**Form      10-QSB**

| Mark                One                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| x                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Quarterly                report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 for the quarterly period ended March 31, 2008; or |
| o                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Transition                report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 for the transition period from ________________ to ________                ___________. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Commission                File No. 002-95626-D                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Sionix                Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (Exact                name of registrant as specified in charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Nevada                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 87-0428526 |
| (State                or other jurisdiction ofincorporation                or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (I.R.S.                Employer Identification Number) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| 2082                Michelson Drive, Suite 306, Irvine, California 92612                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (Address                of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (949)                752-7980                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (Registrant’s                telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (Former                name, former address and former fiscal year if changed since last                report)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Check                whether the issuer (1) filed all reports required to be filed by                Section                13 or 15(d) of the Exchange Act during the past 12 months (or for                such                shorter period that the registrant was required to file such reports),                and                (2) has been subject to such filing requirements for the past 90                days.                x                Yes                o                No Indicate                by check mark whether the registrant is a shell company (as defined                in                Rule 12b-2 of the Exchange Act).                x                Yes  o                No The                number of shares of common stock outstanding at May 20, 2008 was                107,344,374 shares. Transitional                Small Business Format (Check one) Yes oNo                 x |

----

**Sionix      Corporation - Form 10-QSB**

**Table      of Contents**

| **Part                I**   | Financial                Information |                                                                                                                                                                                                                                                     |
|-----------------------------|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        | Item                  1              | Financial                Statements                                                                                                                                                                                                                      |   |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        |                                 | Balance                Sheet as of March 31, 2008 (Unaudited)                                                                                                                                                                                            | 1 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        |                                      | Statements                of Operations (unaudited) for the three month and six month periods                ended                March 31, 2008 and March 31, 2007 and from inception (October 3,                1994) to                March 31, 2008 | 2 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                             |                                 | Statements                of Stockholders Equity (Deficit) for the period from inception (October                3,                1994) to March 31, 2008                                                                                               | 3 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        |                                      | Statements                of Cash Flows (unaudited) for the six month periods ended March 31,                2008                and March 31, 2007 and from inception (October 3, 1994) to March                31,                2008                 | 6 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        |                                      | Notes                to unaudited financial statements                                                                                                                                                                                                   | 7 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        |                                      | Forward-Looking                Statements                                                                                                                                                                                                                | 15 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
| **Part                II**  | Other                Information     |                                                                                                                                                                                                                                                     |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        | Item                  1              | Legal                Proceedings                                                                                                                                                                                                                         | 24 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        | Item                2                | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                                                                                                                               | 24 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        | Item                3                | Defaults                upon Senior Securities                                                                                                                                                                                                           | 24 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        | Item                4                | Submission                of Matters to a Vote of Security Holders                                                                                                                                                                                       | 24 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                        | Item                  5              | Other                Information                                                                                                                                                                                                                         | 25 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
|                             | Item                6                | Exhibits                                                                                                                                                                                                                                                 | 25 |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
| **Part                III** | Signatures                           |                                                                                                                                                                                                                                                     |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
| **Part                IV**  | Exhibit                - 31.1        | Certifications                required under Section 302 of the Sarbanes-Oxley Act of                2002                                                                                                                                                |   |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
| **Part                V**   | Exhibit                - 31.2        | Certifications                required under Section 302 of the Sarbanes-Oxley Act of                2002                                                                                                                                                |   |
|                        |                                 |                                                                                                                                                                                                                                                     |   |
| **Part                VI**  | Exhibit                - 32          | Certifications                required under Section 906 of the Sarbanes-Oxley Act of                2002                                                                                                                                                |   |

----

**Sionix      Corporation**

**(A      Development Stage Company)**

**Balance      Sheet (Unaudited)**

**March      31, 2008**

| ASSETS                                                                                                                                                                 |   |   |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|
| CURRENT                ASSETS                                                                                                                                          |   |   |        |   |
| Cash                and cash equivalents                                                                                                                               |   | $      | 102,604     |   |
| Advance                to employee                                                                                                                                     |   |   | 35,000      |   |
| TOTAL                CURRENT ASSETS                                                                                                                                    |   |   | 137,604     |   |
|                                                                                                                                                                   |
| PROPERTY                AND EQUIPMENT, net                                                                                                                             |   |   | 24,519      |   |
|                                                                                                                                                                   |   |   |        |   |
| DEPOSITS                                                                                                                                                               |   |   | 4,600       |   |
| TOTAL                ASSETS                                                                                                                                            |   | $      | 166,723     |   |
|                                                                                                                                                                   |
| LIABILITIES                AND STOCKHOLDERS’ DEFICIT                                                                                                             |   |   |        |   |
| CURRENT                LIABILITIES                                                                                                                                     |   |   |        |   |
| Accounts                payable                                                                                                                                        |   | $      | 470,139     |   |
| Accrued                expenses                                                                                                                                        |   |   | 1,847,254   |   |
| Liquidated                damage liability                                                                                                                             |   |   | 153,750     |   |
| Notes                payable to related parties                                                                                                                        |   |   | 124,000     |   |
| Convertible                notes, net                                                                                                                                  |   |   | 1,306,594   |   |
| Subordinated                debentures, net                                                                                                                            |   |   | 332,182     |   |
| Warrant                liability                                                                                                                                       |   |   | 974,631     |   |
| Beneficial                conversion feature liability                                                                                                                 |   |   | 857,678     |   |
| TOTAL                CURRENT LIABILITIES                                                                                                                               |   |   | 6,066,228   |   |
|                                                                                                                                                                   |
| STOCKHOLDERS’                DEFICIT                                                                                                                             |   |   |        |   |
| Common                Stock, $0.001 par value;150,000,000                shares authorized;107,494,374                shares issued and 107,012,474 shares outstanding |   |   | 107,012     |   |
| Additional                paid-in capital                                                                                                                              |   |   | 12,815,794  |   |
| Shares                to be issued                                                                                                                                     |   |   | 326,900     |   |
| Deficit                accumulated during development stage                                                                                                            |   |   | (19,149,211 | ) |
| TOTAL                STOCKHOLDERS’ DEFICIT                                                                                                                       |   |   | (5,899,505  | ) |
| TOTAL                LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                       |   | $      | 166,723     |   |

