<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

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

                  For the quarterly period ended March 31, 2007

Commission File Number 2-95626-D

                               Sionix Corporation
                               ------------------
        (Exact name of small business issuer as specified in its charter)

              Nevada                                         87-0428526
              -------                                        ----------
   State or other jurisdiction                             (IRS Employer
of incorporation or organization)                       Identification No.)

                2082 Michelson Drive, Suite 306, Irvine, CA 92612
                -------------------------------------------------
                    (Address of principal executive offices)

                                  949 752-7980
                                  ------------
                           (Issuer's telephone number)

                                 Not Applicable
              -----------------------------------------------------
              (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 Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file for
such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes [ ] No [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

As of May 15, 2007, there were 105,817,101 shares of Common Stock of the issuer
outstanding.

Transitional Small Business Disclosure Format (check one) ( ) Yes; (X) No


<PAGE>


CAUTIONARY NOTICE REGARDING FORWARD LOOKING STATEMENTS

         We desire to take advantage of the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. This Report on Form 10-QSB
contains a number of forward-looking statements that reflect management's
current views and expectations with respect to our business, strategies,
products, future results and events and financial performance. All statements
made in this Report other than statements of historical fact, including
statements that address operating performance, events or developments that
management expects or anticipates will or may occur in the future, including
statements related to distributor channels, volume growth, revenues,
profitability, new products, acquisitions, adequacy of funds from operations,
statements expressing general optimism about future operating results and
non-historical information, are forward-looking statements. In particular, the
words "believe," "expect," "intend," "anticipate," "estimate," "may," "will,"
variations of such words, and similar expressions identify forward-looking
statements, but are not the exclusive means of identifying such statements and
their absence does not mean that the statement is not forward-looking. These
forward-looking statements are subject to certain risks and uncertainties,
including those discussed below. Our actual results, performance or achievements
could differ materially from historical results as well as those expressed in,
anticipated or implied by these forward-looking statements. We undertake no
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.

         Readers should not place undue reliance on these forward-looking
statements, which are based on management's current expectations and projections
about future events, are not guarantees of future performance, are subject to
risks, uncertainties and assumptions (including those described below) and apply
only as of the date of this Report. Our actual results, performance or
achievements could differ materially from the results expressed in, or implied
by, these forward-looking statements. Factors that could cause or contribute to
such differences include, but are not limited to, those discussed below
"Management's Discussion and Analysis and Plan of Operation," as well as those
discussed elsewhere in this Report, and the risks discussed in our most recently
filed Annual Report on Form 10-KSB and in the press releases and other
communications to shareholders issued by us from time to time which attempt to
advise interested parties of the risks and factors that may affect our business.

                                       2

<PAGE>
<TABLE>

                                         Part I. FINANCIAL INFORMATION

Item 1.  Financial Statements

                                              SIONIX CORPORATION
                                         (A DEVELOPMENT STAGE COMPANY)
                                                 BALANCE SHEET
                                             AS OF MARCH 31, 2007
                                                  (Unaudited)

ASSETS

           CURRENT ASSETS:
<S>                                                                                        <C>
                       Cash & cash equivalents                                             $    216,431

           PROPERTY AND EQUIPMENT, NET                                                           41,946

           DEPOSIT                                                                               10,350
                                                                                           ------------
                                   Total assets                                            $    268,726
                                                                                           ============

   LIABILITIES AND STOCKHOLDERS' DEFICIT

           CURRENT LIABILITIES:
                       Accounts payable                                                    $    222,244
                       Accrued expenses                                                       1,348,480
                       Notes payable-related parties                                            129,000
                       Note payable-officers                                                     37,860
                       Equity line of credit                                                    177,336
                                                                                           ------------
                                   Total current liabilities                                  1,914,920

                       Convertible notes, net                                                   552,338

           STOCKHOLDERS' DEFICIT
                       Common stock, $0.001 par value;150,000,000 shares authorized;
                        105,817,101 shares issued and 105,335,201 shares outstanding            105,335
                       Additional paid-in capital                                            13,525,175
                       Shares to be issued                                                       43,900
                       Deficit accumulated during development stage                         (15,872,942)
                                                                                           ------------
                                   Total stockholders' deficit                               (2,198,531)
                                                                                           ------------
                                   Total liabilities & stockholders' deficit               $    268,726
                                                                                           ============

            The accompanying notes form an integral part of these unaudited financial statements

                                                      3

<PAGE>

                                                        SIONIX CORPORATION
                                                   (A DEVELOPMENT STAGE COMPANY)
                                                     STATEMENTS OF OPERATIONS
                                                            (Unaudited)

                                                                                                                   CUMULATIVE
                                        FOR THE THREE MONTH PERIODS ENDED   FOR THE SIX MONTH PERIODS ENDED      FROM INCEPTION
                                                      MARCH 31,                         MARCH 31,             (OCTOBER 3, 1994) TO
                                              2007             2006               2007             2006          MARCH 31, 2007
                                              ----             ----               ----             ----          --------------

REVENUES                                 $          --     $          --     $          --     $          --     $          --

