.(A Development Stage Company) 
  BALANCE SHEETS 
  December 31, 2006 and 2005 
  (Stated in US Dollars)

|                                                       |   | 2006        |   |   | 2005        |  
|------------------------------------------------------ | - | ----------- | - | - | ----------- | -
|                                                       |   |             |   |   |             |  
|**ASSETS**                                             |  
|Current                                                |   |             |   |   |             |  
|Cash                                                   | $ | 4,552       |   | $ | 1,741,998   |  
|Patents  Note 6                                       |   | -           |   |   | 1           |  
|                                                       | $ | 4,552       |   | $ | 1,741,999   |  
|LIABILITIES                                            |  
|Current                                                |   |             |   |   |             |  
|Accounts payable and accrued liabilities
      Note 3 | $ | 161,304     |   | $ | 207,109     |  
|Loans payable  Note
      4                           |   | 28,273      |   |   | 1,000       |  
|                                                       |   | 189,577     |   |   | 208,109     |  
|STOCKHOLDERS EQUITY
      (DEFICIENCY)                |  
|Common stock, $0.001 par value  Notes 5, 10 and 12    |   |             |   |   |             |  
|100,000,000
      shares authorized                    |   |             |   |   |             |  
|14,131,457 shares issued (2005: 17,814,123)            |   | 14,131      |   |   | 17,814      |  
|Additional paid-in capital                             |   | 10,475,544  |   |   | 17,550,488  |  
|Share subscriptions  Note 12                          |   | 40,000      |   |   | 40,000      |  
|Deficit accumulated during the development
      stage |   | (10,714,700 | ) |   | (16,074,412 | )
|                                                       |   | (185,025    | ) |   | 1,533,890   |  
|                                                       | $ | 4,552       |   | $ | 1,741,999   |  
|Nature and Continuance of Operations  Note 1          |   |             |   |   |             |  
|Commitments  Note 11                                  |   |             |   |   |             |  
|Subsequent Events  Note 12                            |   |             |   |   |             |  

SEE ACCOMPANYING NOTES

---

ACRONGENOMICS, INC.(A Development Stage Company) 
  STATEMENTS OF OPERATIONS 
  for the years ended December 31, 2006 and 2005 and 
  for the period August 17, 1999 (Date of Inception) to December 31, 2006 
  (Stated in US Dollars)

|                                                                 |   |                     |   |   |               |   |   | August 17,    |  
|---------------------------------------------------------------- | - | ------------------- | - | - | ------------- | - | - | ------------- | -
|                                                                 |   |                     |   |   |               |   |   | 1999 (Date of |  
|                                                                 |   | For the Years Ended |   |   | Inception) to |  
|                                                                 |   | December 31,        |   |   | December 31,  |  
|                                                                 |   | 2006                |   |   | 2005          |   |   | 2006          |  
|                                                                 |   |                     |   |   |               |   |   |               |  
|Expenses                                                         |   |                     |   |   |               |   |   |               |  
|Accounting and audit fees  Note 3                               | $ | 130,061             |   | $ | 97,490        |   | $ | 289,863       |  
|Amortization of patents                                          |   | -                   |   |   | 468,272       |   |   | 741,430       |  
|Appraisals                                                       |   | 4,500               |   |   | -             |   |   | 14,500        |  
|Bank charges                                                     |   | 2,704               |   |   | 3,982         |   |   | 7,655         |  
|Consulting fees  Note 3                                         |   | 191,511             |   |   | 571,132       |   |   | 832,999       |  
|Foreign exchange (gain)                                          |   | 3,655               |   |   | (1,120        | ) |   | (741          | )
|Legal fees - Note 3                                              |   | 72,170              |   |   | 62,543        |   |   | 232,164       |  
|Management fees                                                  |   | 60,000              |   |   | -             |   |   | 60,000        |  
|Office and miscellaneous                                         |   | 28,636              |   |   | 4,555         |   |   | 52,362        |  
|Public relations and donation                                    |   | 100,000             |   |   | 263,739       |   |   | 547,007       |  
|Rent - Note 3                                                    |   | 12,000              |   |   | 24,000        |   |   | 36,000        |  
|Research and development
       Note 3                          |   | 1,277,780           |   |   | 4,277,289     |   |   | 6,681,969     |  
|Stock-based compensation  Note 5                                |   | 529,673             |   |   | 364,000       |   |   | 893,673       |  
|Telephone                                                        |   | -                   |   |   | -             |   |   | 2,399         |  
|Transfer agent and filing fees                                   |   | 4,238               |   |   | 6,223         |   |   | 20,509        |  
|Travel                                                           |   | 80,351              |   |   | 10,032        |   |   | 118,909       |  
|                                                                 |   |                     |   |   |               |   |   |               |  
|Loss before the following:                                       |   | (2,497,279          | ) |   | (6,152,137    | ) |   | (10,530,698   | )
|                                                                 |   |                     |   |   |               |   |   |               |  
|Interest income                                                  |   | 16,992              |   |   | 4,373         |   |   | 22,443        |  
|Write-down of patents  Note 6                                   |   | (1                  | ) |   | (8,004,446    | ) |   | (8,004,447    | )
|                                                                 |   |                     |   |   |               |   |   |               |  
|Loss from continuing operations                                  |   | (2,480,288          | ) |   | (14,152,210   | ) |   | (18,512,702   | )
|Loss from discontinued operations  Schedule
      1             |   | -                   |   |   | (1,935        | ) |   | (41,998       | )
|                                                                 |   |                     |   |   |               |   |   |               |  
|Net loss                                                         | $ | (2,480,288          | ) | $ | (14,154,145   | ) | $ | (18,554,700   | )
|                                                                 |   |                     |   |   |               |   |   |               |  
|Basic and diluted loss per share  continuing
      operations   | $ | (0.17               | ) | $ | (0.86         | ) |   |               |  
|                                                                 |   |                     |   |   |               |   |   |               |  
|Basic and diluted loss per share  discontinued
      operations | $ | (0.00               | ) | $ | (0.00         | ) |   |               |  
|                                                                 |   |                     |   |   |               |   |   |               |  
|Weighted average shares outstanding                              |   | 14,370,894          |   |   | 16,301,267    |   |   |               |  