----

**Sionix      Corporation**

**(A      Development Stage Company)**

**Statement      of Operations (Unaudited)**

|                                                                                                                                                                            |   | For                the Three Month Period Ended                March 31, |        | For                the Six Month PeriodEnded                March 31, |   | Cumulative                from Inception (October 3, 1994) toMarch                31, 2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|-------------|-----------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                            |   | 2008                                                                     |        | 2007                                                                  |   | 2008                                                                                       |   | 2007 |   |
|                                                                                                                                                                            |   |                                                                     |        |                                                                  |   |                                                                                       |   |   |   |   |   |
| Revenues                                                                                                                                                                        |   | $                                                                        | -           |                                                                  | $      | -                                                                                          |   | $ | - |   | $ | - |   | $ | - |   |
|                                                                                                                                                                            |   |                                                                     |        |                                                                  |   |                                                                                       |   |   |   |   |   |   |   |   |   |   |
| Operating                Expenses:                                                                                                                                              |   |                                                                     |        |                                                                  |   |                                                                                       |   |   |   |   |   |   |   |   |   |   |
| Research                & development                                                                                                                                       |   |                                                                     | 328,694     |                                                                  |   | -                                                                                          |   |   | 565,598 |   |   | - |   |   | 2,015,071 |   |
| General                and administrative                                                                                                                                       |   |                                                                     | 395,892     |                                                                  |   | 282,804                                                                                    |   |   | 1,526,665 |   |   | 487,224 |   |   | 14,680,234 |   |
| Impairment                of intangibles                                                                                                                                        |   |                                                                     | -           |                                                                  |   | -                                                                                          |   |   | - |   |   | - |   |   | 1,267,278 |   |
| Inventory                obsolescence                                                                                                                                           |   |                                                                     | -           |                                                                  |   | -                                                                                          |   |   | - |   |   | - |   |   | 365,078 |   |
| Depreciation                and amortization                                                                                                                                    |   |                                                                     | 8,157       |                                                                  |   | 7,995                                                                                      |   |   | 16,314 |   |   | 15,788 |   |   | 548,419 |   |
| Deposit                forfeiture and leasehold improvement write-off                                                                                                           |   |                                                                     | 129,166     |                                                                  |   |                                                                                       |   |   | 129,166 |   |   |   |   |   | 129,166 |   |
| Legal                settlement                                                                                                                                                 |   |                                                                     | -           |                                                                  |   | -                                                                                          |   |   | - |   |   | - |   |   | (434,603 | ) |
| Total                Operating Expenses                                                                                                                                         |   |                                                                     | 861,909     |                                                                  |   | 290,799                                                                                    |   |   | 2,237,743 |   |   | 503,012 |   |   | 18,570,643 |   |
| Loss                from Operations                                                                                                                                             |   |                                                                     | (732,743    | )                                                                     |   | (290,799                                                                                   | )      |   | (2,108,577 | ) |   | (503,012 | ) |   | (18,441,477 | ) |
|                                                                                                                                                                            |   |                                                                     |        |                                                                  |   |                                                                                       |   |   |   |   |   |   |   |   |   |   |
| Other                Income (Expense):                                                                                                                                          |   |                                                                     |        |                                                                  |   |                                                                                       |   |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                                                                                                  |   |                                                                     | 366         |                                                                  |   | 505                                                                                        |   |   | 1,279 |   |   | 611 |   |   | 59,822 |   |
| Interest                (expense)                                                                                                                                               |   |                                                                     | (492,545    | )                                                                     |   | (51,346                                                                                    | )      |   | (906,151 | ) |   | (70,588 | ) |   | (1,463,002 | ) |
| Income                (expense) from warrant liability                                                                                                                          |   |                                                                     | 273,779     |                                                                  |   | -                                                                                          |   |   | 427,991 |   |   | - |   |   | 427,991 |   |
| Income                (expense) from beneficial conversion feature liability                                                                                                    |   |                                                                     | 364,983     |                                                                  |   | -                                                                                          |   |   | 637,689 |   |   | - |   |   | 637,689 |   |
| Income                (loss) on settlement of debts                                                                                                                             |   |                                                                     | -           |                                                                  |   | -                                                                                          |   |   | - |   |   | - |   |   | (230,268 | ) |
| Total                Other Income (Expense)                                                                                                                                     |   |                                                                     | 146,583     |                                                                  |   | (50,841                                                                                    | )      |   | 160,808 |   |   | (69,977 | ) |   | (567,768 | ) |
| Loss                Before Income Taxes                                                                                                                                         |   |                                                                     | (715,326    | )                                                                     |   | (341,640                                                                                   | )      |   | (2,076,935 | ) |   | (572,989 | ) |   | (19,138,411 | ) |
| Income                taxes                                                                                                                                                     |   |                                                                     | -           |                                                                  |   | -                                                                                          |   |   | 900 |   |   | 900 |   |   | 10,800 |   |
| Net                Loss                                                                                                                                                         |   | $                                                                        | (715,326    | )                                                                     | $      | (341,640                                                                                   | )      | $ | (2,077,835 | ) | $ | (573,889 | ) | $ | (19,149,211 | ) |
|                                                                                                                                                                            |   |                                                                     |        |                                                                  |   |                                                                                       |   |   |   |   |   |   |   |   |   |   |
| Basic                and Diluted Income (Loss) per Share                                                                                                                        |   | $                                                                        | (0.01       | )                                                                     | $      | (0.00                                                                                      | )      | $ | (0.02 | ) | $ | (0.01 | ) |   |   |   |
|                                                                                                                                                                            |   |                                                                     |        |                                                                  |   |                                                                                       |   |   |   |   |   |   |   |   |   |   |
| Basic                and Diluted Weighted Average Number of Shares of Common Stock Outstanding                *                                                                 |   |                                                                     | 107,494,374 |                                                                  |   | 105,459,175                                                                                |   |   | 107,494,374 |   |   | 105,459,175 |   |   |   |   |
|                                                                                                                                                                            |   |                                                                     |        |                                                                  |   |                                                                                       |   |   |   |   |   |   |   |   |   |   |
| *                Weighted average diluted number of shares is the same as basic weighted                average number of shares as the effect is                anti-dilutive. |