OPERATING EXPENSES:
General and administrative                     282,804           104,490           487,224           205,011        12,230,522
Research and development                            --                --                --                --         1,449,474
Impairment of intangible assets                     --                --                --                --         1,267,278
Inventory obsolescence                              --                --                --                --           365,078
Depreciation and amortization                    7,995             7,996            15,788            15,741           516,194
                                         -------------     -------------     -------------     -------------     -------------
      Total operating expenses                 290,799           112,486           503,012           220,753        15,828,546
                                         -------------     -------------     -------------     -------------     -------------
LOSS FROM OPERATIONS                          (290,799)         (112,486)         (503,012)         (220,753)      (15,828,546)

OTHER INCOME (EXPENSES)
Interest income                                    505                --               611                --            54,268
Interest expense                               (51,346)           (2,432)          (70,588)           (4,812)         (305,275)
Loss on settlement of debts                         --                --                --           (94,221)         (230,268)
Legal settlement                                    --                --                --                --           434,603
                                         -------------     -------------     -------------     -------------     -------------
   Total other income (expenses)               (50,841)           (2,432)          (69,977)          (99,033)          (46,672)
                                         -------------     -------------     -------------     -------------     -------------
LOSS BEFORE INCOME TAXES                      (341,641)         (114,919)         (572,989)         (319,786)      (15,862,143)
  Income taxes                                      --                --               900                --            10,800
                                         -------------     -------------     -------------     -------------     -------------
NET LOSS                                 $    (341,641)    $    (114,919)    $    (573,889)    $    (319,786)    $ (15,872,942)
                                         =============     =============     =============     =============     =============


BASIC AND DILUTED LOSS PER SHARE         $       (0.00)    $       (0.00)    $       (0.01)    $       (0.00)
                                         =============     =============     =============     =============

*BASIC AND DILUTED WEIGHTED AVERAGE
   NUMBER OF COMMON STOCK OUTSTANDING      105,459,175       102,524,186       105,459,175       102,524,186
                                         =============     =============     =============     =============

*weighted average diluted number of shares are the same as basic weighted
average number of shares as the effect is anti-dilutive.

                      The accompanying notes form an integral part of these unaudited financial statements

                                                                4

<PAGE>

                                                        SIONIX CORPORATION
                                                   (A Development Stage Company)
                                           STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
                                         FROM INCEPTION (OCTOBER 3,1994) TO MARCH 31,2007
                                                            (Unaudited)


                                                                                                           DEFICIT
                          COMMON STOCK                                                                   ACCUMULATED       TOTAL
                     ---------------------    ADDITIONAL    STOCK        STOCK       STOCK    UNAMORTIZED  DURING      STOCKHOLDERS'
                      NUMBER OF                PAID-IN      TO BE     SUBSCRIPTION   TO BE    CONSULTING DEVELOPMENT     EQUITY
                        SHARES      AMOUNT     CAPITAL      ISSUED     RECEIVABLE   CANCELLED   FEES       STAGE        (DEFICIT)
                     ------------  --------  ------------  ---------  ------------  --------  ---------  ------------  ------------

Shares issued for
cash- Oct 1994             10,000  $     10  $         90  $      --  $         --  $     --  $      --  $         --  $        100

Net loss for period
Oct 3, 1994 to
Dec 31, 1994                   --        --            --         --            --        --         --        (1,521)       (1,521)
                     ------------  --------  ------------  ---------  ------------  --------  ---------  ------------  ------------

Balance
December 31, 1994          10,000        10            90         --            --        --         --        (1,521)       (1,421)

Shares issued for
assignment right        1,990,000     1,990        (1,990)        --            --        --         --            --            --

Issuance of shares
for services               572,473       572       135,046         --            --        --         --            --       135,618

Issuance of shares
for debt                1,038,640     1,038     1,164,915         --            --        --         --            --     1,165,953

Issuance of shares
for cash                  232,557       233     1,119,027         --            --        --         --            --     1,119,260

Issuance of shares
for subscription
note receivable           414,200       414     1,652,658         --    (1,656,800)       --         --            --        (3,728)

Issuance of shares
for future
production cost           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

Issuance of shares
for reorganization     18,632,612    18,633       (58,033)        --            --        --         --            --       (39,400)

Issuance of shares
for cash                  572,407       573       571,834         --            --        --         --            --       572,407

Issuance of shares
for services                24,307        24        24,283         --            --        --         --            --        24,307

Net loss for the
nine month 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
service                   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)
                     ------------  --------  ------------  ---------  ------------  --------  ---------  ------------  ------------

                                                                5

<PAGE>

                                                                                                           DEFICIT
                          COMMON STOCK                                                                   ACCUMULATED       TOTAL
                     ---------------------    ADDITIONAL    STOCK        STOCK       STOCK    UNAMORTIZED  DURING      STOCKHOLDERS'
                      NUMBER OF                PAID-IN      TO BE     SUBSCRIPTION   TO BE    CONSULTING DEVELOPMENT     EQUITY
                        SHARES      AMOUNT     CAPITAL      ISSUED     RECEIVABLE   CANCELLED   FEES       STAGE        (DEFICIT)
                     ------------  --------  ------------  ---------  ------------  --------  ---------  ------------  ------------

