----

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

----

----

----

| **SIONIX                  CORPORATION**                                         |   |
|---------------------------------------------------------------------------------|--------|
| **(A                  DEVELOPMENT STAGE COMPANY)**                              |   |
| **BALANCE                  SHEET**                                              |   |
| **AS                  OF JUNE 30, 2007**                                        |   |
| **(Unaudited)**                                                                 |   |
|                                                                            |   |    |   |
| **ASSETS**                                                                      |   |
|                                                                            |   |   |   |   |
| **CURRENT                  ASSETS:**                                            |   |   |   |   |
| Cash                  & cash equivalents                                    |   | $ | 455,563 |   |
|                                                                            |   |   |   |   |
| **PROPERTY                  AND EQUIPMENT, net**                                |   |   | 46,399 |   |
| **DEPOSIT**                                                                     |   |   | 4,600 |   |
|                                                                            |   |   |   |   |
| Total                  assets                                                   |   | $ | 506,562 |   |
|                                                                            |   |   |   |   |
|                                                                            |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' DEFICIT**                      |
|                                                                            |   |   |   |   |
| **CURRENT                  LIABILITIES:**                                       |   |   |   |   |
| Accounts                  payable                                               |   | $ | 204,804 |   |
| Accrued                  expenses                                               |   |   | 1,525,397 |   |
| Notes                  payable-related parties                                  |   |   | 129,000 |   |
| Note                  payable-officers                                          |   |   | 32,860 |   |
| Convertible                  notes                                              |   |   | 792,314 |   |
| Equity                  line of credit                                          |   |   | 102,336 |   |
| Total                  current liabilities                                      |   |   | 2,786,712 |   |
|                                                                            |   |   |   |   |
| **STOCKHOLDERS'                  DEFICIT**                                      |   |   |   |   |
| Common                  stock, $0.001 par value ;150,000,000 shares authorized; |   |   |   |   |
| 107,117,101                  shares issued and 106,635,201 shares outstanding   |   |   | 106,635 |   |
| Additional                  paid-in capital                                     |   |   | 13,969,888 |   |
| Shares                  to be issued                                            |   |   | 43,900 |   |
| Deficit                  accumulated during development stage                   |   |   | (16,400,573 | ) |
| Total                  stockholders' deficit                                    |   |   | (2,280,150 | ) |
| Total                  liabilities & stockholders' deficit                  |   | $ | 506,562 |   |