----

**Sionix      Corporation**

**(A      Development Stage Company) **

**Statement      of Stockholders’ Equity (Deficit) (Unaudited)**

**For      the Period from Inception (October 3, 1994) to March 31,      2008**

|                                                                          |   |   | Common                  Stock                      |   |   |   |   |   |                                        |   |   |                                |   |   |                                      |   |   |                                           |   |   |                                   |   |   |                                                          |   |   |                                                |   |
|-------------------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|--------|--------|--------|---------------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------|--------|--------|------------------------------------------------|--------|--------|----------------------------------------|--------|--------|---------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                                                          |   |   | Number                  of                  Shares |   |   | Amount |   |   | Additional                  Paid-In Capital |   |   | Stock                  to be Issued |   |   | Deferred                  Warrant Expense |   |   | Stock                  Subscription Receivable |   |   | Stock                  to be Cancelled |   |   | Unamortized                  Consulting                  Fees |   |   | Deficit                  Accumulated from Inception |   |   | Total                  Stockholders’ Equity (Deficit) |   |
| Shares                  issued for cash, October 1994                         |   |   | 10,000                                             |   | $      | 10     |   | $      | 90                                          |   | $      | -                                   |   | $      | -                                         |   | $      | -                                              |   | $      | -                                      |   | $      | -                                                             |   | $      | -                                                   |   | $ | 100 |   |
| Net                  loss for the period October 3, 1994 to December 31, 1994 |   |   | --                                                 |   |   | -      |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (1,521                                              | )      |   | (1,521 | ) |
| BALANCE                  DECEMBER 31, 1994                                    |   |   | 10,000                                             |   |   | 10     |   |   | 90                                          |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (1,521                                              | )      |   | (1,421 | ) |
| Shares                  issued for assignment of rights                       |   |   | 1,990,000                                          |   |   | 1,990  |   |   | (1,990                                      | )      |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | - |   |
| Shares                  issued services                                       |   |   | 572,473                                            |   |   | 572    |   |   | 135,046                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 135,618 |   |
| Shares                  issued for debt                                       |   |   | 1,038,640                                          |   |   | 1,038  |   |   | 1,164,915                                   |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 1,165,953 |   |
| Shares                  issued for cash                                       |   |   | 232,557                                            |   |   | 233    |   |   | 1,119,027                                   |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 1,119,260 |   |
| Shares                  issued for subscription note receivable               |   |   | 414,200                                            |   |   | 414    |   |   | 1,652,658                                   |   |   | -                                   |   |   | -                                         |   |   | (1,656,800                                     | )      |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | (3,728 | ) |
| Shares                  issued for production costs                           |   |   | 112,500                                            |   |   | 113    |   |   | 674,887                                     |   |   | -                                   |   |   | -                                         |   |   | (675,000                                       | )      |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | - |   |
| Net                  loss for the year ended December 31, 1995                |   |   | -                                                  |   |   | -      |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (914,279                                            | )      |   | (914,279 | ) |
| BALANCE                  DECEMBER 31, 1995                                    |   |   | 4,370,370                                          |   |   | 4,370  |   |   | 4,744,633                                   |   |   | -                                   |   |   | -                                         |   |   | (2,331,800                                     | )      |   | -                                      |   |   | -                                                             |   |   | (915,800                                            | )      |   | 1,501,403 |   |
| Shares                  issued in reorganization                              |   |   | 18,632,612                                         |   |   | 18,633 |   |   | (58,033                                     | )      |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | (39,400 | ) |
| Shares                  issued for cash                                       |   |   | 572,407                                            |   |   | 573    |   |   | 571,834                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 572,407 |   |
| Shares                  issued for services                                   |   |   | 24,307                                             |   |   | 24     |   |   | 24,283                                      |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 24,307 |   |
| Net                  loss for the nine months ended September 30, 1996        |   |   | -                                                  |   |   | -      |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (922,717                                            | )      |   | (922,717 | ) |
| BALANCE                  SEPTEMBER 30, 1996                                   |   |   | 23,599,696                                         |   |   | 23,600 |   |   | 5,282,717                                   |   |   | -                                   |   |   | -                                         |   |   | (2,331,800                                     | )      |   | -                                      |   |   | -                                                             |   |   | (1,838,517                                          | )      |   | 1,136,000 |   |
| Shares                  issued for cash                                       |   |   | 722,733                                            |   |   | 723    |   |   | 365,857                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 366,580 |   |
| Shares                  issued for services                                   |   |   | 274,299                                            |   |   | 274    |   |   | 54,586                                      |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 54,860 |   |
| Cancellation                  of shares                                       |   |   | (542,138                                           | )      |   | (542   | )      |   | (674,458                                    | )      |   | -                                   |   |   | -                                         |   |   | 675,000                                        |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | - |   |
| Net                  loss for the year ended September 30, 1997               |   |   | -                                                  |   |   | -      |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (858,915                                            | )      |   | (858,915 | ) |
| BALANCE                  SEPTEMBER 30, 1997                                   |   |   | 24,054,590                                         |   |   | 24,055 |   |   | 5,028,702                                   |   |   | -                                   |   |   | -                                         |   |   | (1,656,800                                     | )      |   | -                                      |   |   | -                                                             |   |   | (2,697,432                                          | )      |   | 698,525 |   |
| Shares                  issued for cash                                       |   |   | 2,810,000                                          |   |   | 2,810  |   |   | 278,190                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 281000 |   |
| Shares                  issued for services                                   |   |   | 895,455                                            |   |   | 895    |   |   | 88,651                                      |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 89546 |   |
| Shares                  issued for compensation                               |   |   | 2,200,000                                          |   |   | 2,200  |   |   | 217,800                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 220000 |   |
| Cancellation                  of shares                                       |   |   | (2,538,170                                         | )      |   | (2,538 | )      |   | (1,534,262                                  | )      |   | -                                   |   |   | -                                         |   |   | 1,656,800                                      |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 120000 |   |
| Net                  loss for the year ended September 30, 1998               |   |   | -                                                  |   |   | -      |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (1,898,376                                          | )      |   | (1,898,376 | ) |
| BALANCE                  SEPTEMBER 30, 1998                                   |   |   | 27,421,875                                         |   |   | 27,422 |   |   | 4,079,081                                   |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (4,595,808                                          | )      |   | (489,305 | ) |
| Shares                  issued for compensation                               |   |   | 3,847,742                                          |   |   | 3,847  |   |   | 389,078                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 392,925 |   |
| Shares                  issued for service                                    |   |   | 705,746                                            |   |   | 706    |   |   | 215,329                                     |   |   |                                |   |   |                                      |   |   |                                           |   |   |                                   |   |   |                                                          |   |   |                                                |   |   | 216,035 |   |
| Shares                  issued for cash                                       |   |   | 9,383,000                                          |   |   | 9,383  |   |   | 928,917                                     |   |   |                                |   |   |                                      |   |   |                                           |   |   |                                   |   |   |                                                          |   |   |                                                |   |   | 938,300 |   |
| Net                  loss for the year ended September 30, 1999               |   |   | -                                                  |   |   | -      |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (1,158,755                                          | )      |   | (1,158,755 | ) |
| BALANCE                  SEPTEMBER 30, 1999                                   |   |   | 41,358,363                                         |   |   | 41,358 |   |   | 5,612,405                                   |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (5,754,563                                          | )      |   | (100,800 | ) |
| Shares                  issued for cash                                       |   |   | 10,303,500                                         |   |   | 10,304 |   |   | 1,020,046                                   |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 1030350 |   |
| Shares                  issued for compensation                               |   |   | 1,517,615                                          |   |   | 1,518  |   |   | 1,218,598                                   |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 1220116 |   |
| Shares                  issued for service                                    |   |   | 986,844                                            |   |   | 986    |   |   | 253,301                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 254287 |   |
| Net                  loss for the year ended September 30, 2000               |   |   | -                                                  |   |   | -      |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (2,414,188                                          | )      |   | (2,414,188 | ) |
| BALANCE                  SEPTEMBER 30, 2000                                   |   |   | 54,166,322                                         |   |   | 54,166 |   |   | 8,104,350                                   |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (8,168,751                                          | )      |   | (10,235 | ) |