Balance
September 30, 1997     24,054,590    24,055     5,028,702         --    (1,656,800)       --         --    (2,697,432)      698,525

Balance
September 30, 1997     24,054,590    24,055     5,028,702         --    (1,656,800)       --         --    (2,697,432)      698,525

Share issued for
cash                    2,810,000     2,810       278,190         --            --        --         --            --       281,000

Share issued for
service                   895,455       895        88,651         --            --        --         --            --        89,546

Shares issued for
compensation            2,200,000     2,200       217,800         --            --        --         --            --       220,000

Cancellation of
shares                 (2,538,170)   (2,538)   (1,534,262)        --     1,656,800        --         --            --       120,000

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-Restated                  --        --            --         --            --        --         --    (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         --            --        --         --            --     1,030,350

Shares issued for
compensation            1,517,615     1,518     1,218,598         --            --        --         --            --     1,220,116

Shares issued for
services                   986,844       986       253,301         --            --        --         --            --       254,287

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)

Shares issued for
services and prepaid
expenses                2,517,376     2,517       530,368         --            --        --   (141,318)           --       391,567

Share issued for
cash                    6,005,000     6,005       594,495         --            --        --         --       600,500

100,000 share to
be issued for cash             --        --            --     10,000            --        --         --            --        10,000

639,509 Shares to
be issued for debt
settlement in 2001             --        --            --    103,295            --        --         --            --       103,295

Net loss for the
year ended
September 30, 2001             --        --            --         --            --        --         --    (1,353,429)   (1,353,429)
                     ------------  --------  ------------  ---------  ------------  --------  ---------  ------------  ------------

                                                                6

<PAGE>

                                                                                                           DEFICIT
                          COMMON STOCK                                                                   ACCUMULATED       TOTAL
                     ---------------------    ADDITIONAL    STOCK        STOCK       STOCK    UNAMORTIZED  DURING      STOCKHOLDERS'
                      NUMBER OF                PAID-IN      TO BE     SUBSCRIPTION   TO BE    CONSULTING DEVELOPMENT     EQUITY
                        SHARES      AMOUNT     CAPITAL      ISSUED     RECEIVABLE   CANCELLED   FEES       STAGE        (DEFICIT)
                     ------------  --------  ------------  ---------  ------------  --------  ---------  ------------  ------------

Balance
September 30, 2001     62,688,698    62,688     9,229,213    113,295            --        --   (141,318)   (9,522,180)     (258,302)


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         --            --        --         --            --        11,300

Shares issued for
compensation               18,838        19         2,897         --            --        --         --            --         2,916

Shares issued for
cash                   16,815,357    16,815     1,560,782    (10,000)           --        --         --            --     1,567,597

Shares issued for
debt settlement         1,339,509     1,340       208,639   (103,295)           --        --         --            --       106,684

Shares to be
issued for
services related
to equity raising
- 967,742 shares               --        --      (300,000)   300,000            --        --         --            --            --

Cancellation of
shares                 (7,533,701)   (7,534)           --         --            --        --         --            --        (7,534)

Net loss for the
year ended
September 30, 2002             --        --            --         --            --        --         --    (1,243,309)   (1,243,309)
                     ------------  --------  ------------  ---------  ------------  --------  ---------  ------------  ------------

Balance
September 30, 2002     74,540,411    74,540    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         --            --        --         --            --            --

7,349,204 shares
to be cancelled                --        --         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

963,336 shares to
be issued for cash             --        --            --     28,900            --        --         --            --        28,900

500,000 shares to
be issued for debt
settlement                     --        --            --     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)
                     ------------  --------  ------------  ---------  ------------  --------  ---------  ------------  ------------

                                                                7

<PAGE>

                                                                                                           DEFICIT
                          COMMON STOCK                                                                   ACCUMULATED       TOTAL
                     ---------------------    ADDITIONAL    STOCK        STOCK       STOCK    UNAMORTIZED  DURING      STOCKHOLDERS'
                      NUMBER OF                PAID-IN      TO BE     SUBSCRIPTION   TO BE    CONSULTING DEVELOPMENT     EQUITY
                        SHARES      AMOUNT     CAPITAL      ISSUED     RECEIVABLE   CANCELLED   FEES       STAGE        (DEFICIT)
                     ------------  --------  ------------  ---------  ------------  --------  ---------  ------------  ------------

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)

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            --        --         --   (15,299,053)   (1,883,073)

Issuance of shares
for services            3,292,915     3,293        29,636         --            --        --         --            --        32,929

Beneficial conversion
feature                        --        --       225,500         --            --        --         --            --       225,500

Net loss for the
period ended
March 31, 2007                 --        --            --         --            --        --         --      (573,889)     (573,889)
                     ------------  --------  ------------  ---------  ------------  --------  ---------  ------------  ------------