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

----

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

|                                                                                                                |   | **Three                  Month Periods Ended****June                  30,** |        | **Nine                  Month Periods****Ended****June                  30,** |   | **Cumulative**from Inception (October 3,                  1994) to |   |
|---------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|-------------|-------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                                                                                |   | **2007**                                                                    |        | **2006**                                                                      |   | **2007**                                                           |   | **2006** |   | **June                  30, 2007** |   |
|                                                                                                                |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| **Net                  sales**                                                                                      |   | $                                                                           | -           |                                                                          | $      | -                                                                  |   | $ |   |   | $ |  - |   | $ | - |   |
|                                                                                                                |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| **Operating                  expenses:**                                                                            |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| General                  and administrative                                                                         |   |                                                                        | 444,544     |                                                                          |   | 242,236                                                            |   |   | 932,668 |   |   | 447,247 |   |   | 12,675,067 |   |
| Research                  and development                                                                           |   |                                                                        | -           |                                                                          |   | -                                                                  |   |   | - |   |   | - |   |   | 1,449,474 |   |
| Impairment                  of intangible assets                                                                    |   |                                                                        | -           |                                                                          |   | -                                                                  |   |   | - |   |   | - |   |   | 1,267,278 |   |
| Inventory                  obsolescence                                                                             |   |                                                                        | -           |                                                                          |   | -                                                                  |   |   | - |   |   | - |   |   | 365,078 |   |
| Depreciation                  and amortization                                                                      |   |                                                                        | 7,936       |                                                                          |   | 7,745                                                              |   |   | 23,723 |   |   | 23,486 |   |   | 524,129 |   |
| Total                  operating expenses                                                                           |   |                                                                        | 452,480     |                                                                          |   | 249,981                                                            |   |   | 956,391 |   |   | 470,733 |   |   | 16,281,026 |   |
| **Loss                  from operations**                                                                           |   |                                                                        | (452,480    | )                                                                             |   | (249,981                                                           | )      |   | (956,391 | ) |   | (470,733 | ) |   | (16,281,026 | ) |
|                                                                                                                |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| **Other                  income (expenses)**                                                                        |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| Interest                  income                                                                                    |   |                                                                        | 56          |                                                                          |   | -                                                                  |   |   | 666 |   |   | - |   |   | 54,324 |   |
| Interest                  expense                                                                                   |   |                                                                        | (74,307     | )                                                                             |   | (2,406                                                             | )      |   | (144,895 | ) |   | (7,218 | ) |   | (379,582 | ) |
| Loss                  on settlement of debts                                                                        |   |                                                                        | -           |                                                                          |   | -                                                                  |   |   | - |   |   | (94,221 | ) |   | (230,268 | ) |
| Loss                  on legal settlement                                                                           |   |                                                                        | -           |                                                                          |   | -                                                                  |   |   | - |   |   | - |   |   | 434,603 |   |
| Total                  other income (expenses)                                                                      |   |                                                                        | (74,252     | )                                                                             |   | (2,406                                                             | )      |   | (144,229 | ) |   | (101,439 | ) |   | (120,924 | ) |
|                                                                                                                |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| **Loss                  before income taxes**                                                                       |   |                                                                        | (526,732    | )                                                                             |   | (252,387                                                           | )      |   | (1,100,620 | ) |   | (572,172 | ) |   | (16,388,874 | ) |
|                                                                                                                |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| Income                  taxes                                                                                       |   |                                                                        | 900         |                                                                          |   | -                                                                  |   |   | 900 |   |   | - |   |   | 11,700 |   |
|                                                                                                                |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| **Net                  loss**                                                                                       |   | $                                                                           | (527,632    | )                                                                             | $      | (252,387                                                           | )      | $ | (1,101,520 | ) | $ | (572,172 | ) | $ | (16,400,573 | ) |
|                                                                                                                |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| **Basic                  and diluted loss per share**                                                               |   | $                                                                           | (0.00       | )                                                                             | $      | (0.00                                                              | )      | $ | (0.01 | ) | $ | (0.01 | ) |   |   |   |
|                                                                                                                |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |                                                                        |        |                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| ***Basic                    and diluted weighted average number of common****stock                    outstanding** |   |                                                                        | 106,431,387 |                                                                          |   | 102,524,186                                                        |   |   | 105,901,243 |   |   | 102,524,186 |   |   |   |   |

| *Weighted                  average number of shares used to compute basic and diluted loss                  per share                  is the same as the effect of dilutive |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| securities                  is anti-dilutive                                                                                                                                 |