SEE ACCOMPANYING NOTES

---

ACRONGENOMICS, INC.(A Development Stage Company) 
  STATEMENTS OF CASH FLOWS 
  for the years ended December 31, 2006 and 2005 and 
  for the period August 17, 1999 (Date of Inception) to December 31, 2006 
  (Stated in US Dollars)

|                                                                      |   |                     |   |   |               |   |   | August 17,    |  
|--------------------------------------------------------------------- | - | ------------------- | - | - | ------------- | - | - | ------------- | -
|                                                                      |   |                     |   |   |               |   |   | 1999 (Date of |  
|                                                                      |   | For the Years Ended |   |   | Inception) to |  
|                                                                      |   | December 31,        |   |   | December 31,  |  
|                                                                      |   | 2006                |   |   | 2005          |   |   | 2006          |  
|Cash Flows used in Operating Activities                               |   |                     |   |   |               |   |   |               |  
|Loss from continuing operations                                       | $ | (2,480,288          | ) | $ | (14,152,210   | ) | $ | (18,512,702   | )
|Items not affecting cash:                                             |   |                     |   |   |               |   |   |               |  
|Amortization                                                          |   | -                   |   |   | 468,272       |   |   | 741,430       |  
|Shares
      issued for consulting fees                               |   | -                   |   |   | 468,000       |   |   | 468,000       |  
|Stock-based compensation                                              |   | 529,673             |   |   | 364,000       |   |   | 893,673       |  
|Write-down
      of patents                                           |   | 1                   |   |   | 8,004,446     |   |   | 8,004,447     |  
|Changes in non-cash working capital items:                            |   |                     |   |   |               |   |   |               |  
|Subscriptions
      receivable                                        |   | -                   |   |   | 426,329       |   |   | -             |  
|Accounts payable and
      accrued liabilities                        |   | (45,805             | ) |   | (731,906      | ) |   | 161,304       |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Net cash used in operating activities                                 |   | (1,996,419          | ) |   | (5,153,069    | ) |   | (8,243,848    | )
|                                                                      |   |                     |   |   |               |   |   |               |  
|Cash Flows used in Investing Activity                                 |   |                     |   |   |               |   |   |               |  
|Patents                                                               |   | -                   |   |   | (34,377       | ) |   | (121,877      | )
|                                                                      |   |                     |   |   |               |   |   |               |  
|Cash Flows provided by Financing Activities                           |   |                     |   |   |               |   |   |               |  
|Common stock issued for cash                                          |   | 231,700             |   |   | 6,025,674     |   |   | 8,013,695     |  
|Stock purchase warrants                                               |   | -                   |   |   | -             |   |   | 370,307       |  
|Increase (decrease) in loan payable                                   |   | 27,273              |   |   | (133,526      | ) |   | 28,273        |  
|Advances from/to discontinued
      operations of disposed subsidiary |   | -                   |   |   | 28,865        |   |   | (41,998       | )
|                                                                      |   |                     |   |   |               |   |   |               |  
|Net cash provided by financing activities                             |   | 258,973             |   |   | 5,921,013     |   |   | 8,370,277     |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Increase (decrease) in cash from continuing
      operations          |   | (1,737,446          | ) |   | 733,567       |   |   | 4,552         |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Decrease in cash from discontinued operations
       Note 9          |   | -                   |   |   | (4,053        | ) |   | -             |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Increase (decrease) in cash during the period                         |   | (1,737,446          | ) |   | 729,514       |   |   | 4,552         |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Cash, beginning of period                                             |   | 1,741,998           |   |   | 1,012,484     |   |   | -             |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Cash, end of period                                                   | $ | 4,552               |   | $ | 1,741,998     |   | $ | 4,552         |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|Cash on cash equivalents consist of:                                  |   |                     |   |   |               |   |   |               |  
|Cash                                                                  |   | 4,552               |   |   | 741,176       |   |   | 4,552         |  
|Term deposit                                                          |   | -                   |   |   | 1,000,822     |   |   | -             |  
|                                                                      |   |                     |   |   |               |   |   |               |  
|                                                                      | $ | 4,552               |   | $ | 1,741,998     |   | $ | 4,552         |  

Non-cash Transactions  Note 10

SEE ACCOMPANYING NOTES

---

| | ACRONGENOMICS, INC.                                                           | Schedule 1
| | ----------------------------------------------------------------------------- | ----------
| | (A Development Stage Company)                                                 |           
| | STATEMENTS OF OPERATIONS                                                      |           
| | FROM DISCONTINUED OPERATIONS OF ACRONGENOMICS
      HELLAS S.A.               |           
| | for the years ended December 31, 2006 and 2005
      and                      |           
| | for the period August 17, 1999 (Date of Inception)
      to December 31, 2006 |           
| | (Stated in US Dollars)                                                        |           

|                                              |   |                     |  |   |               |   |   | August 17,    |  
|--------------------------------------------- | - | ------------------- |  | - | ------------- | - | - | ------------- | -
|                                              |   |                     |  |   |               |   |   | 1999 (Date of |  
|                                              |   | For the Years Ended |  |   | Inception) to |  
|                                              |   | December 31,        |  |   | December 31,  |  
|                                              |   | 2006                |  |   | 2005          |   |   | 2006          |  
|                                              |   |                     |  |   |               |   |   |               |  
|Expenses                                      |   |                     |  |   |               |   |   |               |  
|Accounting and audit fees - Note 3            | $ | -                   |  | $ | -             |   | $ | 4,020         |  
|Amortization                                  |   | -                   |  |   | 3,166         |   |   | 7,915         |  
|Bank charges                                  |   | -                   |  |   | -             |   |   | 7             |  
|Consulting fees - Note
      3                |   | -                   |  |   | 3,760         |   |   | 9,241         |  
|Legal fees - Note 3                           |   | -                   |  |   | -             |   |   | 634           |  
|Office and miscellaneous                      |   | -                   |  |   | -             |   |   | 5,307         |  
|Rent - Note 3                                 |   | -                   |  |   |               |   |   | 14,000        |  
|Telephone                                     |   | -                   |  |   | -             |   |   | 2,618         |  
|Utilities                                     |   | -                   |  |   | -             |   |   | 2,934         |  
|                                              |   |                     |  |   |               |   |   |               |  
|Loss before the following                     |   | -                   |  |   | (6,926        | ) |   | (46,676       | )
|                                              |   |                     |  |   |               |   |   |               |  
|Foreign exchange loss                         |   | -                   |  |   | (178          | ) |   | (896          | )
|Minority interest in loss
      of subsidiary |   | -                   |  |   | 71            |   |   | 476           |  
|Gain on disposal of subsidiary  Note
      8 |   | -                   |  |   | 5,098         |   |   | 5,098         |  
|                                              |   |                     |  |   |               |   |   |               |  
|Loss from discontinued operations             | $ | -                   |  | $ | (1,935        | ) | $ | (41,998       | )

SEE ACCOMPANYING NOTES

---

ACRONGENOMICS,INC.(A Development Stage Company) 
  STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY) 
  for the period August 17, 1999 (Date of Inception) to December 31, 2006 
  (Stated in US Dollars)

DeficitCommon
        Stock
      
      
      
      
      
      AccumulatedAdditional
      
      
      
      
      
      During thePaid-in
      
      
      Stock
      
      
      Development
      
      
      ContributedNumber
      
      
      Par
        Value
      
      
      Capital
      
      
      Subscriptions
      
      
      Stage
      
      
      TotalCapital stock issued for cash    
        - at $0.001
      
      5,000,000
      
      $
      5,000
      
      $
      -
      
      $
      -
      
      $
      -
      
      $
      5,000- at $0.01
      
      5,000,000
      
      
      5,000
      
      
      45,000
      
      
      -
      
      
      -
      
      
      50,000Net loss for the period
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (2,116
      )
      
      (2,116
      )Balance, December 31, 1999
      
      10,000,000
      
      
      10,000
      
      
      45,000
      
      
      -
      
      
      (2,116
      )
      
