<PAGE>   1

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

                                   FORM 10-KSB

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

                  FOR THE FISCAL YEAR ENDED: SEPTEMBER 30, 1997

[ ]     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.)

5355 MIRA SORRENTO PLACE, SUITE 100, 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, 1997 was
approximately $12,800,000.

        The number of shares outstanding of the registrant's common stock as of
September 30, 1997 was 24,054,590.




                                       1

<PAGE>   2

                               SIONIX CORPORATION

                                   FORM 10-KSB

                  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997

                                      INDEX


<TABLE>
<CAPTION>
                                                                                       PAGE
                                                                                       ----
<S>         <C>                                                                        <C>
                                             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                         21

Item 11.    Executive Compensation                                                     22

Item 12.    Security Ownership of Certain Beneficial Owners
            and Management                                                             23

Item 13.    Certain Relationships and Related Transactions                             23


                                            PART IV

Item 14.    Exhibits, Financial Statements, Schedules and Reports on Form 8-K          24

            Signatures                                                                 25
</TABLE>




                                       2

<PAGE>   3

                                     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 and tested equipment for improving the
treatment of water for commercial, industrial and public water treatment
facilities. As of September 30, 1997 the Company has had seven of its patents
issued and an eighth one allowed. It is currently in the process of raising
capital to begin widespread manufacturing and marketing of it's product lines.

        The Company's executive offices and principal operations are located at
5355 Mira Sorrento Place, Suite 100, San Diego, California 92121 and its
telephone number is (619) 622-0200.

PRODUCTS

        Dissolved Air Flotation (DAF) Particle Separator

        The Company has taken a bulky, yet extremely effective, 70 year old
technology and made it modular and portable. In fact, DAF technology is so
efficient, the American Water Works Association's (AWWA) internet website lists
over 125 research papers that verify the treatment and cost benefits of DAF and
the October 1997 issue of the AWWA Journal published a report on the
effectiveness of DAF in extending the run lengths of microfiltration products.

        Like it's much larger, costlier and older sibling, the Sionix DAF
particle separators use microscopic air bubbles to remove suspended particles in
the water. In the Sionix DAF column, a vertical vortex 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 and wastewater can be safely returned to a
lake, river, or reservoir without damaging the environment. Additionally, the
Sionix DAF particle separators substantially improves filter efficiency,
increases flow rates in existing sand-type or micro-type filters and extends the
life of the filter media by extending the time between filter cleaning cycles.




                                       1
<PAGE>   4


        The real advantages of Sionix's patented DAF technology is it's size and
affordable cost. The standard tank-type DAF particle separators treat tremendous
amounts of water, so they are very large, in most cases require engineering and
construction and take up a great deal of space. These DAF "projects", by their
very nature, are too costly for most small municipal waster districts and are
not conducive to applications such as hotels, cooling towers, dairies or food
processing facilities. On the other hand, the Sionix DAF particle separator
requires a minimal amount of space, is economically priced and, since it is a
modular piece of equipment, is installed in a matter of hours, not built on-site
as a project.

        Each basic DAF module has a flow-through of 200 gallons per minute
(288,000 gallons per day), an amount necessary to supply all the drinking and
potable water requirements for approximately 2,400 people. And because modules
can be manifolded to meet any gallon per day requirement many larger facilities
can benefit by this technology.

         Ozone Oxidation System

        Ozone, long recognized as an excellent "polisher" of water, is being
installed in hundreds of municipal water systems around the country. Used in
Europe for many decades, this technology has also finally found it's way to the
rest of the world. However, problems of high energy costs caused by less than
perfect feedwater and inefficient mixing of water and gas, have caused some to
become wary of this outstanding technology.

        To overcome these problems, Sionix combined a corona-discharge ozone
generator with its patented double-helix ozone mixing chamber. By utilizing the
Sionix DAF particle separator (discussed above) to pre-treat the feedwater, less
energy is required to create the appropriate amount of Ozone for polishing
(cleaner water = less Ozone). By creating a turbulent flow of water and gas
within the mixing chamber, Sionix has achieved a much higher saturation with
less Ozone (and a minimum of excess Ozone) than in other mixing methods. This
equipment was designed to match flow-throughs with the Sionix DAF particle
separator, can also be manifolded to create more flow-through, is installed, not
constructed, and can be used with or without the DAF system, depending on the
quality of the feedwater.

