UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K

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

              For the Fiscal Year Ended: September 30, 1996

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

              For the Transition Period From ____ to ____
              
                  ---------------------------------------------

                        Commission File Number: 2-95626-D


                               SIONIX CORPORATION
              ---------------------------------------------------
             (Exact name of Registrant as specified in its charter)


              UTAH                                            87-0428526
      -----------------------------                    ----------------------
     (State or other jurisdiction of                   (I.R.S. Employer
     Incorporation or organization)                    Identification No.)

     5405 Morehouse Drive, Suite 200, San Diego, California            92121
     ------------------------------------------------------          --------- 
     (Address of principal executive offices)                        (Zip Code)

     Registrant's telephone number, including area code:         (619) 622-0200

     Securities Registrant pursuant to Section 12(b) of the Act:   None

     Securities registered pursuant to Section 12(g) of the Act:   None

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
1934 during the preceding 12 months (or shorter  period that the  registrant was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes [X]  No [ ]

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part II of this Form 10-K or any amendments to this
Form 10-K.

     The aggregate market value of the voting stock held by nonaffiliates of the
registrant, based upon the closing price on September 30, 1996 was approximately
$12,800,000. [ ]

     The number of shares  outstanding  of the  registrant's  common stock as of
September 30, 1996 was 23,599,696. 


<PAGE>

                               SIONIX CORPORATION

                                    FORM 10-K

                  For The Fiscal Year Ended September 30, 1995

                                      INDEX

                                                                          Page
                                     PART I

Item 1. Business ........................................................  1

Item 2. Properties ......................................................  4

Item 3. Legal Proceedings ...............................................  4 

Item 4. Submission of Matters to a Vote of Security Holders .............  4 


                                     PART II

Item 5. Market for the Registrant's  Common Equity and Related  
        Stockholder Matters .............................................. 5

Item 6. Selected Financial Data .......................................... 5

Item 7.  Management  Discussion  and  Analysis of Financial Condition and
         Results of Operations ........................................... 5

Item 8. Financial Statements and Supplementary Data ...................... 6

Item 9. Disagreements on Accounting and Financial Disclosures ............ 6

                                    PART III

Item 10. Directors and Executive Officers of the Registrant .............. 22

Item 11. Executive Compensation .......................................... 23

Item 12. Security Ownership of Certain Beneficial Owners and Management .. 24

Item 13. Certain Relationships and Related Transactions .................. 24

                                     PART IV

Item 14. Exhibits, Financial Statements,  Schedules and Reports 
         on Form 8-K ..................................................... 25


Signatures ..............................................................  26

                                       i

<PAGE>
                                     PART I

Item 1. THE BUSINESS

General

     Sionix  Corporation,  formerly  Coronado Capital  Corporation  (hereinafter
referred to as "Sionix" or the "Company") was incorporated under the laws of the
State of Utah on January 15, 1985, as a "blind pool", with no specific business,
for the  purpose of raising  capital to  purchase  various  business  endeavors.
Coronado  Capital  held a  public  offering  of stock in  August  1985.  The net
proceeds were invested  into what became a number of  unsuccessful  ventures and
Coronado Capital became relatively  inactive by 1988. In February 1994, Coronado
Capital  merged with Alimet,  Inc.,  a Delaware  corporation.  Alimet,  Inc. was
researching and manufacturing  aluminum-based  metal matrix composite alloys for
the use in non-aerospace applications. By late 1994, Coronado Capital determined
that the  financial  requirement  to produce and market these new metals was far
beyond Coronado  Capital's means and Coronado Capital took a one time charge for
research and manufacturing costs.

     During fiscal 1995, the Company  entered into an Acquisition  Agreement and
Plan of Reverse Merger with Automatic Control Corporation,  a Nevada Corporation
("ACC"),  under which ACC would merge with and into the Company (the  "Merger").
On December 28, 1995, the merger was approved by the shareholders of the Company
and the merger was  consummated  and effective as of January 5, 1996.  The newly
merged  company  was  renamed  Sionix  Corporation  at a special  meeting of the
shareholders held on January 23, 1996.

     The Company  has  designed,  patented,  manufactures  and markets  computer
software and hardware for automation and  optimization  of water  monitoring and
filtration for public water treatment facilities and industrial processes.

     The Company's  executive  offices and principal  operations  are located at
5405 Morehouse Drive,  Suite 200, San Diego,  California 92121 and its telephone
number is (619) 622-0200.

Products

     The Company's  principal  product  categories are: 

     1.  Software  programs to simplify  many common  office tasks unique to the
water treatment industry.

     2. A Supervisory  Control and Data Acquisition  ("SCADA")  hardware package
with computer  driven  controllers  that  automate any  mechanical or electrical
plant  operation  with  redundant  fail-safe  computer  hardware  networked with
intelligent  PLC's  (programmable  logic  controls) and RTU's  (remote  terminal
units), and

     3. A multi-patented modular and portable filtration systems technology that
meets all United States Environmental  Protection Agency (USEPA) regulations for
the treatment of surface water and secondary waste water.

     Sionix5 Office Automation and Training Program

     The user friendly software program,  contains an extensive library of state
and federal clean water laws and acts, a plant  operator  training  program,  an
automatic  health  department  report  compiler,   and  a  Safety,   Health  and
Environmental   Affairs  ("SHEA")   compliance  program.  It  can  be  purchased
separately  and  installed on a 486 IBM  compatible  computer with the Microsoft
Windows 95 or Windows NT operating system. The Company's Sionix5 CD-ROM includes
EPA rules and regulations,  material data safety sheets, write-ups on the latest
treatment  processes,  maintenance 

                                     Page 1

<PAGE>

manuals for water-treatment  systems, and a Glossary of essential (but sometimes
unfamiliar) water-industry terms and expressions.

     The Sionix5 Reference Library features Microsoft's user-friendly format for
online Help. Users are offered three different paths into the Library: Contents,
Index and Find. Each path uses a different approach to answer any questions that
an operator has in mind.

     Sionix5  includes  the first  Instant  Safety  Program  for  utilities  and
businesses.  It covers  all  basic  features  in any  commercial  or  industrial
workplace. Its Safety Audit identifies applicable sections of safety, health and
environmental affairs law that operators must observe.

     Sionix SCADA System and Sionix5 SCADA Manager

     The Company packages its affordable Sionix SCADA Manager software with OPTO
22 equipment,  which was  developed by industry  leaders over the past 25 years.
This rugged SCADA equipment is frequently  specified by leading industrial plant
design  engineers  nationwide.  An important  feature in all Sionix SCADA system
designs is redundancy, in this case, a second computer network processor server,
as a backup.  Easy-to-install  Sionix RTU's  reduce  on-site  labor costs.  They
feature  convenient  plug-in  connectors for easy  top-mounted  field wiring and
access to standard fuses. Quick and easy installation modules "snap" securely on
racks. No screws are required. For any control application, flexible RTU's, with
single distributed I/O drivers,  analyze all data received from analog,  digital
or mixed I/O driver modules.