Balance
March 31, 2007        105,335,201  $105,335  $ 13,525,175  $  43,900  $         --  $     --  $      --  $(15,872,942) $ (2,198,531)
                     ============  ========  ============  =========  ============  ========  =========  ============  ============

                       The accompanying notes form an integral part of these unaudited financial statements

                                                                8

<PAGE>

                                                        SIONIX CORPORATION
                                                   (A Development Stage Company)
                                                     STATEMENTS OF CASH FLOWS
                                                            (Unaudited)

                                                                                                                     CUMULATIVE
                                                                                 FOR THE SIX MONTH PERIODS          FROM INCEPTION
                                                                                      ENDED MARCH 31,             (OCTOBER 3, 1994)
                                                                                  2007                2006        TO MARCH 31, 2007
                                                                               ------------       ------------    -----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                                       $   (573,889)      $   (319,786)      $(15,872,942)
Adjustments to reconcile net loss to net cash provided by (used in )
operating activities:
    Depreciation and amortization                                                    15,788             15,741            603,110
    Amortization of consulting fees                                                       --                 --             13,075
    Amortization of debt discount on convertible NP                                  27,838                 --             27,838
    Issuance of common stock for compensation                                            --                 --          1,835,957
    Issuance of common stock for services                                            32,929                 --          2,129,486
    Impairment of assets                                                                 --                 --            514,755
    Write-down of obsolete assets                                                        --                 --             38,862
    Impairment of intangible assets                                                      --                 --          1,117,601
    Loss on settlement of debts                                                          --             94,221            130,268
    Other                                                                                --                 --             40,370
    Increase in other current assets                                                     --                 --           (510,727)
    Decrease in other receivable                                                         --                 --              3,000
    Increase in deposits                                                            (10,350)             6,269            (10,350)
    Increase (decrease) in accounts payable                                         (50,366)             4,812            292,245
    Increase in accrued interest                                                     42,750            186,784            111,431
    Increase (decrease) in accrued expense                                          168,959                 --          1,236,874
                                                                               ------------       ------------       ------------
                  Total adjustments                                                 227,547            307,827          7,573,795
                                                                               ------------       ------------       ------------
        Net cash provided by (used in) operating activities                        (346,342)           (11,959)        (8,299,148)
                                                                               ------------       ------------       ------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of patents                                                                  --                 --           (154,061)
    Purchase of equipment                                                           (12,972)                --           (393,146)
                                                                               ------------       ------------       ------------
        Net cash used in investing activities                                       (12,972)                --           (547,207)
                                                                               ------------       ------------       ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from issuance of notes                                                 750,000             47,780          1,207,433
    Proceeds from (payment for)  notes payable under equity line of credit          (150,000)                --            606,000
    Payment of notes                                                                (28,800)           (35,810)          (180,642)
    Issuance of common stock for cash                                                    --                 --          7,376,094
    Receipt of cash for stock to be issued                                               --                 --             53,900
                                                                               ------------       ------------       ------------
        Net cash provided by financing activities                                   571,200             11,970          9,062,785
                                                                               ------------       ------------       ------------

Net increase in cash & cash equivalents                                             211,887                 11            216,431

CASH & CASH EQUIVALENTS, BEGINNING                                                    4,544                343                 --
                                                                               ------------       ------------       ------------

CASH & CASH EQUIVALENTS, ENDING                                                $    216,431       $        355       $    216,431
                                                                               ============       ============       ============

Supplemental disclosure:
Interest paid                                                                  $         --       $         --
                                                                               ============       ============
Income tax paid                                                                $         --       $         --
                                                                               ============       ============

                       The accompanying notes form an integral part of these unaudited financial statements
</TABLE>
                                                                9

<PAGE>

1. ORGANIZATION AND DESCRIPTION OF BUSINESS

Sionix Corporation (the "Company") was incorporated in Utah in 1985. The Company
was formed to design, develop, and market automatic water filtration system
primarily for small water districts.

The Company has completed its reincorporation as a Nevada corporation, effective
July 1, 2003. The reincorporation was completed pursuant to an Agreement and
Plan of Merger between Sionix Corporation, a Utah corporation ("Sionix Utah")
and its wholly-owned Nevada subsidiary, Sionix Corporation ("Sionix Nevada").
Under the merger agreement, Sionix Utah merged with and into Sionix Nevada, and
each share of Sionix Utah's common stock was automatically converted into one
share of common stock, par value $0.001 per share, of Sionix Nevada. The merger
was effected by the filing of Articles of Merger, along with the Agreement and
Plan of Merger, with the Secretary of State of Nevada.

The Company is a development stage company as defined in Statement of Financial
Accounting Standards ("SFAS") No. 7, "Accounting and Reporting by Development
Stage Enterprises." The Company is in the development stage and its efforts have
been principally devoted to research and development, organizational activities,
and raising capital. All losses accumulated since inception has been considered
as part of the Company's development stage activities.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The audited financial statements have been prepared by the Company, pursuant to
the rules and regulations of the Securities and Exchange Commission. The
information furnished in these consolidated financial statements reflects all
adjustments (consisting of normal recurring accruals and adjustments) which are,
in the opinion of management, necessary to fairly present the operating results
for the respective periods. Certain information and footnote disclosures
normally present in annual consolidated financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America have been omitted pursuant to such rules and regulations. The results of
the six months ended March 31, 2007 are not necessarily indicative of the
results to be expected for the full year ending September 30, 2007.

