Use these links to rapidly review the documentTABLE OF CONTENTS CORGENIX MEDICAL CORPORATION AND SUBSIDIARIES Consolidated Financial Statements June 30, 2010 and 2009

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SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

Form 10-K

ý

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended June 30, 2010o

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period
from                             to


Commission File Number 000-24541

CORGENIX MEDICAL CORPORATION(Name of small business issuer as specified in its charter)

Nevada(State or other jurisdiction of
incorporation or organization)

93-1223466(I.R.S. Employer Identification No.)


11575 Main Street, Broomfield, Colorado 80020(Address of principal executive offices)

(303) 457-4345(Issuer's telephone number)

Securities
registered pursuant to Section 12(b) of the Act:None

Securities
registered pursuant to Section 12(g) of the Act:Common Stock, $.001 Par Value

Check
whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes ý    No o

Check if no disclosure of delinquent filers in response to Item 405 of Regulation S-K is contained in this form, and no disclosure will
be contained, to the best of the issuer's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. ý

Check whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes o    No ý

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to
be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit and post such files). Yes o    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o

Accelerated filer o

Non-accelerated filer o (Do not check if a
smaller reporting company)

Smaller reporting company ý


Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Act) Yes o    No ý

The issuer's revenues for its most recent fiscal year were: $8,258,170

The
aggregate market value of the voting stock and non-voting common equity held by non-affiliates of the issuer was $2,357,789 as of December 31, 2009,
the most recent second fiscal quarter, based on the closing price of $0.10 as reported on the OTCBB on June 30, 2010.

The
number of shares of Common Stock outstanding was 39,235,047 as of September 16, 2010.

Transitional
Small Business Disclosure Format. Yes o    No ý



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This Form 10-K includes statements that are not purely historical and are "forward looking statements" within the
meaning of Section 21E of the Securities Act of 1934, as amended, including statements regarding our expectations, beliefs, intentions or strategies regarding the future. All statements other
than historical fact contained in this Form 10-K, including, without limitation, statements regarding future product developments, acquisition strategies, strategic partnership
expectations, technological developments, the availability of necessary components, research and development programs and distribution plans, are forward looking statements. All forward looking
statements included in this Form 10-K are based on information available to us on the date hereof, and we assume no obligation to update such forward looking statements. Although we
believe that the assumptions and expectations reflected in such forward looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct or that we
will take any actions that may presently be planned.

If
our assumptions prove incorrect or should unanticipated circumstances arise, the Company's actual results could differ materially from those anticipated. These differences could be
caused by a number of factors or combination of factors including, but not limited to, those factors described in the "Risk Factors" section of this report. Readers are strongly urged to consider such
factors when evaluating any forward-looking statement.

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CORGENIX MEDICAL CORPORATION  June 30, 2010  Form 10-K

TABLE OF CONTENTS



Part

Item(s)



PageI.

1

Business


41A.

Risk Factors


211B.

Unresolved Staff Comments


262

Properties


263

Legal Proceedings


274

Submission of Matters to a vote of Security Holders


27II.

5

Market for Registrant's Common Equity and Related Stockholder Matters


286

Selected Financial Data


297

Managements' Discussion and Analysis of Financial Condition and Results of
Operations


298

Financial Statements and Supplementary Data


379

Changes in and Disagreements With Accounts on Accounting and Financial
Disclosure


379T

Controls and Procedures


389B

Other Information


38III.

10

Directors, Executive Officers and Corporate
Governance


3911

Executive Compensation


4312

Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters


4713

Certain Relationships and Related Transactions, and Director Independence


4914

Principal Accountant Fees and Services


50IV.

15

Exhibits and Financial Statement Schedules


51Signatures


85


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PART I

Item 1.    Description of Business.

Certain terms used in this annual report are defined in the Glossary that follows at the end of
Part I.

Company Overview

Corgenix Medical Corporation, which we refer to as Corgenix or the Company, was incorporated in Nevada on April 22, 1994, is
engaged in the research, development, manufacture, and marketing of in vitro (outside the body) diagnostic products for use in disease detection and prevention. We currently sell diagnostic products
on a worldwide basis to hospitals, clinical testing laboratories, universities, biotechnology and pharmaceutical companies and research institutions. In the U.S. and the United Kingdom, we sell
directly to these customers. Elsewhere in the world, we primarily sell to independent distributors that in turn sell to the laboratories and other customers.

Our
corporate headquarters is located in Broomfield, Colorado. We have two wholly owned operating subsidiaries:



We
continue to use the REAADS trademark and trade name in the sale of products that we manufacture.

Recent Developments

On July 12, 2010 we entered into a Common Stock Purchase Agreement (the "Common Stock Purchase Agreement") with
Financière Elitech SAS, a société par actions simplifiée organized under the laws of France ("Elitech"), and Wescor, Inc., a Utah
corporation and subsidiary of Elitech ("Wescor"). In accordance with the Common Stock Purchase Agreement, Wescor will purchase
up to two million dollars ($2,000,000) of the Company's common stock in three installments (subject to various conditions) and will receive warrants to purchase additional shares. Also, in connection
with the Common Stock Purchase Agreement, we entered into (i) a distribution agreement ("Master Distribution Agreement") with Elitech UK Limited, a private limited company formed under the laws
of the United Kingdom ("Elitech UK Limited") and (ii) a joint product development agreement ("Joint Product Development Agreement") with Elitech. The details of the Common Stock Purchase
Agreement, Master Distribution Agreement, and Joint Product Development Agreement are outlined below.

The
investment by Wescor will take place over a maximum of three tranches:

First
Tranche under the Common Stock Purchase AgreementPursuant to the First Tranche of the Common Stock Purchase Agreement, on July 16, 2010, Wescor invested one
million two hundred fifty thousand dollars ($1,250,000) to purchase 8,333,334 shares of the Company's common stock valued at $0.15 per share. For no additional consideration the Company issued a
warrant to Wescor to purchase 4,166,667 shares at $0.15 per share. The Company entered into the Master Distribution Agreement with Elitech UK Limited and the Joint Product Development Agreement with
Elitech, contemporaneously with the issuance of the First Tranche Shares.

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Second
Tranche under the Common Stock Purchase AgreementPursuant to the Second Tranche of the Common Stock Purchase Agreement, Wescor will invest two hundred fifty thousand
dollars ($250,000) to purchase 1,666,667 shares of our common stock valued at $0.15 per share. For no additional consideration we will issue a warrant to Wescor to purchase 833,333 shares at $0.15 per
share. As a condition to the closing of the Second Tranche, the Company will have effectively transferred its product distribution activity outside of North America from our subsidiary, Corgenix
U.K. Ltd., to Elitech UK Limited.

Third
Tranche under the Common Stock Purchase AgreementPursuant to the Third Tranche of the Common Stock Purchase Agreement, Wescor will invest five hundred thousand dollars
($500,000) to purchase 3,333,333 shares of our common stock valued at $0.15 per share. For no additional consideration we will issue a warrant to Wescor to purchase 1,666,667 shares at $0.15 per
share. As a condition to the closing of the Third Tranche, the Executive Committee established under the Joint Product Development Agreement will have determined the feasibility of creating not less
than two (2) new Corgenix assays as further described in the Joint Product Development Agreement.

In
connection with the Common Stock Purchase Agreement, at the initial closing, which occurred on July 16, 2010, we entered into the Master Distribution Agreement with Elitech UK
Limited, and we entered into the Joint Product Development Agreement with Elitech. Under the terms and conditions
of the Master Distribution Agreement, and as a condition precedent to the closing of the Second Tranche, Elitech UK Limited became the exclusive distributor of the Company's Products (as that term is
defined therein) outside of North America. Accordingly, we along with Corgenix U.K. Ltd, assigned and/or transferred the economic benefit to Elitech UK Limited, and Elitech UK Limited assumed
all of the obligations of the Company or Corgenix U.K. Ltd. under all distribution agreements executed by us or Corgenix U.K. Ltd., as the case may be, related to any distributor whose
territory is outside of North America.

Under
the terms and conditions of the Joint Product Development Agreement, the Company and Elitech will work towards developing efficient technology for the commercialization of
biochemical testing of substances related to human health. The goal of the co-development effort is the modification of certain of our assays for use in Elitech chemistry analyzers,
serology instruments or other instruments, and the commercialization of those modified assays by Elitech and its affiliates. Phase I of the co-development is focused on the sharing
and licensing of our assay technology to facilitate this purpose. The intent is that, in order to achieve joint development of our assays modified to be used with certain Elitech technology, all of
our relevant assay technology will be available to Elitech and its affiliates to establish the broadest common immunoassay technology base to pursue co-development of new Corgenix assay
technology. Such technology would include, for example, manufacturing know-how, testing and reliability information, visits to production facilities, and technical consultation, for which
the burden of disclosure is reasonable.