     The Company's  in-line  wet-chemistry  modules monitor  temperature,  total
dissolved solids (TDS), pH, and oxidation reduction potential (ORP, or Redox) in
one  compact  sensor  array.  Most  manufacturers  ordinary  inline  sensors are
installed separately. ORP monitors provide a vital early warning if source water
quality suddenly changes. Particle counters, chlorine or turbidity monitors, and
other inline sensors can be added to the network at any time. The compact Sionix
sensor array can be opened,  cleaned and calibrated in minutes.  Inexpensive ORP
sensors, which should be replaced every six months, can be changed in minutes. A
combined  standard testing fluid calibrates all sensors in the array at the same
time.

     The Sionix  SCADA  Manager  efficiently  monitors  and controls a number of
water quality parameters. It is designed with a flexible, open architecture that
is  easily  expandable.  A  monitoring  station  may be  linked  to a number  of
programmable  logic  controllers  (PLC's) or remote terminal units (RTUs),  each
consisting  of multiple  inputs or outputs.  The  program's  consolidated  strip
charts  display a wide variety of water quality  parameters.  This is a powerful
tool that  helps  management  meet  present  and  future  requirements  in water
monitoring and process  control.  This real-time,  multitasking  control program
allows an operator to run 30 charts simultaneously. Logical instructions contain
plain English  commands and mathematical  functions.  A strategy Tree provides a
graphical  view of the entire  SCADA  network.  Users  simply point and click to
display  any item of  interest.  This  advanced  software  and  state-of-the-art
automation   equipment  operates  in  Microsoft's  Windows  NT  and  Windows  95
environments.  The  entire  system  is  virtually  self-documenting  and  easily
expandable.  When  combined  with the report  compiler of the  Sionix5  software
package,  all data flow from the SCADA  system is stored to create most  monthly
health department reports automatically.

     Sionix Filtration Modules

     The Company has received  five U.S.  patents on it  filtration  technology.
Each patented Sionix  Filtration Module includes a dissolved air flotation (DAF)
particle separator with corona-discharge  ozone generator,  a double-helix ozone
mixing chamber,  two 2-micron filter elements able to remove  chlorine-resistant
microbacteria,  and the Sionix SCADA Manager software  program.  The DAF buoyant
particle separators use microscopic air bubbles to remove suspended particles in
the

                                     Page 2
<PAGE>

water. A vertical vortex column of spinning water forms a high-pressure  zone at
the outer  perimeter,  and a  low-pressure  vortex of trapped air in its center.
Algae,  oils and other  buoyant  particles  are  pushed by the  microscopic  air
bubbles into the center.  The  contaminants are held there by surface tension at
the vortex's air-water interface and slowly discharged along with excess air and
water to the waste line. The Company's DAF process uses no polymer  chemicals or
toxic metals.  Wastewater can be safely returned to a lake,  river, or reservoir
without damaging the environment.  DAF particle separators substantially improve
filter  efficiency.  This  chemical-free  process  also extends the time between
filter cleaning cycles.

     The  Company's  two  2-micron   filter  elements  more   effectively   stop
Cryptosporidium oocyst parasites.  Automatic cleaning cycles use less water than
conventional  sand filters.  Woven  stainless steel filter media produce minimum
differential  pressure  drops,  and are cleaned when the  differential  pressure
increases 3 psi. Lower operating pressures require less energy.

     Each basic  module  filters 200 GPM, or 288,000  gallons per day, to supply
all the drinking and potable water  requirements  for 2,400  people.  Additional
Sionix Filtration Modules can be added to supply larger communities.  Additional
filtration  modules or remote Sionix SCADA  terminal units can be installed as a
complete package system,  or in easily affordable stages over an extended period
of time. The Company's low cost leasing  program  enables public water districts
to  acquire  more  efficient,  cost-effective  equipment,  and  actually  reduce
operating costs.

Availability of Materials

     Materials and components use by the Company for manufacturing are carefully
selected based on stringent  specifications for usage and operating  conditions.
Every effort is made to specify  parts from  multiple  sources for  independence
from  manufactures and  distributors.  The Company has avoided using hard-to-get
special parts to further minimize dependency from vendors.  Simplicity in design
and the use of common,  widely  used and  readily  available  components  in the
electronic industry is emphasized.

Marketing and Customers

     Internationally,   the   total   replacement   value   of   the   municipal
filtration-equipment  market  in  24  of  the  largest  countries  exceeds  $5.6
trillion.  Domestically,  the  immediate  market  exceeds  $20  billion  by  EPA
estimate.

     The  drinking and waste water  markets can be divided into six  categories:
municipal water  delivery;  municipal  waste  effluent,  industrial  in-process;
industrial   waste  effluent;   landfill  waste   leachate;   and  ground  water
remediation.  The  Company  is  initially  targeting  the  first  four,  as they
represent  the largest  immediate  markets.  Public  water  districts  providing
drinking  water or sewage  treatment  services are  potential  customers for the
Company, along with commercial and industrial clients that create and dispose of
contaminated  wastewater.  An established  base of 185,000 small municipal water
providers  are an ideal target  market  group for the  company's  equipment  and
services.  This is clearly the group with the  greatest  need:  most of them now
operate   outdated,   inefficient   and   expensive   systems.   Many  of  these
municipalities are in violation of current laws.

     EPA reports list over 50,000 American cities  currently in violation of the
Safe Drinking Water Act. Sweeping  regulation is underway that will dramatically
increase that number as new rules come into effect and more  communities  expand
testing for exotic  chemicals.  Municipalities  primary  barrier to upgrading is
cost.  Small rural water  districts  cannot afford newer  technology  capable of
meeting the new Safe Drinking Water Act standards.

     The company's new patented filtration  technology  dramatically reduces the
cost of water produced.  The systems most commonly used by municipalities,  slow
sand filters or sand-anthracite

                                     Page 3
<PAGE>

filter  beds,  are more  expensive  to  build,  and are  unable  to meet new EPA
standards  without massive amounts of expensive  chemical filter aids.  Membrane
filter systems able to meet EPA standards are twice as expensive. In comparison,
the  Company's  200-GPM  system,  which  includes  automatic  self-cleaning,   a
wet-chemistry  monitoring  system and ozone  treatment,  costs half the price of
these inefficient, slow sand filters.

     A 1995  World  Bank  report  prepared  for an  international  symposium  in
Stockholm  expects "world  expenditures  of $600 billion over the next decade to
augment  water  reserves  as demand  spurred  by  urbanization  and  agriculture
outstrips available supplies." The municipal water treatment industry has a long
history of sustained growth and fiscal responsibility.  The Company has released
it's Sionix5 Office Automation and Training Program software in October 1996 and
plans to begin  marketing  the Sionix  SCADA  System and Sionix5  SCADA  Manager
before the end of the year. The Sionix Filtration Module is schedule for release
in the first quarter of 1997. Management is also currently establishing U.S. and
international  distributors  to maximize  market share and insure rapid  Company
growth during this window of opportunity.