      52,884Capital stock issued for cash     - at
        $0.20
      
      100,000
      
      
      100
      
      
      19,900
      
      
      -
      
      
      -
      
      
      20,000Net loss for the year
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (8,176
      )
      
      (8,176
      )Balance, December 31, 2000
      
      10,100,000
      
      
      10,100
      
      
      64,900
      
      
      -
      
      
      (10,292
      )
      
      64,708Net loss for the year
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (205
      )
      
      (205
      )Balance, December 31, 2001
      
      10,100,000
      
      
      10,100
      
      
      64,900
      
      
      -
      
      
      (10,497
      )
      
      64,503Capital stock issued for cash     
        - at $0.20
      
      15,000
      
      
      15
      
      
      2,985
      
      
      -
      
      
      -
      
      
      3,000Net loss for the year
      
      -
      
      
      -
      
      
      -
      
      
      
      
      
      (24,818
      )
      
      (24,818
      )Balance, December 31, 2002
      
      10,115,000
      
      
      10,115
      
      
      67,885
      
      
      -
      
      
      (35,315
      )
      
      42,685Net loss for the year
      
      -
      
      
      -
      
      
      -
      
      
      
      
      
      (21,576
      )
      
      (21,576
      )Balance, December 31, 2003
      
      10,115,000
      
      
      10,115
      
      
      67,885
      
      
      -
      
      
      (56,891
      )
      
      21,109Pursuant to the acquisition of patent- at $1.96
      
      4,000,000
      
      
      4,000
      
      
      7,836,000
      
      
      -
      
      
      -
      
      
      7,840,000Capital stock issued for patentcommission                                   -
        at $1.96
      
      400,000
      
      
      400
      
      
      783,600
      
      
      -
      
      
      -
      
      
      784,000Capital stock issued for cash - at $1.00
      
      420,000
      
      
      420
      
      
      419,580
      
      
      -
      
      
      -
      
      
      420,000Capital stock issued for commission-
        at $1.00
      
      42,000
      
      
      42
      
      
      41,958
      
      
      -
      
      
      -
      
      
      42,000Less: commission
      
      -
      
      
      -
      
      
      (42,000
      )
      
      -
      
      
      -
      
      
      (42,000
      )commission
      
      -
      
      
      -
      
      
      (35,000
      )
      
      -
      
      
      -
      
      
      (35,000
      )Capital stock issued for cash   
         - at $2.30
      
      100,000
      
      
      100
      
      
      229,900
      
      
      -
      
      
      -
      
      
      230,000- at $2.30
      
      437,956
      
      
      438
      
      
      1,006,861
      
      
      -
      
      
      -
      
      
      1,007,299Capital stock issued for commission
      
      50,594
      
      
      50
      
      
      116,316
      
      
      -
      
      
      -
      
      
      116,366Less: commission
      
      -
      
      
      -
      
      
      (116,366
      )
      
      -
      
      
      -
      
      
      (116,366
      )Capital contribution
      
      -
      
      
      -
      
      
      6,000
      
      
      -
      
      
      -
      
      
      6,000Stock subscriptions
      
      -
      
      
      -
      
      
      -
      
      
      426,329
      
      
      -
      
      
      426,329Net loss for the year
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (1,863,376
      )
      
      (1,863,376
      )Balance, December 31, 2004
      
      15,565,550
      
      
      15,565
      
      
      10,314,734
      
      
      426,329
      
      
      (1,920,267
      )
      
      8,836,361


/contd

SEE ACCOMPANYING NOTES

---

| | ACRONGENOMICS, INC.                                                            | Continued
| | ------------------------------------------------------------------------------ | ---------
| | (A Development Stage Company)                                                  |          
| | STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY)                                |          
| | from the period August 17, 1999 (Date of Inception)
      to December 31, 2006 |          
| | (Stated in US Dollars)                                                         |          

DeficitCommon
        Stock
      
      
      
      
      
      AccumulatedAdditional
      
      
      
      
      
      During thePaid-in
      
      
      Stock
      
      
      Development
      
      
      ContributedNumber
      
      
      Par
        Value
      
      
      Capital
      
      
      Subscriptions
      
      
      Stage
      
      
      TotalCommon 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
      )
      
      -
      
      
      3,274,171Capital stock issued for commission - at
        $4.00
      
      81,337
      
      
      82
      
      
      325,266
      
      
      -
      
      
      -
      
      
      325,348Less: Commission
      
      -
      
      
      -
      
      
      (325,348
      )
      
      -
      
      
      -
      
      
      (325,348
      )Commission
      
      -
      
      
      -
      
      
      (24,900
      )
      
      -
      
      
      -
      
      
      (24,900
      )Common stock issued for cash pursuant to exercise of warrants- at $1.00
      
      420,000
      
      
      420
      
      
      419,580
      
      
      -
      
      
      -
      
      
      420,000Stock-based compensation
      
      -
      
      
      -
      
      
      364,000
      
      
      -
      
      
      -
      
      
      364,000Common stock issued for consulting services- at $4.68
      
      100,000
      
      
      100
      
      
      467,900
      
      
      -
      
      
      -
      
      
      468,000Net 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
      )
      
      1,533,890Cancellation of shares  Note 5
      
      (4,000,000
      )
      
      (4,000
      )
      
      (7,836,000
      )
      
      -
      
      
      7,840,000
      
      
      -Stock-based compensation
      
      -
      
      
      -
      
      
      529,673
      
      
      -
      
      
      -
      
      
      529,673Common stock issued for cash - at $0.75
      
      317,334
      
      
      317
      
      
      237,683
      
      
      -
      
      
      -
      
      
      238,000Less: 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
      )


SEE ACCOMPANYING NOTES

---

ACRONGENOMICS, INC.(A Development Stage Company) 
  NOTES TO THE FINANCIAL STATEMENTS 
  December 31, 2006 and 2005 
  (Stated in US Dollars)

|Note 1 | Nature and Continuance of
        Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       | The Company was incorporated
        in the State of Nevada, USA on August 17, 1999 as Cellway Ventures Inc.
        Effective February 25, 2004, the Company changed its name to Acrongenomics,
        Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       | The Company is in the development
        stage. The Companys business is research and development in the
        field of life science including BioLED technology.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       | These 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, 2006, the Company had not yet achieved profitable operations,
        has accumulated losses of $10,714,700 since its inception, has a working
        capital deficiency of $185,025 and expects to incur further losses in
        the development of its business, all of which casts substantial doubt
        about the Companys ability to continue as a going concern. The Companys
        ability to continue as a going concern is dependent upon its ability to
        generate future profitable operations and/or to obtain the necessary financing
        to meet its obligations and repay its liabilities arising from normal
        business operations when they come due. Management has no formal plan
        in place to address this concern but considers that the Company will be
        able to obtain additional funds by equity financing and/or related party
        advances, however there is no assurance of additional funding being available.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Note 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, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 2