----

**Sionix      Corporation**

**(A      Development Stage Company) **

**Statement      of Stockholders’ Equity (Deficit) (Unaudited) -- Continued**

**For      the Period from Inception (October 3, 1994) to March 31,      2008**

|                                                                         |   |   | Common                  Stock                      |   |   |    |   |   |                                        |   |   |                                |   |   |                                      |   |   |                                           |   |   |                                   |   |   |                                                          |   |   |                                                |   |
|------------------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|---------|--------|--------|---------------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------|--------|--------|------------------------------------------------|--------|--------|----------------------------------------|--------|--------|---------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                                                         |   |   | Number                  of                  Shares |   |   | Amount  |   |   | Additional                  Paid-In Capital |   |   | Stock                  to be Issued |   |   | Deferred                  Warrant Expense |   |   | Stock                  Subscription Receivable |   |   | Stock                  to be Cancelled |   |   | Unamortized                  Consulting                  Fees |   |   | Deficit                  Accumulated from Inception |   |   | Total                  Stockholders’ Equity (Deficit) |   |
| BALANCE                  SEPTEMBER 30, 2000                                  |   |   | 54,166,322                                         |   |   | 54,166  |   |   | 8,104,350                                   |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (8,168,751                                          | )      |   | (10,235 | ) |
| Shares                  issued for services and prepaid expenses             |   |   | 2,517,376                                          |   |   | 2,517   |   |   | 530,368                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | (141,318                                                      | )      |   | -                                                   |   |   | 391,567 |   |
| Shares                  issued for cash                                      |   |   | 6,005,000                                          |   |   | 6,005   |   |   | 594,495                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 600,500 |   |
| 100,000                  shares to be issued for cash                        |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | 10,000                              |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 10,000 |   |
| 639,509                  shares to be issued for 2001 settlement of debt     |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | 103,295                             |   |   |                                      |   |   |                                           |   |   |                                   |   |   |                                                          |   |   |                                                |   |   | 103,295 |   |
| Net                  loss for the year ended September 30, 2001              |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (1,353,429                                          | )      |   | (1,353,429 |   |
| BALANCE                  SEPTEMBER 30, 2001                                  |   |   | 62,688,698                                         |   |   | 62,688  |   |   | 9,229,213                                   |   |   | 113,295                             |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | (141,318                                                      | )      |   | (9,522,180                                          | )      |   | (258,302 | ) |
| Shares                  issued for services and prepaid expenses             |   |   | 1,111,710                                          |   |   | 1,112   |   |   | 361,603                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | 54,400                                                        |   |   | -                                                   |   |   | 417,115 |   |
| Shares                  issued as contribution                               |   |   | 100,000                                            |   |   | 100     |   |   | 11,200                                      |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   |                                                |   |   |   |   |
| Shares                  issued for compensation                              |   |   | 18,838                                             |   |   | 19      |   |   | 2,897                                       |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   |                                                |   |   |   |   |
| Shares                  issued for cash                                      |   |   | 16,815,357                                         |   |   | 16,815  |   |   | 1,560,782                                   |   |   | (10,000                             | )      |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   |                                                |   |   |   |   |
| Shares                  issued for settlement of debt                        |   |   | 1,339,509                                          |   |   | 1,340   |   |   | 208,639                                     |   |   | (103,295                            | )      |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   |                                                |   |   |   |   |
| Shares                  to be issued for raising equity (967,742 shares)     |   |   | -                                                  |   |   | -       |   |   | (300,000                                    | )      |   | 300,000                             |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   |                                                |   |   |   |   |
| Cancellation                  of shares                                      |   |   | (7,533,701                                         | )      |   | (7,534  | )      |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   |                                                |   |   |   |   |
| Net                  loss for the year ended September 30, 2002              |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (1,243,309                                          | )      |   | (1,243,309 | ) |
| BALANCE                  SEPTEMBER 30, 2002                                  |   |   | 74,540,411                                         |   |   | 74540   |   |   | 11,074,334                                  |   |   | 300,000                             |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | (86,918                                                       | )      |   | (10,765,489                                         | )      |   | 596,467 |   |
| Shares                  issued for services                                  |   |   | 2,467,742                                          |   |   | 2,468   |   |   | 651,757                                     |   |   | (300,000                            | )      |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 354,225 |   |
| Shares                  issued for capital equity line                       |   |   | 8,154,317                                          |   |   | 8,154   |   |   | 891,846                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 900,000 |   |
| Amortization                  of consulting fees                             |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | 86,918                                                        |   |   | -                                                   |   |   | 86,918 |   |
| Cancellation                  of shares                                      |   |   | (50,000                                            | )      |   | (50     | )      |   | 50                                          |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | - |   |
| Shares                  to be cancelled (7,349,204 shares)                   |   |   | -                                                  |   |   | -       |   |   | 7,349                                       |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | (7,349                                 | )      |   | -                                                             |   |   | -                                                   |   |   | - |   |
| Net                  loss for the year ended September 30, 2003              |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (1,721,991                                          | )      |   | (1,721,991 | ) |
| BALANCE                  SEPTEMBER 30, 2003                                  |   |   | 85,112,470                                         |   |   | 85,112  |   |   | 12,625,336                                  |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | (7,349                                 | )      |   | -                                                             |   |   | (12,487,480                                         | )      |   | 215,619 |   |
| Shares                  issued for capital equity line                       |   |   | 19,179,016                                         |   |   | 19,179  |   |   | 447,706                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   |                                                          |   |   |                                                |   |   | 466,885 |   |
| Shares                  issued for services                                  |   |   | 5,100,004                                          |   |   | 5,100   |   |   | 196,997                                     |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | (13,075                                                       | )      |   |                                                |   |   | 189,022 |   |
| Shares                  to be issued for cash (963,336 shares)               |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | 28,900                              |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   |                                                          |   |   |                                                |   |   | 28,900 |   |
| Shares                  to be issued for settlement of debt (500,000 shares) |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | 15,000                              |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   |                                                          |   |   |                                                |   |   | 15,000 |   |
| Cancelled                  shares                                            |   |   | (7,349,204                                         | )      |   | (7,349  | )      |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | 7,349                                  |   |   |                                                          |   |   |                                                |   |   | - |   |
| Net                  loss for the year ended September 30, 2004              |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (1,568,770                                          | )      |   | (1,568,770 | ) |
| BALANCE                  SEPTEMBER 30, 2004                                  |   |   | 102,042,286                                        |   |   | 102,042 |   |   | 13,270,039                                  |   |   | 43,900                              |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | (13,075                                                       | )      |   | (14,056,250                                         | )      |   | (653,344 | ) |
| Amortization                  of consulting fees                             |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | 13,075                                                        |   |   | -                                                   |   |   | 13,075 |   |
| Net                  loss for the year ended September 30, 2005              |   |   | -                                                  |   |   | -       |   |   | -                                           |   |   | -                                   |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (467,917                                            | )      |   | (467,917 | ) |
| BALANCE                  SEPTEMBER 30, 2005                                  |   |   | 102,042,286                                        |   |   | 102,042 |   |   | 13,270,039                                  |   |   | 43,900                              |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (14,524,167                                         | )      |   | (1,108,186 | ) |