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

----

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

|                                                                                                       |   |   | **For                    The Nine Month Periods Ended June 30,** |   |   | **Cumulative                    From Inception (October 3, 1994) to September 30,** |   |   | **Cumulative                    From Inception (October 3, 1994) to****June                    30,** |   |
|------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------|--------|
|                                                                                                       |   |   | **2007**                                                         |   |   | **2006**                                                                            |   |   | **2006**                                                                                             |   |   | **2007** |   |
| **CASH                    FLOWS FROM OPERATING ACTIVITIES:**                                               |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| Net                    loss                                                                                |        | $      |                      (1,101,520                             | )      | $      |                        (572,172                                                | )      | $      |                          (15,299,053                                                            | )      | $ | (16,400,573 | ) |
| Adjustments                    to reconcile net loss to net cash used in                                   |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| operating                    activities:                                                                   |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| Depreciation                    and amortization                                                           |   |   | 23,723                                                           |   |   | 23,486                                                                              |   |   | 587,323                                                                                              |   |   | 611,046 |   |
| Amortizaton                    of consulting fees                                                          |   |   | -                                                                |   |   | -                                                                                   |   |   | 13,075                                                                                               |   |   | 13,075 |   |
| Amortization                    of debt discount on convertible NP                                         |   |   | 75,827                                                           |   |   | -                                                                                   |   |   | 75,827                                                                                               |   |   |   |   |
| Issuance                    of common stock for compensation                                               |   |   | -                                                                |   |   | -                                                                                   |   |   | 1,835,957                                                                                            |   |   | 1,835,957 |   |
| Issuance                    of common stock for services & prepaid consulting fees                     |   |   | 84,929                                                           |   |   | -                                                                                   |   |   | 2,096,557                                                                                            |   |   | 2,181,486 |   |
| Impairment                    of assets                                                                    |   |   | -                                                                |   |   | -                                                                                   |   |   | 514,755                                                                                              |   |   | 514,755 |   |
| Write-down                    of obsolete assets                                                           |   |   | -                                                                |   |   | -                                                                                   |   |   | 38,862                                                                                               |   |   | 38,862 |   |
| Impairment                    of intangible assets                                                         |   |   | -                                                                |   |   | -                                                                                   |   |   | 1,117,601                                                                                            |   |   | 1,117,601 |   |
| Loss                    on settlement of debts                                                             |   |   | -                                                                |   |   | 94,221                                                                              |   |   | 130,268                                                                                              |   |   | 130,268 |   |
| Other                                                                                                      |   |   | -                                                                |   |   | -                                                                                   |   |   | 40,370                                                                                               |   |   | 40,370 |   |
| Changes                    in assets and liabilities:                                                      |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| Increase                    in other current assets                                                        |   |   | -                                                                |   |   | -                                                                                   |   |   | (510,727                                                                                             | )      |   | (510,727 | ) |
| Decrease                    in other receivable                                                            |   |   | -                                                                |   |   | -                                                                                   |   |   | 3,000                                                                                                |   |   | 3,000 |   |
| Increase                    in deposits                                                                    |   |   | (4,600                                                           | )      |   | -                                                                                   |   |   | -                                                                                                    |   |   | (4,600 | ) |
| Increase                    (decrease) in accounts payable                                                 |   |   | (67,806                                                          | )      |   | 7,713                                                                               |   |   | 342,610                                                                                              |   |   | 274,804 |   |
| Increase                    in accrued interest                                                            |   |   | 69,068                                                           |   |   | 7,218                                                                               |   |   | 68,681                                                                                               |   |   | 137,749 |   |
| Increase                    (decrease) in accrued expense                                                  |   |   | 319,558                                                          |   |   | 422,139                                                                             |   |   | 1,067,914                                                                                            |   |   | 1,387,473 |   |
| Total                    adjustments                                                                       |   |   | 500,700                                                          |   |   | 554,777                                                                             |   |   | 7,346,247                                                                                            |   |   | 7,846,947 |   |
| Net                    cash used in operating activities                                                   |   |   | (600,821                                                         | )      |   | (17,395                                                                             | )      |   | (7,952,807                                                                                           | )      |   | (8,553,626 | ) |
|                                                                                                       |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| **CASH                    FLOWS FROM INVESTING ACTIVITIES**                                                |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| Purchase                    of patents                                                                     |   |   | -                                                                |   |   | -                                                                                   |   |   | (154,061                                                                                             | )      |   | (154,061 | ) |
| Purchase                    of equipment                                                                   |   |   | (25,361                                                          | )      |   | -                                                                                   |   |   | (380,174                                                                                             | )      |   | (405,535 | ) |
| Net                    cash used in investing activities                                                   |   |   | (25,361                                                          | )      |   | -                                                                                   |   |   | (534,235                                                                                             | )      |   | (559,596 | ) |
|                                                                                                       |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| **CASH                    FLOWS FROM FINANCING ACTIVITIES:**                                               |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| Proceeds                    from issuance of notes                                                         |   |   | 1,336,000                                                        |   |   | 47,780                                                                              |   |   | 457,433                                                                                              |   |   | 1,793,433 |   |
| Proceeds                    from (payment for) notes payble under equity line of                    credit |   |   | (225,000                                                         | )      |   | -                                                                                   |   |   | 756,000                                                                                              |   |   | 531,000 |   |
| Payment                    of notes to officers                                                            |   |   | (33,800                                                          | )      |   | (30,340                                                                             | )      |   | (151,842                                                                                             | )      |   | (185,642 | ) |
| Issuance                    of common stock for cash                                                       |   |   | -                                                                |   |   | -                                                                                   |   |   | 7,376,094                                                                                            |   |   | 7,376,094 |   |
| Receipt                    of cash for stock to be issued                                                  |   |   | -                                                                |   |   | -                                                                                   |   |   | 53,900                                                                                               |   |   | 53,900 |   |
| Net                    cash provided by financing activities                                               |   |   | 1,077,201                                                        |   |   | 17,440                                                                              |   |   | 8,491,585                                                                                            |   |   | 9,568,785 |   |
|                                                                                                       |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| Net                    increase in cash & cash equivalents                                             |   |   | 451,019                                                          |   |   | 45                                                                                  |   |   | 4,544                                                                                                |   |   | 455,563 |   |
|                                                                                                       |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| **CASH                    & CASH EQUIVALENTS, BEGINNING**                                              |   |   | 4,544                                                            |   |   | 343                                                                                 |   |   | -                                                                                                    |   |   | - |   |
|                                                                                                       |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| **CASH                    & CASH EQUIVALENTS, ENDING**                                                 |   |   | 455,563                                                          |   | $      | 388                                                                                 |   |   | 4,544                                                                                                |   | $ | 455,563 |   |
|                                                                                                       |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| SUPPLEMENTAL                    INFORMATION:                                                               |   |   |                                                             |   |   |                                                                                |   |   |                                                                                                 |   |   |   |   |
| Taxes                                                                                                      |   | $      | -                                                                |   | $      | -                                                                                   |   |   |                                                                                                 |   |   |   |   |
| Interest                    expense                                                                        |   | $      | -                                                                |   | $      | -                                                                                   |   |   |                                                                                                 |   |   |  |   |

