Forward-Looking Statements

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

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

In this quarterly report, unless otherwise specified, all references to "common shares" refer to the common shares of our capital stock.

As used in this quarterly report, the terms "we", "us", "our", and "Acrongenomics" refer to Acrongenomics, Inc., unless otherwise indicated.

Overview

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

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

Over the next 12 months we will continue to work with Molecular Vision Limited to develop the prototype Point-of-Care testing device for diabetes management and cardiovascular testing. Presently we are working with Molecular Vision Limited and Pearson Matthews, a specialist design development company, and expect by the end of 2008 or early 2009 we will fabricate our final prototype Point-of-Care device which will be used for the detection of albumin and creatinine in urine (in order to perform multiple testing on the device), as well as the detection of myoglobin (cardiac marker) first in solution and then in whole blood. When we are ready to begin regulatory activities, we may begin the process by determining exactly what we need to do and who we need to contact, for submitting all relevant files to the Food and Drug Administration for approval.

We have incurred operating losses since inception, have not generated any revenues, and have not achieved profitable operations. Our deficit accumulated during the development stage through June 30, 2008 aggregated $25,107,186. We have incurred net losses as a result of our operation expenses, including research and development expenses 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 12 months will be approximately $1,920,000, generally falling in two major categories: $2,000,000 in research and development expenses and $1,620,000 in general and administrative expenses.

Liquidity and Capital Resources

                                    June 30, 2008     December 31, 2007     Change
Current Assets                    $       161,149   $           365,975     204,826
Current Liabilities               $     1,343,390   $         1,614,170     270,780
Working Capital Surplus (Deficit) $    (1,182,241 ) $        (1,248,195 )    65,954

We had cash on hand of $56,553 as at June 30, 2008, compared with $343,695 as at December 31, 2007. We had a working capital deficit of $1,182,241 at June 30, 2008, compared to a working capital deficit of $1,248,195 as at December 31, 2007..

We do not currently have sufficient amount of cash to satisfy our cash requirements for the next 12 months. We expect to seek additional funds through equity or debt financing, collaborative or other arrangements with corporate partners, and from other sources. We may not be able to obtain any additional financing on terms acceptable to us, if at all, or we may not raise as much as we need. If adequate additional funds are not available when required, we will have to delay, scale-back or eliminate some of our research or development activities or some other aspects of our operations and our business will be materially and adversely affected. If we raise additional funds through the sale of our equity securities, existing shareholders will experience a dilution of their interest in our company. Obtaining commercial loans or related party loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

Results of Operations

Revenue

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.

Expenses

We incurred operating expenses in the amount of $93,147 for the quarter ended
June 30, 2008, compared with expenses of $806,168 the same period from the
previous year.

We incurred the following operating expenses for the three month periods ended
June 30, 2008:

                                         Three
                      Three Months      Months       Six Months     Six Months
                         Ended           Ended         Ended          Ended
           Expenses    June 2008       June 2007     June 2008      June 2007
Accounting and      $                $             $              $
audit fees                  40,720        19,898        107,289         57,703
Bank charges                   630         1,047          2,418          1,450
Consulting fees            165,145        49,500        331,100         96,900
Legal fees                   6,123         7,480         35,209         16,811
Management fees           (150,249 )     121,677        274,746        176,001
Office and
miscellaneous                2,075         3,358          3,964          8,139
Rent                        15,280             -         27,883              -
Research and
development                      -       598,645        648,407        598,645
Transfer agent and
filing fees                  1,775         2,075          3,359          2,078
Travel                      11,648         2,485         62,446          6,583
                    $       93,147   $   806,168   $  1,503,923   $    964,310

Accounting and audit fees increased by $20,822 for the three month period ended June 30.

Consulting fees increased by $115,645 for the three month period ended June 30.

Legal fees decreased by $1,357 for the three month period ended June 30.

Management fees decreased by $271,926 for the three month period ended June 30, and was primarily attributable to cancellation of potential management bonus, since targets would not be attained.

Research and development fees decreased by $598,645 for the three month period ended June 30, and was due to no activity in this area.

For the next 12 months, we estimate that our research and development expenses will be approximately $300,000.

General and Administrative Expenses

For the next 12 months, we estimate that our general and administrative expenses will be approximately $1,620,000. These expenses will include approximately $1,020,000 on consulting, stock-based compensation and investor relations, approximately $360,000 on office supplies, office rent, travel and accommodations and $240,000 on professional fees, which consist primarily of accounting, auditing fees for the year-end audit and legal fees for securities advices, directors liability insurance and cost of fundraising.

We do not expect to generate any revenues in the next 12 months. Our future products will likely not be ready for sale for at least one year, if at all.

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.