----

**Sionix      Corporation**

**(A      Development Stage Company) **

**Statement      of Stockholders’ Equity (Deficit) (Unaudited) -- Continued**

**For      the Period from Inception (October 3, 1994) to March 31,      2008**

|                                                                                                                        |   |   | Common                  Stock                      |   |   |    |   |   |                                          |   |   |                                  |   |   |                                      |   |   |                                           |   |   |                                   |   |   |                                                          |   |   |                                                |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|---------|--------|--------|-----------------------------------------------|--------|--------|---------------------------------------|--------|--------|-------------------------------------------|--------|--------|------------------------------------------------|--------|--------|----------------------------------------|--------|--------|---------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                                                                                                        |   |   | Number                  of                  Shares |   |   | Amount  |   |   | Additional                    Paid-In Capital |   |   | Stock                    to be Issued |   |   | Deferred                  Warrant Expense |   |   | Stock                  Subscription Receivable |   |   | Stock                  to be Cancelled |   |   | Unamortized                  Consulting                  Fees |   |   | Deficit                  Accumulated from Inception |   |   | Total                  Stockholders’ Equity (Deficit) |   |
| BALANCE                  SEPTEMBER 30, 2005                                                                                 |   |   | 102,042,286                                        |   |   | 102,042 |   |   | 13,270,039                                    |   |   | 43,900                                |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (14,524,167                                         | )      |   | (1,108,186 | ) |
| Net                  loss for the year ended September 30, 2006                                                             |   |   | -                                                  |   |   | -       |   |   | -                                             |   |   | -                                     |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (774,887                                            | )      |   | (774,887 | ) |
| BALANCE                  SEPTEMBER 30, 2006                                                                                 |   |   | 102,042,286                                        |   |   | 102,042 |   |   | 13,270,039                                    |   |   | 43,900                                |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (15,299,054                                         | )      |   | (1,883,072 | ) |
| Stock                  issued for consulting                                                                                |   |   | 4,592,915                                          |   |   | 4,593   |   |   | 80,336                                        |   |   | -                                     |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 84,929 |   |
| Liability                  for warrant and beneficial conversion feature liability due to                  oversubscription |   |   | -                                                  |   |   | -       |   |   | (609,204                                      | )      |   | -                                     |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | (609,204 | ) |
| Net                  loss for the year ended September 30, 2007                                                             |   |   | -                                                  |   |   | -       |   |   | -                                             |   |   | -                                     |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (1,772,322                                          | )      |   | (1,772,322 | ) |
| BALANCE                  SEPTEMBER 30, 2007                                                                                 |   |   | 106,635,201                                        |   |   | 106,635 |   |   | 12,741,171                                    |   |   | 43,900                                |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (17,071,376                                         | )      |   | (4,179,670 | ) |
| Net                  loss for the three months ended December 31, 2007                                                      |   |   | -                                                  |   |   | -       |   |   | -                                             |   |   | -                                     |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (1,362,509                                          | )      |   | (1,362,509 | ) |
| BALANCE                  DECEMBER 30, 2007                                                                                  |   |   | 106,635,201                                        |   |   | 106,635 |   |   | 12,741,171                                    |   |   | 43,900                                |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (18,433,885                                         | )      |   | (5,542,179 | ) |
| Conversion                  of note payable to Common Stock                                                                 |   |   | 227,273                                            |   |   | 227     |   |   | 49,773                                        |   |   | -                                     |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 50,000 |   |
| Stock                  issued for legal fees                                                                                |   |   | 150,000                                            |   |   | 150     |   |   | 24,850-                                       |   |   | -                                     |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 25,000 |   |
| Stock                  to be issued for cash                                                                                |   |   | -                                                  |   |   | -       |   |   | -                                             |   |   | 283,000                               |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | -                                                   |   |   | 283,000 |   |
| Net                  loss for the three months ended March 31, 2008                                                         |   |   | -                                                  |   |   | -       |   |   | -                                             |   |   | -                                     |   |   | -                                         |   |   | -                                              |   |   | -                                      |   |   | -                                                             |   |   | (715,326                                            | )      |   | (715,326 | ) |
| BALANCE                  MARCH 31, 2008                                                                                     |   |   | 107,012,474                                        |   | $      | 107,012 |   | $      | 12,815,794                                    |   | $      | 326,900                               |   | $      | -                                         |   | $      | -                                              |   | $      | -                                      |   | $      | -                                                             |   | $      | (19,149,211                                         | )      | $ | (5,899,505 | ) |