        Microfiltration System

        The requirements of the Surface Water Treatment Rule of the Safe
Drinking Water Act of 1996 are forcing more water treatment facilities around
the country to look into microfiltration. With the potential requirements of the
proposed Enhanced Surface Water Treatment Rule and the addition of the Ground
Water Treatment Rule, microfiltration will leap to the forefront of water
treatment. Currently, most microfiltration is "membrane" based. And when
membranes get dirty, they must be cleaned (if possible) and replaced. In fact,
many treatment facilities have turned away from membrane technology solely
because of the high maintenance and replacement costs.

        Sionix attacked this problem by perfecting (and patenting) a method that
"scrubs" the water through a filter media, rather than pushing the water
directly through it. By utilizing a woven stainless steel, 2-micron filter
element, the Sionix microfiltration system automatically backflushes in less
than one second when the differential pressure increases 3 psi. As with other
Sionix equipment, these microfiltration units were designed to work with or
without the other products and are installed as complete subassemblies, not
constructed on-site.

        Sionix5 Software

        Designed to operate and monitor all of the Sionix equipment products,
this user friendly software program was expanded to contain 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 SCADA design
program.




                                       2
<PAGE>   5


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 manufacturers 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 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 $200 billion by EPA
estimate.

        In the United States, an established base of 185,000 small to very small
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 with EPA reports listing
more than 50,000 that are currently in violation of the Safe Drinking Water Act.
With more stringent regulation and testing requirements on the way for both
surface water and ground water more facilities are going to be forced into
changing the way they do business. However, many commercial and industrial water
providers and users are coming under heavy scrutiny by state and federal
regulators. The dairy industry, meat and poultry producers, food and beverage
processors, cooling tower manufacturers and oil and gas producers are just some
of the industries that create "bad water" (bacterial, chemical, etc.) and are
being targeted with possible indictments for violation of water statutes. Most
of these are prime candidates for Sionix products. In addition to the domestic
markets, the Company has been contacted by representatives from Spain, Portugal,
and Brazil that, combined, have more than $40 billion dollars assigned for water
and wastewater treatment.

        Sionix meets this challenge with products that are easily expandable and
upgradable. Adding Ozone and microfiltration equipment to a DAF unit is like
adding a new hard drive to your computer. Each piece of equipment comes with
state-of-the-art telemetry and wet-chemistry monitoring that expands as the
system does. Sionix provides lease financing for all of it's products that not
only makes it easy for a customer to acquire the equipment, but will guarantee
that the customer will always have access to any refinements and improvements
made to the company's products.

EMPLOYEES

        At September 30, 1997 the Registrant had 4 full time employees.

ITEM 2. PROPERTIES

        At September 30, 1997 the Registrant did not own property.

ITEM 3. LEGAL PROCEEDINGS

        In July 1997, the Company settled a lawsuit filed in San Diego County
Superior Court by Michael Maung, an ex-employee, for a cash amount that was paid
in full on December 1, 1997.

        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.




                                       3
<PAGE>   6


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.












                 (THE REST OF THE PAGE LEFT INTENTIONALLY BLANK)









                                       4
<PAGE>   7


                                     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                          $ 0.500       $ 0.625
            Second Quarter                         $ 0.375       $ 0.688
            Third Quarter                          $ 0.188       $ 0.438
            Fourth Quarter                         $ 0.063       $ 0.188
</TABLE>

HOLDERS OF RECORD

        There were approximately 600 holders of record of the Company's common
stock as of September 30, 1997.