Wescor
has the right to designate one individual for election or appointment to our Board of Directors, for so long as Wescor owns at least five percent of our outstanding common stock.

After
the First Tranche closed, through to the third (3rd) anniversary of the First Tranche's closing date, the rights and responsibilities of Wescor with respect to a potential change
of control transaction by us will be governed by the Common Stock Purchase Agreement.

Pursuant
to the Common Stock Purchase Agreement, if our board determines to initiate the solicitation of offers or indications of interest in pursuing a Change of Control transaction, as
defined therein, (without having first received an unsolicited offer from a third party) then the board will, consistent with its fiduciary duty to maximize shareholder value, design a process in
consultation with legal counsel and any financial advisor the board elects. Wescor may participate in the process, on terms established by the Company's board to govern the solicitation of offers
process. The terms of the process are further outlined in the Common Stock Purchase Agreement.

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Pursuant
to the Common Stock Purchase Agreement, if our board receives an unsolicited third-party offer (or indication of interest in making an offer) with respect to a Change of Control
transaction, we will provide written notice to Wescor. If our board elects to begin a process that could lead to a Change of Control then we will commence negotiations with the unsolicited bidder and
with Wescor to seek the highest value available from those parties. The terms of the process are further outlined in the Common Stock Purchase Agreement.

On
March 15, 2010, Corgenix UK Limited entered into a financing agreement with Faunus Group International. Inc., ("FGI") (see also Note 6 to the Financial
Statements).

As
previously disclosed, on September 30, 2009, we, along with our wholly owned subsidiary, Corgenix, Inc., entered into a Financing Agreement, an Addendum to Financing
Agreement, a Loan and Security Agreement and a Promissory Note (collectively, the "Summit Agreements") with Summit Financial Resources, L.P., a Hawaii limited partnership ("Summit"). We are
jointly and severally liable for all obligations pursuant to the Summit Agreements. The Summit Agreements provide us and our subsidiary with a maximum credit line of $1,750,000 pursuant to an account
factoring relationship, coupled with a secured line of credit.

Our Business



Our business includes the research, development, manufacture, and marketing of in vitro diagnostic products for use in disease
detection and prevention. We currently sell diagnostic products on a worldwide basis to hospitals, clinical testing laboratories, universities, biotechnology and pharmaceutical companies and research
institutions. We have developed and we manufacture most of our products at our Colorado facility, and we purchase what we refer to as OM (Other Manufacturers') products from other healthcare
manufacturers for resale by us. All of these products are used in clinical laboratories for the diagnosis and/or monitoring of three important areas of health care:



In
addition to our current products, we are actively developing new laboratory tests in other important diagnostic testing areas. See "Other Strategic Relationships." We
manufacture and market to clinical laboratories and other testing sites worldwide. Our customers include large and emerging health care companies such as Bio Rad Laboratories, Inc.,
Instrumentation Laboratories, Helena Laboratories and Diagnostic Grifols, S.A.

Most
of our products are based on our patented and proprietary application of Enzyme Linked ImmunoSorbent Assay, or ELISA, technology, a clinical testing methodology commonly used
worldwide. Most of our current products are based on this platform technology in a delivery format convenient for clinical testing laboratories. The delivery format, which is referred to as
"Microplate," allows the testing of up to 96 samples per plate, and is one of the most commonly used formats, employing conventional testing equipment found in virtually all clinical laboratories. The
availability and broad acceptance of ELISA Microplate products reduces entry barriers worldwide for our new products that employ this technology and delivery format. Our products are sold as "test
kits" that include all of the materials required to perform the test, except for routine laboratory chemicals and instrumentation. A test using ELISA technology involves a series of reagent additions
into the Microplate, triggering a complex immunological reaction in which a resulting color occurs. The amount

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of
color developed in the final step of the test is directly proportional to the amount of the specific marker being tested for in the patient or unknown sample. The amount of color is measured and
the results calculated using routine laboratory instrumentation. Our technology specifies a process by which biological materials are attached to the fixed surface of a diagnostic test platform.
Products developed using this unique attachment method typically demonstrate a more uniform and stable molecular configuration, providing a longer average shelf life, increased accuracy and superior
specificity than the products of our competitors.

Some
of the OM products which we obtain from other manufacturers and sell through our distribution network utilize technologies other than our patented and proprietary ELISA technology.

Our
diagnostic tests are intended to aid in the identification of the causes of illness and disease, enabling a physician to select appropriate patient therapy.

Internally
and through collaborative arrangements, we are developing additional products that are intended to broaden the range of applications for our existing products and to result in
the introduction of new products, such as AtherOx.

Since
1990, our sales force and distribution partners have sold over 12 million tests worldwide under the REAADS and Corgenix labels, as well as products sold under other
manufacturers' labels, referred to as OEM products. An integral part of our strategy is to work with corporate partners to develop market opportunities and access important resources. We believe that
our relationships with current and potential partners will enable us to enhance our menu of diagnostic products and accelerate our ability to penetrate the worldwide markets for new products.

We
currently use the REAADS and Corgenix trademarks and trade names in the sale of the products which we manufacture. These products constitute the majority of our product sales.



In vitro diagnostic, or IVD, testing is the process of analyzing the components of a wide variety of body fluids outside of the body to
identify the presence of markers for diseases or other human health conditions. The worldwide human health IVD market consists of reference laboratory and hospital laboratory testing, testing in
physician offices and the emerging over-the-counter market, in which testing is done at home by the consumer.

Traditionally,
diagnostic testing has been performed in large, high-volume commercial or hospital based laboratories using instruments operated by skilled technicians. Our
products in a Microplate format are designed for such instrumentation and are marketed to these types of laboratories. The instrumentation and supportive equipment required to use our ELISA tests is
relatively simple, and typically is used by a laboratory for many different products.

The
IVD industry is continuing to undergo major consolidation over the last few years. As a result, the industry is characterized by a small number of large companies or divisions of
large companies that manufacture and sell numerous diagnostic products incorporating a variety of technologies. Even given the industry consolidation mentioned above, there continues to be many small
diagnostic companies, which generally have limited resources to commercialize new products. As a result of technological
fragmentation and customer support requirements, we believe that there may be a substantial competitive advantage for companies with unique and differentiated technologies that can be used to generate
a broad menu of diagnostic products and that have developed successful customer support systems.

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Our primary objective is to apply our proprietary ELISA technology to the development and commercialization of products for use in a
variety of markets. Our strategies for achieving this objective include the following:





We currently sell ELISA tests in major markets worldwide. To date, our sales force and distribution partners have sold over
12 million tests since we first received product marketing clearance from the FDA for the first anti-cardiolipin antibody test in 1990. Many peer reviewed medical publications,
abstracts and symposia have been presented on the favorable technical differentiation of our tests over competitive products.

To
extend the product offering for current product lines, and to complement our premium priced, existing assays, we plan to add products from strategic partners. Our current product
menu, commercialized under the trademarks "REAADS" and "Corgenix," includes the following:



Our ELISA Autoimmune Disease Product line consists of twenty-one products, including tests for antinuclear antibodies (ANA)
screening, dsDNA, Sm, SM/RNP, SSA, SSB, Jo-1, Scl-70, Histones, Centromere, Mitochondria, MPO, PR3, Thyroglobulin, LKM-1, anti Ribosomal P, BP-180,
DSG-1,

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DSG-3,
anti-polymer antibodies and thyroid peroxidase. In the fiscal year ended June 30, 2010, these products represented approximately 2.1% of our total product sales.

We
manufacture two of these products; the remainder are manufactured for us by other companies and sold by us through our distribution network. The products are used for the diagnosis
and monitoring of autoimmune diseases, including RA, SLE, Mixed Connective Tissue Disease, Sjogren's Syndrome, Dermatopolymyositis and Scleroderma.

These
autoimmune disease products are formatted in the ELISA Microplate format, and are differentiated from the competition by their user convenience. Historically, diagnostic tests
utilized antiquated technologies that presented significant limitations for the clinical laboratory environment, including greater labor requirements and the need for a subjective interpretation of
the results. Our ELISA autoimmune tests overcome these technology shortfalls, permitting a clinical laboratory to
automate its tests, lowering the laboratory's labor costs as well as providing objectivity to test result interpretation.



We manufacture and market eleven products for antiphospholipid antibody testing, which in the fiscal year ended June 30, 2010
represented approximately 43.9% of our total product sales. These include: aCL IgG, IgA, and IgM; anti-phosphatidylserine ("aPS") IgG, aPS IgA, aPS IgM;
anti-ß2-Glycoprotein I ("aß2GPI") IgG, aß2GPI IgA, and aß2GPI IgM; and anti-Prothrombin ("aPT") IgG and IgM.