Employees

     At September 30, 1996 the Registrant had 12 full time employees.

ITEM 2. PROPERTIES

     At September 30, 1996 the Registrant  did not own property.  The Registrant
leases  approximately  7,949 square feet of office  facilities in San Diego at a
monthly rent of $8,505.

ITEM 3. LEGAL PROCEEDINGS

     The Company is a defendant in a lawsuit in San Diego County  Superior Court
filed by ex-employee and the interim president, Michael Maung. Mr. Maung alleges
that the Company  breached his employment  contract and personally  defamed him.
The Company  has filed its cross  claims and  intends to  vigorously  defend the
lawsuit.  The ultimate outcome of the case is uncertain but management  believes
an unfavorable outcome is unlikely.

     With the  exception of the  above-referenced  matter,  the Company is not a
party to any material  legal  proceedings,  nor to the  Company's  knowledge are
there any other material legal proceedings contemplated against it.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     During the first and final  quarter of fiscal 1996,  there were two matters
submitted to a vote of the security  holders of the registrant.  The first was a
special meeting of the shareholders held on January 23, 1996, for the purpose of
changing the name of the  registrant  from Sionix  Corporation  and to amend the
Articles  of  Incorporation  to provide  that  action by written  consent of its
shareholders may be taken without a meeting in accordance with Section 1-10a-704
of the Utah Revised  Business  Corporation Act. Both proposals were approved and
adopted.

     The second  matter was the action by written  consent of a majority  of the
shareholders  taken on September 16, 1996, wherein Section 2.4 of the By-laws of
the registrant was amended to provide that a special meeting of the shareholders
may be called by the  president of the  corporation,  a majority of the board of
directors or by the written  request of  shareholders  holding at least ten (10)
percent of all votes  entitled  to be cast on such issue to be  proposed at such
special meeting.

                                     Page 4

<PAGE>

                                     PART II

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS

Market for Common Stock

     The Company's  common stock is listed and traded on the NASDAQ OTC Bulletin
Board under the symbol SINX. There has been relatively  limited trading activity
in the Company's stock since inception.  The following table represents the high
and low sales prices for the  Company's  common stock for each quarter of fiscal
1996.

<TABLE>
<CAPTION>

     Fiscal 1996              Asked          Bid
     ---------------          ------         -------       
     <S>                      <C>            <C>  
     First Quarter            $ 2.00         $ 2.00
     Second Quarter           $ 1.50         $ 1.25
     Third Quarter            $ 1.12         $ 1.06

</TABLE>

Holders of Record

     There were  approximately  500  holders of record of the  Company's  common
stock as of September 30, 1996.

Dividends

     The Company has never  declared or paid any cash  dividend on its shares of
common stock.  Future  dividends,  if any, will vary  depending on the Company's
profitability and anticipated capital requirements.

ITEM 6. SELECTED FINANCIAL DATA

                              Financial Highlights

<TABLE>
<CAPTION>

                                Year Ended December 31 (September 30 for 1996)
                                ----------------------------------------------           
                                  1994             1995              1996
                                --------         -------            ------
<S>                             <C>              <C>                <C>
Net Revenues ...............     $    -           $   -             $   -
Net Income .................     (1,521)         (914,279)         (922,717)
Earnings per share .........          -             (0.05)            (0.04)
Return on net revenues......          -               -                  -
Cash and short-term investments       -           229,407             36,041
Total assets................      1,521         1,602,593          1,404,340
Stockholders' equity........          -         1,468,903          1,136,000

</TABLE>

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS

Liquidity and Capital Resources

     The Company's  balance sheet as of September 30, 1996  continues to reflect
negative  working  capital.  This was due to a delay in the  release of the beta
version of the Sionix5  Office  Automation  and Training  Program  until October
1996. The Company received  financial support by way of a private placement that
raised  approximately  $519,500  since May,  1996.  Included  in this  amount is
$142,500 from the Company's top management." These funds allowed the

                                     Page 5
<PAGE>

Company to create its initial  inventory  of product for sale and to ramp up its
marketing department.

Results of Operations

     The Board of  Directors  approved  a change in the  fiscal  year end of the
Company from December 31 to September 30, effective with the current quarter, on
September  27, 1996.  For the quarter  ended  September  30, 1996 the Company is
reporting a loss of $287,000,  or $0.01 per share.  This compares with a loss of
$283,000,  or $0.01 for the previous  quarter  ended June 30, 1996 and a loss of
$352,000,  or $0.02 per share,  for the quarter ended September 30, 1995.  There
were no revenues reported for the quarter ended September 30, 1996.

     For the short year ended September 30, 1996 the Company is reporting a loss
of $923,000, or $0.04 per share. This compares with a loss of $516,000, or $0.02
per share for the nine months ended September 30, 1995.


ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                          Index to Financial Statements
                                                                          Page
                                                                          ----
Balance Sheets - September 30, 1996 ...................................      7
Statement of Operations................................................      9
Statement of Stockholders' Equity......................................     10
Statement of Cash Flows - periods ended September 30, 1996.............     12
Notes to Financial Statements for Period...............................     14
Independent Auditor's Report ..........................................     21

     All other  schedules are not submitted  because they are not  applicable or
not required or because the information is included in the financial  statements
or notes thereto.

ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

     None.

                                     Page 6

<PAGE>


                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)

                                  Balance Sheet

<TABLE>
<CAPTION>

                                     ASSETS

                                                               September 30,
                                                                   1996
                                                               -------------  
<S>                                                            <C>  
CURRENT ASSETS

  Cash in banks                                                   $   36,041
  Inventory (Note 2)                                                  40,333
  Prepaid expenses                                                     2,981
                                                                ------------ 
    Total Current Assets                                              79,355

PROPERTY AND EQUIPMENT - NET (Notes 2 and 3)                         107,367
                                                                ------------

OTHER ASSETS

  Intangibles - net (Notes 2 and 4)                                1,210,622
  Deposits                                                             6,996
                                                                ------------ 
    Total Other Assets                                             1,217,618
                                                                ------------ 

TOTAL ASSETS                                                    $  1,404,340
                                                                =============

</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                     Page 7
<PAGE>


                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)

                            Balance Sheet (Continued)


                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>

                                                               September 30,
                                                                   1996
                                                               -------------  
<S>                                                            <C>  
CURRENT LIABILITIES

  Loan payable (Note 5)                                           $  50,000
  Lease payable, current portion (Note 6)                             7,847
  Accrued  expenses                                                 112,272
                                                               -------------  

     Total Current Liabilities                                      170,119
                                                               -------------  
LONG-TERM DEBTS