----

**Sionix      Corporation**

**(A      Development Stage Company) **

**Statement      of Cash Flows (Unaudited)**

|                                                                                                  |   | For                the Six Month Periods EndedMarch                31, |       | Cumulative                from Inception(October                3, 1994)toMarch                31, |   |
|-------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |   | 2008                                                                   |       | 2007                                                                                               |   | 2008 |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                               |   |
| Net                (Loss)                                                                             |   | $                                                                      | (2,077,835 | )                                                                                                  |   | (573,889 | ) |   | (19,377,983 | ) |
| Adjustments                to reconcile net loss to cash used in operating                activities: |   |                                                                   |       |                                                                                               |   |   |   |   |   |   |
| Depreciation                and amortization                                                          |   |                                                                   | 16,314     |                                                                                               |   | 15,788 |   |   | 635,337 |   |
| Deposit                forfeiture and leasehold improvement write-off                                 |   |                                                                   | 129,166    |                                                                                               |   |   |   |   |   |   |
| Amortization                of consulting fees                                                        |   |                                                                   | -          |                                                                                               |   | - |   |   | 13,075 |   |
| Amortization                of debt discount                                                          |   |                                                                   | 669,025    |                                                                                               |   | 27,838 |   |   | 984,402 |   |
| Warrants                issued for consulting services                                                |   |                                                                   | -          |                                                                                               |   | - |   |   | 106,111 |   |
| Stock                based compensation expense - employee                                            |   |                                                                   | 414,909    |                                                                                               |   |   |   |   | 414,909 |   |
| Stock                based compensation expense - consultant                                          |   |                                                                   | 439,909    |                                                                                               |   |   |   |   | 439,909 |   |
| Change                in warrant liability                                                            |   |                                                                   | (427,991   | )                                                                                                  |   |   |   |   | (427,991 | ) |
| Change                in beneficial conversion feature liability                                      |   |                                                                   | (637,689   | )                                                                                                  |   |   |   |   | (637,689 | ) |
| Issuance                of Common Stock for compensation                                              |   |                                                                   | -          |                                                                                               |   | - |   |   | 1,835,957 |   |
| Issuance                of Common Stock for services                                                  |   |                                                                   | -          |                                                                                               |   | 32,929 |   |   | 2,181,486 |   |
| Impairment                of assets                                                                   |   |                                                                   | -          |                                                                                               |   | - |   |   | 514,755 |   |
| Write-down                of obsolete assets                                                          |   |                                                                   | -          |                                                                                               |   | - |   |   | 38,862 |   |
| Impairment                of intangible assets                                                        |   |                                                                   | -          |                                                                                               |   | - |   |   | 1,117,601 |   |
| Loss                on settlement of debts                                                            |   |                                                                   | -          |                                                                                               |   | - |   |   | 130,268 |   |
| Increase                (decrease) in current assets                                                  |   |                                                                   |       |                                                                                               |   |   |   |   |   |   |
| Other                current assets                                                                   |   |                                                                   | (33,650    | )                                                                                                  |   | - |   |   | (545.727 | ) |
| Other                receivables                                                                      |   |                                                                   | -          |                                                                                               |   | - |   |   | 3,000 |   |
| Deposits                                                                                              |   |                                                                   | -          |                                                                                               |   | (10,350 | ) |   | (204,600 | ) |
| Other                assets                                                                           |   |                                                                   | -          |                                                                                               |   | - |   |   | 140,370 |   |
| (Increase)                decrease in current liabilities                                             |   |                                                                   |       |                                                                                               |   |   |   |   |   |   |
| Accounts                payable                                                                       |   |                                                                   | 312,741    |                                                                                               |   | (50,366 | ) |   | 540,139 |   |
| Accrued                expenses                                                                       |   |                                                                   | 159,581    |                                                                                               |   | 211,709 |   |   | 1,991,622 |   |
| Total                Adjustments                                                                      |   |                                                                   | 1,042,315  |                                                                                               |   | 227,547 |   |   | 9,118,577 |   |
| Net                Cash (Used In) Operating Activities                                                |   |                                                                   | (1,035,520 | )                                                                                                  |   | (346,342 | ) |   | (10,259,406 | ) |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                               |
| Acquisition                of patents                                                                 |   |                                                                   | -          |                                                                                               |   | - |   |   | (154,061 | ) |
| Acquisition                of equipment                                                               |   |                                                                   | (29,166    | )                                                                                                  |   | (12,972 | ) |   | (437,112 | ) |
| Net                Cash (Used In) Investing Activities                                                |   |                                                                   | (29,166    | )                                                                                                  |   | (12,972 | ) |   | (591,173 | ) |
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                               |   |                                                                   |       |                                                                                               |   |   |   |   |   |   |
| Proceeds                from (repayments of) notes payable                                            |   |                                                                   | 425,000    |                                                                                               |   | 721,200 |   |   | 2,544,191 |   |
| Proceeds                from (repayments of) notes payable under equity line of                credit |   |                                                                   |       |                                                                                               |   | (150,000 | ) |   | 456,000 |   |
| (Payment)                of notes to officers                                                         |   |                                                                   | (51,596    | )                                                                                                  |   | (28,800 | ) |   | (51,596 | ) |
| Issuance                of Common Stock for cash                                                      |   |                                                                   | -          |                                                                                               |   | - |   |   | 7,376,094 |   |
| Liquidating                damages                                                                    |   |                                                                   | 138,375    |                                                                                               |   | - |   |   | 138,375 |   |
| Receipts                of cash for Stock to be issued                                                |   |                                                                   | 283,000    |                                                                                               |   | - |   |   | 336,900 |   |
| Net                Cash Provided by (Used In) Financing Activities                                    |   |                                                                   | 794,779    |                                                                                               |   | 571,200 |   |   | 10,799,964 |   |
| Net                Increase (Decrease) in Cash and Cash Equivalents                                   |   |                                                                   | (269,907   | )                                                                                                  |   | 211,887 |   |   | 102,604 |   |
| **CASH                EQUIVALENTS @ BEGINNING OF PERIOD**                                             |   |                                                                   | 372,511    |                                                                                               |   | 4,544 |   |   | - |   |
| **CASH                EQUIVALENTS @ END OF PERIOD**                                                   |   | $                                                                      | 102,604    |                                                                                               | $      | 216,431 |   | $ | 102,604 |   |
|                                                                                                  |
| **CASH                PAID FOR:**                                                                     |   |                                                                   |       |                                                                                               |   |   |   |   |   |   |
| Interest                                                                                              |   | $                                                                      | -          |                                                                                               | $      | - |   |   |   |   |
| Income                taxes                                                                           |   | $                                                                      | -          |                                                                                               | $      | - |   |   |   |   |

