**FORM        10-Q**

**SECURITIES        AND EXCHANGE COMMISSION**

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

| o | TRANSITION                    REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE                    ACT OF                    1934 |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  New                  York                                          |   |  11-2148932.                          |
|-------------------------------------------------------------------------------|--------|--------------------------------------------|
|  (State                  or other jurisdiction                  of  |   |                    (I.R.S. Employer   |
|  incorporation                  or                  organization)        |   |  Identification                  No.) |

|  1938                    New Highway, Farmingdale,                    NY        |   |  11735                         |
|--------------------------------------------------------------------------------------|--------|-------------------------------------|
|  (Address                    of principal executive                    offices) |   |  (Zip                    Code) |

|  Class                  of Common                  Stock                    |   |  Outstanding                  at November 10, 2006 |
|----------------------------------------------------------------------------------|--------|---------------------------------------------------------|
|  Common                  Stock, $.01 par                  value   |   |  6,900,369                                         |

----

**MISONIX,      INC.**

**INDEX**

|                                                                                                                                                         |   | **Page** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|
| **Part                I - FINANCIAL INFORMATION**                                                                                                            |   |     |
|                                                                                                                                                         |   |     |
| Item                  1. Financial Statements:                                                                                                               |   |     |
|                                                                                                                                                         |   |     |
| Consolidated                  Balance Sheets as of September 30, 2006 (Unaudited) and June 30,                  2006                                         |   | 3        |
|                                                                                                                                                         |   |     |
| Consolidated                  Statements of Operations Three months ended September 30, 2006                  and 2005                  (Unaudited)          |   | 4        |
|                                                                                                                                                         |   |     |
| Consolidated                  Statements of Stockholders Equity Three months ended September                  30, 2006                  and 2005 (Unaudited) |   |     |
|                                                                                                                                                         |   |     |
| Consolidated                  Statements of Cash Flows Three months ended September 30, 2006                  and 2005                  (Unaudited)          |   | 6        |
|                                                                                                                                                         |   |     |
| Notes                  to Consolidated Financial Statements                                                                                                  |   | 7        |
|                                                                                                                                                         |   |     |
| Item                  2.Management’s Discussion and Analysis of Financial Condition and Results                  of Operations                         |   | 14       |
|                                                                                                                                                         |   |     |
| Item                  3. Quantitative and Qualitative Disclosures About Market                  Risk                                                         |   | 17       |
|                                                                                                                                                         |   |     |
| Item                  4. Controls and Procedures                                                                                                             |   | 17       |
|                                                                                                                                                         |   |     |
| Part                  II - **OTHER                  INFORMATION**                                                                                            |   |     |
|                                                                                                                                                         |   |     |
| Item                  1A. Risk Factors                                                                                                                       |   | 17       |
|                                                                                                                                                         |   |     |
| Item                  6. Exhibits                                                                                                                            |   | 17       |
|                                                                                                                                                         |   |     |
| Signatures                                                                                                                                                   |   | 18       |