  Lease payable (Note 6)                                             16,021
  Related party payables (Note7)                                     72,200
  Convertible debenture (Note 8)                                     10,000
                                                               -------------

     Total Long-Term Debts                                           98,221
                                                               -------------

          Total Liabilities                                         268,340
                                                               -------------  
COMMITMENTS AND CONTINGENCIES (Notes 6 and 12)                           -
                                                               -------------

STOCKHOLDERS' EQUITY

  Common stock $.001 par value,
   100,000,000 shares authorized,
   23,599,696 shares issued and outstanding                          23,600
  Additional paid-in capital                                      5,282,717
  Deficit accumulated during the development stage               (1,838,517)
  Subscription receivable (Note 10)                              (2,331,800)
                                                               -------------- 

    Total Stockholders' Equity                                    1,136,000
                                                               --------------  

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                  $ 1,404,340
                                                               ==============

</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                     Page 8

<PAGE>

                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)

                            Statements of Operations

<TABLE>
<CAPTION>

                                                                 From
                                                                 Inception on
                              For the Nine      For the          October 3 ,
                              Months Ended      Year Ended       1994 Through
                              September 30,     December 31,     September 30,
                              1996              1995             1996
                              -------------     ------------     -------------
<S>                           <C>               <C>              <C>  
REVENUE                       $         -       $         -      $          -
                              -------------     ------------     -------------

EXPENSES

Research and development            328,174          515,478          843,652
Depreciation and amortization        82,551           77,405          159,956
Administrative and marketing        501,480          303,762          806,763
                              -------------     ------------     -------------

     Total Expenses                 912,205          896,645        1,810,371
                              -------------     ------------     -------------

(LOSS) FROM OPERATIONS             (912,205)        (896,645)      (1,810,371)
                              -------------     ------------     -------------

OTHER INCOME (EXPENSE)

    Interest                        (10,512)         (17,634)         (28,146)
 

   Total Other Income (Expense)     (10,512)         (17,634)         (28,146)
                              -------------     ------------     -------------                  

NET LOSS                      $    (922,717)    $   (914,279)     $ (1,838,517)
                              =============     =============    ==============

NET LOSS PER SHARE            $      (0.04)     $      (0.05)
                              ==============    ============= 

</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                     Page 9
<PAGE>


                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)

                       Statements of Stockholders' Equity
          From Inception on October 3, 1994 through September 30, 1996

<TABLE>
<CAPTION>

                                        Additional
                   Common      Stock      Paid-In     Accumulated  Subscription
                   Shares      Amount     Capital       Deficit      Receivable
                   --------    -------    --------     ----------   -----------
<S>                <C>         <C>        <C>          <C>          <C> 

Balance
October 3, 1994          -     $    -     $   -        $     -       $      -      
Shares issued to initial
stockholders in October
 1994 at $0.01 
per share           10,000         10        90              -              -

Net loss from October 3,
1994 through December 
31, 1994                 -          -         -          (1,521)            -
                   --------     -------    --------     ---------    ----------

Balance
December 31, 1994    10,000        10        90          (1,521)            -

Issuance of Common
stock for assignment
of rights recorded at
predecessor cost 
at $0.00 
per share         1,990,000      1,990     (1,990)           -              -

Issuance of Common
stock for services
at $0.25 
per share           572,473        572    135,046            -              -

Issuance of Common
stock for debt
at $0.25 
per share           188,561        188     47,347            -              -

Issuance of Common
stock for debt
at $0.50 
per share           595,860        596    297,334            -              -

Issuance of Common
stock for debt
at $2.00 
per share            98,194         98    196,290            -              -

Issuance of Common
stock for debt
at $4.00 
per share           156,025        156    623,944            -              -
                   --------     -------   --------     ---------    ----------

Balance Forward   3,611,113      3,610   1,298,061        (1,521)            -
                  ---------     -------  ---------     ---------    ----------

</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                    Page 10

<PAGE>


                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)

                 Statements of Stockholders' Equity (Continued)
          From Inception on October 3, 1994 through September 30, 1996

<TABLE>
<CAPTION>

                                        Additional
                   Common      Stock      Paid-In     Accumulated  Subscription
                   Shares      Amount     Capital       Deficit      Receivable
                   --------    -------    --------     ----------   -----------
<S>                <C>         <C>        <C>          <C>          <C> 

Balance Forward   3,611,113      3,610   1,298,061        (1,521)           -
                  ---------     -------  ---------     ---------    ----------
                                 
Issuance of Common
stock for cash at 
$4.00 per share     138,040        138     552,022            -             -

Issuance of Common
stock for subscription
note receivable at
$4.00 per share     414,200        414   1,652,658            -     (1,656,800)

Issuance of Common
stock for future
production costs 
at $6.00 
per share           112,500        113     647,887            -       (676,000)

Issuance of Common
stock for cash 
at $6.00 
per share            94,517         95     567,005            -             -

Net loss for 
the year ended 
December 31, 1995         -          -          -        (914,279)          -
                   ---------     -------  ---------     ---------    ----------
                                  
Balance December 
31, 1995           4,370,370      4,370   4,744,633      (915,800)  (2,331,800)

Issuance of Common
stock in 
reorganization    18,632,612     18,633    (58,033)            -            -

Issuance of Common
stock for cash 
at $1.00 
per share            572,407        573     571,834            -            -

Issuance of Common
stock for service 
at $1.00
per share            524,307         24      24,283            -            -

Net loss for the 
nine months ended
September 
30, 1996                  -           -          -       (922,717)          -
                   ---------     -------  ---------     ---------    ----------

Balance September 
30, 1996          23,599,696     $23,600  $5,282,717   $(1,838,517) $(2,331,800)
                  ==========     =======  ==========    ==========   ==========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                    Page 11

<PAGE>

                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)

                            Statements of Cash Flows
<TABLE>
<CAPTION>


                                                                 From
                                                                 Inception on
                              For the Nine      For the          October 3 ,
                              Months Ended      Year Ended       1994 Through
                              September 30,     December 31,     September 30,
                              1996              1995             1996
                              -------------     ------------     -------------
<S>                           <C>               <C>              <C>  
                                                           
CASH FLOWS FROM
OPERATING ACTIVITIES

Net loss                       $  (922,717)     $ (914,279)       $ (1,838,517)

Adjustment to Reconcile Net 
Loss to Net Cash Used 
by Operating Activities
  Depreciation and 
  amortization                      82,551          77,405             159,956

  Common stock issued for
  services                           24,307        135,618             159,925 
  Change in Assets and Liabilities
  (Increase) decrease in inventory  (40,333)            -              (40,333)
  (Increase) decrease in other
 current assets                      70,410        (47,960)             (2,981)
    Increase in accrued expenses     28,182         44,961              72,873
                                 -----------      ----------       ------------

  Net Cash Used by
  Operating Activities             (757,600)       (704,525)        (1,489,077)
                                 -----------       ---------       ------------
                                              