ELISA
technology is typically used to measure the antibodies directed against membrane anionic phospholipids (i.e., negatively charged molecules such as cardiolipin and
phosphatidylserine) or their associated plasma proteins, predominantly beta-2 glycoprotein 1). Antiphospholipid antibodies are associated with the presence of both venous and arterial
thrombosis (clotting), thrombocytopenia (low platelet count that can result in bleeding), and recurrent miscarriage. These auto antibodies are frequently found in patients with systemic lupus
erythematosis (SLE), and other autoimmune diseases, as well as in some individuals with no apparent previous underlying disease.

These
antibodies are also found in patients with antiphospholipid syndrome, an important medical condition with serious clinical manifestations such as chronic and recurrent venous (deep
vein) thrombosis, as well as arterial thromboembolic disease, including heart attacks, strokes and pulmonary embolism. Thrombocytopenia has been attributed to the temporary removal of platelets from
circulation during a thrombotic episode (clot formation).



We market twenty tests for bleeding and clotting risk factors, which in the fiscal year ended June 30, 2010, represented
approximately 18.8% of our total product sales. We manufacture five products, and market others which are manufactured for us by other companies. Specialized tests include: Protein C Antigen ELISA,
Protein S Antigen ELISA, Monoclonal Free Protein S ELISA, von Willebrand Factor Antigen ELISA, von Willebrand Factor Activity Test; abp Ristocetin, and Collagen Binding Assay. Corgenix UK also
distributes twelve line of OM products for routine coagulation testing.

These
products are useful in the diagnosis of certain clotting and bleeding disorders including von Willebrand's Disease (Hemophilia B).

Hemostasis
(the normal stable condition in which there is neither excessive bleeding nor excessive clotting) is maintained in the body by the complex interaction of the endothelial cells
of blood vessels, coagulation cells such as platelets, coagulation factors, lipids (cholesterol) and antibodies (auto antibodies). All play important roles in maintaining this hemostasis. In clinical
situations in which an

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individual
demonstrates excessive clotting or bleeding, a group of laboratory tests is typically performed to assess the source of the disorder using the products that we market.



The AspirinWorks® Test Kit is a simple urine test that measures an individual's response to aspirin dosage and allows
physicians to adjust the dosage or recommend alternative therapy. AspirinWorks® sales represented approximately 2.5% of our total product sales. Recent reports indicate that up to 25% of
individuals may be non-responsive to aspirin's benefits, and are more than three times more likely to die from heart disease.



We manufacture a test to quantitate hyaluronic acid ("Hyaluronic Acid" or "HA") in a Microplate format which in the fiscal year ended
June 30, 2010 represented approximately 11.7% of our total product sales. The product was distributed through the Chugai distribution network in Japan from 1996 to 2002, and has been
distributed through Corgenix UK in the United Kingdom since 1998. On June 30, 2001, we signed a license agreement with Chugai (later assigned to Fujirebio) whereby we have
co-exclusive rights to manufacture and market the HA product worldwide except in Japan. On December 12, 2008, the HA License Agreement was amended and extended until the expiration
of all of the patents related to the HA License Agreement. See "Chugai (Fujirebio) Strategic Relationship."

Hyaluronic
Acid is a component of the matrix of connective tissues, found in synovial fluid of the joints where it acts as a lubricant and for water retention. It is produced in the
synovial membrane and leaks
into the circulation via the lymphatic system where it is quickly removed by specific receptors located in the liver. Increased serum levels of HA have been described in patients with rheumatoid
arthritis due to increased production from synovial inflammation, and in patients with liver disease, particularly Hepatitis C, due to interference with the removal mechanism. Patients with cirrhosis
will have the highest serum HA levels, which correlate with the degree of liver involvement. In fiscal 2010, the the last of the patents related to the HA License Agreement expired.



Our ELISA application technology was developed to provide the clinical laboratory with a more sensitive, specific, and objective
technology to measure clinically relevant antibodies in patient serum samples. High levels of these antibodies are frequently found in individuals suffering from various immunological diseases, and
their serologic determination is useful not only for specific diagnosis but also for assessing disease activity and/or response to treatment. To accomplish these objectives, our current product line
applies the ELISA technology in a 96-Microplate format as a delivery system. ELISA provides a solid surface to which purified antigens are attached, allowing their interaction with
specific auto antibodies during incubation. This antigen-antibody interaction is then objectively measured by reading the intensity of color generated by an enzyme-conjugated secondary antibody and a
chemical substrate added to the system.

Our
technology overcomes two basic problems seen in many other ELISA systems. First, the material coated onto the plate can be consistently coated without causing significant alteration
of the molecular structure (which ensures maintenance of immunologic reactivity), and the stability of these coated antigens on the surface can be maintained (which provides a product shelf life
acceptable for commercial purposes). Our proprietary immunoassay technology is useful in the manufacture of ELISA tests for the detection of many analytes (target molecules) for the diagnosis and
management of immunological diseases.

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Our
technology results in products generally demonstrating performance characteristics that exceed those of competitive testing procedures. Many testing laboratories worldwide subscribe
to external quality control systems or programs conducted by independent, third party organizations. These programs typically involve the laboratory receiving unknown test samples on a routine basis,
performing certain diagnostic tests on the samples, and providing results of their testing to the third party. Reports are then provided by the third party that tells the testing laboratory how it
compares to other testing laboratories in the program. Several of our products are included in laboratory surveys periodically conducted by unaffiliated entities, and our products routinely
demonstrate good performance and/or reproducibility when compared to other manufacturers included in such survey. Examples of such
surveys include the April 2009 College of America Pathologists (CAP) survey and the UK NEQAS (UK National External Quality Assessment Service).

Our
products typically require less hands-on time by laboratory personnel as compared to most other ELISA assays and provide an objective, quantitative or
semi-quantitative interpretation to improve and standardize the clinical significance of results. We believe that our proprietary technology will continue to be the mainstay for our future
diagnostic products. Most of the products in development will incorporate our basic technology.

Additional
technologies may be required for some of the newly identified tests. We believe that, in addition to internal expertise, most technology and delivery system requirements would
be available through joint venture or licensing arrangements or through acquisition.



Most of our current products employ the Microplate delivery system using ELISA technology. This format is universally accepted in
clinical laboratory testing and requires routine equipment currently available in most clinical labs.



We primarily market and sell our diagnostic products to the clinical laboratory market, both hospital based and free standing
laboratories. We utilize a diverse distribution program for our products. Our labeled products are sold directly to testing laboratories in the U.S. through sales representatives (both employees and
independent contractors). Internationally, our labeled products are sold through established diagnostic companies in Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Denmark, and through
sales representatives in Egypt, Finland, France, Germany, Greece, Guatemala, Hong Kong, Hungary, India, Ireland, Israel, Italy, Japan, Korea, Kuwait, Lebanon, Malaysia, Mexico, The Netherlands,
Norway, Paraguay, Peru, Portugal, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, the United Kingdom, and Uruguay. We are continually seeking
opportunities which will provide access to additional markets worldwide. Our agreements with international distribution partners are on terms that are generally terminable by us if the distributor
fails to achieve certain sales targets. Either the Company or the respective distributor, given the occurrence of certain events, has the right, by giving written notice to the other party, to
terminate the distribution agreement. We have also established private label product agreements with several U.S. and European companies. We have international distribution headquarters in the United
Kingdom and will add direct commercialization and distribution
in selected additional countries as appropriate. For the fiscal year ended June 30, 2010, international sales represented approximately 27.4% of the Company's total sales.

We
have an active marketing and promotion program for our diagnostic testing products. We publish technical and marketing promotional materials, which we distribute to current and
potential customers. We attend major industry trade shows and conferences, and our scientific staff actively publishes articles and technical abstracts in peer review journals.

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The manufacturing process for our products utilizes a semi-automated production line for the manufacturing, assembly and
packaging of our ELISA Microplate products. Our current production capacity is 28,800 tests per day with a single eight-hour shift. Since 1990, we have successfully produced over
12 million tests in our Colorado facility, and we expect that current manufacturing capability will be sufficient to meet expected customer demand for the foreseeable future.

Our
manufacturing operations are fully integrated and consist of raw material purification, reagent and Microplate processing, filling, labeling, packaging and distribution. We have
considerable experience in manufacturing our products using our proprietary technology. We expect increases in the demand for our products and have prepared plans to increase our manufacturing
capability to meet that increased demand. We also maintain an ongoing investigation of scale-up opportunities for manufacturing to meet future requirements. We anticipate that production
costs will decline as more products are added to the product menu in the future, permitting us to achieve greater economies of scale as higher volumes are attained. We have registered our facility
with the FDA.