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>
                                                                        (September 30 for
                                        Year Ended December 31            1996 and 1997)
                                       -----------------------      --------------------------
                                         1994            1995            1996          1997
                                       -------      ----------      ----------     -----------
<S>                                    <C>          <C>             <C>            <C>        
Net Revenues                           $     -      $        -      $        -     $    15,500
Net Income                              (1,521)       (914,279)       (922,717)       (858,916)
Earnings per share                           -           (0.05)          (0.04)          (0.03)
Return on net revenues                       -               -               -               -
Cash and short-term investments              -         229,407          36,041             271
Total assets                             1,521       1,602,593       1,404,340       1,313.806
Stockholders' equity                         -       1,468,903       1,136,000         698,524
</TABLE>



                                       5
<PAGE>   8


ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

        The Company's balance sheet as of September 30, 1997 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 Company to
create its initial inventory of product for sale and to ramp up its marketing
department.

RESULTS OF OPERATIONS

        The Company released the Sionix5 Software as a stand-alone program in
January 1997. 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.

        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

<TABLE>
<CAPTION>
                                                                   Page
                                                                   ----
<S>                                                                 <C>
Balance Sheets - September 30, 1997                                  7
Statement of Operations                                              9
Statement of Stockholders' Equity                                   10
Statement of Cash Flows -  periods ended September 30, 1997         13
Notes to Financial Statements for Period                            15
Independent Auditor's Report                                        20
</TABLE>

        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.




                                       6
<PAGE>   9


                               SIONIX CORPORATION
                          (A Development Stage Company)
                                  Balance Sheet


                                     ASSETS


<TABLE>
<CAPTION>
                                                                     September 30,
                                                                         1997
                                                                     -------------
<S>                                                                   <C>       
CURRENT ASSETS

  Cash in banks                                                       $      271
  Inventory (Note 2)                                                       6,525
                                                                      ----------

    Total Current Assets                                                   6,796
                                                                     -----------

PROPERTY AND EQUIPMENT - NET (Notes 2 and 3)                              90,436
                                                                      ----------

OTHER ASSETS

  Intangibles - net (Notes 2 and 4)                                    1,216,574
                                                                      ----------

     Total Other Assets                                                1,216,574
                                                                     -----------

    TOTAL ASSETS                                                      $1,313,806
                                                                      ==========
</TABLE>

















     The accompanying notes are an integral part of the financial statements




                                       7
<PAGE>   10


                               SIONIX CORPORATION
                          (A Development Stage Company)
                            Balance Sheet (Continued)


                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                     September 30,
                                                                         1997
                                                                     -------------
<S>                                                                   <C>       
CURRENT LIABILITIES

  Accrued expenses                                                  $    38,934
  Loan payable (Note 5)                                                  50,000
  Lease payable, current portion (Note 6)                                 7,847
  Convertible debenture, current portion (Note 8)                        10,000
  Accounts payable                                                      209,448
                                                                    -----------

    Total Current Liabilities                                           316,229
                                                                    -----------

LONG-TERM DEBTS

  Related party payables (Note 7)                                       274,774
  Lease payable (Note 6)                                                  4,279
  Convertible debenture (Note 8)                                         20,000
                                                                    -----------

     Total Long-Term Debts                                              299,053
                                                                    -----------

          Total Liabilities                                             615,282
                                                                    -----------

COMMITMENTS AND CONTINGENCIES (Note 6)

STOCKHOLDERS' EQUITY

  Common stock $.001 par value,
   100,000,000 shares authorized,
   24,054,590 shares issued and outstanding                              24,055
  Additional paid-in capital                                          5,028,702
  Deficit accumulated during the development stage                   (2,697,433)
  Subscription receivable (Note 9)                                   (1,656,800)
                                                                    -----------

    Total Stockholders' Equity                                          698,524
                                                                    -----------

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $ 1,313,806
                                                                    ===========
</TABLE>






     The accompanying notes are an integral part of the financial statements




                                       8
<PAGE>   11


                               SIONIX CORPORATION
                          (A Development Stage Company)
                            Statements of Operations


<TABLE>
<CAPTION>
                                                                               From
                                                                          Inception on
                                         For the        For the Nine       October 3,
                                       Year Ended       Months Ended      1994 Through
                                      September 30,     September 30,     September 30,
                                           1997              1996              1997
                                      -------------     -------------     -------------
<S>                                    <C>               <C>               <C>        
REVENUE                                $    15,500       $         -       $    15,500