CASH FLOWS FROM
INVESTING ACTIVITIES

Payment of deposits                  (6,996)            -               (6,996)
Purchase of intangibles             (41,244)        (33,173)           (74,417)
Purchase of fixed assets            (33,968)        (41,114)           (75,082)
                                -----------       ---------       ------------                  

Net Cash Used by
Investing Activities                (82,208)        (74,287)          (156,495)
                                -----------       ---------       ------------

CASH FLOWS FROM
FINANCING ACTIVITIES

Repayment of  notes payable and
contracts payable                    (8,165)             -              (8,165)
Proceeds from sale of stock         572,407          978,571         1,551,078
                                                 
Proceeds from notes payable and
convertible debenture                82,200           26,500           138,700
                                 -----------       ---------       ------------

Net Cash Provided by
Financing Activities             $  646,442       $1,005,071       $ 1,681,613
                                 -----------       ---------       ------------

</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                    Page 12

<PAGE>
      
                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)

                      Statements of Cash Flows (Continued)

<TABLE>
<CAPTION>

                                                                 From
                                                                 Inception on
                              For the Nine      For the          October 3 ,
                              Months Ended      Year Ended       1994 Through
                              September 30,     December 31,     September 30,
                              1996              1995             1996
                              -------------     ------------     -------------
<S>                           <C>               <C>              <C>  
                                                           
INCREASE (DECREASE) 
IN CASH                       $   (193,366)     $    226,259     $     36,041

CASH AT BEGINNING 
OF PERIOD                          229,407             3,148               -
                              -------------     ------------     -------------
                                
CASH AT END OF PERIOD         $     36,041      $    229,407     $    36,041
                              -------------     ------------     -------------

SUPPLEMENTAL DISCLOSURES 
OF NON-CASH INVESTING AND 
FINANCING ACTIVITIES:

Increase in subscription notes
receivable and future 
production costs 
receivable                    $        -        $(2,331,800)     $ (2,331,800)

Addition to debt for 
acquisition of intangibles    $        -        $ 1,302,914      $  1,302,914

Common stock issued 
for services                  $    24,307       $   135,618      $    159,925
                                                 
Equipment acquired under 
lease payable                 $    25,533       $       -        $     25,533

CASH PAID FOR:

Interest                      $        -        $     6,134      $      6,134
Income taxes                  $        -        $       -        $         -

</TABLE>


     The accompanying notes are an integral part of these financial statements.

                                    Page 13


<PAGE>


                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1996

NOTE 1 - COMPANY ORGANIZATION AND BUSINESS ACTIVITY

Sionix Corporation  (formerly Automatic Control Corporation) (the "Company") was
incorporated  in Nevada on October 3, 1994.  The  Company  was formed to design,
develop,  and market an automatic water  filtration  system  primarily for small
water districts.

The Company is in the development  stage and its efforts  through  September 30,
1996 have been principally  devoted to research and development,  organizational
activities,  and raising capital.  As of September 30, 1996, the Company has not
yet had any  revenues.  The  ultimate  recovery  of  investments  and  costs  is
dependent on future profitable operations, which presently cannot be determined.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Accounting Method

The Company's  financial  statements  are prepared  using the accrual  method of
accounting.  The  Company has  elected to change its year end to  September  30,
subject to IRS approval.  Accordingly, the accompanying statements of operations
and cash flows are for the nine months then ended.

b. Cash Equivalents

The Company  considers  all highly liquid  investments  with a maturity of three
months or less when purchased to be cash equivalents.

c. Property and Equipment

Property and equipment are recorded at cost.  Major  additions and  improvements
are  capitalized.  Minor  replacements,  maintenance  and  repairs  that  do not
increase the useful life of the assets are expensed as incurred. Depreciation of
property and equipment is  determined  using the  straight-line  method over the
expected useful lives of the assets as follows:

            Description                              Useful Lives
            ---------------                          ------------
            Computers and test equipment                 5 years
            Furniture and fixtures                       5 years

d. Intangible Assets

Intangible assets are recorded at cost. Amortization of the costs are determined
using the straight-line method over the expected useful life of 15 years.

                                    Page 14

<PAGE>

                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1996

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

e. Inventory

Work-in-process  and  finished  goods are stated at the lower of average cost or
market. Inventories at September 30, 1996 consisted of the following:

               Work-in-progress                   $ 33,083
               Finished goods                        7,250
               ----------------                   --------
                    Total                         $ 40,333
                                                  ========

f. Research and Development

Research and development costs are expensed as incurred.

g. Net Loss Per Share

The  computation  of net loss per share of common stock is based on the weighted
average number of shares outstanding at the date of the financial statements.

h. Provision for Income Taxes

No provision for income taxes have been  recorded due to net  operating  losses.
The Company  accounts for income taxes  pursuant to FASB  Statement No. 109. The
Internal Revenue Code contains provisions which may limit the loss carryforwards
available  should  certain  events  occur,   including  significant  changes  in
stockholder  ownership  interests,  accordingly  the  tax  benefit  of the  loss
carryovers  is offset by a  valuation  allowance  of the same  amount.  The loss
carryovers of approximately $1,835,000 will expire by the year 2011.

i. Recently Issued Accounting Standards

In March 1995, the Financial  Accounting  Standards Board issued a new statement
titled  "Accounting  for Impairment of Long-Lived  Assets." This new standard is
effective  for years  beginning  after  December  15, 1995 and would  change the
Company's method of determining  impairment of long-lived  assets.  Although the
Company has not performed a detailed analysis of the impact of this new standard
on the  Company's  financial  statements,  the  Company  does not  believe  that
adoption  of the new  standard  will have a  material  effect  on the  financial
statements.

In October 1995, the Financial Accounting Standards Board issued a new statement
titled "Accounting for Stock-Based Compensation" (FAS 123). The new statement is
effective  for  fiscal  years   beginning  after  December  15,  1995.  FAS  123
encourages,  but does not require,  companies to recognize  compensation expense
for grants of stock,  stock options,  and other equity  instruments to employees
based on fair value. Companies that do not adopt the fair value accounting rules
must  disclose  the  impact  of  adopting  the new  method  in the  notes to the
financial statements.

                                    Page 15

<PAGE>


                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1996

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

i. Recently Issued Accounting Standards (Continued)

Transactions in equity instruments with non-employees for goods or services must
be  accounted  for on the  fair  value  method.  Although  the  Company  has not
performed  a  detailed  analysis  of the  impact  of this  new  standard  on the
Company's  financial  statements,  the Company does not believe that adoption of
the new standard will have a material effect on the financial statements.

j. Estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  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.

NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment at September 30, 1996 consisted of the following:

         Computers and test equipment              $ 125,603
         Furniture and fixtures                        3,832
                                                   ---------
               Total                                 129,435

         Less accumulated depreciation               (22,068)

         Property and Equipment - Net              $ 107,367
                                                   =========

         Depreciation  expense for the nine months ended September 30, 1996
         and for the year ended  December  31, 1995 was $16,440 and $5,628,
         respectively.