In April 1999, we received ISO 9001:1994 certification from TUV Product Service GmbH, a world leader in medical device
testing and certification. ISO 9001 represents the international standard for quality management systems developed by the International Organization for Standardization, or ISO, to facilitate
global commerce. To ensure continued compliance with the rigorous standards of ISO 9001, companies must undergo regularly scheduled assessments and re-certification every year. The
ISO 9001 initiative is an important component in its commitment to maintain excellence. Corgenix received re-certification in November 1999 and 2000, and in July 2002, received EN
ISO 9001:1996, and EN ISO 13485:2000 certification through TUV Rhineland of North America. We have been re-certified annually since 2002. In fiscal 2009, we certified
to ISO 13485:2003.



Our manufacturing process begins with the qualification of raw materials. The microplates are then coated and bulk solutions prepared.
The components and the microplates are checked for ability to meet pre-established specifications by our quality control department. If required, adjustments in the bulk solutions are made
to provide optimal performance and lot-to-lot consistency. The bulk solutions are then dispensed and packaged into planned component configurations. The final packaging step in
the manufacturing process includes kit assembly, where all materials are packaged into finished product. The finished kit undergoes one final performance test by our quality control department. Before
product release for sale, our quality assurance department must verify that all quality control testing and manufacturing processes have been completed, documented and have met all performance
specifications.

The
majority of raw materials and purchased components used to manufacture our products are readily available. We have established good working relationships with primary vendors,
particularly those that supply unique or critical components for our products. The components of our products include chemical, biological and packaging supplies that are generally available from
several suppliers, except certain antibodies and other critical components, which we purchase from single suppliers. We mitigate the risk of a loss of supply by maintaining a sufficient supply of such
antibodies to ensure an uninterrupted supply for at least three months. We have also qualified second vendors for all critical raw materials and believe that we can substitute a new supplier with
respect to any of these components in a timely manner. If, for some reason, we lose our main supplier for a given material, there can be no assurances that we will be able to substitute a new supplier
in a timely manner and

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failure
to do so could impair the manufacturing of certain of our products and thus have a material adverse effect on our business, financial condition and results of operations.

Approximately
27.4% of our product revenues are derived from sales outside of the U.S. International regulatory bodies often establish varying regulations governing product standards,
packaging and labeling requirements, import restrictions, tariff regulations, duties and tax requirements. To demonstrate our commitment to quality in the international marketplace, we obtained ISO
certification and have "CE" marked all of our products as required by the European In Vitro Diagnostic Directive 98/79/EC.

Since
1990, we have entered into several contract manufacturing agreements with other companies whereby we manufacture specific products for the partner company. We expect to continue
investigating and evaluating opportunities for additional agreements.



The relationship between Corgenix and Chugai Diagnostics Science Co., Ltd. ("CDS") was established in June 1993. In
September 2002, CDS was merged into Fujirebio, Inc., a large Japanese Company based in Tokyo, Japan. Currently, except for the ongoing HA License Agreement described below, there are no sales
to or operations related to Fujirebio.

HA License Agreement.On June 30, 2001, Corgenix and Chugai executed a license agreement, which we refer to as the HA License
Agreement, with
Chugai Diagnostic Science, Co., Ltd., a Tokyo based pharmaceutical company that subsequently merged into Fujirebio, Inc., a large Japanese diagnostic company based in Tokyo and a
leader in the field of immunoserology. Corgenix was granted
co-exclusive worldwide rights to manufacture and market the HA product (except in Japan). The HA License Agreement was initially for a five-year period with certain extension
rights. On December 12, 2008, the HA License Agreement was amended and extended until the expiration of all of the patents related to the HA License Agreement. The HA License Agreement
establishes certain performance requirements for Corgenix, and provides early cancellation of exclusivity if Corgenix does not meet those performance goals. The HA License Agreement is the only
international distribution right currently granted by Chugai to Corgenix, and was formally assumed by Fujirebio. In fiscal 2010, the last of the patents related to the HA License Agreement had
expired.



An integral part of our strategy has been, and will continue to be, entering into strategic alliances as a means of accessing unique
technologies or resources or developing specific markets. The primary aspects of our corporate partnering strategy with regards to strategic affiliations include:



In
furtherance of the foregoing strategies, we maintain a revenue producing strategic relationship with Medical & Biological Laboratories Co., Ltd.,
("MBL"). MBL is a medical diagnostic company located in Nagoya, Japan. In March 2002, we signed a distribution agreement with RhiGene, Inc., a Des Plaines, Illinois based company
and wholly owned subsidiary of MBL, which granted us exclusive rights to distribute RhiGene's complete diagnostic line of autoimmune testing products in North and South America. The arrangement also
provided us with rights to certain other international markets. In July 2002, MBL made a $500,000 strategic investment in the common stock of our Company. As part

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of
the investment agreement, MBL has warrants to purchase additional shares of our common stock for a total potential investment of $1,000,000.

On
March 31, 2005, our distribution agreement with RhiGene expired, and we signed a new distribution and OEM Supply Agreement with MBL International, Inc., a wholly owned
subsidiary of MBL ("MBLI"), which granted us non-exclusive rights to distribute MBL's complete diagnostic line of autoimmune testing products in the U.S. and exclusive
distribution rights to the OEM label products worldwide, excluding the U.S., Japan, Korea and Taiwan. In addition, on August 1, 2005 the Company and MBL executed an Amendment to the Common
Stock Purchase Agreement and Common Stock Purchase Warrant wherein one-half, or 440,141, of the original redeemable shares were exchanged for a three-year promissory note
payable with interest at prime plus two percent (5.25% as of June 30, 2010) with payments having commenced in September, 2005. As of June 30, 2010, a total of 577,682 shares have been
returned to us pursuant to the two notes payable. The shares exchanged for the promissory note will be returned to us quarterly on a pro rata basis as payments are made on the promissory note. The
remaining 440,141 shares not covered by the promissory note were originally due to be redeemed by us at $0.568 per share on August 1, 2009 for any shares still owned at that time by MBL but
only to the extent that MBL has not realized at least $250,000 in gross proceeds upon the sale of its redeemable shares in the open market for the time period August 1, 2006 through
August 30, 2009. Finally, the warrants originally issued to MBL to purchase 880,282 shares were initially extended to August 31, 2009 and re-priced from $0.568 per share to
$0.40 per share.

As
of July 15, 2008, the Company reached agreement with MBL to amend certain provisions of our February 1, 2005 Exclusive Distribution Agreement, entered into a Memorandum
of Understanding Regarding AspirinWorks Distribution Rights in Japan, and executed a Second Amendment to Common Stock Purchase Agreement and Warrant. These new agreements and amendments add certain
products and transfer prices, call for the discussion of terms whereby MBL would be granted a worldwide OEM agreement for certain of the products in a designated territory, call for the payment by
Corgenix of royalties on certain proprietary products, which include proprietary technology of MBL, and call for the negotiation of terms of an exclusive distribution agreement for sales of
AspirinWorks in Japan. In addition, the Company and MBL, pursuant to the Second Amendment to Common Stock Purchase Agreement and Warrant, agreed that the warrant term was extended to August 1,
2010 and that one-half, or 220,071, of the remaining 440,171 redeemable shares were exchanged for a two-year promissory note payable with interest at prime plus two percent
(5.25% as of June 30, 2010) with payments having commenced September 1, 2008. The applicable prime rate is adjusted on a monthly basis. Based on our recalculations of the fair value of
the extended term warrants, we determined that the newly calculated value of said warrants did not materially increase in
value as a result of this modification, and therefore, no adjustment to our financial statements was considered necessary. The shares exchanged for the promissory note will be returned to the Company
quarterly on a pro rata basis as payments are made on the promissory note. As noted above, as of June 30, 2010, a total of 577,682 shares have been returned to us pursuant to the two notes
payable. The companies further agreed that beginning September 1, 2008, and continuing through August 1, 2010 (the maturity date of the Second Promissory Note), MBL will attempt to sell
on the open market, the remaining 220,071 shares not subject to the Second Promissory Note, at a price of $0.62 or greater. At the close of business on August 1, 2010, MBL will then have the
right to sell, and Corgenix will have the obligation to purchase, any remaining stock then held by MBL, at a price of $0.568 per share.

On
August 27, 2010, the Company entered into a Third Amendment to Common Stock Purchase Agreement and Warrant dated August 1, 2010 (the "Third Amendment") among the Company
and MBL.

Pursuant
to the Third Amendment, the remaining 220,071 Purchased Shares have been exchanged for a two-year promissory note in the principal amount of $125,000 payable with
interest at the prime rate plus two percent (the "Third Note") with payments to commence on September 1, 2010. The

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Third
Amendment also extends the Warrants to August 1, 2012 or until the principal balance of the Third Note is paid in full. The 220,071 Purchased Shares exchanged for the Third Note will be
returned to the Company on a quarterly basis as payments are made on the Third Note.