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

----

| **SIONIX                  CORPORATION**                               |
|-----------------------------------------------------------------------|
| **(A                  Development Stage Company)**                    |
| **STATEMENTS                  OF STOCKHOLDERS' EQUITY (DEFICIT)**     |
| **FROM                  INCEPTION (OCTOBER 3,1994) TO JUNE 30, 2007** |
| **(Unaudited)**                                                       |

|                                                                                        |   |                           |       |           |   |        |   |                       |       |             |   |                       |   |            |       | **Deficit**       |   | **Total**     |   |
|---------------------------------------------------------------------------------------------|--------|--------------------------------|------------|----------------|--------|-------------|--------|----------------------------|------------|------------------|--------|----------------------------|--------|-----------------|------------|-------------------|--------|---------------|--------|
|                                                                                        |   | **Common stock**          |       | **Additional** |   | **Stock**   |   | **Stock**                  |       | **Stock**        |   | **Unamortized**            |   | **accumulated** |       | **stockholders'** |   |
|                                                                                        |   | **Number                  of** |       |           |   | **paid-In** |   | **to                  be** |       | **subscription** |   | **to                  be** |   | **consulting**  |       | **from**          |   | **equity**    |   |
|                                                                                        |   | **shares**                     |       | **Amount**     |   | **capital** |   | **issued**                 |       | **receivable**   |   | **cancelled**              |   | ** fees**  |       | **inception**     |   | **(deficit)** |   |
|                                                                                        |   |                           |       |           |   |        |   |                       |       |             |   |                       |   |            |       |              |   |          |   |   |   |   |   |   |   |   |   |   |
| Shares                  issued for cash-Oct 1994                                            |   |                           | 10,000     |           | $      | 10          |   | $                          | 90         |             | $      | -                          |   | $               | -          |              | $      | -             |   | $ | - |   | $ | - |   | $ | 100 |   |
|                                                                                        |   |                           |       |           |   |        |   |                       |       |             |   |                       |   |            |       |              |   |          |   |   |   |   |   |   |   |   |   |   |
| Net                    loss for periodOct                      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 service                                             |   |                           | 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 subscriptionnote                      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 yearended                      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 service                                             |   |                           | 24,307     |           |   | 24          |   |                       | 24,283     |             |   | -                          |   |            | -          |              |   | -             |   |   | - |   |   | - |   |   | 24,307 |   |
|                                                                                        |   |                           |       |           |   |        |   |                       |       |             |   |                       |   |            |       |              |   |          |   |   |   |   |   |   |   |   |   |   |
| Net                    loss for the nine month endedSeptember                      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 |   |
|                                                                                        |   |                           |       |           |   |        |   |                       |       |             |   |                       |   |            |       |              |   |          |   |   |   |   |   |   |   |   |   |   |
| Share                  issued for cash                                                      |   |                           | 722,733    |           |   | 723         |   |                       | 365,857    |             |   | -                          |   |            | -          |              |   | -             |   |   | - |   |   | - |   |   | 366,580 |   |
|                                                                                        |   |                           |       |           |   |        |   |                       |       |             |   |                       |   |            |       |              |   |          |   |   |   |   |   |   |   |   |   |   |
| Share                  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 endedSeptember                    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 |   |
|                                                                                        |   |                           |       |           |   |        |   |                       |       |             |   |                       |   |            |       |              |   |          |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