----

**Sionix      Corporation**

**(A      Development Stage Company) **

**Notes      to Financial Statements (Unaudited)**

**March      31, 2008**

**NOTE        1**
**ORGANIZATION        AND DESCRIPTION OF BUSINESS**

**NOTE        2**
**SUMMARY        OF SIGNIFICANT ACCOUNTING POLICIES**

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----

----

**NOTE        3**
**PROPERTY        AND EQUIPMENT**

| Equipment                  and machinery                   |   | $      | 213,166  |   |
|------------------------------------------------------------|--------|--------|----------|--------|
| Furniture                  and fixtures                    |   |   | 24,594   |   |
| TOTAL                  PROPERTY AND EQUIPMENT              |   |   | 237,760  |   |
| Less                  accumulated depreciation (deduction) |   |   | (213,241 | )      |
| NET                  PROPERTY AND EQUIPMENT                |   | $      | 24,519   |   |

**NOTE        4**
**ACCRUED        EXPENSES**

| Payroll                  taxes                                    |   | $      | 192,499                  |   |
|-------------------------------------------------------------------|--------|--------|--------------------------|--------|
| Accrued                  salaries and amounts withheld there from |   |   | 1,286,975                |   |
| Interest                  payable                                 |   |   | 250                  624 |   |
| Other                  accruals                                   |   |   | 117,156                  |   |
| TOTAL                  ACCRUED EXPENSES                           |   | $      | 1,847,254                |   |

**NOTE        5**
**NOTES        PAYABLE TO RELATED PARTIES**

**NOTE        6**
**CONVERTIBLE        NOTES PAYABLE**

----

----

**NOTE        7**
**STOCKHOLDERS’        EQUITY [DEFICIENCY IN ASSETS]**

|                                                  |   | WEIGHTED                  AVERAGE EXERCISE PRICE |   | NUMBER                  OF OUTSTANDING OPTIONS |   | AGGREGATE                  INTRINSIC VALUE |   |
|-------------------------------------------------------|--------|--------------------------------------------------|--------|------------------------------------------------|--------|--------------------------------------------|--------|
| Outstanding                  as of September 30, 2007 |   | $                                                | 0.15   |                                           |   | 7,343,032                                  |   | $ | 0 |   |
| Granted                                               |   |                                             | 0.25   |                                           |   | 17,078,624                                 |   |   | 0 |   |
| Forfeited                                             |   |                                             | 0.00   |                                           |   | 0                                          |   |   | 0 |   |
| Exercised                                             |   |                                             | 0.00   |                                           |   | 0                                          |   |   | 0 |   |
| Outstanding                  as of March 31, 2008     |   | $                                                | 0.22   |                                           |   | 24,421,656                                 |   | $ | 660,873 |   |

----

| EXERCISE                  PRICE |   | STOCK                  OPTIONS OUTSTANDING |       | STOCK                  OPTIONS EXERCISABLE |   | WEIGHTED                  AVERAGE REMAINING CONTRACTUAL LIFE |   | WEIGHTED                  AVERAGE EXERCISE PRICE OF OPTIONS OUTSTANDING |                       | WEIGHTED                  AVERAGE EXERCISE PRICE OF OPTIONS EXERCISABLE |   |
|---------------------------------|--------|--------------------------------------------|------------|--------------------------------------------|--------|--------------------------------------------------------------|--------|-------------------------------------------------------------------------|----------------------------|-------------------------------------------------------------------------|--------|
| $                  0.15         |   |                                       | 7,343,032  |                                       |   | 7,343,032                                                    |   |                                                                    | 2.3                  Years |                                                                    | $      | 0.15 |   | $ | 0.15 |   |
| 0.25                            |   |                                       | 17,078,624 |                                       |   | 4,919,587                                                    |   |                                                                    | 4.9                  Years |                                                                    |   | .025 |   |   | 0.25 |   |

|                                                  |   | AGGREGATE                  INTRINSIC VALUE |   | NUMBER                  OF WARRANTS |   |
|-------------------------------------------------------|--------|--------------------------------------------|--------|-------------------------------------|--------|
| Outstanding                  as of September 30, 2007 |   | $                                          | -      |                                |   | 1,,436,336 |   |
| Granted                                               |   |                                       | -      |                                |   | 2,159,088 |   |
| Cancelled                                             |   |                                       | -      |                                |   | - |   |
| Exercised                                             |   |                                       | -      |                                |   | - |   |
| Outstanding                  as of March 31, 2008     |   | $                                          | -      |                                |   | 3,595,424 |   |

| EXERCISE                  PRICE |   | STOCK                  WARRANTS EXERCISABLE |      | WEIGHTED                  AVERAGE REMAINING CONTRACTUAL LIFE |   | WEIGHTED                  AVERAGE EXERCISE PRICE OF WARRANT |   |
|---------------------------------|--------|---------------------------------------------|-----------|--------------------------------------------------------------|--------|-------------------------------------------------------------|--------|
| $                  0.50         |   |                                        | 1,436,336 |                                                         |   | 1.3                  Years                                  |   | $ | 0.50 |   |
| $                  0.50         |   |                                        | 2,159,088 |                                                         |   | 4.6                  Years                                  |   | $ | 0.50 |   |

**NOTE        8**
**GOING        CONCERN**

**NOTE        9**
**COMMITMENT**

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**NOTE        10**
**SUPPLEMENTAL        CASHFLOW DISCLOSURES**

----

|   | Ø | whether                  we will be able to find financing to continue our                  operations; |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | Ø | whether                  there are changes in regulatory requirements that adversely affect                  our                  business; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | the                  ability of management to execute its plans to meet its                  goals; |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | Ø | general                  economic conditions, whether nationally or in the regional and                  local                  markets in which we operate, which may be less favorable than                  expected; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | the                  ability to hire and retain key members of management and key employees;                  and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | Ø | other                  uncertainties, all of which are difficult to predict and many of                  which are                  beyond our control. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ITEM        2 **
**MANAGEMENT’S        DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS**