----

**MISONIX,        INC.**

**CONSOLIDATED        BALANCE SHEETS**

|                                                                                                                                          |   | **September                  30,****2006** |           | June                  30,2006                                |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|----------------|--------------------------------------------------------------|--------|
|                                                                                                                                          |   |  **(unaudited)**                      |           | (Derived                  from audited Financial Statements) |   |
| **Assets**                                                                                                                                    |   |                                       |           |                                                         |   |   |   |
| Current                  assets:                                                                                                              |   |                                       |           |                                                         |   |   |   |
| Cash                                                                                                                                          |   | **$**                                      | **1,936,652**  |                                                         | $      | 675,400 |   |
| Accounts                  receivable, less allowance for doubtful accounts of  $295,803                  and $256,309, respectively      |   |                                       | **6,738,414**  |                                                         |   | 6,530,598 |   |
| Inventories,                  net                                                                                                             |   |                                       | **11,315,340** |                                                         |   | 11,307,226 |   |
| Income                  tax receivable                                                                                                        |   |                                       | **831,289**    |                                                         |   | 786,654 |   |
| Deferred                  income taxes                                                                                                        |   |                                       | **1,419,949**  |                                                         |   | 1,419,949 |   |
| Prepaid                  expenses and other current assets                                                                                    |   |                                       | **914,874**    |                                                         |   | 1,070,903 |   |
| Total                  current assets                                                                                                         |   |                                       | **23,156,518** |                                                         |   | 21,790,730 |   |
|                                                                                                                                          |   |                                       |           |                                                         |   |   |   |
| Property,                  plant and equipment, net                                                                                           |   |                                       | **6,458,392**  |                                                         |   | 6,495,854 |   |
| Deferred                  income taxes                                                                                                        |   |                                       | **1,298,122**  |                                                         |   | 1,039,824 |   |
| Goodwill                                                                                                                                      |   |                                       | **4,673,713**  |                                                         |   | 4,673,713 |   |
| Other                  assets                                                                                                                 |   |                                       | **498,458**    |                                                         |   | 512,444 |   |
| Total                  assets                                                                                                                 |   | **$**                                      | **36,085,203** |                                                         | $      | 34,512,565 |   |
|                                                                                                                                          |   |                                       |           |                                                         |   |   |   |
| **Liabilities                  and stockholders’ equity**                                                                               |   |                                       |           |                                                         |   |   |   |
| Current                  liabilities:                                                                                                         |   |                                       |           |                                                         |   |   |   |
| Revolving                  credit facilities and note payable                                                                                 |   | **$**                                      | **3,492,628**  |                                                         | $      | 1,572,042 |   |
| Accounts                  payable                                                                                                             |   |                                       | **4,533,164**  |                                                         |   | 4,784,102 |   |
| Accrued                  expenses and other current liabilities                                                                               |   |                                       | **3,214,007**  |                                                         |   | 2,963,762 |   |
| Foreign                  income taxes payable                                                                                                 |   |                                       | **61,730**     |                                                         |   | — |   |
| Current                  maturities of long-term debt and capital lease obligations                                                           |   |                                       | **354,946**    |                                                         |   | 367,823 |   |
| Total                  current liabilities                                                                                                    |   |                                       | **11,656,475** |                                                         |   | 9,687,729 |   |
|                                                                                                                                          |   |                                       |           |                                                         |   |   |   |
| Long-term                  debt and capital lease obligations                                                                                 |   |                                       | **1,123,972**  |                                                         |   | 1,145,279 |   |
| Deferred                  lease liability                                                                                                     |   |                                       | **373,762**    |                                                         |   | 378,031 |   |
| Deferred                  income taxes                                                                                                        |   |                                       | **282,455**    |                                                         |   | 282,455 |   |
| Deferred                  income                                                                                                              |   |                                       | **376,575**    |                                                         |   | 422,634 |   |
| Total                  liabilities                                                                                                            |   |                                       | **13,813,239** |                                                         |   | 11,916,128 |   |
|                                                                                                                                          |   |                                       |           |                                                         |   |   |   |
| Commitments                  and contingencies                                                                                                |   |                                       |           |                                                         |   |   |   |
|                                                                                                                                          |   |                                       |           |                                                         |   |   |   |
| Minority                  interest                                                                                                            |   |                                       | **373,997**    |                                                         |   | 341,631 |   |
|                                                                                                                                          |   |                                       |           |                                                         |   |   |   |
| Stockholders’                  equity:                                                                                                  |   |                                       |           |                                                         |   |   |   |
| Common                  stock, $.01 par value—shares authorized 10,000,000; 6,978,169 issued and                  6,900,369 outstanding |   |                                       | **69,782**     |                                                         |   | 69,782 |   |
| Additional                  paid-in capital                                                                                                   |   |                                       | **24,598,621** |                                                         |   | 24,548,536 |   |
| Accumulated                  deficit                                                                                                          |   |                                       | **(2,700,687** | **)**                                                        |   | (2,158,271 | ) |
| Accumulated                  other comprehensive income                                                                                       |   |                                       | **342,675**    |                                                         |   | 207,183 |   |
| Treasury                  stock, 77,800 shares                                                                                                |   |                                       | **(412,424**   | **)**                                                        |   | (412,424 | ) |
| Total                  stockholders’ equity                                                                                             |   |                                       | **21,897,967** |                                                         |   | 22,254,806 |   |
|                                                                                                                                          |   |                                       |           |                                                         |   |   |   |
| Total                  liabilities and stockholders’ equity                                                                             |   | **$**                                      | **36,085,203** |                                                         | $      | 34,512,565 |   |