----

| **SIONIX                  CORPORATION**                               |
|-----------------------------------------------------------------------|
| **(A                  Development Stage Company)**                    |
| **STATEMENTS                  OF STOCKHOLDERS' EQUITY (DEFICIT)**     |
| **FROM                  INCEPTION (OCTOBER 3,1994) TO JUNE 30, 2007** |
| **(Unaudited)**                                                       |

|                                                                                         |         |   | **Common stock**  |   |   |       |   |   |                  |   |   |                              |   |   |                  |   |   |                              |   |   | **Deficit**               |   |   | **Total**           |   |
|----------------------------------------------------------------------------------------------|--------------|--------|------------------------|--------|--------|------------|--------|--------|-----------------------|--------|--------|-----------------------------------|--------|--------|-----------------------|--------|--------|-----------------------------------|--------|--------|---------------------------|--------|--------|---------------------|--------|
|                                                                                         |         |   | **Number****of**  |   |   |       |   |   | **Additional**paid-In |   |   | **Stock**to                    be |   |   | **Stock**subscription |   |   | **Stock**to                    be |   |   | **Unamortized**consulting |   |   | **accumulated**from |   |   | **stockholders'**equity |   |
|                                                                                         |    |   | **shares**             |   |   | **Amount** |   |   | **capital**           |   |   | **issued**                        |   |   | **receivable**        |   |   | **cancelled**                     |   |   | ** fees**            |   |   | **inception**       |   |   | **(deficit)** |   |
| Net                    loss for the year endedSeptember                    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 |   |
|                                                                                         |         |   |                   |   |   |       |   |   |                  |   |   |                              |   |   |                  |   |   |                              |   |   |                      |   |   |                |   |   |   |   |
| Share                  issued for service                                                    |         |   | 705,746                |   |   | 706        |   |   | 215,329               |   |   | -                                 |   |   | -                     |   |   | -                                 |   |   | -                         |   |   | -                   |   |   | 216,035 |   |
|                                                                                         |         |   |                   |   |   |       |   |   |                  |   |   |                              |   |   |                  |   |   |                              |   |   |                      |   |   |                |   |   |   |   |
| Share                  issued for cash                                                       |         |   | 9,383,000              |   |   | 9,383      |   |   | 928,917               |   |   | -                                 |   |   | -                     |   |   | -                                 |   |   | -                         |   |   | -                   |   |   | 938,300 |   |
|                                                                                         |         |   |                   |   |   |       |   |   |                  |   |   |                              |   |   |                  |   |   |                              |   |   |                      |   |   |                |   |   |   |   |
| Net                    loss for the year endedSeptember                    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 | ) |
|                                                                                         |         |   |                   |   |   |       |   |   |                  |   |   |                              |   |   |                  |   |   |                              |   |   |                      |   |   |                |   |   |   |   |
| Share                  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 service                                                   |         |   | 986,844                |   |   | 986        |   |   | 253,301               |   |   | -                                 |   |   | -                     |   |   | -                                 |   |   | -                         |   |   | -                   |   |   | 254,287 |   |
|                                                                                         |         |   |                   |   |   |       |   |   |                  |   |   |                              |   |   |                  |   |   |                              |   |   |                      |   |   |                |   |   |   |   |
| Net                    loss for the year endedSeptember                    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 service 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 |   |