** **

----

|   | 1. | Government |
|--------|----|------------|

|   | a. | Correctional                  Institution |
|--------|----|-------------------------------------------|

|   | b. | Emergency                  and Natural Disasters |
|--------|----|--------------------------------------------------|

|   | c. | Military |
|--------|----|----------|

|   | d. | Drinking                  Water |
|--------|----|---------------------------------|

|   | 2. | Community/City                  (Rural/Small Municipal Water                  Utilities) |
|--------|----|------------------------------------------------------------------------------------------|

|   | a. | Drinking                  water |
|--------|----|---------------------------------|

|   | b. | Waste-water                  Utilities (sewage treatment) |
|--------|----|-----------------------------------------------------------|

|   | c. | Discharge                  cleanup |
|--------|----|------------------------------------|

|   | d. | Systems                  getting older and are not meeting the stricter                  regulations |
|--------|----|------------------------------------------------------------------------------------------------------|

|   | 3. | Hotel/Resort |
|--------|----|--------------|

|   | a. | Drinking                  Water |
|--------|----|---------------------------------|

|   | b. | Wastewater |
|--------|----|------------|

|   | c. | Backup                  Water Supply |
|--------|----|--------------------------------------|

|   | d. | Golf                  Course Water Recycling |
|--------|----|----------------------------------------------|

|   | 4. | Environmental                  Cleanup |
|--------|----|----------------------------------------|

|   | a. | Remediation |
|--------|----|-------------|

|   | 5. | Power                  & Energy |
|--------|----|-------------------------------------|

|   | a. | Wastewater |
|--------|----|------------|

|   | b. | Cooling                  Waters |
|--------|----|---------------------------------|

|   | c. | Process                  water |
|--------|----|--------------------------------|

|   | d. | Industrial |
|--------|----|------------|

|   | e. | Concrete |
|--------|----|----------|

|   | f. | Industrial                  Waste-water Purification |
|--------|----|------------------------------------------------------|

|   | g. | Laundries |
|--------|----|-----------|

|   | h. | Tank,                  Truck & Car Washing Pulp &Paper |
|--------|----|----------------------------------------------------------------|

|   | i. | Micro                  chip manufacturing |
|--------|----|-------------------------------------------|

|   | j. | Oil                  field waste processing |
|--------|----|---------------------------------------------|

|   | k. | Mining |
|--------|----|--------|

|   | l. | Plastic                  manufacturing |
|--------|----|----------------------------------------|

|   | 6. | Agricultural |
|--------|----|--------------|

|   | a. | Dairies |
|--------|----|---------|

|   | b. | Aquaculture |
|--------|----|-------------|

|   | c. | Hog |
|--------|----|-----|

|   | d. | Cattle                  Yards |
|--------|----|-------------------------------|

|   | 7. | Food                  and Beverage Industry |
|--------|----|---------------------------------------------|

|   | · | we                  agreed to cooperate with the lessor in showing the                  premises; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | we                  agreed to vacate the premises upon 30 days notice;                  and |
|--------|--------|---------------------------------------------------------------------------------------------|

----

|   | · | we                  agreed that our security deposit could be used to pay unpaid rent                  and any                  losses, expenses, liabilities or damages which the lessor suffered                  as a                  result of the early termination, including leasing                  commissions. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                  lessor agreed to accept 748,750 shares of our common stock as full                  and                  complete payment for the rent due for the months of March, April                  and                  May. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

** **

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----

----

----

**ITEM        3**
**CONTROLS        AND PROCEDURES**

----

**Remediation        of Material Weaknesses**

**Changes        in Internal Control over Financial Reporting**

----

**PART        II - OTHER INFORMATION**

----

| 3.1 | Articles                  of Incorporation, as amended and restated (1) |
|-----|-------------------------------------------------------------------------|

| 3.2 | Bylaws,                  as amended and restated (1) |
|-----|------------------------------------------------------|

| 10.1 | Amended                  and Restated Convertible Promissory Notes in favor of Calico Capital                  Management, LLC, BRAX Capital, LLC and Gene Salkind,                  M.D.(2) |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Consulting                  Agreement dated February 21, 2008 with John H. Foster,                  Ph.D.(3) |
|------|--------------------------------------------------------------------------------------------------------------|

| 10.3 | Form                  of Securities Purchase Agreement(4) |
|------|-----------------------------------------------------------|

| 10.4 | Form                  of Subordinated 10% Debenture(4) |
|------|--------------------------------------------------------|

| 10.5 | Form                  of Common Stock Purchase Warrant(4) |
|------|-----------------------------------------------------------|

| 10.6 | Termination                  Agreement dated March 14, 2008 between Rodney L. Anderson, Joey                  M.                  Anderson and Robert A Hasson(5) |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | Second                  Amended Convertible Promissory Notes in favor of Calico Capital                  Management, LLC, BRAX Capital, LLC and Gene Salkind, M.D.(6) |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1 | Certification                  Pursuant to Rule 13a - 14(a) and 15d -                  14(a)(4)* |
|------|--------------------------------------------------------------------------------------------------|

| 31.2 | Certification                  Pursuant to Rule 13a - 14(a) and 15d -                  14(a)(4)* |
|------|--------------------------------------------------------------------------------------------------|

| 32 | Certification                  Pursuant to Section 1350 of Title 18 of the United States                  Code* |
|----|-----------------------------------------------------------------------------------------------------------------|

----

| (1) | Incorporated                  by reference from the Current Report on Form 8-K filed with the                  Securities                  and Exchange Commission on July 15,                  2003. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated                  by reference from the Current Report on Form 8-K filed with the                  Securities                  and Exchange Commission on January 28,                  2008. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated                  by reference from the Current Report on Form 8-K filed with the                  Securities                  and Exchange Commission on February 25,                  2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated                  by reference from the Current Report on Form 8-K filed with the                  Securities                  and Exchange Commission on March 3,                  2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Incorporated                  by reference from the Current Report on Form 8-K filed with the                  Securities                  and Exchange Commission on March 17,                  2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Incorporated                  by reference from the Current Report on Form 8-K filed with the                  Securities                  and Exchange Commission on March 24,                  2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | Filed                  herewith |
|---|---------------------------------|

----

**SIGNATURES**

|               |                                                        |                    |
|--------------------|-------------------------------------------------------------|-------------------------|
| Date: May 20, 2008 |                                                        |
|               |                                                        |
|               | SIONIX CORPORATION                                          |
|          |                                                   |               |
|               | BY:                                                    | /S/ RICHARD H. PAPALIAN |
|               | RICHARD                H. PAPALIAN, CHIEF EXECUTIVE OFFICER |
|               |                                                        |

|   |                                                                                                           |               |
|--------|----------------------------------------------------------------------------------------------------------------|--------------------|
|   | BY:                                                                                                       | /S/ JAMES J. HOUTZ |
|   | JAMES                    J. HOUTZ, CHIEF FINANCIAL OFFICER, ANDPRINCIPAL                    ACCOUNTING OFFICER |
|   |                                                                                                           |

----