COST OF SALES                                6,540                 -             6,540
                                       -----------       -----------       -----------

GROSS PROFIT                                 8,960                 -             8,960
                                       -----------       -----------       -----------

EXPENSES

  Research and development                   6,701           328,174           850,353
  Depreciation and amortization             93,420            82,551           253,376
  Administrative and marketing             673,074           501,480         1,479,837
                                       -----------       -----------       -----------

     Total Expenses                        773,195           912,205         2,583,566
                                       -----------       -----------       -----------

LOSS FROM OPERATIONS                      (764,235)         (912,205)       (2,574,606)
                                       -----------       -----------       -----------

OTHER INCOME (EXPENSE)

  Write down of obsolete software          (53,614)                -           (53,614)
  Settlement costs                         (25,125)                -           (25,125)
  Interest                                 (15,942)          (10,512)          (44,088)
                                       -----------       -----------       -----------

     Total Other Income (Expense)          (94,681)          (10,512)         (122,827)
                                       -----------       -----------       -----------

NET LOSS BEFORE TAXES                     (858,916)         (922,717)       (2,697,433)

PROVISION FOR INCOME TAXES                       -                 -                 -
                                       -----------       -----------       -----------

NET LOSS                               $  (858,916)      $  (922,717)      $(2,697,433)
                                       ===========       ===========       ===========

NET LOSS PER SHARE                     $     (0.03)      $     (0.04)
                                       ===========       ===========
</TABLE>







     The accompanying notes are an integral part of the financial statements




                                       9
<PAGE>   12


                               SIONIX CORPORATION
                          (A Development Stage Company)
                       Statements of Stockholders' Equity
          From Inception on October 3, 1994 through September 30, 1997


<TABLE>
<CAPTION>
                                                                            Deficit
                                                                          Accumulated
                                     Common Stock         Additional       During the
                              ------------------------      Paid-in       Development  Subscription
                                Shares        Amount        Capital          Stage      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 the financial statements




                                       10
<PAGE>   13


                               SIONIX CORPORATION
                          (A Development Stage Company)
                 Statements of Stockholders' Equity (Continued)
          From Inception on October 3, 1994 through September 30, 1997


<TABLE>
<CAPTION>
                                                                                Deficit
                                                                              Accumulated
                                       Common Stock           Additional       During the
                                --------------------------      Paid-in       Development     Subscription
                                   Shares        Amount         Capital          Stage         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        674,887               -        (675,000)

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 services at
 $1.00 per share                     24,307             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 the financial statements




                                       11
<PAGE>   14


                               SIONIX CORPORATION
                          (A Development Stage Company)
                 Statements of Stockholders' Equity (Continued)
          From Inception on October 3, 1994 through September 30, 1997


<TABLE>
<CAPTION>
                                                                                Deficit
                                                                              Accumulated
                                      Common Stock            Additional       During the
                               --------------------------       Paid-in       Development     Subscription
                                  Shares         Amount         Capital          Stage         Receivable
                               ----------     -----------     -----------     -----------     -----------
<S>                            <C>            <C>             <C>             <C>             <C>         
Balance,
 September 30, 1996            23,599,696     $    23,600     $ 5,282,717     $(1,838,517)    $(2,331,800)

Issuance of common
  stock for cash at $1.00
  per share                        80,880              81          80,799               -               -

Issuance of common
  stock for cash at $0.69
  per share                        14,545              15           9,985               -               -

Issuance of common
  stock for cash at $0.67
  per share                        60,000              60          39,940               -               -

Issuance of common
  stock for cash at $0.56
  per share                         4,444               4           2,496               -               -

Issuance of common
  stock for cash at $0.50
  per share                       368,000             368         183,632               -               -

Issuance of common
  stock for cash at $0.31
  per share                         8,064               8           2,492               -               -

Issuance of common
  stock for cash at $0.25
  per share                       186,800             187          46,513               -               -

Issuance of common
  stock for services at
  $0.20 per share                 274,299             274          54,586               -               -