NOTE 4 - INTANGIBLE ASSETS

     Intangible assets at September 30, 1996 consisted of the following:

     Patents issued and pending                  $ 102,531
     Intellectual property                         745,667
     Marketing and development costs               500,312
     Less accumulated amortization                (137,888)
                                                 ---------- 
     Intangible Assets - Net                     $1,210,622
                                                 ==========

Amortization  expense for the nine months ended  September 30, 1996 and the year
ended December 31, 1995 was $66,111 and $71,777, respectively.

                                    Page 16

<PAGE>


                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1996

NOTE 5 - LOAN PAYABLE

Pursuant  to the  acquisition  agreement  as  explained  in Note 9, the  Company
assumed various  promissory  notes  originally  signed in 1992 and 1993 totaling
$50,000.  The  notes  bear  interest  at 8% and  were  originally  due in  1994.
Management  of the Company  currently  cannot locate the holder of the notes and
consequently  has not been able to settle  the  liability.  The  amount is being
included as a current liability in the accompanying  financial  statements until
management can locate the note holder and settle the debt.

NOTE 6 - LEASE COMMITMENTS

The Company has entered into an operating lease for its office space.  Under the
terms of the lease, the Company is obligated to pay the following for the fiscal
years ended September 30,

     1997                     $   83,460
     1998                         83,460
     1999                         20,865
                              ----------
     Total                    $  187,785
                              ==========

The Company leases equipment with a lease term through July of 1999. Obligations
under  this  capital  lease have been  recorded  in the  accompanying  financial
statements  at  the  present  value  of  future  minimum  lease  payments.   The
capitalized cost of $25,533 less accumulated  depreciation of $2,553 is included
in property and equipment in the accompanying financial statements. Depreciation
expense for this  equipment  for the nine months  ended  September  30, 1996 was
$2,553.

Obligations under this capital lease consist of the following:

     Total                      $  23,868
     Less: current portion        (7,847)
                                ---------        
     Long-term portion          $  16,021
                                =========

                                    Page 17
        
<PAGE>

                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1996

NOTE 6 - LEASE COMMITMENTS (Continued)

The future  minimum lease  payments under this capital lease and the net present
value of the future minimum lease payments are as follows:

<TABLE>
<CAPTION>

               Year Ending
               September 30,                           Amount
               --------------                          ------
               <S>                                     <C>
               1997                                    $9,470
               1998                                     9,470
               1999                                     7,892
               2000                                        -
               2001 and thereafter                         -
                                                       ------                                                    

               Total future minimum lease payments     26,832

               Less, amount representing interest      (2,964)
                                                       ------
               Present value of future 
                 minimum lease payments                $23,868
                                                       --------
</TABLE>

NOTE 7 - RELATED PARTY PAYABLES

The Company has received  advances in the form of promissory  notes from various
shareholders and other related parties in order to pay minimal ongoing operating
expenses.  As of September 30, 1996,  $72,200 was due by the Company as a result
of these  promissory  notes.  The notes bear  interest at 10% and 13% and mature
during  November  and  December,  1996.  The related  parties  and  shareholders
currently  intend to extend the promissory  notes at least another year and thus
the corresponding liability has been classified as long-term in the accompanying
financial statements.

NOTE 8 - CONVERTIBLE DEBENTURE

In September  1996, the Company raised  $10,000 in 10%  redeemable,  convertible
debentures.  Interest  accrues at a rate of 10% and is  payable  on a  quarterly
basis.  The principle and unpaid  interest are due during  September  1998.  The
principal amount is convertible at the option of the holder at any time prior to
maturity into shares of the Company's common stock at a rate of $1.00 per common
share.

NOTE 9 - ACQUISITION AGREEMENT AND PLAN OF REVERSE MERGER

On  December  1, 1995,  Automatic  Control  Corporation  (ACC)  entered  into an
Acquisition   Agreement  and  Plan  of  Reverse  Merger  with  Coronado  Capital
Corporation (Coronado). The shareholders of ACC and Coronado approved the merger
on  December  21,  1995 and  December  28,  1995,  respectively.  The merger was
effective on January 5, 1996.  Under the terms of the merger  agreement  between
the two companies,  the stock of Coronado was  reverse-split  on a 1-for-4 basis
effective  as of  January  16,  1996,  and each  pre-merger  shareholder  of ACC
received 4.819 new shares of the surviving corporation.

                                    Page 18

<PAGE>


                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1996

NOTE 9 - ACQUISITION AGREEMENT AND PLAN OF REVERSE MERGER (Continued)

As a  result  of  the  merger,  the  pre-merger  shareholders  of  ACC  made  up
approximately  95% of the total  issued  and  outstanding  shares  of  Coronado,
following the effective date of the merger.

Under the terms of the merger  agreement,  the name of  Coronado  was changed to
Automatic Control  Corporation.  On January 23, 1996, the shareholders  approved
the change of the Company's name to Sionix Corporation.

NOTE 10 - STOCKHOLDERS' EQUITY

During the year ended  December  31, 1995,  414,200  shares of common stock were
issued in return for notes  receivable in the amount of $1,656,800.  These notes
are  secured  by the  shares  issued  and are  non-recourse.  They have a stated
interest  rate of 6% and have  maturity  dates  ranging  from  March 1,  1998 to
September 7, 1998.

In addition to the above mentioned  notes, the Company entered into an agreement
for future  production costs.  Under this agreement,  the Company issued 112,500
shares at $6.00 per share for production costs valued at $675,000.


NOTE 11 - RELATED PARTY TRANSACTIONS

The Company  entered into an agreement  with  Automatic  Control  Technology  on
February  28,  1995 to  acquire  tangible  and  intangible  assets  through  the
assumption  of debt and to act as a research and  development  consultant to the
Company.  Automatic  Control  Technology  is  related  to  the  Company  through
significant  common  control.  In  consideration  for  the  performance  for the
consulting  portion of this  agreement,  the Company  agreed to pay to Automatic
Control  Technology  the  total  costs for  consulting  plus 5%.  The  agreement
concluded on February  28, 1996 and the total  amount paid by the Company  under
the agreement was $215,138 for the nine months ended September 30, 1996.

NOTE 12 - COMMITMENTS AND CONTINGENCIES

The Company is a defendant in a lawsuit in San Diego County Superior Court filed
by an  ex-employee.  The  ex-employee  alleges  that the  Company  breached  his
employment  contract and personally defamed him. The Company has filed its cross
claims and intends to vigorously defend the lawsuit. The ultimate outcome of the
case is uncertain but management  believes an  unfavorable  outcome is unlikely.
Therefore,   no  accrual  has  been  recorded  in  the  accompanying   financial
statements.