*See        Accompanying Notes to Consolidated Financial Statements.*

----

**MISONIX,        INC.**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                                                                                    |   |  **For                  the three months ended****September                  30,** |                        |
|-------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|-----------------------------|
|                                                                                                                    |   | **2006**                                                                                |                        | 2005 |   |
| Net                  sales                                                                                              |   | **$**                                                                                   | **9,642,878**               |   | $ | 9,111,572 |   |
| Cost                  of goods sold                                                                                     |   |                                                                                    | **5,711,012**               |   |   | 5,675,041 |   |
| Gross                  profit                                                                                           |   |                                                                                    | **3,931,866**               |   |   | 3,436,531 |   |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Operating                  expenses:                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Selling                  expenses                                                                                       |   |                                                                                    | **1,597,239**               |   |   | 1,561,634 |   |
| General                  and administrative expenses                                                                    |   |                                                                                    | **2,404,283**               |   |   | 2,734,862 |   |
| Research                  and development expenses                                                                      |   |                                                                                    | **820,217**                 |   |   | 916,740 |   |
| Total                  operating expenses                                                                               |   |                                                                                    | **4,821,739**               |   |   | 5,213,236 |   |
| Loss                  from operations                                                                                   |   |                                                                                    | **(889,873**                | **)** |   | (1,776,705 | ) |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Other                  income (expense):                                                                                |   |                                                                                    |                        |   |   |   |   |
| Interest                  income                                                                                        |   |                                                                                    | **21,810**                  |   |   | 24,109 |   |
| Interest                  expense                                                                                       |   |                                                                                    | **(66,662**                 | **)** |   | (55,334 | ) |
| Royalty                  income and license fees net of royalty expense of $5,847 and $0,                  respectively |   |                                                                                    | **180,855**                 |   |   | 215,698 |   |
| Other                                                                                                                   |   |                                                                                    | **(2,345**                  | **)** |   | (9,614 | ) |
| Total                  other income                                                                                     |   |                                                                                    | **133,658**                 |   |   | 174,859 |   |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Loss                  before minority interest and income taxes                                                         |   |                                                                                    | **(756,215**                | **)** |   | (1,601,846 | ) |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Minority                  interest in net income of consolidated subsidiaries                                           |   |                                                                                    | **31,339**                  |   |   | 16,339 |   |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Loss                  before income taxes                                                                               |   |                                                                                    | **(787,554**                | **)** |   | (1,618,185 | ) |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Income                  tax benefit                                                                                     |   |                                                                                    | **(245,138**                | **)** |   | (312,822 | ) |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Net                  loss                                                                                               |   |                                                                                    | **($542,416**               | **)** |   | ($1,305,363 | ) |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Net                  loss per share - Basic                                                                             |   |                                                                                    | **($                  .08** | **)** |   | ($                  .19 | ) |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Net                  loss per share - Diluted                                                                           |   |                                                                                    | **($                  .08** | **)** |   | ($                  .19 | ) |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Weighted                  average common shares outstanding - Basic                                                     |   |                                                                                    | **6,900,369**               |   |   | 6,832,622 |   |
|                                                                                                                    |   |                                                                                    |                        |   |   |   |   |
| Weighted                  average common shares outstanding - Diluted                                                   |   |                                                                                    | **6,900,369**               |   |   | 6,832,622 |   |