We
have established OEM agreements with several international diagnostic companies, which in fiscal 2010 represented approximately 10.4% of our total sales. Under some of these
agreements, we manufacture selected products in the same configuration as the Company's own products, under the partner's label for worldwide distribution. In other OEM agreements, the Company
manufactures diagnostic kits according to the partner's unique specifications under the partner's label.



We direct our research and development efforts towards development of new products on our proprietary platform ELISA technology in the
Microplate format, as well as applying our technology to automated laboratory testing systems. In that regard, we have organized our research and development effort into three major areas:
(i) new product development, (ii) technology assessment, and (iii) technical and product support.

Our
technical staff evaluates the performance of reagents (prepared internally or purchased commercially), creates working prototypes of potential products, performs internal studies,
participates in clinical trials, manufactures pilot lots of new products, establishes validated methods that can be manufactured consistently, creates documentation required for manufacturing and
testing of new products, and collaborates with our quality assurance department to satisfy regulatory requirements and support regulatory clearance. They are responsible for assessing the performance
of new technologies along with determining the technical feasibility of market introduction, and investigating the patent/license issues associated with new technologies.

Our
technical staff is responsible for supporting current products on the market through scientific investigation, and is responsible for design transfer to manufacturing of all new
products developed. They assess the performance and validate all externally sourced products in order to confirm that these products meet our performance and quality standards.

The
technical staff includes individuals skilled in immunology, assay development, protein biochemistry, biochemistry and basic sciences. We maintain facilities to support our
development efforts at the Broomfield, Colorado headquarters. Group leaders are also skilled in planning and project management under FDA-mandated design control. See
"Regulation."

During
fiscal 2010 and 2009, we spent $647,103 and $753,523, respectively, for research and development. This decrease primarily involved decreases in the costs of clinical studies and
labor related expenses. Of the fiscal 2010 expenses, approximately 94% of the expenditures for research and development expenses were internal expenditures exclusive of outside consultant and legal
fees. In fiscal 2010, we expect expenditures for research and development to increase over fiscal year 2010 due to our responsibilities under the ELITech Joint Product Development Agreement. Research
and development contract revenue (specific product development programs funded by a strategic partner) amounted to $614,448 and $221,038 for the 2010 and 2009 fiscal years ended June 30,
respectively. The contract revenue in both fiscal years was derived from the Lasa Virus program mentioned below.



We intend to expand our product menu through internal development, development in collaboration with strategic partners and acquisition
and/or licensing of new products and technologies.

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We
are currently working with partners to develop additional tests to supplement the existing product lines. The following summarizes our current product and technology development programs:



We are one of the market leaders in development of innovative tests in the antiphospholipid market, and expect to continue developing
products in this area to ensure our ongoing strong market position. For the past six years, we have been developing products in the area of Oxidized LDL, a technology that assesses arterial thrombosis
and atherosclerosis. Our technology, which we have trademarked "AtherOx," has the potential to significantly alter the standard of lipoprotein testing and cardiovascular risk assessment. Product
development for three products has been completed, and those products launched into the international markets. We filed the initial application with the FDA in March 2008. In July 2008, the Company
submitted a 510(k) Premarket Notification to the FDA for the Company's Anti-AtheroOx Test Kit and it was cleared by the FDA in April 2009. See "Regulation". This
new laboratory test utilizes the Company's patented AtherOx technology to IgG antibodies to complexes formed by oxidized low-density lipoprotein (oxLDL) with beta2-glycoprotein
1 (beta2GP1) in individuals with systemic lupus erythematosus (SLE) and lupus-like disorders (antiphospholipid syndrome).



We are in the later development and regulatory submission stages for a unique assay for testing patients with fibromyalgia. The assay
detects antibodies to polymers, which are present in a high percentage of patients suffering from fibromyalgia, also referred to as "chronic pain syndrome." We expect Autoimmune
Technologies, LLC, our strategic partner, will continue clinical studies in fiscal 2010. The time-frame for the filing of a pre-market approval application with the FDA
has yet to be determined.



We have established a strategic collaboration with Tulane University ("Tulane") and other industry and academic partners, to develop a
group of products to detect certain viruses identified as potential bio-terrorism agents. The work is being done under a grant from the National Institute of Allergy and Infectious
Diseases ("NIAID"), the first of which began in September 2006. On July 10, 2009, we announced an expansion of the collaborative effort for developing test kits for viral hemorrhagic fever
(VHF) detection.



Competition in the human medical diagnostics industry is significant. Our competitors range from development stage diagnostics
companies to major domestic and international pharmaceutical and biotechnology companies. Many of these companies have financial, technical, marketing, sales, manufacturing, distribution and other
resources significantly greater than we do. In addition, many of these companies have name recognition, established positions in the market and long standing relationships with customers and
distributors. The diagnostics industry continues to experience significant consolidation in which many of the large domestic and international healthcare companies have been acquiring
mid-sized diagnostics companies, further increasing the concentration of resources. However, competition in diagnostic medicine remains highly fragmented, with no company holding a
dominant position in autoimmune or vascular diseases. There can be no assurance that new, superior technologies will not be introduced that could be directly competitive with or superior to our
technologies.

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Our primary competitors include Inotech, the Werfin Group, DIASORIN, Diagnostica Stago, American Bioproducts, Helena Laboratories Corporation (an existing
licensee of Corgenix technology), Hemagen Diagnostics, Binding Site and IVAX Diagnostics (Diamedix). We compete against these companies and others on the basis of product performance, customer
service, and price.



The AtherOx Technology Patents.Through a Japanese collaboration, we have exclusive worldwide rights (except Japan) for the clinical
testing market
using the unique AtherOx technology. To date, we have four U.S. patents issued and one European patent issued for the AtherOx technology.

The Antipolymer Antibody Patents.The antipolymer (APA) assay which wemanufacture for our strategic partner Autoimmune Technologies,
 LLC, is
covered by an extensive group of worldwide patents and patents pending owned by Tulane University, which has granted Autoimmune Technologies exclusive worldwide rights. These rights expire the later
of ten years after the first commercial sale in each country or the expiration of the respective country patent. We do not have any distribution rights for this product. All sales have been to the
patent holder, Autoimmune Technologies, LLC for use in their clinical studies.

Aspirin Effectiveness Technology Patents.Our Aspirin Works product is covered by three worldwide patents (two in the United States and
one in
Europe) owned by McMaster University which has granted Corgenix exclusive worldwide rights. The Company and Cayman Chemical Company ("Cayman") have been issued and additional U.S. patent covering this
technology.

Patent
applications in the U.S. are maintained in secrecy until patents are issued. There can be no assurance that our patents, and any patents that may be issued to us in the future,
will afford protection against competitors with similar technology. In addition, no assurances can be given that the patents issued to us will not be infringed upon or designed around by others or
that others will not obtain patents that we would need to license or design around. If the courts uphold existing or future patents containing broad claims over technology used by us, the holders of
such patents could require us to obtain licenses to use such technology. In fiscal 2010, the Company did not incur any costs to defend our patents. See "Part II. Item 6. Management's
Discussion and AnalysisForward Looking Statements and Risk FactorsUncertainty of Protection of Patents, Trade Secrets and Trademarks."

We
have registered our trademark "REAADS" on the principal federal trademark register and with the trademark registries in many countries of the world and it will expire
September 28, 2017. The trademark "Corgenix" was approved in September 2000 and will expire October 30, 2010. Finally, we have registered the trademark AtherOx, and it will expire
January 8, 2018.

Where
appropriate, we intend to obtain patent protection for our products and processes. We also rely on trade secrets and proprietary know-how in our manufacturing
processes. We require each of our employees, consultants and advisors to execute a confidentiality agreement upon the commencement of any employment, consulting or advisory relationship with us. Each
agreement provides that all confidential information developed or made known to the individual during the course of the relationship will be kept confidential and not be disclosed to third parties
except in specified circumstances. In the case of employees, the agreements provide that all inventions conceived of by an employee shall be the exclusive property of the Company.

The
majority of our product sales, approximately 80% for the fiscal year ended June 30, 2010 and 84% for the fiscal year ended June 30, 2009, were products that utilized
our proprietary technology and marketed under our REAADS trademark.

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The testing, manufacturing and sale of our products are subject to regulation by numerous governmental authorities, and principally the
FDA and foreign regulatory agencies. The FDA regulates the clinical testing, manufacture, labeling, distribution and promotion of medical devices, which includes diagnostic products. We are limited in
our ability to commence marketing or selling any new diagnostic products in the U.S. until clearance is received from the FDA. In addition, various foreign countries in which our products are or may
be sold impose local regulatory requirements. The preparation and filing of documentation for FDA and foreign regulatory review can be a lengthy, expensive and uncertain process.