Cancellation of shares
  issued for agreement
  for future production
  costs and other shares         (542,138)           (542)       (674,458)              -         675,000

Net loss for the year
  ended September 30, 1997              -               -               -        (858,916)              -
                               ----------     -----------     -----------     -----------     ----------- 
Balance,
  September 30, 1997           24,054,590     $    24,055     $ 5,028,702     $(2,697,433)    $(1,656,800)
                              ===========     ===========     ===========     ===========     ===========
</TABLE>




     The accompanying notes are an integral part of the financial statements




                                       12
<PAGE>   15

                               SIONIX CORPORATION
                          (A Development Stage Company)
                            Statements of Cash Flows


<TABLE>
<CAPTION>
                                                                                     From
                                                                                Inception on
                                               For the        For the Nine       October 3,
                                             Year Ended       Months Ended      1994 Through
                                            September 30,     September 30,     September 30,
                                                 1997              1996              1997
                                            -------------     -------------     -------------
<S>                                         <C>               <C>               <C>         
CASH FLOWS FROM
 OPERATING ACTIVITIES

   Net loss                                 $  (858,916)      $  (922,717)      $(2,697,433)
   Adjustments to reconcile net loss
     to net cash used by operating
     activities:
      Depreciation and amortization              93,420            82,551           253,376
      Common stock issued for services           54,860            24,307           214,785
   Change in assets and liabilities:
      (Increase) decrease in inventory           33,808           (40,333)           (6,525)
      (Increase) decrease in other
       current assets                             2,981            70,410                 -
      (Increase) decrease in deposits             6,996            (6,996)                -
      Increase in accounts payable and
       accrued expenses                         136,111            28,182           208,984
                                            -----------       -----------       -----------

         Net Cash Used by
          Operating Activities                 (530,740)         (764,596)       (2,026,813)
                                            -----------       -----------       -----------

CASH FLOWS FROM
  INVESTING ACTIVITIES

  Purchase of intangibles                       (75,771)          (33,968)         (150,188)
  Purchase of fixed assets                       (6,671)          (41,244)          (81,753)
                                            -----------       -----------       -----------

         Net Cash Used by
          Investing Activities                  (82,442)          (75,212)         (231,941)
                                            -----------       -----------       -----------

CASH FLOWS FROM
  FINANCING ACTIVITIES

  Repayment of notes payable and
   contracts payable                            (11,742)           (8,165)          (19,907)
  Proceeds from sale of stock                   366,580           572,407         1,917,658
  Proceeds from notes payable and
   convertible debenture                        222,574            82,200           361,274
                                            -----------       -----------       -----------

         Net Cash Provided by
          Financing Activities              $   577,412       $   646,442       $ 2,259,025
                                            ===========       ===========       ===========
</TABLE>




     The accompanying notes are an integral part of the financial statements




                                       13
<PAGE>   16


                               SIONIX CORPORATION
                          (A Development Stage Company)
                      Statements of Cash Flows (Continued)


<TABLE>
<CAPTION>
                                                                                     From
                                                                                Inception on
                                             For the        For the Nine       October 3,
                                           Year Ended       Months Ended      1994 Through
                                          September 30,     September 30,     September 30,
                                               1997              1996              1997
                                          -------------     -------------     -------------
<S>                                        <C>               <C>               <C>        
INCREASE (DECREASE) IN CASH                $   (35,770)      $  (193,366)      $       271

CASH AT BEGINNING OF PERIOD                     36,041           229,407                 -
                                           -----------       -----------       -----------

CASH AT END OF PERIOD                      $       271       $    36,041       $       271
                                           ===========       ===========       ===========

SUPPLEMENTAL DISCLOSURES OF
 NON-CASH INVESTING AND
 FINANCING ACTIVITIES:

  Change in subscription notes
   receivable and future production
   costs receivable                        $   675,000       $         -       $(1,656,800)

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

  Common stock issued for services         $    54,860       $    24,307       $   214,785

  Equipment acquired under lease
   payable                                 $         -       $    25,533       $    25,533


CASH PAID FOR:

  Interest                                 $         -       $         -       $     6,134
  Income taxes                             $         -       $         -       $         -
</TABLE>









     The accompanying notes are an integral part of the financial statements




                                       14
<PAGE>   17


                               SIONIX CORPORATION
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1997



NOTE 1 -    COMPANY ORGANIZATION AND BUSINESS ACTIVITY

            Sionix 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, 1997 have been principally devoted to research and
            development, organizational activities, and raising capital. As of
            September 30, 1997, the Company has had $15,500 of 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 a September 30 year
            end.