----

| **SIONIX                  CORPORATION**                               |
|-----------------------------------------------------------------------|
| **(A                  Development Stage Company)**                    |
| **STATEMENTS                  OF STOCKHOLDERS' EQUITY (DEFICIT)**     |
| **FROM                  INCEPTION (OCTOBER 3,1994) TO JUNE 30, 2007** |
| **(Unaudited)**                                                       |

|   |   |                               |   |           |   |        |   |                           |   |             |   |                           |   |            |   | **Deficit**       |   | **Total**     |   |
|--------|--------|------------------------------------|--------|----------------|--------|-------------|--------|--------------------------------|--------|------------------|--------|--------------------------------|--------|-----------------|--------|-------------------|--------|---------------|--------|
|   |   | **Common stock**              |   | **Additional** |   | **Stock**   |   | **Stock**                      |   | **Stock**        |   | **Unamortized**                |   | **accumulated** |   | **stockholders'** |   |
|   |   | **Number                      of** |   |           |   | **paid-In** |   | **to                      be** |   | **subscription** |   | **to                      be** |   | **consulting**  |   | **from**          |   | **equity**    |   |
|   |   | **shares**                         |   | **Amount**     |   | **capital** |   | **issued**                     |   | **receivable**   |   | **cancelled**                  |   | ** fees**  |   | **inception**     |   | **(deficit)** |   |

| Net                    loss for the year endedSeptember                    30, 2001                               |   |   | -          |   |   | -      |   |   | -          |   |   | -        |   |   | -      |   |   | -      |   |   | -        |   |   | (1,353,429  | )      |   | (1,353,429 | )      |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|----------|--------|--------|-------------|--------|--------|------------|--------|
|                                                                                                              |   |   |       |   |   |   |   |   |       |   |   |     |   |   |   |   |   |   |   |   |     |   |   |        |   |   |       |   |
| 639,509                    Shares to be issued for debt settlement                      in 2001                   |   |   | -          |   |   | -      |   |   | -          |   |   | 103,295  |   |   | -      |   |   | -      |   |   | -        |   |   | -           |   |   | 103,295    |   |
|                                                                                                              |   |   |       |   |   |   |   |   |       |   |   |     |   |   |   |   |   |   |   |   |     |   |   |        |   |   |       |   |
| 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 service 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      |   |
|                                                                                                              |   |   |       |   |   |   |   |   |       |   |   |     |   |   |   |   |   |   |   |   |     |   |   |        |   |   |       |   |
| Share                  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 endedSeptember                    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 | )      |   | -        |   |   | -           |   |   | -          |   |
|                                                                                                              |   |   |       |   |   |   |   |   |       |   |   |     |   |   |   |   |   |   |   |   |     |   |   |        |   |   |       |   |

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| **SIONIX                  CORPORATION**                               |
|-----------------------------------------------------------------------|
| **(A                  Development Stage Company)**                    |
| **STATEMENTS                  OF STOCKHOLDERS' EQUITY (DEFICIT)**     |
| **FROM                  INCEPTION (OCTOBER 3,1994) TO JUNE 30, 2007** |
| **(Unaudited)**                                                       |

|   |   |                               |   |           |   |        |   |                           |   |             |   |                           |   |            |   | **Deficit**       |   | **Total**     |   |
|--------|--------|------------------------------------|--------|----------------|--------|-------------|--------|--------------------------------|--------|------------------|--------|--------------------------------|--------|-----------------|--------|-------------------|--------|---------------|--------|
|   |   | **Common stock**              |   | **Additional** |   | **Stock**   |   | **Stock**                      |   | **Stock**        |   | **Unamortized**                |   | **accumulated** |   | **stockholders'** |   |
|   |   | **Number                      of** |   |           |   | **paid-In** |   | **to                      be** |   | **subscription** |   | **to                      be** |   | **consulting**  |   | **from**          |   | **equity**    |   |
|   |   | **shares**                         |   | **Amount**     |   | **capital** |   | **issued**                     |   | **receivable**   |   | **cancelled**                  |   | ** fees**  |   | **inception**     |   | **(deficit)** |   |