                                    Page 19

<PAGE>


                               SIONIX CORPORATION
                    (Formerly Automatic Control Corporation)
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1996

NOTE 13 - COMMON STOCK PURCHASE WARRANTS

The Company's  Board of Directors has  authorized  and approved  638,445  common
stock purchase warrants as of September 30, 1996 as follows:

<TABLE>
<CAPTION>


          Number              Exercise Price      Expiration
          of Warrants            Per Share           Date(s)
          ----------------    --------------      --------------
          <S>                 <C>                 <C>
          570,100             $       1.00        May 15, 1998 - Sept. 30, 1998
          104,445             $      10.00        January 4, 1998
            7,813             $       5.50        May 15, 1998

</TABLE>

NOTE 14 - GOING CONCERN

The  Company's  financial  statements  are  prepared  using  generally  accepted
accounting  principles  applicable  to a going concern  which  contemplates  the
realization  of assets and  liquidation  of  liabilities in the normal course of
business.  However, the Company does not have significant cash or other material
assets, nor does it have an established  source of revenues  sufficient to cover
its operating  costs and to allow it to continue as a going  concern.  It is the
intent of the Company to generate  revenue through the sales of its software and
hardware  products.  Sales of the software  product  began in October,  1996 and
hardware  sales are  scheduled  to begin in  January,  1997.  Additionally,  the
Company  is in the  process  of  filing a  registration  statement  for a public
offering  with  the  Securities  and  Exchange  Commission.  In the  opinion  of
management,  sales of the Company's  products,  together with the proceeds of an
offering,  will be  sufficient  to fund the  Company's  operating  expenses  and
capital  requirements for at least the next twelve months.  However, the outcome
of these events is currently uncertain.

                                    Page 20

<PAGE>


                          INDEPENDENT AUDITOR'S REPORT

To the Board of Directors and Stockholders Sionix Corporation
(Formerly Automatic Control Corporation)
San Diego, California

     We have  audited  the  accompanying  balance  sheet of  Sionix  Corporation
(formerly  Automatic  Control  Corporation) (a development  stage company) as of
September  30, 1996,  and the related  statements of  operations,  stockholders'
equity and cash flows for the nine  months  then  ended,  and for the year ended
December 31, 1995 and from  inception on October 3, 1994 through  September  30,
1996.  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  generally  accepted  auditing
standards.  Those standards require that we plan and perform the 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,  the financial statements referred to above present fairly,
in all material respects, the financial position of Sionix Corporation (formerly
Automatic Control Corporation) (a development stage company) as of September 30,
1996,  and the results of its  operations and its cash flows for the nine months
then  ended,  and for the year ended  December  31, 1995 and from  inception  on
October 3, 1994 through September 30, 1996 in conformity with generally accepted
accounting principles.

     The accompanying  financial statements have been prepared assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in Note 14 to the
financial  statements,  the  Company  is a  development  stage  company  with no
significant  operating  results to date and has suffered  recurring losses which
raise  substantial  doubt  about its  ability to  continue  as a going  concern.
Management's plans in regard to these matters are also described in Note 14. The
financial  statements do not include any adjustments  that might result from the
outcome of this uncertainty.


/s/      JONES, JENSEN & COMPANY

Sale Lake City, Utah
October 17, 1996

                                    Page 21

<PAGE>


                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     The following  table lists all of the  Directors and Executive  Officers of
the  Company,  and provides  certain  information  concerning  each such person,
including  the number of shares of Common Stock of the  Registrant  beneficially
owned  directly  or  indirectly  by such  person  at the  close of  business  on
September 30, 1996.

<TABLE>
<CAPTION>

                                                       Amount and
                                        Position       Nature of        Percent
                                           with        Beneficial         of
Name                Age       Since     Registrant     Ownership         Class
---------------     ---       -----     ----------     -----------      -------
<S>                 <C>       <C>       <C>            <C>               <C>  
Michael Taylor      43        1996      CEO/CFO        1,020,456         4.33%
                                        Director

Jack Moorehead      65        1996      President        723,929         3.07%
                                        Director

S. Donna 
Friedman(1)         63        1995      Secretary      9,638,000        40.87%
                                        Director

Laura Friedman(1)   28        1995      Director         383,786         1.63%

Cheryl Friedman(1)  30        1995      Director         383,786         1.63%
</TABLE>

---------------------------  
     (1) Director,  S. Donna Friedman is the mother of Directors  Laura Friedman
and Cheryl Friedman.


Principal Occupation

     Michael  Taylor - Elected as a  Director  and  appointed  as CEO/CFO of the
Registrant in May 1996.  Mr.  Taylor has a BA degree in Business  Administration
(with a specialty in accounting)  from California State  University,  Fullerton,
and has practiced as a tax and financial  consultant  since 1977. Mr. Taylor was
President,  CEO and a Director of Coronado Capital Corporation from February 15,
1994 until the merger with Sionix Corporation.

     Jack  Moorehead - Elected as a Director on December 28, 1995 and  appointed
as the President of the Registrant in May,  1996. Mr.  Moorehead has a degree in
Civil Engineering from the University of Detroit, and completed graduate courses
in marketing  at the  University  of Miami.  He was a marketing  executive  with
Florida Power and Light and Bevis  Associates,  their  advertising  agency under
Vice President D.P. Cauldwell.  Before founding Sionix Corporation, he served as
a consultant  for a variety of firms,  patenting  new  products  and  developing
marketing  programs for those products.  He was granted six U.S.  patents for an
automatic rapid back flush filter system, a dissolved air flotation system,  and
an apparatus for mixing ozone, chemicals and liquids, which are all now assigned
to Sionix Corporation.

                                    Page 22

<PAGE>

     S. Donna  Friedman - Elected as a Director and  appointed as Secretary  and
Treasurer  on December  28,  1995.  As  Executive  Assistant  to the  President,
Lockheed Air Terminal, Inc. in Burbank, California, Ms. Friedman processed legal
documents and contracts,  leases, proposals,  acquisitions,  agenda, minutes and
resolutions,  financial and budget related material.  Prior to joining Lockheed,
Ms.  Friedman  also  proposed,  developed  and  implemented  plans  for  product
scheduling and shipping for an automated systems manufacturer.

     Cheryl  Friedman - Elected as a Director on December 28, 1995. Ms. Friedman
graduated  with  honors  from  UC,  Santa  Barbara,  with a BA in  Communication
Studies. She is currently a Management  Supervisor at McCann-Erickson  Worldwide
Advertising  agency  in charge  if the  marketing  and  advertising  for  Nestle
Beverage Company.  She started her career at J. Walter Thompson in San Francisco
in 1988 before  joining the San Francisco  office of Ketchum  Communications  to
launch the first Investment Services  advertising  campaign for Bank of America.
She joined  Ogilvy & Mather  Advertising  in New York in April,  1993 working on
Kraft  General  Foods.   Shortly  thereafter,   she  became  Account  Supervisor
responsible  for  all  new  product  development  for  Post  Kids  Cereals.  Ms.
Friedman's  Project Phoenix  program  created three new Kraft Foods  assignments
worth an estimated  $42 million.  She has traveled  extensively  throughout  the
United States, Canada, Europe, Africa and the Middle East.