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

| | a) | Principles of Consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | On May 27, 2005, the Company disposed of its 99% interest
        in Acrongenomics Hallas S.A., a Greek limited liability company, an entity
        incorporated by the Company (Note 8). Consequently, the financial statements
        for the year ended December 31, 2005 include the accounts of Hellas for
        the period from January 1, 2005 to May 27, 2005, as discontinued operations.
        All inter-company balances and transactions have been eliminated.                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | b) | Development Stage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | The Company is a development stage company as defined
        in Financial Accounting Standards (FAS) 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.                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | c) | Patents and Amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | Patents and patent rights 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.                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | d) | Impairment of Long-lived Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | The Company reports the impairment of long-lived assets
        and certain intangibles in accordance with FAS No. 144, Accounting
        for the Impairment or Disposal of Long- lived Assets. Certain long-lived
        assets and identifiable intangibles held by the Company are reviewed for
        impairment whenever events or changes in circumstances indicate the carrying
        amount of an asset may not be recoverable. Accordingly, the impairment
        loss is recognized in the period it is determined.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | e) | Goodwill and Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | The Company has adopted the provisions of FAS No. 142,
        Goodwill and Intangible Assets. Under FAS 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.                                                                                            

---

Acrongenomics, Inc. 
  (A Development Stage Company) 
  Notes to the Financial Statements 
  December 31, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 3

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

| | e) | Goodwill and Intangible Assets- (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | Goodwill and 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 FAS No. 144.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | Under FAS 144, an impairment loss shall be recognized
        if the carrying amount of an intangible asset is not recoverable and its
        carrying value exceeds its fair value. The determination of any impairment
        includes a comparison of the estimated future operating cash flows anticipated
        during the remaining life for the net carrying value of the asset as well
        as a comparison of the fair value to the book value of the Company or
        the reporting unit to which the goodwill can be attributed.                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | f) | 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.                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | The Company is subject to foreign exchange price risk
        as it has certain financial instruments which are denominated in foreign
        currencies. The Company does not use derivative instruments to reduce
        its exposure to fluctuations in exchange rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | g) | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | The Company follows FAS 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
        FAS 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.

---

Acrongenomics, Inc. 
  (A Development Stage Company) 
  Notes to the Financial Statements 
  December 31, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 4

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

| | h) | Basic Loss Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | The Company reports basic loss per share in accordance
        with the FAS No. 128, Earnings Per Share. Basic loss per share
        is computed using the weighted average number of shares outstanding during
        the period. Fully diluted earnings (loss) per share is computed similar
        to basic income (loss) per share except that the denominator is increased
        to include the number of common stock equivalents (primarily outstanding
        options and warrants). Common stock 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 income (loss) position at the calculation date. Diluted
        loss per share has not been provided as it would be antidultive.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | i) | Foreign Currency Translation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | The Companys functional currency is United States
        dollars. The companys subsidiary used the Euro as its functional
        currency as substantially all of its operations are in Greece. 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 FAS No. 52.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | The financial statements are translated using the current
        rate method. Assets and liabilities denominated in a foreign currency
        are translated at exchange rates in effect at year-end and capital accounts
        are translated at historical rates. Income statement accounts are translated
        at the average rates of exchange prevailing during the year. Translation
        adjustments arising from the use of differing exchange rates from period
        to period are included in the accumulated other comprehensive gain (loss)
        account in Stockholders Equity, if applicable.                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | 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 would
        be included in the Statement of Operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | j) | Stock-based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | The Company accounts for stock-based compensation using
        FAS 123R which requires public 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 pricing models require the input of highly
        subjective assumptions, including the expected price volatility. Changes
        in assumptions can materially affect the fair value estimate.                                                                                                                                                                                                                                                                                                                                                                                                      

---

Acrongenomics, Inc. 
  (A Development Stage Company) 
  Notes to the Financial Statements 
  December 31, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 5

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

| | k) | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | l) | New Accounting Standards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | In June 2006, the Financial Accounting Standards Board
        (FASB) issued FASB Interpretation No. 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 FAS 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 is not expected to have a material impact on the Companys
        financial position, results of operations or cash flows; however, the
        Company is still analyzing the effects of FIN 48.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | In September 2006, the FASB issued FAS 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; however, earlier application is encouraged. The Company
        is currently evaluating the timing of adoption and the impact that adoption
        might have on its financial position or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

---

Acrongenomics, Inc. 
  (A Development Stage Company) 
  Notes to the Financial Statements 
  December 31, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 6

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

| | l) | New Accounting Standards (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | In September 2006, the Securities and Exchange Commission
        (SEC) issued Staff Accounting Bulletin (SAB) No.
        108. Due to diversity in practice among registrants, SAB No. 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 No. 108 is effective for fiscal
        years ending after November 15, 2006, and early application is encouraged.
        The Company does not believe SAB No. 108 will have a material impact on
        its financial position or results from operations.                                                                                                                                                                                                                                                                                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | In December 2006, the FASB issued FASB Staff Position
        (FSP) EITF 00-19-2, Accounting for Registration Payment
        Arrangements. This FSP specifies that the contingent obligation
        to make future payments or otherwise transfer consideration under a registration
        payment arrangement should be separately recognized and measured in accordance
        with FASB No. 5, Accounting for Contingencies. This FSP is
        effective immediately for registration payment arrangements and the financial
        instruments subject to those arrangements that re entered into or modified
        subsequent to December 31, 2006. For registration payment arrangements
        and financial instruments subject to those arrangements that were entered
        into prior to December 31, 2006, the guidance in the FST is effective
        January 1, 2006 for the Company. The Company does not believe that this
        FSP will have a material impact on its financial position or results from
        operations.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | On February 15, 2007, the FASB issued FAS 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 FAS
        No. 159 might have on its financial position or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                

|Note 3 | Related Party Transactions Notes
      5 and 6                                                                                                                                                                                                                                                                                                                                                                                            
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       | The Company incurred the following
        charges with companies with a common director and former director, an
        officer and director of a company of which a former officer and director
        is the spouse of the Companys president; the research and development
        expenditures were paid to a company in which a former officer and director
        of the Company is the spouse of the Companys former president:

---

Acrongenomics, Inc. 
  (A Development Stage Company) 
  Notes to the Financial Statements 
  December 31, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 7

|Note 3 | Related Party Transactions Notes
      5 and 6  (contd)
|------ | ----------------------------------------------------------

| |                          |   |                     |  |   |               |  |   | August 17,    | 
| | ------------------------ | - | ------------------- |  | - | ------------- |  | - | ------------- | 
| |                          |   |                     |  |   |               |  |   | 1999 (Date of | 
| |                          |   | For the Years Ended |  |   | Inception) to | 
| |                          |   | December 31,        |  |   | December 31,  | 
| |                          |   | 2006                |  |   | 2005          |  |   | 2006          | 
| |                          |   |                     |  |   |               |  |   |               | 
| | Accounting fees          | $ | 74,606              |  | $ | 34,975        |  | $ | 141,582       | 
| | Consulting fees          |   | 52,700              |  |   | 3,760         |  |   | 90,101        | 
| | Legal fees               |   | -                   |  |   | -             |  |   | 60,656        | 
| | Rent                     |   | 12,000              |  |   | 24,000        |  |   | 50,000        | 
| | Research and development |   | 200,000             |  |   | 4,277,289     |  |   | 5,604,189     | 
| |                          |   |                     |  |   |               |  |   |               | 
| |                          | $ | 339,306             |  | $ | 4,340,024     |  | $ | 5,946,528     | 

|       | Research and development expenditures
        are comprised of testing costs of the molecular diagnostic test products.                                                                                                                                                                                        
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                
|       | Accounts payable and accrued
        liabilities at December 31, 2006 includes $71,779 (December 31, 2005:
        $147,906) owing to companies with a common director, a former director
        and a company of which a former officer and director is the spouse of
        the Companys former president.
|       |                                                                                                                                                                                                                                                                                                                
|Note 4 | Loans Payable                                                                                                                                                                                                                                                                                                  
|       |                                                                                                                                                                                                                                                                                                                
|       | Loans payable are unsecured,
        non-interest bearing and has no specific terms for repayment.                                                                                                                                                                                                             
|       |                                                                                                                                                                                                                                                                                                                
|Note 5 | Capital Stock
        Notes 10, 11 and 12                                                                                                                                                                                                                                                                     
|       |                                                                                                                                                                                                                                                                                                                
|       | Commitments                                                                                                                                                                                                                                                                                                    
|       |                                                                                                                                                                                                                                                                                                                
|       | Share Purchase Warrants                                                                                                                                                                                                                                                                                        
|       |                                                                                                                                                                                                                                                                                                                
|       | At December 31, 2006, there
        are 737,334 (December 31, 2005: 520,000) 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, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 8

|Note 5 | Capital Stock Notes 10, 11 and 12
       (contd)                                   
|------ | --------------------------------------------------------------------------------------
|       |                                                                                       
|       | Commitments (contd)                                                                 
|       |                                                                                       
|       | Share Purchase Warrants  (contd)                                                    
|       |                                                                                       
|       | The following table summarizes the warrants outstanding
      as at December 31, 2006:

| | Number          |          |                   
| | --------------- | -------- | ------------------
| | Outstanding and | Exercise |                   
| | Exercisable     | Price    | Expiry Date       
| |                 |          |                   
| | 420,000         | $1.20    | May 7, 2007       
| | 84,000          | $1.50    | September 15, 2007
| | 233,334         | $1.50    | October 31, 2007  
| |                 |          |                   
| | 737,334         |          |                   

A summary of changes in the Companys
  warrants for the years ended December 31, 2006 and 2005 is presented below:

| |                              |  | 2006      |   |   | 2005     | 
| | ---------------------------- |  | --------- | - | - | -------- | 
| |                              |  |           |   |   | Weighted | 
| |                              |  |           |   |   | Average  | 
| |                              |  | Number of |   |   | Exercise | 
| |                              |  | Options   |   |   | Price    | 
| |                              |  |           |   |   |          | 
| | Outstanding, beginning of    |  |           |   |   |          | 
| | year                         |  | 520,000   |   | $ | 1.36     | 
| | Granted                      |  | 317,334   |   | $ | 1.50     | 
| | Exercised                    |  | -         |   |   | -        | 
| | Expired                      |  | (100,000  | ) | $ | 2.30     | 
| |                              |  |           |   |   |          | 
| | Outstanding and exercisable, |  |           |   |   |          | 
| | end of year                  |  | 737,334   |   | $ | 1.33     | 

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.

---

Acrongenomics, Inc. 
  (A Development Stage Company) 
  Notes to the Financial Statements 
  December 31, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 9

|Note 5 | Capital Stock Notes 10, 11 and 12
       (contd)                                                                                                                                                                                                                                                                        
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                            
|       | Commitments (contd)                                                                                                                                                                                                                                                                                                      
|       |                                                                                                                                                                                                                                                                                                                            
|       | Share Purchase Options  (contd)                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                            
|       | As at December 31, 2006, there
        are 400,000 (December 31, 2005: 200,000) 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, 2006:

| | Number          |          |                
| | --------------- | -------- | ---------------
| | Outstanding and | Exercise |                
| | Exercisable     | Price    | Expiry Date    
| |                 |          |                
| | 200,000         | $3.00    | August 31, 2007
| | 200,000         | $2.50    | May 3, 2016    
| |                 |          |                
| | 400,000         |          |                

A summary of changes in the Companys
  stock options for the years ended December 31, 2006 and 2005 is presented below:

| |                                |  | 2006      |  |   | 2005     | 
| | ------------------------------ |  | --------- |  | - | -------- | 
| |                                |  |           |  |   | Weighted | 
| |                                |  |           |  |   | Average  | 
| |                                |  | Number of |  |   | Exercise | 
| |                                |  | Options   |  |   | Price    | 
| |                                |  |           |  |   |          | 
| | Outstanding, beginning of year |  | 200,000   |  | $ | 3.00     | 
| | Granted                        |  | 200,000   |  | $ | 2.50     | 
| |                                |  |           |  |   |          | 
| | Outstanding and exercisable,   |  |           |  |   |          | 
| | end of year                    |  | 400,000   |  | $ | 2.75     | 

During the year ended December 31, 2006,
  stock-based compensation expense of $529,673 (December 31, 2005: $364,000) was
  recorded. The fair value of the compensation expense has been determined using
  the Black-Scholes option pricing model with the following assumptions:

---

Acrongenomics, Inc. 
  (A Development Stage Company) 
  Notes to the Financial Statements 
  December 31, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 10

|Note 5 | Capital Stock Notes 10, 11 and 12
       (contd)
|------ | ---------------------------------------------------
|       |                                                    
|       | Commitments (contd)                              
|       |                                                    
|       | Share Purchase Options  (contd)                  

| |                                                | For the Years Ended
| | ---------------------------------------------- | -------------------
| |                                                | December 31,       
| |                                                | 2006               
| |                                                |                    
| | Weighted average fair value of options granted | $2.65              
| | Expected dividend yield                        | 0.0%               
| | Expected volatility                            | 211.5%             
| | Risk-free interest rate                        | 5.10%              
| | Expected term in years                         | 5.5                

|       | The expected volatility is calculated
        based on the Companys historical share price and the expected term
        in years is calculated based on SAB 107.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Note 6 | Patents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | By a letter of intent dated February
        7, 2004 and an agreement dated May 31, 2004, the Company acquired a patent
        and patent pending application from the president of the Company (appointed
        April 16, 2004) in exchange for 4,000,000 common shares of the Company
        at $1.96 per share (valued at the fair market value of the shares issued).
        In addition, the Company issued 400,000 common shares at $1.96 as a finders
        fee with respect to the patents, which has been included in the capitalized
        cost of the patents. During the year ended December 31, 2005, the Company
        acquired three additional patents totalling $34,379.                                                                                                                        
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | At December 31, 2005, management
        of the Company determined that the patents value exceeded its carrying
        value and wrote the patents down to $1, recognizing an impairment loss
        of $8,004,446.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | By an agreement dated February
        13, 2006, the Company re-acquired 4,000,000 common shares of the Company
        from its former president in exchange for a royalty of 50% over any revenue
        that the Company generates from the eleven patents underlying its molecular
        diagnostic test products for cancer detection and the right to use or
        not use such patents. 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, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page ge 11