REVENUE RECOGNITION

The Company's policy to recognize revenues is in accordance with SEC Staff
Accounting Bulletin No. 101, or other specific authoritative literature, as
applicable. Accordingly, revenues from products sales are recorded when all four
of the following criteria are met: (i) persuasive evidence of an arrangement
exists; (ii) delivery has occurred or services have been rendered;(iii) the
Company's price to the buyer is fixed or determinable; and (iv) collectibility
is reasonably assured. The Company's policy is to report its sales levels on a
net revenue basis, with net revenues being computed by deducting from gross
revenues the amount of actual sales returns and the amount of reserves
established for anticipated sales returns.

The Company's policy for shipping and handling costs, billed to customers, is to
include it in revenue in accordance with Emerging Issues Task Force ("EITF")
issue No. 00-10, "Accounting for Shipping and Handling Revenues and Costs." The
purpose of this issue was to clarify the classification of shipping and handling
revenues and costs. The consensus reached was that all shipping and handling
billed to customers should be recorded as revenue. Accordingly, the Company
records its shipping and handling amounts within net sales and operating
expenses.

The Company has not earned any revenue since its inception to the date of this
report.

STOCK-BASED COMPENSATION


Effective October 1, 2006, the Company adopted Statement of Financial Accounting
Standards (SFAS) No. 123-R, "Share-Based Payment" ("SFAS 123-R"), which requires
the measurement and recognition of compensation expense for all share-based
payment awards made to employees and directors, including stock options based on
their fair values. SFAS 123-R supersedes Accounting Principles Board Opinion No.
25, "Accounting for Stock Issued to Employees" ("APB 25"), which the Company
previously followed in accounting for stock-based awards. In March 2005, the SEC
issued Staff Accounting Bulletin No. 107 (SAB 107) to provide guidance on SFAS
123-R. The Company has applied SAB 107 in its adoption of SFAS 123-R.

                                       10

<PAGE>

NET LOSS PER SHARE

Net loss per share is calculated in accordance with Statement of Financial
Accounting Standards No. 128, Earnings Per Share ("SFAS 128"). Basic net loss
per share is based upon the weighted average number of common shares
outstanding. Diluted net loss per share is based on the assumption that all
dilutive convertible shares and stock options were converted or exercised.
Dilution is computed by applying the treasury stock method. Under this method,
options and warrants are assumed to be exercised at the beginning of the period
(or at the time of issuance, if later), and as if funds obtained thereby were
used to purchase common stock at the average market price during the period.

ESTIMATES

The preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates


FAIR VALUE OF FINANCIAL INSTRUMENTS

Statement of financial accounting standard No. 107, Disclosures about fair value
of financial instruments, requires that the company disclose estimated fair
values of financial instruments. The carrying amounts reported in the statements
of financial position for assets and liabilities qualifying as financial
instruments are a reasonable estimate of fair value.

 CASH AND CASH EQUIVALENTS

Cash and cash equivalents represent cash and short-term highly liquid
investments with original maturities of three months or less.

PROPERTY AND EQUIPMENT

Property and equipment is stated at cost. The cost of additions and improvements
are capitalized while maintenance and repairs are expensed as incurred.
Depreciation of property and equipment is provided on a straight-line basis over
the estimated five year useful lives of the assets.

PROVISION FOR INCOME TAXES

The Company utilizes SFAS No. 109, "Accounting for Income Taxes," which requires
the recognition of deferred tax assets and liabilities for the expected future
tax consequences of events that have been included in the financial statements
or tax returns. Under this method, deferred income taxes are recognized for the
tax consequences in future years of differences between the tax bases of assets
and liabilities and their financial reporting amounts at each period end based
on enacted tax laws and statutory tax rates applicable to the periods in which
the differences are expected to affect taxable income. Valuation allowances are
established, when necessary, to reduce deferred tax assets to the amount
expected to be realized.

                                       11

<PAGE>

ADVERTISING

The cost of advertising is expensed as incurred. Total advertising costs were
$2,465 and $3,310 for the six month periods ended March 31, 2007 and 2006,
respectively.


RECLASSIFICATION

For comparative purposes, prior period's consolidated financial statements have
been reclassified to conform to report classifications of the current period.


RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This
statement clarifies the definition of fair value, establishes a framework for
measuring fair value and expands the disclosures on fair value measurements.
SFAS No. 157 is effective for fiscal years beginning after November 15, 2007.
Management has not determined the effect, if any, of the adoption of this
statement will have on the financial statements.