In
the U.S., medical devices are classified by the FDA into one of three classes (Class I, II or III) on the basis of the controls deemed reasonably necessary by the
FDA to ensure their safety and effectiveness. Class I devices are subject to general controls such as labeling, pre-market notification and adherence to Quality System Regulations,
or QSR requirements. Class II devices are subject to general and special controls (e.g., performance standards, post-market surveillance, patient registries and FDA
guidelines). Generally, Class III devices are those that must receive pre-market approval by the FDA to ensure their safety and effectiveness such as life-sustaining,
life-supporting and implantable devices or new devices that have been found not to be substantially equivalent to legally marketed devices. All of our current products and products under
development are or are expected to be classified as Class II or Class III devices.

Before
a new device can be introduced in the market, we must obtain either FDA clearance or approval, depending on FDA guidelines, through either clearance of a 510(k)
pre-market notification or approval of a pre market approval application, which is a more extensive and costly application when compared to a pre-market notification, due to
the requirements for more extensive clinical trials, etc. All of our products have been cleared using a 510(k) application, and we expect that most future products will also qualify for clearance
using a 510(k) application (as described in Section 510(k) of the Medical Device Amendments to the F D & C Act of 1938).

Historically,
we have been able to obtain 510(k) pre-market clearance in as little as 90 days from submission, but the process has taken longer in recent years and we
antipate that it will continue to take much longer in the future. The FDA may determine that a proposed device is not substantially equivalent to a legally marketed device or that additional
information is needed before a
substantial equivalence determination can be made. A "not substantially equivalent" determination, or a request for additional information, could prevent or delay the market introduction of new
products that fall into this category. For any devices that are cleared through the 510(k) process, modifications or enhancements that could significantly affect safety or effectiveness, or constitute
a major change in the intended use of the device, will require new 510(k) submissions. There can be no assurance that we will be able to obtain necessary regulatory approvals or clearances for our
products on a timely basis, if at all, and delays in receipt of or failure to receive such approvals or clearances, the loss of previously received approvals or clearances, limitations on intended use
imposed as a condition of such approvals or clearances, or failure to comply with existing or future regulatory requirements could have a material adverse effect on our business, financial condition
and results of operations. See "Part II. Item 6. Management's Discussion and AnalysisForward looking Statements and Risk FactorsGovernmental Regulation of
Diagnostic Products."

Our
customers using diagnostic tests for clinical purposes in the U.S. are also regulated under the Clinical Laboratory Information Act of 1988, ("CLIA"). CLIA is intended to ensure the
quality and reliability of all medical testing in laboratories in the U.S. by requiring that any health care facility in which testing is performed meets specified standards in the areas of personnel
qualification, administration, participation in proficiency testing, patient test management, quality control, quality assurance and inspections. The regulations have established three levels of
regulatory control based on

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test
complexity: "waived," "moderately complex" and "highly complex." Our current ELISA tests are categorized as "moderately complex" tests for clinical use in the U.S. Under CLIA, all laboratories
performing high or moderately complex tests are required to obtain either a registration certificate or certification of accreditation from the Centers for Medicare and Medicaid Services("CMS"),
formerly the U.S. Health Care Financing Administration. The application of CLIA to our operations and facilities and future administrative interpretations of CLIA could have an adverse impact on the
potential market for our future products by increasing the cost and regulatory burden on our operations and facilities.

We
are subject to numerous federal, state and local laws relating to such matters as safe working conditions, manufacturing practices, environmental protection, fire hazard control and
disposal of hazardous or potentially hazardous substances. We may incur significant costs to comply with these laws and regulations in the future.



Currently, our largest market segments are hospital laboratories and commercial reference laboratories in the U.S. Payment for testing
in these segments is largely based on third-party payer reimbursement. The laboratory that performs the test will submit an invoice to the
patient's insurance provider or to the patient if he is not covered by an insurance program. Each diagnostic procedure (and in some instances, specific technologies) is assigned a current procedural
terminology ("CPT") code by the American Medical Association. Each CPT code is then assigned a reimbursement level by CMS. Third party insurance payers typically establish a specific fee to be paid
for each code submitted. Third party payer reimbursement policies are generally determined with reference to the reimbursement for CPT codes for Medicare patients, which themselves are determined on a
national basis by CMS.



As of June 30, 2010, we employed 40 employees worldwide (41 employees in 2009). Of the current 40 employees, 36 are
full-time, and 4 are part-time. Of these, 2 hold advanced scientific or medical degrees. None of Corgenix's employees are covered by a collective bargaining agreement. We
believe that the Company maintains good relations with our employees.



antibodya protein produced by the body in response to contact with an antigen, and having the specific capacity of neutralizing, hence creating
immunity to, the antigen.

anti-cardiolipin antibody (aCL)a class of antiphospholipid antibody which reacts with a negatively charged phospholipid called
cardiolipin or a phospholipid-cofactor complex; frequently found in patients with SLE and other autoimmune diseases; also reported to be significantly associated with the presence of both arterial and
venous thrombosis, thrombocytopenia, and recurrent fetal loss.

antigenan enzyme, toxin, or other substance, usually of high molecular weight, to which the body reacts by producing antibodies.

anti-phosphatidylserine antibodies (aPS)a class of antiphospholipid antibody which reacts to phosphatidylserine; similar to aCL; believed
to be more specific for thrombosis.

antiphospholipid antibodiesa family of auto antibodies with specificity against negatively charged phospholipids, which are frequently associated
with recurrent venous or arterial thrombosis, thrombocytopenia, or spontaneous fetal abortion in individuals with SLE or other autoimmune disease.

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antiphospholipid syndromea clinical condition characterized by venous or arterial thrombosis, thrombocytopenia, or spontaneous fetal abortion, in
association with elevated levels of antiphospholipid antibodies and/or lupus anticoagulant.

assaya laboratory test; to examine or subject to analysis.

auto antibodyan antibody with specific reactivity against a component substance of the body in which it is produced; a disease marker.

autoimmune diseasesa group of diseases resulting from reaction of the immune system against self components.

beta 2 glycoprotein I (ß2GPI)a serum protein (cofactor) that participates in the binding of antiphospholipid antibodies.

coagulationthe process by which blood clots.

cofactora serum protein that participates in the binding of antiphospholipid antibodies, for example ß2GPI.

delivery formatthe configuration of the product. Current Corgenix products utilize a 96-well microplate system for its delivery format.

hemostasismechanisms in the body to maintain the normal liquid state of blood; a balance between clotting and bleeding.

hyaluronic acid (HA)a polysaccharide found in synovial fluid, serum and other body fluids and tissues, elevated in certain rheumatological and
hepatic (liver) disorders.

HDL cholesterolhigh density lipoprotein associated with cholesterol.

immunoassaya technique for analyzing and measuring the concentration of disease markers using antibodies; for example, ELISA.

immunoglobulina globulin protein that participates in the immune reaction as the antibody for a specific antigen.

immunologythe branch of medicine dealing with (a) antigens and antibodies, esp. immunity to disease, and (b) hypersensitive biological
reactions (such as allergies), the rejection of foreign tissues, etc.

in vitroisolated from the living organism and artificially maintained, as in a test tube.

in vivooccurring within the living organism.

lipidsa group of organic compounds consisting of the fats and other substances of similar properties.

plateletssmall cells in the blood which play an integral role in coagulation (blood clotting).

platform technologythe basic technology in use for a majority of the Company's products, in essence the "platform" for new products. In the case of
Corgenix, the platform technology is ELISA (enzyme linked immunosorbent assay).

phospholipidsa group of fatty compounds found in animal and plant cells which are complex triglyceride esters containing long chain fatty acids,
phosphoric acid and nitrogenous bases.

protein Cnormal blood protein that regulates hemostasis; decreased levels lead to thrombosis.

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protein Snormal blood protein that regulates hemostasis; decreased levels lead to thrombosis.

rheumatic diseasesa group of diseases of the connective tissue, of uncertain cause and including rheumatoid arthritis (RA), rheumatic fever, etc.,
usually characterized by inflammation, pain and swelling of the joints and/or muscles.

serumthe clear yellowish fluid which separates from a blood clot after coagulation and centrifugation.

systemic lupus erythematosus (SLE)a usually chronic disease of unknown cause, characterized by red, scaly patches on the skin that tend to produce
scars, frequently affecting connective tissue and involving the kidneys, spleen, etc.

thrombinthe enzyme of the blood, formed from prothrombin, that causes clotting by converting fibrinogen to fibrin.

thrombocytopeniaa condition in which there is an abnormally small number of platelets in the circulating blood.

thromboembolismthe obstruction or occlusion of a blood vessel by a thrombus.

thrombosiscoagulation of the blood within a blood vessel of any organ, forming a blood clot.

tumor markersserum proteins or molecules found in high concentrations in patients with selected cancers.

vascularof or pertaining to blood vessels.

von Willebrand's Factor (vWF)normal blood protein that regulates hemostasis; decreased levels lead to abnormal bleeding and increased levels may
produce thrombosis.