|Note 7 | Deferred Tax Assets                                                                                                                                                                                                                                                                                                           
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                               
|       | At December 31, 2006, the Company
        has incurred accumulated non-capital losses in the United States which
        begin to expire in 2020 totalling approximately $8,874,851 and non-capital
        losses in Greece totalling $37,249 which can be carried forward and applied
        against future taxable income.
|       |                                                                                                                                                                                                                                                                                                                               
|       | The following table summarizes
        the significant components of the Companys deferred tax assets:                                                                                                                                                                                                                       

| |                                            |   | 2006       |   |   | 2005       |  
| | ------------------------------------------ | - | ---------- | - | - | ---------- | -
| |                                            |   |            |   |   |            |  
| | Deferred tax assets                        |   |            |   |   |            |  
| | Non-capital losses carryforward            | $ | 3,017,449  |   | $ | 2,354,240  |  
| | Valuation allowance for deferred tax asset |   | (3,017,449 | ) |   | (2,354,240 | )
| |                                            |   |            |   |   |            |  
| |                                            | $ | -          |   | $ | -          |  

|       | 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.
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                               
|Note 8 | Discontinued Operations                                                                                                                                                                                                                                                                                                                                                       
|       |                                                                                                                                                                                                                                                                                                                                                                               
|       | On May 27, 2005, the Company
        disposed of its 99% owned subsidiary, Acrongenomics Hellas S.A for cash
        consideration of $31,096. Income related to the subsidiary has been disclosed
        up to the date of disposal as income from discontinued operations.                                                                                                 
|       |                                                                                                                                                                                                                                                                                                                                                                               
|       | The net loss on disposal was
        determined as follows:                                                                                                                                                                                                                                                                                                                   

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

---

Acrongenomics, Inc. 
  (A Development Stage Company) 
  Notes to the Financial Statements 
  December 31, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 12

|Note 9 | Statement of Cash Flows                                      
|------ | -------------------------------------------------------------
|       |                                                              
|       | Cash flows from discontinued operations are as
      follows:

| |                                                 |   |              |  |   |               |   |   | August 17,    |  
| | ----------------------------------------------- | - | ------------ |  | - | ------------- | - | - | ------------- | -
| |                                                 |   |              |  |   |               |   |   | 1999 (Date of |  
| |                                                 |   | Years Ended  |  |   | Inception) to |  
| |                                                 |   | December 31, |  |   | December 31,  |  
| |                                                 |   | 2006         |  |   | 2005          |   |   | 2006          |  
| |                                                 |   |              |  |   |               |   |   |               |  
| | Cash flows used in operating activities         |   |              |  |   |               |   |   |               |  
| | Loss from discontinued operations               | $ | -            |  | $ | (1,935        | ) | $ | (41,998       | )
| | Items not affecting
      cash:                 |   |              |  |   |               |   |   |               |  
| | Gain on disposal of
      subsidiary            |   | -            |  |   | (5,098        | ) |   | (5,098        | )
| | Amortization                                    |   | -            |  |   | 3,166         |   |   | 7,915         |  
| | Changes in non-cash working capital
      item: |   |              |  |   |               |   |   |               |  
| | Government
      value added tax receivable     |   | -            |  |   | -             |   |   | (8,138        | )
| |                                                 |   |              |  |   |               |   |   |               |  
| | Cash used in operating activities               |   | -            |  |   | (3,867        | ) |   | (47,319       | )
| |                                                 |   |              |  |   |               |   |   |               |  
| | Cash flows used in investing activity           |   |              |  |   |               |   |   |               |  
| | Equipment purchases                             |   | -            |  |   | -             |   |   | (31,660       | )
| |                                                 |   |              |  |   |               |   |   |               |  
| | Cash flows provided by financing activities     |   |              |  |   |               |   |   |               |  
| | Proceeds from disposal
      of subsidiary      |   | -            |  |   | 31,096        |   |   | 31,096        |  
| | Advances from (to) parent company               |   | -            |  |   | (28,865       | ) |   | 47,998        |  
| | Loan receivable                                 |   | -            |  |   | (1,949        | ) |   | -             |  
| | Minority interest                               |   | -            |  |   | (353          | ) |   | -             |  
| |                                                 |   |              |  |   |               |   |   |               |  
| | Cash provided by (used in) financing activities |   | -            |  |   | (71           | ) |   | 79,094        |  
| |                                                 |   |              |  |   |               |   |   |               |  
| | Increase (decrease) in cash from discontinued   |   |              |  |   |               |   |   |               |  
| | operations prior to disposal                    |   | -            |  |   | (3,938        | ) |   | 115           |  
| |                                                 |   |              |  |   |               |   |   |               |  
| | Cash balance of subsidiary on disposal          |   | -            |  |   | (115          | ) |   | (115          | )
| |                                                 |   |              |  |   |               |   |   |               |  
| | Decrease in cash from discontinued operations   |   |              |  |   |               |   |   |               |  
| | during the period                               | $ | -            |  | $ | (4,053        | ) | $ | -             |  

|Note 10 | 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, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 13

|Note 10 | Non-cash Transactions (contd)                                                                                                     
|------- | ------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                     
|        | During the year ended December
        31, 2005, the following transactions were excluded from the statements
        of cash flows:

| | i)   | The Company issued 180,668 common shares pursuant to
        the receipt of proceeds of $426,329 from stock subscriptions received
        during the year ended December 31, 2004.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                    
| | ii)  | The Company transferred $137,040 to additional paid-in
        capital pursuant to the exercise of 420,000 share purchase warrants.                                                
| |      |                                                                                                                                                                                    
| | iii) | The Company issued 100,000 common shares at $4.68 for
        total value of $468,000 in exchange for consulting services.                                                         
| |      |                                                                                                                                                                                    
| | iv)  | The Company issued 81,337 common shares at $4.00 per
        share totalling $325,348 as a private placement commission.                                                           

|        | During the year ended December
        31, 2006, 4,000,000 common shares valued at $7,840,000 were returned to
        treasury.                                                                                                                                                          
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                           
|        | These transactions were excluded
        from the statements of cash flows.                                                                                                                                                                                                               
|        |                                                                                                                                                                                                                                                                                           
|Note 11 | Commitments Notes
        3, 5 and 12                                                                                                                                                                                                                                                    
|        |                                                                                                                                                                                                                                                                                           
|        | By an agreement dated July 1,
        2006, the Company agreed to pay $10,000 per month for management and operational
        services. 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.
|        |                                                                                                                                                                                                                                                                                           
|Note 12 | Subsequent Events                                                                                                                                                                                                                                                                         

| | i) | On February 12, 2007, the Company granted 700,000 common
        share purchase options exercisable at $0.50 per share and expiring on
        February 12, 2007, to directors and consultants of the Company for their
        services. These options vest as follows:
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Shares
      