In September 2006, the FASB issued SFAS No. 158, "Employers' Accounting for
Defined Benefit Pension and Other Postretirement Plans-- an amendment of FASB
Statements No. 87, 88, 106, and 132(R)". One objective of this standard is to
make it easier for investors, employees, retirees and other parties to
understand and assess an employer's financial position and its ability to
fulfill the obligations under its benefit plans. SFAS No. 158 requires employers
to fully recognize in their financial statements the obligations associated with
single-employer defined benefit pension plans, retiree healthcare plans, and
other postretirement plans. SFAS No. 158 requires an employer to fully recognize
in its statement of financial position the overfunded or underfunded status of a
defined benefit postretirement plan (other than a multiemployer plan) as an
asset or liability and to recognize changes in that funded status in the year in
which the changes occur through comprehensive income. This Statement also
requires an employer to measure the funded status of a plan as of the date of
its year-end statement of financial position, with limited exceptions. SFAS No.
158 requires an entity to recognize as a component of other comprehensive
income, net of tax, the gains or losses and prior service costs or credits that
arise during the period but are not recognized as components of net periodic
benefit cost pursuant to SFAS No. 87. This Statement requires an entity to
disclose in the notes to financial statements additional information about
certain effects on net periodic benefit cost for the next fiscal year that arise
from delayed recognition of the gains or losses, prior service costs or credits,
and transition asset or obligation. The Company is required to initially
recognize the funded status of a defined benefit postretirement plan and to
provide the required disclosures for fiscal years ending after December 15,
2006. Management believes that this statement will not have a significant impact
on the financial statements.

In February 2007, FASB issued FASB Statement No. 159, The Fair Value Option for
Financial Assets and Financial Liabilities. FAS 159 is effective for fiscal
years beginning after November 15, 2007. Early adoption is permitted subject to
specific requirements outlined in the new Statement. Therefore, calendar-year
companies may be able to adopt FAS 159 for their first quarter 2007 financial
statements.

                                       12

<PAGE>

The new Statement allows entities to choose, at specified election dates, to
measure eligible financial assets and liabilities at fair value that are not
otherwise required to be measured at fair value. If a company elects the fair
value option for an eligible item, changes in that item's fair value in
subsequent reporting periods must be recognized in current earnings. FAS 159
also establishes presentation and disclosure requirements designed to draw
comparison between entities that elect different measurement attributes for
similar assets and liabilities.


Note 3.   PROPERTY AND EQUIPMENT

             Equipment and machinery                $  200,776
             Furniture and fixtures                     22,183
                                                    -----------
                                                       222,959
             Less accumulated depreciation            (181,013)
                                                    -----------
                                                    $   41,946
                                                    ===========

Depreciation expenses for the six month period ended March 31, 2007 and 2006
were $15,778 and $15,741, respectively.

Note 4.  ACCRUED EXPENSES

    Accrued expenses comprised of the following at December 31, 2006:

                     Payroll taxes                             $    144,472
                     Accrued Wages                                1,037,283
                     Interest payable                                94,449
                     Other accruals                                  72,276
                                                               ------------
                   Total                                       $  1,348,480
                                                               ============

Note 5.   NOTES PAYABLE

RELATED PARTIES

The Company has received advances in the form of unsecured promissory notes from
stockholders in order to pay ongoing operating expenses. These notes are at
interest rates up to 13% and are due on demand. As of March 31, 2007 and 2006,
notes payable amounted to $129,000 and $97,000, respectively.

Accrued interest on the notes amounted to $58,106 and $46,430 as of March 31,
2007 and 2006, respectively.

                                       13

<PAGE>

OFFICERS

Notes payables to officers are unsecured, interest free and due on demand.
Proceeds from these notes payable were used to pay ongoing operating expense.
The balances at December 31, 2006 and 2005 were $47,860 and $52,580,
respectively.

Note 6.   NOTES PAYABLE UNDER EQUITY LINE OF CREDIT

During the year ended September 30, 2003, the Company received $1,307,500
proceeds from promissory notes to Cornell Capital Partners, LP, net of 4% fee of
$56,000 and $36,500 for escrow and other fees. The Company has settled $900,000
by issuing shares of common stock during the year ended September 30, 2003 (note
7). The notes payable outstanding at September 30, 2003, amounted to $500,000.
The balance for the note payable outstanding at September 30, 2004 and 2005 were
$ 233,115 and $ 233,115, respectively. In 2006, Company has entered into a
settlement agreement with Cornell Capital Partner to pay the total amount of
$327,336; $50,000 shall be paid on or before November 15, 2006, $25,000 payable
per month on the 15th day of each month commencing December 15, 2006, with the
balance of $27,336 due and payable on or before October 15, 2007. The Company
recorded loss on settlement on debt of $94,221 for the year ended September 30,
2006.

The balances payable were $177,336 and $327,336 as of March 31, 2007 and 2006,
respectively.

Note 7. CONVERTIBLE NOTES

During the six month period ended March 31, 2007, the Company entered into
various debentures (Bridge Note) agreements with several investors. As per the
terms of the agreement the note bears a simple interest rate of 10% per annum.
The note will automatically mature and the entire outstanding principal amount,
together with all unpaid and accrued interest, shall become due and payable
after the earlier of (i) the eighteen (18) month anniversary of the date of
issuance (ii) an event of default or (iii) the closing of any equity related
financing by the Company in which the gross proceeds to the Company are at least
$2,500,000, unless, prior to such time, this note shall have been converted into
shares of the Company's common stock.