| Net                    loss for the year endedSeptember                    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 endedSeptember                    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 consuting fees                                     |   |   | -           |   |   | -       |   |   | -          |   |   | -      |   |   | -      |   |   | -      |   |   | 13,075  |   |   | -           |   |   | 13,075     |   |
|                                                                                |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |
| Net                    loss for the year endedSeptember                    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 endedSeptember                    30, 2006 |   |   | -           |   |   | -       |   |   | -          |   |   | -      |   |   | -      |   |   | -      |   |   | -       |   |   | (774,887    | )      |   | (774,887   | )      |
|                                                                                |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |
| Balance                  September 30, 2006                                         |   |   | 102,042,286 |   |   | 102,042 |   |   | 13,270,039 |   |   | 43,900 |   |   | -      |   |   | -      |   |   | -       |   |   | (15,299,053 | )      |   | (1,883,072 | )      |
|                                                                                |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |
| Stock                  issued for consulting                                        |   |   | 4,592,915   |   |   | 4,593   |   |   | 80,336     |   |   | -      |   |   | -      |   |   | -      |   |   | -       |   |   | -           |   |   | 84,929     |   |
|                                                                                |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |
| Beneficial                  conversion feature                                      |   |   | -           |   |   | -       |   |   | 619,513    |   |   | -      |   |   | -      |   |   | -      |   |   | -       |   |   | -           |   |   | 619,513    |   |
|                                                                                |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |
| Net                    loss for the periodJune                      30, 2007        |   |   | -           |   |   | -       |   |   | -          |   |   | -      |   |   | -      |   |   | -      |   |   | -       |   |   | (1,101,520  | )      |   | (1,101,520 | )      |
|                                                                                |   |   |        |   |   |    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |    |   |   |        |   |   |       |   |
| Balance                  June 30, 2007                                              |   |   | 106,635,201 |   | $      | 106,635 |   | $      | 13,969,888 |   | $      | 43,900 |   | $      | -      |   | $      | -      |   | $      | -       |   | $      | (16,400,573 | )      | $      | (2,280,150 | )      |

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

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----

The      unaudited 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 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 nine month periods ended June 30, 2007 are not necessarily      indicative of the results to be expected for the full year ending September      30,      2007.

----

----

| Equipment                  and machinery       |   | $      | 213,166  |   |
|------------------------------------------------|--------|--------|----------|--------|
| Furniture                  and fixtures        |   |   | 22,183   |   |
|                                           |   |   |     |   |
|                                           |   |   | 235,349  |   |
| Less                  accumulated depreciation |   |   | (188,950 | )      |
|                                           |   |   |     |   |
|                                           |   | $      | 46,399   |   |

----

| Payroll                  taxes    |   | $      | 142,672   |   |
|-----------------------------------|--------|--------|-----------|--------|
| Accrued                  salaries |   |   | 1,098,182 |   |
| Interest                  payable |   |   | 120,767   |   |
| Other                  accruals   |   |   | 163,776   |   |
|                              |   |   |      |   |
| Total                             |   | $      | 1,525,397 |   |

----

----

|                                                                   | Weighted                  average exercise price | Number                  of outstanding options | Aggregate                  intrinsic value |
|------------------------------------------------------------------------|--------------------------------------------------|------------------------------------------------|--------------------------------------------|
| Outstanding                  as of September                  30, 2006 | $0.15                                            | 7,343,032                                      | $-                                         |
| Granted                                                                |                                             |                                           |                                       |
| Forfeited                                                              |                                             |                                           |                                       |
| Exercised                                                              |                                             |                                           |                                       |
| Outstanding                  as of June                  30, 2007      | $0.15                                            | 7,343,032                                      | $881,165                                   |

|     |   |            |   |            |   |                       |   | 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                   |   |

----

----

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|                                     |                                   |               |
|------------------------------------------|----------------------------------------|--------------------|
|                                     | SIONIX                CORPORATION      |
| Date:              August 14, 2007  |                              |          |
|                                     | By:                          | /s/ James J. Houtz |
|                                     | James              J. Houtz, President |
|        |                                                             |              |
|--------|------------------------------------------------------------------|-------------------|
|   | By:                                                    | /s/ Robert McCray |
|   | Robert              McCray, Chief Financial              Officer |

----