            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.  Capitalized Marketing Costs

            Capitalized marketing costs are recorded at cost. The Company
            follows the policy of capitalizing marketing costs associated with
            the development of marketing materials. Amortization of the costs
            are determined using the straight-line method over the expected
            useful life of 15 years.







                                       15
<PAGE>   18


                               SIONIX CORPORATION
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1997



NOTE 2 -    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

            e.  Inventory

            Inventory is stated at the lower of average cost or market.

            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 federal 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 carryforwards of approximately $2,697,000 will expire by
            the year 2012.

            i.  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, 1997 consisted of the
following:

<TABLE>
                      <S>                                         <C>      
                      Computers and test equipment                $ 125,603
                      Furniture and fixtures                         10,503
                                                                  ---------
                           Total                                    136,106

                      Less accumulated depreciation                 (45,670)
                                                                  ---------
                      Property and Equipment - Net                $  90,436
                                                                  =========
</TABLE>

            Depreciation expense for the year ended September 30, 1997 and for
            the nine months ended September 30, 1996 was $23,602 and $16,440,
            respectively.





                                       16
<PAGE>   19

                               SIONIX CORPORATION
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1997



NOTE 4 -    INTANGIBLE ASSETS

            Intangible assets at September 30, 1997 consisted of the following:

<TABLE>
                      <S>                                <C>        
                      Patents issued and pending         $   112,466
                      Intellectual property                1,227,138
                      Marketing and development costs         84,676
                      Less accumulated amortization         (207,705)
                                                         -----------

                      Intangible Assets - Net            $ 1,216,575
                                                         ===========
</TABLE>

            Amortization expense for the year ended September 30, 1997 and the
            nine months ended September 30, 1996 was $69,818 and $66,111,
            respectively.

NOTE 5 -    LOAN PAYABLE

            Pursuant to an acquisition agreement, 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 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 $7,660 is included in property and
            equipment in the accompanying financial statements. Depreciation
            expense for this equipment for the year ended September 30, 1997 was
            $5,107.

            Obligations under this capital lease consist of the following:

<TABLE>
                      <S>                        <C>     
                      Total                      $ 12,126
                      Less: current portion        (7,847)
                                                 --------

                      Long-term portion          $  4,279
                                                 ========
</TABLE>





                                       17
<PAGE>   20

                               SIONIX CORPORATION
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1997


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,
                                                           -------------
                      <S>                                    <C>     
                                   1998                      $  9,470
                                   1999                         4,735
                                   2000                             -
                                   2001 and thereafter              -
                                                             --------

                      Total future minimum lease payments      14,205

                      Less, amount representing interest       (2,079)
                                                             --------

                      Present value of future minimum
                       lease payments                        $ 12,126
                                                             ========
</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, 1997,
            $274,774 was due by the Company as a result of these promissory
            notes. Some of the notes bear interest at rates of 7% to 13%.
            All notes are due on demand and unsecured.

NOTE 8 -    CONVERTIBLE DEBENTURE

            As of September 30, 1997, the Company has $30,000 in 10% redeemable,
            convertible debentures outstanding. Interest accrues at a rate of
            10% and is payable on a quarterly basis. The principle and unpaid
            interest are due during September, October and November 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 -    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.