Item 1A.    Risk Factors.

An investment in Corgenix entails certain risks that should be carefully considered. In addition, these risk factors could cause actual
results to differ materially from those expected including the following:

We depend upon collaborative relationships and third parties for product development and commercialization.

We have historically entered into research and development agreements with collaborative partners, from which we derived revenues in
past years. Pursuant to these agreements, our collaborative partners have specific responsibilities for the costs of development, promotion, regulatory approval and/or sale of our products. We will
continue to rely on future collaborative partners for the development of products and technologies. There can be no assurance that we will be able to negotiate such collaborative arrangements on
acceptable terms, if at all, or that current or future collaborative arrangements will be successful. To the extent that we are not able to establish such arrangements, we could be forced to undertake
such activities entirely at our own expense. The amount and timing of resources that any of these partners devotes to these activities may be based on progress by us in our product development
efforts. Collaborative arrangements may be terminated by the partner upon prior notice without cause and there can be no assurance that any of these partners will perform its contractual obligations
or that it will not terminate its agreement. With respect to any products manufactured by third parties, there can be no assurance that any third- party manufacturer will perform acceptably or that
failures by third parties will not delay clinical trials or the submission of products for regulatory approval or impair our ability to deliver products on a timely basis.

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There can be no assurance of successful or timely development of additional products.

Our business strategy includes the development of additional diagnostic products for the diagnostic business. Our success in developing
new products will depend on our ability to achieve scientific and technological advances and to translate these advances into commercially competitive products on a timely basis. Development of new
products requires significant research, development and testing efforts. We have limited resources to devote to the development of products and, consequently, a delay in the development of one product
or the use of resources for product development efforts that prove unsuccessful may delay or jeopardize the development of other products. Any delay in the development, introduction and marketing of
future products could result in such products being marketed at a time when their cost and performance characteristics would not enable them to compete effectively in their respective markets. If we
are unable, for technological or other reasons, to complete the development and introduction of any new product or if any new product is not approved or cleared for marketing or does not achieve a
significant level of market acceptance, our ability to remain competitive in our product niches would be impaired.

We continue to incur losses and require additional financing.

We have incurred operating losses and negative cash flow from operations for most of our history. Losses incurred since our inception,
net of dividends on redeemable common and redeemable preferred stock, have aggregated $13,208,445 and there can be no assurance that we will be able to generate positive cash flows to fund our
operations in the future or to pursue our strategic objectives. Historically, we have financed our operations primarily through long-term debt, factoring of accounts receivables, and the
sales of common stock, redeemable common stock, and preferred stock. We have also financed operations through sales of diagnostic products and agreements with strategic partners. At June 30,
2010, trade and other receivables amounted to $1,408,969 versus $1,339,409 at June 30, 2009.

We
have developed and are continuing to modify an operating plan intended to eventually achieve sustainable profitability, positive cash flow from operations, and an adequate level of
financial liquidity. Key components of this plan include consistent revenue growth and the cash to be derived from such growth, as well as the expansion of our strategic alliances with other
biotechnology and diagnostic companies, securing diagnostic-related government contracts and grants, improving operating efficiencies to reduce our cost of sales as a percentage of sales, thereby
improving gross margins, and lowering our overall operating expenses. Towards these efforts, the current fiscal year produced positive results in all of the aforementioned components, and management
expects that we will be able to continue this success. However, if our sales were to decline, are flat, or achieve very slow growth, we would undoubtedly incur operating losses and a decreasing level
of liquidity for that period of time. In view of this, and in order to further improve our liquidity and operating results, we entered into the ELITech collaboration and investment, described above.

The
$1,250,000 ELITech common stock investment in addition to the FGI $750,000 March 15, 2010 credit facility and the Summit $1,750,000 September 30, 2009
credit facility, in conjunction with our current revised forecasts, should provide adequate resources to continue operations for longer than 12 months.

Competition in the human medical diagnostics industry is, and is expected to remain, significant.

Our competitors range from development stage diagnostics companies to major domestic and international pharmaceutical and biotechnology
companies. Many of these companies have financial, technical, marketing, sales, manufacturing, distribution and other resources significantly greater than ours. In addition, many of these companies
have name recognition, established positions in the market and long standing relationships with customers and distributors also greater than ours. Moreover, the diagnostics industry continues to
demonstrate a degree consolidation, whereby some of the large

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domestic
and international pharmaceutical companies have been acquiring mid-sized diagnostics companies, further increasing the concentration of resources. There can be no assurance that
technologies will not be introduced that could be directly competitive with or superior to our technologies.

Our products and activities are subject to regulation by various governments and government agencies.

The testing, manufacture and sale of our products is subject to regulation by numerous governmental authorities, principally the FDA
and certain foreign regulatory agencies. Pursuant to the Federal Food, Drug, and Cosmetic Act, and the regulations promulgated there under, the FDA regulates the preclinical and clinical testing,
manufacture, labeling, distribution and promotion of medical devices. We are limited in our ability to commence marketing or commercial sales in the U.S. of new products under development until we
receive clearance or approval from the FDA. The testing for, preparation of and subsequent FDA regulatory review of required filings can be a lengthy, expensive and uncertain process. Noncompliance
with applicable requirements can result in, among other consequences, fines, injunctions, civil penalties, recall or seizure of products, repair, replacement or refund of the cost of products, total
or partial suspension of production, failure of the government to grant pre-market clearance or pre-market approval for devices, withdrawal of marketing clearances or
approvals, and criminal prosecution.

There
can be no assurance that we will be able to obtain necessary regulatory approvals or clearances for our products on a timely basis, if at all, and delays in receipt of or failure
to receive such approvals or clearances, the loss of previously received approvals or clearances, limitations on intended use imposed as a condition of such approvals or clearances or failure to
comply with existing or future regulatory requirements could negatively impact our sales and thus have a material adverse effect on our business.

As
a manufacturer of medical devices for marketing in the U.S., we are required to adhere to applicable regulations setting forth detailed good manufacturing practice requirements, which
include testing, control and documentation requirements. We must also comply with Medical Device Report (MDR) requirements, which require that a manufacturer reports to the FDA any incident in which
its product may have caused or contributed to a death or serious injury, or in which its product malfunctioned and, if the malfunction were to recur, it would be likely to cause or contribute to a
death or serious injury. We are also subject to routine inspection by the FDA for compliance with QSR requirements, MDR requirements and other applicable regulations. Labeling and promotional
activities are subject to scrutiny by the FDA and, in certain circumstances, by the Federal Trade Commission. We may incur significant costs to comply with laws and regulations in the future, which
would decrease our net income or increase our net loss and thus have a potentially material adverse effect upon our business, financial conditions and results of operations.

Distribution
of diagnostic products outside the U.S. is subject to extensive foreign government regulation. These regulations, including the requirements for approvals or clearance to
market, the time required for regulatory review and the sanctions imposed for violations, vary from country to country. We may be required to incur significant costs in obtaining or maintaining
foreign regulatory approvals. In addition, the export of certain of our products that have not yet been cleared for U.S. commercial distribution may be subject to FDA export restrictions. Failure to
obtain necessary regulatory approval or the failure to comply with regulatory requirements could reduce our product sales and thus have a potentially material adverse effect on our business, financial
condition and results of operations.

We depend upon distribution partners for sales of diagnostic products in international markets.

We have entered into distribution agreements with collaborative partners in which we have granted distribution rights for certain of
our products to these partners within specific international geographic

23

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Table of Contents

areas.
Pursuant to these agreements, our collaborative partners have certain responsibilities for market development, promotion, and sales of the products. If any of these partners fail to perform its
contractual obligations or terminate its agreement, this could have the effect of reduce our sales and cash flow and thus have a potentially material adverse effect on our business, financial
condition and results of operations.

Third party reimbursement for purchases of our diagnostic products is uncertain.

In the U.S., health care providers that purchase diagnostic products, such as hospitals and physicians, generally rely on third party
payers, principally private health insurance plans, federal Medicare and state Medicaid, to reimburse all or part of the cost of the purchase. Third party payers are increasingly scrutinizing and
challenging the prices charged for medical products and services and they can affect the pricing or the relative attractiveness of the product. Decreases in reimbursement amounts for tests performed
using our diagnostic products, failure by physicians and other users to obtain reimbursement from third party payers, or changes in government and private third party payers' policies regarding
reimbursement of tests utilizing diagnostic products, may affect our ability to sell our diagnostic products profitably. Market acceptance of our products in international markets is also dependent,
in part, upon the availability of reimbursement within prevailing health care payment systems.