     Laura Friedman - Elected as a Director on December 28, 1995.  Ms.  Friedman
received a BS in Business  Administration with an emphasis in Marketing from San
Diego State  University.  She was Media  Planner  and Buyer at Franklin  Stoorza
Advertising  for the San Diego County  Water  Authority,  International  Savings
Bank,  Voucher  Corporation,  McDonald's  and  Travelodge  Hotels before joining
Ammirati &  Puris/Lintas  Advertising,  New York.  Ms.  Friedman  controls  $100
million in annual media  billings for Aetna,  RCA,  and other  clients.  She has
traveled extensively  throughout the United States,  Canada,  Europe, Africa and
the Middle East.

ITEM 11. EXECUTIVE COMPENSATION

Compensation of Officers

     For the fiscal year ended September 30, 1996,  executive  officers received
compensation as follows:

<TABLE>
<CAPTION>


          Name                     Position            Amount of Compensation
          ---------------          --------            ----------------------
          <S>                      <C>                 <C>                
          Michael Taylor           CEO/CFO             520,000 shares (1) 
          Jack Moorehead           President           $  45,953
          S. Donna Friedman        Sec/Treas.          $       0
</TABLE>

--------------------------
(1)  See Item 13., for information regarding compensation of Michael A. Taylor.

Employment Contracts/Stock Incentive Plans

     No employment contracts or stock incentive plans were adopted or granted by
the Company during the fiscal year ended September 30, 1996.

Compensation of Directors

     No director of the Company received any compensation during the fiscal year
ended September 30, 1996.

                                    Page 23

<PAGE>

Item 12. Security Ownership Of Certain Beneficial Owners And Management

     The  following  table sets forth  information,  to the extent  known by the
Company,  as to the persons and companies who owned  beneficially more than five
percent (5%) of the outstanding shares of the Common Stock of the Company at the
close of business on September  30, 1996,  and the  beneficial  ownership of the
Company, as a group, as of such date. The number of shares held by each Director
is set forth in Item 10 hereinabove.

<TABLE>
<CAPTION>

Title of                                Amount and Nature of
Class          Name and Address         Beneficial Ownership    Percent of Class
-----------    -----------------        --------------------    ---------------
<S>            <C>                       <C>                     <C>
Common         S. Donna Friedman Trust            9,638,000              40.87%
               4120 Porte De Merano #80
               San Diego, CA.  92122

Common         All Directors and                 12,149,957              51.52%
               Officers as a Group
               (Five [5] Persons)

</TABLE>


Item 13. Certain Relationships and Related Transactions

Consulting Agreement with Michael A. Taylor

     On May 15,  1996,  the Company  entered into a  consulting  agreement  with
Michael A. Taylor under which Mr. Taylor as consultant would provide  financial,
tax and  management  consultant  services to the Company  with regard to matters
that effect the accounting, tax return preparation,  fund raising and management
of the Company.  The term of the consulting agreement is for a period of two (2)
years.  Under the terms of said contract as approved and adopted by the board of
directors,  Mr.  Taylor would  receive as  compensation  for his services to the
Company five hundred thousand shares (500,000) of common stock. In consideration
of the  continued  performance  and services to be provided by Mr. Taylor to the
Company under the consulting agreement,  the Company agreed to pay Mr. Taylor in
current funds as  compensation  fort his services a fee of $5,000 per month plus
reimbursement  for all out of  pocket  costs,  or in lieu of  cash,  cause to be
issued ten thousand  (10,000)  shares of common stock per month.  Mr. Taylor has
not been paid any cash  compensation for his services and has been issued 20,000
shares of common stock as compensation under said consulting agreement.

Purchase of Unregistered Shares of the Company's Common Stock.

     During the period covered by this report, Jack F. Moorehead,  the President
and a Director  of the  Company  purchased  26,000  shares of  unregistered  and
restricted common stock of the Company at a price of $1.00 per share. Michael A.
Taylor, the Chief Executive  Officer,  Chief Financial Officer and a Director of
the Company purchased 116,500 shares of unregistered and restricted common stock
of the Company at a price of $1.00 per share.

                                    Page 24


<PAGE>
                                     PART IV

Item 14. Exhibits, Financial Statement Schedules and Reports On Form 8-K

     (a) Documents filed as a part of this report:

     (1) Financial  Statements of Sionix  Corporation set forth under Item 8 are
filed as part of this report.

     (2) To include the Financial  Statement  Schedules  other than those listed
above have been omitted since they are either not required,  not applicable,  or
the information is otherwise included.

     (b) Information filed as part of this report from Form 8-K:

     (1) A Current  Report on Form 8-K  regarding  the  change of control of the
Company and the resignation of the Company's  directors was filed on January 24,
1996, for the period covered by this report.

     (2) An Amended  Current  Report on Form 8-K was filed on February 28, 1996,
amending and restating the Current Report on Form 8-K filed on January 24, 1996,
to included  Financial  Statements  of Automatic  Control for the periods  ended
December 31, 1995 and 1994 and Consolidated Pro Forma Financial Statements dated
December 31, 1995.

     (3) A Current  Report on Form 8-K was filed on April 15, 1996, to set forth
the  executive  officers  of the  Company  elected  at a special  meeting of the
Directors on April 2, 1996.

     (4) A Current Report on Form 8-K was filed on April 29, 1996, to report the
resignation of Dr. John Palmer as a director of the Company.

     (5) A Current  Report on Form 8-K was filed on July 1, 1996,  to report the
appointment  of  Michael  A.  Taylor  as a  director  of  the  Company  and  the
resignation by Michael Maung as a director of the Company.

     (6) A Current  Report on Form 8-K was filed on October 24, 1996,  to report
the change of the fiscal year end of the Company  from  December 31 to September
30, 1996.

                                    Page 25


<PAGE>


                                   SIGNATURES

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange  Act of 1934,  the  Company has duly caused this report to be signed on
its behalf by the Undersigned, thereunto duly authorized.

                                            SIONIX CORPORATION
                                               (Registrant)




Date: December 19, 1996                      /s/ Jack F. Moorehead
                                             ---------------------------
                                             By:  Jack Moorehead
                                             Its: President




Date: December 19, 1996                      /s/ Michael A. Taylor
                                             ---------------------------
                                             By:  Michael A. Taylor
                                             Its: Chief Executive Officer
                                                  Chief Financial Officer


Date: December 19, 1996                      /s/ S. Donna Friedman
                                             ---------------------------
                                             By:  S. Donna Friedman
                                             Its: Secretary


                                    Page 26