                                       18
<PAGE>   21


                               SIONIX CORPORATION
                          (A Development Stage Company)
                        Notes to the Financial Statements
                               September 30, 1997


NOTE 10 -   COMMON STOCK PURCHASE WARRANTS

             The Company's Board of Directors has authorized and approved
             1,526,768 common stock purchase warrants as of September 30, 1997
             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
                                 783         $  5.50                  May 15, 1998
                             851,400         $  0.50        January 2, 1998 - June 30, 1999
</TABLE>

NOTE 11 -    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. During the later part of the
             Fiscal 1996, the Company focused its energies on raising capital to
             begin the manufacturing and marketing of its equipment products.
             Toward these ends the Company engaged the public relations firm of
             Howard Bronson Associates of New York to aid in the raising of
             capital and presented seminars on its technology in areas where
             water quality is a serious problem. Management believes, with
             successful completion of a financial package, that delivered sales
             of the Company's equipment products will occur. In the opinion of
             management, sales of the Company's products, together with the
             proceeds of an offering, will be sufficient for it to continue as a
             going concern.













                                       19
<PAGE>   22


                          INDEPENDENT AUDITOR'S REPORT


To the Board of Directors and Stockholders
Sionix Corporation
San Diego, California

We have audited the accompanying balance sheet of Sionix Corporation (a
development stage company) as of September 30, 1997, and the related statements
of operations, stockholders' equity and cash flows for the year ended September
30, 1997, for the nine months ended September 30, 1996, and from inception on
October 3, 1994 through September 30, 1997. 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 (a
development stage company) as of September 30, 1997, and the results of its
operations and its cash flows for the year ended September 30, 1997, for the
nine months ended September 30, 1996 and from inception on October 3, 1994
through September 30, 1997 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 11 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 11. The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.



/s/  Jones, Jensen & Company

Salt Lake City, Utah
February 2, 1998









                                       20


<PAGE>   23



                                    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>  
        Michael Taylor            44      1996    CEO/CFO         1,017,849       4.23%
                                                  Director

        Jack Moorehead            66      1996    President         797,929       3.32%
                                                  Director

        S. Donna Friedman(1)      64      1995    Secretary       9,638,000      40.07%
                                                  Treasurer
                                                  Director

        Laura Friedman(1)         29      1995    Director          383,786       1.60%

        Cheryl Friedman(1)        31      1995    Director          383 786       1.60%

        Rodney Anderson           69      1997    Director           51,103        .21%
</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.

        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.





                                       21
<PAGE>   24


        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.

        Rodney Anderson - Elected as a director in February 1997. Mr. Anderson
has been the owner of RJ Metal Products, a tool and die shop for over 20 years.
He was also a Director of Coronado Capital from February 15, 1994 until the
merger with Sionix.

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                 70,000 shares(1)
        Jack Moorehead             President                  $ 54,480
        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, 1997.

COMPENSATION OF DIRECTORS

        No director of the Company received any compensation for being a
director during the fiscal year ended September 30, 1997.





                                       22
<PAGE>   25


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, 1997, 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>   
Common     S. Donna Friedman Trust                9,638,000                     40.87%
           4120 Porte De Merano #80
           San Diego, CA. 92122

Common     All Directors and                     12,326,933                     51.25%
           Officers as a Group
            (Five (6) 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 for 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 90,000
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 34,000 shares of unregistered
and restricted common stock of the Company at prices ranging from $0.50 to $1.00
per share. Michael A. Taylor, the Chief Executive Officer, Chief Financial
Officer and a Director of the Company purchased 108,245 shares of unregistered
and restricted common stock of the Company at prices ranging from $0.50 to $1.00
per share.





                                       23
<PAGE>   26


                                     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.

              27.   Financial Data Schedule

        (b)   Information filed as part of this report from Form 8-K:   None














                                       24
<PAGE>   27


                                   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:  February 11, 1998                    /S/ Jack F. Moorehead
                                            -----------------------------------
                                            By:    Jack Moorehead
                                            Its:   President




Date:  February 11, 1998                    /S/ Michael A. Taylor
                                            -----------------------------------
                                            By:    Michael A. Taylor
                                            Its:   Chief Executive Officer
                                                   Chief Financial Officer










                                       25
<PAGE>   28


                                 EXHIBIT INDEX





Exhibit
  No.          Description
-------        -----------
  27           Financial Data Schedule