*See        Accompanying Notes to Consolidated Financial Statements*

----

**MISONIX,        INC.**

**CONSOLIDATED        STATEMENT OF STOCKHOLDERS’ EQUITY**

**(UNAUDITED)**

|                                                       |   | **For                    the three months ended September 30, 2006** |          |
|------------------------------------------------------------|--------|----------------------------------------------------------------------|---------------|
|                                                       |   | Common                    Stock                                      |          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   | $.01                    Par Value                                    |          | Treasury                    Shares |   |   |   |   |   |   |   |   |   |
|                                                       |   | Number                    of Shares                                  |          | Amount |   | Number                    of Shares |   | Amount |   | Additional                    Paid-in Capital |   | Accumulated                    Deficit |   | Accumulated                    Other Comprehensive Income |   | Total                    Stockholders' Equity |   |
|                                                       |   |                                                                 |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    June 30, 2006                  |   |                                                                 | 6,978,169     |   | $ | 69,782 |   |   | (77,800 | ) | $ | (412,424 | ) | $ | 24,548,536 |   | $ | (2,158,271 | ) | $ | 207,183 |   | $ | 22,254,806 |   |
| Net                    loss                                |   |                                                                 |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (542,416 | ) |   |   |   |   | (542,416 | ) |
| Foreign                    currency translation adjustment |   |                                                                 |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 135,492 |   |   | 135,492 |   |
| Comprehensive                    loss                      |   |                                                                 |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (406,924 | ) |
|                                                       |   |                                                                 |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based                    compensation                |   |                                                                 |               |   |   |  |   |   |  |   |   |  |   |   | 50,085 |   |   |  |   |   |  |   |   | 50,085 |   |
| **Balance,                    September 30, 2006**         |   |                                                                 | **6,978,169** |   | **$** | **69,782** |   |   | **(77,800** | **)** | **$** | **(412,424** | **)** | **$** | **24,598,621** |   | **$** | **(2,700,687** | **)** | **$** | **342,675** |   | **$** | **21,897,967** |   |