The note is convertible into shares of common stock of the Company at $0.05 per
share or shares of any equity security issued by the Company at a conversion
price equal to the price at which such security is sold to any other party.

The conversion price is adjustable as per the terms of the agreement for the
subsequent issuances of equity security at a price different than the conversion
price.

The conversion price is also adjustable if the registration statement is not
declared effective within 180 days after the closing but in no case the
conversion price to be reduced below $0.04 per share.

As of March 31, 2007, the Company recorded beneficial conversion feature expense
of $27,838 and the unamortized beneficial conversion feature amount of $197,662
showing as net of the note payable amount of $750,000. The Company recorded an
interest expense of $25,568 on the notes.

                                       14

<PAGE>

Note 8.  STOCKHOLDERS' EQUITY

COMMON STOCK

The Company has 150,000,000 authorized shares with 0.001 par value. As of March
31, 2007, the Company had 105,817,101 shares issued and 105,335,201 shares
outstanding.

During the six month period ended March 31, 2006, the company issued 3,292,915
shares valued at $0.01 per shares for consulting service.

STOCK OPTIONS

2001 Executive Officers Stock Option Plan

On October of 2000, the company entered into amendments to the employment
agreement with each of the executive officers eliminating the
provisions of stock bonuses. In lieu of the bonus provision, the Company adopted
the 2001 Executive Officers Stock option Plan. The Company reserved 7,576,680
shares for issuance under the plan.

         Options outstanding:

                                       Weighted
                                       Average
                                     Exercise Price            Number of Options

Outstanding at September 30, 2006        $0.15                     7,343,032

Granted                                     -                              -
Forfeited                                   -                              -
Exercised                                   -                              -
--------------------------------------------------------------------------------
Outstanding at March 31, 2007            $0.15                     7,343,032



         A summary of the Company's option activity is listed below:

                                                    Weighted-    Weighted-
                                        Weighted-    Average      Average
                                        Average     Exercise     Exercise
              Stock        Stock        Remaining   Price of     Price of
Exercise     Options      Options      Contractual   Options      Options
 Price     Outstanding   Exercisable      Life     Outstanding   Exercisable
-------    -----------   -----------      ----     -----------   -----------
 $ 0.15     7,343,032     7,343,032    3 years      $ 0.15         $ 0.15

The fair value of the options was calculated using the Black-Scholes
option valuation model with the following weighted-average assumptions: Dividend
yields of 0%; risk free interest rates of 6%; expected volatility of 100% and
expected lives of 4.9 years.

All options were vested prior to September 30, 2006. No options are vested
during the six month period ended March 31, 2007.

                                       15

<PAGE>

Note 9. GOING CONCERN

         The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern. This basis of accounting
contemplates the recovery of the Company's assets and the satisfaction of its
liabilities in the normal course of business. Through March 31, 2007, the
Company had incurred cumulative losses of $15,872,942, including current loss of
$573,889. The Company's successful transition from a development stage company
to attaining profitable operations is dependent upon obtaining financing
adequate to fulfill its research and development activities, production of its
equipment and achieving a level of revenues adequate to support the Company's
cost structure. Management's plan of operations anticipates that the cash
requirements for the next twelve months will be met by obtaining capital
contributions through the sale of common stock and cash flow from operations.
However, there is no assurance that the Company will be able to implement its
plan.

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

         GENERAL. The following discussion and analysis should be read in
conjunction with our Financial Statements and Notes thereto, included elsewhere
in this Quarterly Report on Form 10-QSB. Except for the historical information
contained in this report, the following discussion contains certain
forward-looking statements that involve risks and uncertainties, such as
statements of our plans, objectives, expectations and intentions. The cautionary
statements made in our most recent Annual Report on Form 10-KSB should be read
as being applicable to all related forward-looking statements wherever they
appear in this Report. Our actual results may differ materially from the results
discussed in the forward-looking statements, as a result of certain factors
including, but not limited to, those discussed elsewhere herein and in our most
recent Annual Report on Form 10-KSB.

         PLAN OF OPERATION. During the next twelve months we plan to install a
test ELIXIR unit at the Villa Park Dam under our arrangement with the Serrano
Water District, and commence testing of the unit. We believe that if the unit
operates successfully, we will be in a position to aggressively market the
ELIXIR product, using the Villa Park Dam unit as a prototype for additional
installations. We plan to engage in substantial promotional activities in
connection with the installation and operation of the unit, including media
exposure and access to other public agencies and potential private customers. If
the unit operates successfully, we believe we will receive orders for additional
units.

         Depending on the availability of financing, we plan to establish a
manufacturing facility in Southern California to commence production of the
units. Depending on the size of the planned facility, we believe it may require
capital expenditures in the range of $5 million to $20 million. In addition to
capital expenditures, this will require hiring of a substantial number of
additional employees. We anticipate that all of our capital needs will need to
be funded by equity financing.