      Vesting175,000
      
      August 12, 2007175,000
      
      February 12, 2008175,000
      
      August 12, 2008175,000
      
      February 12, 2009700,000


---

Acrongenomics, Inc. 
  (A Development Stage Company) 
  Notes to the Financial Statements 
  December 31, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 14

|Note 12 | Subsequent Events (contd)
|------- | ---------------------------

| | ii)  | On February 12, 2007, the Company 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 the Company
        at $1.00 for a period of one year. The Company also issued 20,000 units
        as a finders fee for this placement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | iii) | By an agreement dated February 13, 2007, the Company
        will collaborate with the vendor to acquire the exclusive rights to commercialize
        certain technology relating to the analysis/diagnostic fields (BioLED
        Technology), contract the vendor to complete the research and development
        necessary to achieve manufacturable prototypes and have first right of
        refusal to fund the development of additional applications of the technology
        by agreeing to pay GBP3,450,000 (US$6,709,615) over 3 years (noted below)
        and grant 2,000,000 share purchase options entitling the holders thereof
        the right to purchase one common share of the Company at $0.50 per share.
        The parties acknowledge that GBP575,000 was paid prior to December 31,
        2006. The options will vest at 25% and become exercisable, both on achievement
        of milestones as set out in the agreement and will be exercisable within
        a period of 5 years from the date of vesting. The estimated dates of the
        milestones are as follows: May 13, 2008, February 13, 2009, August 13,
        2009 and February 13, 2010.
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |      | Payment schedule:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

| | Prior to December 31, 2006 (paid) | GBP | 575,000   |  | US$ | 1,077,780 | 
| | --------------------------------- | --- | --------- |  | --- | --------- | 
| | April,
      2007                 | GBP | 575,000   |  | US$ | 1,126,367 | 
| | October, 2007                     | GBP | 575,000   |  | US$ | 1,126,367 | 
| | April,
      2008                 | GBP | 575,000   |  | US$ | 1,126,367 | 
| | October, 2008                     | GBP | 575,000   |  | US$ | 1,126,367 | 
| | April, 2009                       | GBP | 575,000   |  | US$ | 1,126,367 | 
| |                                   |     |           |  |     |           | 
| |                                   | GBP | 3,450,000 |  | US$ | 6,709,615 | 

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

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

---

Acrongenomics, Inc. 
  (A Development Stage Company) 
  Notes to the Financial Statements 
  December 31, 2006 and 2005 
  (Stated in US Dollars) 
  (Unaudited)  Page 15

|Note 12 | Subsequent Events (contd)
|------- | ---------------------------

| | iv) | On March 5, 2007, the Company 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 the Company at $2.00 for a period of eighteen months.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                          
| | v)  | On March 22, 2007, the Company granted 600,000 common
        share purchase options exercisable at $1.00 per share expiring on March
        22, 2012, to the President of the Company for his services. These options
        vest as follows:                                                                                                                         

| | Shares  |  | Vesting           
| | ------- |  | ------------------
| |         |  |                   
| | 300,000 |  | September 22, 2007
| | 300,000 |  | March 22, ,2008   
| |         |  |                   
| | 600,000 |  |                   

| | vi) | On March 23, 2007, the Company 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 the Company at $1.50 for a period of one year.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Note 13 | Comparative Figures                                                                                                                              
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                  
|        | Certain of the prior years
        comparative figures have been reclassified to conform with the presentation
        used in the current year.

---

19

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

None.

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, 2006, we
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures as of December 31, 2006. 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 our President (Principal Executive
Officer) and our Chief Financial Officer, to allow timely decisions regarding
required disclosure.

During our most recently completed fiscal quarter ended
September 30, 2006 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 AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE
  EXCHANGE ACT.

---

20

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 SinceRonald Lizée
    49
    Chief Financial Officer and a Director
    June 4, 2004Manos Topoglidis
    32
    Chief Technology Officer and a Director
    February 24, 2006Platon Tzouvalis
    41
    Vice President and a Director President
    February 14, 2006 October 5, 2006


Ron Lizee  CFO 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 CFO during
1995 to 1999 and he is the owner and CEO 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 2006 as Chief Technology Officer
to the Board of Directors and Scientific Advisory Board on February 24,. He
received his Bachelors of Science from Kings College (University of London) in
1996, his MSc in Biochemistry from Imperial College London in 1997 and his Ph.D.
in Chemistry (Biosensors and Nanomaterials) from Imperial College London in
2001. His research interests and expertise lie in the areas of Biosensors,
Nanomaterials, Biotechnology and Nanotechnology. He has worked as a research
fellow at the Center of Electronic Materials and Devices of Imperial College
London 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 8 years of research and has presented
his work in 10 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
Acrongenomics, Inc. on February 14th, 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
Acrongenomics' 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.

---

21

Board Meetings and Committees

Our board of directors held no formal meetings during the year
  ended December 31, 2006. 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 National Association of Securities Dealers. 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.

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.

---

22

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, 2006; 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, 2006 and 2005, are set
out in the following summary compensation tables:

Fiscal year ended December 31, 2006

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 ($)
      Total ($)Ronald Lizée 
        Chief Financial 
        Officer and a 
        Director
      2006
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      NilConstantine 
        Poulios(1)
        Former President, 
        Secretary and a 
        Director
      2006
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      NilManos Topoglidis 
        Member of the 
        Scientific Advisory 
        Board and a 
        Director
      2006
      7,500
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      7,500Platon Tzouvalis 
        President and a 
        Director
      2006
      25,200
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      25,500Eleftherios 
        Georgakopolous(2)
        Former President
      2006
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      $20,000
      $20,000


| | (1) | Mr. Poulios resigned as President, Secretary and a
      Director of our company on October 5, 2006.   
| | --- | -------------------------------------------------------------------------------------------------------
| | (2) | Mr. Georgakopolous resigned as a director and officer of
      our company effective February 13, 2006.

---

23

December 31, 2005

SUMMARY COMPENSATION
        TABLEAnnual Compensation
      Long Term Compensation(1)Name and Principal 
        Position
      Year
      Salary
      Bonus
      Other 
        Annual 
        Compen- 
        sation
      Awards
      PayoutsSecurities
        
        Underlying 
        Options/ 
        SARs 
        Granted
      Restricted
        
        Shares or 
        Restricted 
        Share 
        Units
      LTIP 
        Payouts
      All Other 
        Compen- 
        sationW. Scott Lawler(1)
        Former President, Secretary 
        and Treasurer
      2005
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      NilRick Walchuk(1)
        Former CEO and Secretary
      2005
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      NilEleftherios Georgakopolous 
        Former President
      2005
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil


|(1) | Mr. Lawler and Mr. Walchuk resigned as directors and
      officers of our company on August 10, 2004.
|--- | ------------------------------------------------------------------------------------------------------

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 ($)Ronald 
        Lizée 
        Chief 
        Financial 
        Officer and 
        a Director
      100,000
      Nil
      Nil
      2.50
      May 3, 
        2016
      Nil
      Nil
      Nil
      NilConstantine 
        Poulios(1)
        Former 
        President, 
        Secretary 
        and a 
        Director
      100,000
      Nil
      Nil
      2.50
      May 3, 
        2016
      Nil
      Nil
      Nil
      NilManos 
        Topoglidis 
        Member of 
        the 
        Scientific 
        Advisory
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil
      Nil


---

24

Board and a DirectorPlaton Tzouvalis President and a Director
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil


|(1) | Mr. Poulios resigned as our President, Secretary and a
      Director on October 5, 2006.
|--- | -----------------------------------------------------------------------------------------

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, 2006, 2005 and 2004.