*See        Accompanying Notes to Consolidated Financial Statements*

----

**MISONIX,        INC.**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

|                                                                                                                        |   | **For                  the three months ended****September                  30,**  |          |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|---------------|
|                                                                                                                        |   | **2006**                                                                                |          | 2005 |   |
| **Operating                  activities**                                                                                   |   |                                                                                    |          |   |   |   |   |
| Net                  loss                                                                                                   |   |                                                                                    | **($542,416** | **)** |   | ($1,305,363 | ) |
| Adjustments                  to reconcile net loss to net cash (used in) provided by operating                  activities: |   |                                                                                    |          |   |   |   |   |
| Depreciation                  and amortization and other non cash items                                                     |   |                                                                                    | **427,483**   |   |   | 421,017 |   |
| Bad                  debt expense                                                                                           |   |                                                                                    | **35,625**    |   |   | 65,358 |   |
| Deferred                  income tax benefit                                                                                |   |                                                                                    | **(270,881**  | **)** |   | (119,095 | ) |
| Loss                  on disposal of equipment                                                                              |   |                                                                                    | —       |   |   | 39,356 |   |
| Minority                  interest in net income of subsidiaries                                                            |   |                                                                                    | **31,339**    |   |   | 16,339 |   |
| Stock-based                  compensation                                                                                   |   |                                                                                    | **50,085**    |   |   | 273,963 |   |
| Deferred                  income                                                                                            |   |                                                                                    | **(4,269**    | **)** |   | (7,050 | ) |
| Deferred                  leasehold costs                                                                                   |   |                                                                                    | **(46,059**   | **)** |   | — |   |
| Foreign                  currency exchange loss                                                                             |   |                                                                                    | —       |   |   | 6,131 |   |
| Changes                  in operating assets and liabilities:                                                               |   |                                                                                    |          |   |   |   |   |
| Accounts                  receivable                                                                                        |   |                                                                                    | **(163,495**  | **)** |   | 3,672,733 |   |
| Inventories                                                                                                                 |   |                                                                                    | **36,945**    |   |   | (1,038,889 | ) |
| Income                  tax receivable                                                                                      |   |                                                                                    | **(9,700**    | **)** |   | (232,263 | ) |
| Prepaid                  expenses and other current assets                                                                  |   |                                                                                    | **163,751**   |   |   | 301,948 |   |
| Accounts                  payable and accrued expenses                                                                      |   |                                                                                    | **(82,309**   | **)** |   | (988,081 | ) |
| Foreign                  income tax payable                                                                                 |   |                                                                                    | **25,744**    |   |   | — |   |
| Other                  assets                                                                                               |   |                                                                                    | **—**   |   |   | (10,323 | ) |
| Net                  cash (used in) provided by operating activities                                                        |   |                                                                                    | **(348,157**  | **)** |   | 1,095,781 |   |
|                                                                                                                        |   |                                                                                    |          |   |   |   |   |
| **Investing                  activities**                                                                                   |   |                                                                                    |          |   |   |   |   |
| Acquisition                  of property, plant and equipment                                                               |   |                                                                                    | **(160,067**  | **)** |   | (240,028 | ) |
| Net                  cash used in investing activities                                                                      |   |                                                                                    | **(160,067**  | **)** |   | (240,028 | ) |
|                                                                                                                        |   |                                                                                    |          |   |   |   |   |
| **Financing                  activities**                                                                                   |   |                                                                                    |          |   |   |   |   |
| Proceeds                  from short-term borrowings                                                                        |   |                                                                                    | **2,021,681** |   |   | — |   |
| Payments                  of short-term borrowings                                                                          |   |                                                                                    | **(142,397**  | **)** |   | (480,656 | ) |
| Principal                  payments on capital lease obligations                                                            |   |                                                                                    | **(94,979**   | **)** |   | (102,298 | ) |
| Proceeds                  from exercise of stock options                                                                    |   |                                                                                    | **—**   |   |   | 137,962 |   |
| Payments                  of long-term debt                                                                                 |   |                                                                                    | **(16,192**   | **)** |   | (14,336 | ) |
| Net                  cash provided by (used in) financing activities                                                        |   |                                                                                    | **1,768,113** |   |   | (459,328 | ) |
|                                                                                                                        |   |                                                                                    |          |   |   |   |   |
| Effect                  of exchange rate changes on cash                                                                    |   |                                                                                    | **1,363**     |   |   | (256 | ) |
| Net                  increase in cash                                                                                       |   |                                                                                    | **1,261,252** |   |   | 396,169 |   |
| Cash                  at beginning of period                                                                                |   |                                                                                    | **675,400**   |   |   | 2,484,534 |   |
| Cash                  at end of period                                                                                      |   | **$**                                                                                   | **1,936,652** |   | $ | 2,880,703 |   |
|                                                                                                                        |   |                                                                                    |          |   |   |   |   |
| **Supplemental                  disclosure of cash flow information:**                                                      |   |                                                                                    |          |   |   |   |   |
| Cash                  paid for:                                                                                             |   |                                                                                    |          |   |   |   |   |
| Interest                                                                                                                    |   | **$**                                                                                   | **66,662**    |   | $ | 55,334 |   |
| Income                  taxes                                                                                               |   | **$**                                                                                   | **9,700**     |   | $ | 19,726 |   |
|                                                                                                                        |   |                                                                                    |          |   |   |   |   |
| **Supplemental                  disclosure of noncash investing and financing                  activities:**                |   |                                                                                    |          |   |   |   |   |
| Capital                  lease additions                                                                                    |   | **$**                                                                                   | **29,985**    |   | $ | 142,801 |   |

*See        Accompanying Notes to Consolidated Financial Statements*

----

**MISONIX,      INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

----

**MISONIX,      INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

|                                                                         |   | September                30,                 2005 |                   |
|------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------------------|
| Risk-free                interest rate                                       |   |                                                   | 4.22                   | % |
| Expected                life                                                 |   |                                                   | 5                years |   |
| Expected                volatility                                           |   |                                                   | 53.5                   | % |
| Expected                dividend yield                                       |   |                                                   | 0                      | % |
| Weighted-average                fair value of options                granted |   | $                                                      | 3.85                   |   |

|                                                                |   |   Options |      |   Weighted                AverageExercise                Price |   | Weighted                Average Remaining Contractual Term                (yrs.) |   |   Aggregate                Intrinsic Value |   |
|---------------------------------------------------------------------|--------|---------------------|-----------|--------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
| Outstanding                at June 30, 2006                         |   |                | 1,837,973 |                                                                     | $      | 5.72                                                                             |   |                                                 | 5.7    |   |   |   |   |
| Granted                                                             |   |                | —   |                                                                     |   | —                                                                          |   |                                                 |   |   |   |   |   |
| Exercised                                                           |   |                | —   |                                                                     |   | —                                                                          |   |                                                 |   |   |   |   |   |
| Forfeited                                                           |   |                | 5,067     |                                                                     | $      | 7.41                                                                             |   |                                                 |   |   |   |   |   |
| Expired                                                             |   |                | 7,500     |                                                                     | $      | 4.00                                                                             |   |                                                 |   |   |   |   |   |
| Outstanding                at September 30, 2006                    |   |                | 1,825,406 |                                                                     | $      | 5.72                                                                             |   |                                                 | 5.6    |   | $ | 391,870 |   |
| Options                vested and exercisable at September 30, 2006 |   |                | 1,750,140 |                                                                     | $      | 5.66                                                                             |   |                                                 | 4.6    |   | $ | 391,870 |   |
| Options                available for grant at September 30, 2006    |   |                | 777,013   |                                                                     |   |                                                                             |   |                                                 |   |   |   |   |   |