         RESULTS OF OPERATIONS (THREE MONTHS ENDED MARCH 31, 2007 COMPARED TO
THREE MONTHS ENDED MARCH 31, 2006). The Company was relatively inactive during
the quarter ended March 31, 2006 due to lack of resources. During the first six
months of fiscal 2007, the Company raised $750,000 through the sale of
Convertible Debentures, and n able to resume activities in the first quarter of
fiscal 2007. Revenues for both the three month period ended March 31, 2006 and
the three month period ended March 31, 2007. were zero, as the Company had not
yet commenced the sale of products. General and administrative expenses for the
period of three months ended March 31, 2007 totaled $282,804, an increase of
$178,314 over the $104,490 incurred in the corresponding period in 2006, due to
the resumption of development and capital-raising activities. Interest expense
increased to $51,346 from $2,432 in the 2006 quarter, representing interest on
the Convertible Debentures issued during the past six months.

                                       16

<PAGE>

         As a result of these items, the loss for the three months ended March
31, 2007 was $341,641, an increase of $226,722 over the loss of $114,919 for the
corresponding period in the 2006 fiscal year.

         LIQUIDITY AND CAPITAL RESOURCES. On March 31, 2007, the Company had
cash and cash equivalents of $216,431. The sole source of liquidity has been
borrowings from affiliates and the sale of securities. During the period the
Company raised $127,500 from the sale of Secured Convertible Promissory Notes.
Management anticipates that additional capital will be required to finance the
Company's operations. The Company believes that anticipated proceeds from sales
of securities and other financing activities, plus possible cash flow from
operations during the 2007 fiscal year, will be sufficient to finance the
Company's operations. However, the Company has no commitments for financing, and
there can be no assurance that such financing will be available or that the
Company will not encounter unforeseen difficulties that may deplete its capital
resources more rapidly than anticipated. Also, the Company may not be able to
generate revenues from operations during the fiscal year.

         As of March 31, 2007, the Company had an accumulated deficit of
$15,872,942. It can be expected that the future operating results will continue
to be subject to many of the problems, expenses, delays and risks inherent in
the establishment of a developmental business enterprise, many of which the
Company cannot control.

         GOING CONCERN OPINION. We currently have insufficient assets to
continue our operations, unless we secure additional financing. As a result of
our ongoing losses, lack of revenues from operations, and accumulated deficits
at December 31, 2006, there is doubt about our ability to continue as a going
concern.

ITEM 3. CONTROLS AND PROCEDURES.

         At the end of the period covered by this Form 10-QSB, the Company's
management, including its Chief Executive Officer and Chief Financial Officer,
conducted an evaluation of the effectiveness of the Company's disclosure
controls and procedures. Based on this evaluation, the Chief Executive Officer
and Chief Financial Officer determined that such controls and procedures are
effective to ensure that information relating to the Company required to be
disclosed in reports that it files or submits under the Securities Exchange Act
of 1934 is recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the Securities and Exchange Commission.

         There have been no changes in the Company's internal controls over
financial reporting that were identified during the evaluation that occurred
during the Company's last fiscal quarter that have materially affected, or are
reasonably likely to materially affect, the Company's internal control over
financial reporting.

                                       17

<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         The Company is not a party to any material pending legal proceedings.


ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

         During the three months ended March 31, 2007, the Company issued
Secured Convertible Promissory Notes in the aggregate amount of $127,500 to six
investors. The Secured Convertible Promissory Notes are convertible at the rate
of $.05 per share, bear interest at the rate of 10% per annum and become due and
payable eighteen months after issuance (or earlier, if the Company consummates
an equity financing with proceeds of $2.5 million or more.) Under an Investors
Rights Agreement entered into with the noteholders, the Company is required to
file a Registration Statement covering the shares of Common Stock issuable upon
conversion, and to cause the Registration Statement to be declared effective
within 180 days after the date of issuance of the Secured Convertible Promissory
Notes. If the Registration Statement is not declared effective within this time
frame, the conversion price is automatically reduced by $.0025 each thirty days
until the Registration Statement is declared effective, but the conversion price
cannot be reduced below $.04 per share. As of the date of this Report, the
Company has not filed the Registration Statement contemplated by the Investors'
Rights Agreement.

         The Company believes such sales were exempt from the registration
requirements of the Securities Act of 1933, as amended, by virtue of Section 4
(2) thereof and Regulation D thereunder.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.

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

         None

ITEM 5.  OTHER INFORMATION

         None

ITEM 6.  EXHIBITS

         31.1 Certificate of Chief Executive Officer pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.

         31.2 Certificate of Chief Financial Officer pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.

         32.1 Certificate of Chief Executive Officer pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002

         32.2 Certificate of Chief Financial Officer pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002

                                       18

<PAGE>

                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                               SIONIX CORPORATION
Date:  June 12, 2007

                             By: /s/ James J. Houtz
                                  ---------------------------------------
                                  James J. Houtz, President

                              By: /s/ Robert McCray
                                  ---------------------------------------
                                   Robert McCray, Chief Financial Officer




                                       19