Employment Contracts and Termination of Employment and
Change in Control Arrangements

On October 1, 2006 we entered into a six month consulting
agreement with our President and COO. The terms of the contract provide a
monthly payment in the amount of $6,300 per month.

On October 1, 2006 we also entered into a six month consulting
agreement with our COO. The terms of the contract provide a monthly payment in
the amount of $2,500 per month.

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.

We have no plans or arrangements in respect of remuneration
received or that may be received by our executive officers to compensate such
officers in the event of termination of employment (as a result of resignation,
retirement, change of control) or a change of responsibilities following a
change of control, where the value of such compensation exceeds $60,000 per
executive officer.

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 March 30, 2007
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 March 30, 2007. 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.

---

25

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
    100,000
    0.006%Manos Topoglidis PANAGI TSALDARI 5, MAROUSSI
      ATHENS, GREECE J315122
    0
    0%Platon Tzouvalis 4 ISMINIS ST. CHALANDRI, Greece
      J315232
    6300
    0.001%Directors and Executive Officers as a Group
    106,300
    0.006%


(1) ****Based on
14,592,366 shares of common stock issued and outstanding as of March 30, 2007.
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.

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 2005, a total of $34,975 in fees was
billed to the Company by Lizée Gauthier, Certified General Accountants, of which
the Companys CFO, Mr. Lizée, is the proprietor, for accounting work provided to
the Company by Mr. Lizée. During fiscal year 2006, a total of $42,726 in fees
were paid by the Company to Lizée Gauthier for accounting work provided to the
Company by Mr. Lizée.

In early 2004, we entered into an arrangement with Euro Genet
Labs, a Greek corporation, whereby Euro Genet Labs would provide us with lab
services, including the conducting of testing of blood samples to test our
proprietary technology and to assist in the development of such technology. A
formal, written agreement regarding these services was signed May 31, 2004
between us and Euro Genet Labs. Pursuant to this arrangement, during fiscal year
2005, we paid to Euro Genet Labs a total of $4,136,000 and an additional
$141,289 were owed to Euro Genet as of December 31, 2005. During fiscal year
2006, we paid to Euro Genet Labs a total of $200,000. Ms. Stratakis is the wife
of our former president, Dr. Eleftherios Georgakopoulos, and is also a minority
shareholder and a director of Euro Genet Labs.

---

26

During 2005 and a portion of 2006, the Company paid $24,000 for
2005 and $12,000 for 2006 for space consisting of approximately 1200 square
feet, located at 38A Posidonos Avenue 17455 Alimos, Athens, Greece, for some
marketing support and research supervision functions. This space, along with
reception, photocopy and facsimile transmission services, was rented from
EuroGenet Labs, Inc., a related party, at $2,000 per month. As at June 30, 2006
this arrangement has terminated.

During 2005, we incurred $3,760 in consulting fees to Michalis
Soursos, a shareholder of our company and President of Eurogenet Labs and paid
$3,760 of such amount in 2005.

On May 5, 2004, we issued 4 million restricted shares of our
common stock to Dr. Eleftherios Georgakopoulos, a director at the time of
issuance of the common stock, in consideration of his transfer of two (2) Greek
patents and four (4) Greek patent applications, intellectual property and
associated know-how to our company. These patents related to a proprietary
technological product for the detection of epithelial cancer, referred to as the
EP-CAM Detection Kit. Since the time that this acquisition was announced, the
Ep-Cam Detection Kit has undergone certain improvements and enhancements and was
later referred to as the Neo Ep-Cam Detection Kit. We then finalized the
acquisition of the intellectual property related to the Neo Ep-Cam Detection
Kit, for which it issued 4 million shares of common stock to Dr. Georgakopoulos.
As a result of the acquisition, the Company now owns the rights to the following
two (2) Greek patents and four (4) Greek patent applications. Note as of
February 14, 2006, we no longer hold these patents and patent applications.

During the fiscal year ended 2006 the company paid $25,200 to
our president, Platon Tzouvalis and $7,500 to our Chief Operating Officer Manos
Topoglidis.

Corporate Governance

We currently act with 3 directors, consisting of Ronald Lizée,
Manos Topoglidis and Platon Tzouvalis.

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).                                                                                 
|      |                                                                                                                                                                                                                              
|(10)  | Material
        Contracts                                                                                                                                                                                                   
|      |                                                                                                                                                                                                                              
|10.1  | Agreement for
        the Sale of Stock between our company and Dr. Leftheris Georgakopoulos
        dated February 13, 2006 (incorporated by reference from our current report
        on Form 8-K filed February 16, 2006).
|      |                                                                                                                                                                                                                              
|10.2  | Development
        Agreement between our company and Molecular Vision Limited.                                                                                                                                              
|      |                                                                                                                                                                                                                              
|(31)  | Section 302
        Certification                                                                                                                                                                                            
|      |                                                                                                                                                                                                                              
|31.1* | Rule
        13a-14(a) Certification of Principal Executive Officer.                                                                                                                                                         
|      |                                                                                                                                                                                                                              
|31.2* | Rule
        13a-14(a) Certification of Principal Financial Officer and Principal Accounting
        Officer.                                                                                                                

---

27

|(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 Amasano 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, 2006 and 2005
were $55,459 and $62,252 respectively.

Tax Fees

The company did not pay for any tax fees during the fiscal year
ended 2006 and 2005.

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. 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, 2005, and
believes that the provision of services for activities unrelated to the audit is
compatible with maintaining auditor independence.

---

28

SIGNATURES

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

ACRONGENOMICS, INC.

|By: | /s/ Platon Tzouvalis                                                
|--- | --------------------------------------------------------------------
|    | Platon Tzouvalis, President and
      Director                      
|    | (Principal Executive Officer)                                       
|    | Date: March 30, 2007                                                
|    |                                                                     
|By: | /s/ Ron Lizée                                                       
|    | Ron Lizée, Chief Financial
      Officer, Secretary and Director    
|    | (Principal Financial Officer and
      Principal Accounting Officer)
|    | Date: March 30, 2007                                                

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

|By: | /s/ Platon Tzouvalis                                                
|--- | --------------------------------------------------------------------
|    | Platon Tzouvalis, President and
      Director                      
|    | (Principal Executive Officer)                                       
|    | Date: March 30, 2007                                                
|    |                                                                     
|By: | /s/ Ron Lizée                                                       
|    | Ron Lizée, Chief Financial
      Officer, Secretary and Director    
|    | (Principal Financial Officer and
      Principal Accounting Officer)
|    | Date: March 30, 2007                                                

---