----

**MISONIX,      INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

|                                  |   | **September                30,****2006** |           | June                30,2006 |   |
|---------------------------------------|--------|------------------------------------------|----------------|-----------------------------|--------|
| Raw                material           |   | **$**                                    | **5,381,439**  |                        | $      | 5,702,171 |   |
| Work-in-process                       |   |                                     | **2,481,943**  |                        |   | 2,250,826 |   |
| Finished                goods         |   |                                     | **5,413,382**  |                        |   | 5,456,684 |   |
|                                  |   |                                     | **13,276,764** |                        |   | 13,409,681 |   |
| Less                valuation reserve |   |                                     | **1,961,424**  |                        |   | 2,102,455 |   |
|                                  |   | **$**                                    | **11,315,340** |                        | $      | 11,307,226 |   |

|                                                            |   | **September                30,****2006**  |          |  June                30,2006 |   |
|-----------------------------------------------------------------|--------|------------------------------------------------|---------------|-----------------------------------|--------|
| Customer                deposits and current deferred contracts |   | **$**                                          | **937,160**   |                              | $      | 870,760 |   |
| Accrued                payroll and vacation                     |   |                                           | **624,612**   |                              |   | 549,933 |   |
| Accrued                VAT and sales tax                        |   |                                           | **176,788**   |                              |   | 94,813 |   |
| Accrued                commissions and bonuses                  |   |                                           | **525,230**   |                              |   | 446,165 |   |
| Accrued                professional and legal fees              |   |                                           | **200,222**   |                              |   | 208,650 |   |
| Litigation                expense                               |   |                                           | **419,000**   |                              |   | 419,000 |   |
| Other                                                           |   |                                           | **330,995**   |                              |   | 374,441 |   |
|                                                            |   | **$**                                          | **3,214,007** |                              | $      | 2,963,762 |   |

----

**MISONIX,      INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

|                                             |   |  ** Medical Device                Products** |      |  **Laboratory                and Scientific Products** |   |  **Corporate                and Unallocated ** |   |  **Total** |        |
|--------------------------------------------------|--------|-------------------------------------------------------------|-----------|-------------------------------------------------------------|--------|----------------------------------------------------------|--------|-----------------|-------------|
| Net                sales                         |   | $                                                           | 4,830,455 |                                                        | $      | 4,812,423                                                |   | $               | 3⁄4      |   | $ | 9,642,878 |   |
| Cost                of goods sold                |   |                                                        | 2,976,088 |                                                        |   | 2,734,924                                                |   |            | 3⁄4      |   |   | 5,711,012 |   |
| Gross                profit                      |   |                                                        | 1,854,367 |                                                        |   | 2,077,499                                                |   |            | 3⁄4      |   |   | 3,931,866 |   |
| Selling                expenses                  |   |                                                        | 1,071,422 |                                                        |   | 525,817                                                  |   |            | 3⁄4      |   |   | 1,597,239 |   |
| Research                and development expenses |   |                                                        | 523,684   |                                                        |   | 296,533                                                  |   |            | 3⁄4      |   |   | 820,217 |   |
| General                and administrative        |   |                                                        | 3⁄4    |                                                        |   | 3⁄4                                                   |   |            | 2,404,283   |   |   | 2,404,283 |   |
| Total                operating expenses          |   |                                                        | 1,595,106 |                                                        |   | 822,350                                                  |   |            | 2,404,283   |   |   | 4,821,739 |   |
| Income                (loss) from operations     |   | $                                                           | 259,261   |                                                        | $      | 1,255,149                                                |   |            | ($2,404,283 | ) |   | ($889,873 | ) |

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**MISONIX,      INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

|                                             |   |  **Medical                Device Products** |      |  **Laboratory                and Scientific Products** |   |  **Corporate                and Unallocated ** |   |  **Total** |        |
|--------------------------------------------------|--------|--------------------------------------------------|-----------|-------------------------------------------------------------|--------|----------------------------------------------------------|--------|-----------------|-------------|
| Net                sales                         |   | $                                                | 4,974,336 |                                                        | $      | 4,137,236                                                |   | $               | 3⁄4      |   | $ | 9,111,572 |   |
| Cost                of goods sold                |   |                                             | 3,094,197 |                                                        |   | 2,580,844                                                |   |            | 3⁄4      |   |   | 5,675,041 |   |
| Gross                profit                      |   |                                             | 1,880,139 |                                                        |   | 1,556,392                                                |   |            | 3⁄4      |   |   | 3,436,531 |   |
| Selling                expenses                  |   |                                             | 907,044   |                                                        |   | 654,590                                                  |   |            | 3⁄4      |   |   | 1,561,634 |   |
| Research                and development expenses |   |                                             | 591,791   |                                                        |   | 324,949                                                  |   |            | 3⁄4      |   |   | 916,740 |   |
| General                and administrative        |   |                                             | 3⁄4    |                                                        |   | 3⁄4                                                   |   |            | 2,734,862   |   |   | 2,734,862 |   |
| Total                operating expenses          |   |                                             | 1,498,835 |                                                        |   | 979,539                                                  |   |            | 2,734,862   |   |   | 5,213,236 |   |
| Income                (loss) from operations     |   | $                                                | 381,304   |                                                        | $      | 576,853                                                  |   |            | ($2,734,862 | ) |   | ($1,776,705 | ) |

|                             |   |  **2006** |          |  2005 |   |
|----------------------------------|--------|----------------|---------------|------------|--------|
| United                States     |   | **$**          | **6,009,501** |       | $      | 6,161,760 |   |
| United                Kingdom    |   |           | **2,721,335** |       |   | 1,894,900 |   |
| Europe                           |   |           | **373,953**   |       |   | 472,267 |   |
| Asia                             |   |           | **307,510**   |       |   | 322,816 |   |
| Canada                and Mexico |   |           | **65,563**    |       |   | 132,016 |   |
| Middle                East       |   |           | **45,568**    |       |   | 30,893 |   |
| Other                            |   |           | **119,448**   |       |   | 96,920 |   |
|                             |   | **$**          | **9,642,878** |       | $      | 9,111,572 |   |

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**MISONIX,      INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

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**MISONIX,      INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

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**MISONIX,      INC.**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS.**

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations.**

**Gross      profit:**

**Selling      expenses:**

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**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS.**

**General      and administrative expenses**

**Research      and development expenses**

**Other      income (expense):**

**Income      taxes:**

**Critical      Accounting Policies:**

**Forward      Looking Statements**

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**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS.**

**Liquidity      and Capital Resources**

**Revolving      Credit Facilities**

**Off-Balance      Sheet Arrangements**

**Other**

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**Item      3. Quantitative and Qualitative Disclosures About Market      Risk**

*Market      Risk:*

*Foreign      Exchange Rates:*

**Item      4. Controls and Procedures**

**PART      II - OTHER INFORMATION**

**Item      1A.Risk      Factors.**

**Item      6.Exhibits.**

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**SIGNATURES**

|         |                                                                        |                                          |
|--------------|-----------------------------------------------------------------------------|-----------------------------------------------|
|         | MISONIX,                INC.(Registrant)                                    |
|    |                                                                   |                                     |
|         | By:                                                               | /s/ Michael              A. McManus, Jr. |
|         | Michael A. McManus, Jr.President and Chief Executive                Officer |

|   |                                                                                                                                           |                                    |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|
|   | By:                                                                                                                                  | /s/ Richard                Zaremba |
|   | Richard                    ZarembaSenior                    Vice President, Chief Financial Officer,Treasurer                    and Secretary |

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