Our success depends, in part, on our ability to obtain patents and license patent rights, to maintain trade secret protection and to operate without infringing on the
proprietary rights of others.

Most of our products are based on our patented and proprietary application of Enzyme Linked ImmunoSorbent Assay, or ELISA, technology,
a clinical testing methodology commonly used worldwide. Most of our current products are based on this platform technology in a delivery format convenient for clinical testing laboratories. The
delivery format, which is referred to as "Microplate," allows the testing of up to 96 samples per plate, and is one of the most commonly used formats, employing conventional testing equipment found in
virtually all clinical laboratories. The availability and broad acceptance of ELISA Microplate products reduces entry barriers worldwide for our new products that employ this technology and delivery
format. There can be no assurance that our issued patents will afford meaningful protection against a competitor, or that patents issued or licensed to us will not be infringed upon or designed around
by others, or that others will not obtain patents that we would need to license or design around. We could incur substantial costs in defending the Company or our licensees in litigation brought by
others. The potential for reduced sales and increased legal expenses would have a negative impact on our cash flow and thus our overall business could be adversely affected, or, in an extreme case,
our ability to remain in business could be jeopardized.

We may not be able to successfully implement our plans to acquire other companies or technologies.

Our growth strategy includes the acquisition of complementary companies, products or technologies. There is no assurance that we will
be able to identify appropriate companies or technologies to be acquired, to negotiate satisfactory terms for such an acquisition, or to obtain sufficient capital to make such acquisitions. Moreover,
because of limited cash resources, we will be unable to acquire any significant companies or technologies for cash and our ability to effect acquisitions in exchange for our capital stock may depend
upon the market prices for our common stock, which could result in significant dilution to its existing stockholders. If we do complete one or more acquisitions, a number of risks arise, such as
disruption of our existing business, short-term negative effects on our reported operating results, diversion of management's attention, unanticipated problems or legal liabilities, and
difficulties in the integration of potentially dissimilar operations. Any of these factors could materially harm Corgenix's business or its operating results.

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Table of Contents

We depend on suppliers for our products' components.

The components of our products include chemical, biological and packaging supplies that are generally available from several suppliers,
except certain antibodies and other critical components, which we purchase from single suppliers. We mitigate the risk of a loss of supply by maintaining a sufficient supply of such antibodies to help
ensure an uninterrupted supply for at least three months. We have also qualified second vendors for most critical raw materials and believe that we can substitute a new supplier with respect to most
of these components in a timely manner. If, for some reason, we lose our main supplier for a given material, there can be no assurances that we will be able to substitute a new supplier in a timely
manner and failure to do so could impair the manufacturing of certain of our products and thus have a material adverse effect on our business, financial condition and results of operations.

We have only limited manufacturing experience with certain products.

Although we have manufactured over twelve million diagnostic tests based on our proprietary applications of ELISA (enzyme linked
immuno-absorbent assay) technology, certain of our diagnostic products in consideration for future development incorporate technologies with which we have limited manufacturing experience. Assuming
successful development and receipt of required regulatory approvals, significant work may be required to scale up production for each new product
prior to such product's commercialization. There can be no assurance that such work can be completed in a timely manner and that such new products can be manufactured cost-effectively, to
regulatory standards or in sufficient volume.

Due to the specialized nature of our business, our success will be highly dependent upon our ability to attract and retain qualified scientific and executive personnel.

We believe that our success will depend to a significant extent on the efforts and abilities of our management team and other key
employees. Loss of any of them would be disruptive to our business. There can be no assurance that we will be successful in attracting and retaining such skilled personnel, who are generally in high
demand by other companies. The loss of, inability to attract, or poor performance by key scientific and executive personnel may have a material adverse effect on our business, financial condition and
results of operations.

The testing, manufacturing and marketing of medical diagnostic devices entails an inherent risk of product liability claims.

To date, we have experienced no product liability claims, but any such claims arising in the future could have a material adverse
effect on our business, financial condition and results of operations. Potential product liability claims may exceed the amount of our insurance coverage or may be excluded from coverage under the
terms of our policy or limited by other claims under our umbrella insurance policy. Additionally, there can be no assurance that our existing insurance can be renewed by us at a cost and level of
coverage comparable to that presently in effect, if at all. In the event that we are held liable for a claim against which we are not insured or for damages exceeding the limits of our insurance
coverage, such claim could have a material adverse effect on our cash flow and thus potentially a materially adverse effect on our business, financial condition and results of operations.

There has, to date, been no consistently active public market for our common stock, and there can be no assurance that a consistently active public market will develop or be
sustained.

Although our common stock has been traded on the OTC Bulletin Board® since February 1998, and even though the trading
volume has increased substantially over the past twenty four months, the trading has been inconsistent with less than continuously significant volume.

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Table of Contents

Moreover,
the over-the-counter markets for securities of very small companies historically have experienced extreme price and volume fluctuations. These broad
market fluctuations and other factors, such as new product developments, trends in our industry, the investment markets, economic conditions generally, and quarterly variation in our results of
operations, may adversely affect the market price of our common stock. In addition, our common stock is subject to rules adopted by the Securities and Exchange Commission regulating broker-dealer
practices in connection with transactions in "penny stocks." Such rules require the delivery prior to any penny stock transaction of a disclosure schedule explaining the penny stock market and all
associated risks and impose various sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and accredited investors. For these types of
transactions the broker-dealer must make a special suitability determination for the purchaser and have received the purchaser's written consent to the transaction prior to sale. The additional
burdens imposed upon broker- dealers by such requirements may discourage broker-dealers from effecting transactions in securities subject to the penny stock rules.

There are risks associated with fluctuating exchange rates.

Our financial statements are presented in U.S. dollars. At the end of each fiscal quarter and the fiscal year, we convert the financial
statements of Corgenix UK, which operates in pounds sterling, into U.S. dollars, and consolidate them with results from Corgenix, Inc. We may, from time to time, also need to exchange currency
from income generated by Corgenix UK. Foreign exchange rates are volatile and can change in an unknown and unpredictable fashion. Should the foreign exchange rates change to levels different than
anticipated by us, our business, financial condition and results of operations may be adversely affected.

Item 1B.    Unresolved Staff Comments.

Not applicable.

Item 2.    Description of Properties.

On February 8, 2006, we entered into a Lease Agreement (the "Lease") with York County, LLC, a California limited
liability company ("Landlord") pursuant to which we leased approximately 32,000 rentable square feet (the "Property") of Landlord's approximately 102,400 square foot building, commonly known as
Broomfield One and located at 11575 Main Street, Broomfield, Colorado 80020. In 2008, the Property was sold to The Krausz Companies, Inc. a California corporation, and is part of Landlord's
multi-tenant real property development known as the Broomfield Corporate Center. We use the Property for our headquarters, laboratory research and development facilities and production facilities.

On
the following dates, we executed the following amendments to the Lease:



The
term of the Lease (the "Term") is seven years and five months and commenced on July 6, 2006 with tenant options to extend the Term for up to two five-year periods.
We have a one time right of first refusal to lease contiguous premises.

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Table of Contents

Initially
there was no base lease rate payable on 25,600 square feet of the Property, plus estimated operating expenses of $1.61 per square foot.

The
base lease rate payable on 25,600 square feet of the Property increased to $4.00 per square foot on January 28, 2007, plus amortization of tenant improvements of $5.24 per
square foot, plus estimated operating expenses of $1.61 per square foot. The base lease rate on 25,600 square feet of the Property increased to $5.64 per square foot on January 28, 2008, with
fixed annual increases each January 28 thereafter during the initial Term, plus the amortization of tenant improvements of $5.24 per square foot, and estimated operating expenses of $1.61 per
square foot.

Initially,
there was no base lease rate payable on 6,400 square feet of the Property, plus estimated operating expenses of $1.61 per square foot. The base lease rate on 6,400 square feet
of the Property increases to $3.00 per square foot commencing on August 28, 2007, and increased to $3.09 on January 28, 2008, with fixed annual increases each January 28
thereafter during the initial Term, plus estimated operating expenses of $1.61 per square foot.

Thus,
the estimated total rent (this is dependent upon the actual operating expenses) on the entire 32,000 square feet of the Property is initially $1.61 per square foot, then increased
to approximately $9.00 per square foot on January 28, 2007, approximately $9.60 per square foot on August 28, 2007, and approximately $10.93 per square foot on January 28, 2008,
with annual increases in the base lease rate each January 28 thereafter during the initial Term, up to an estimated total rent of $13.18 per square foot during the final year of the initial
Term.

The
base lease rate for an extension period is 100% of the then prevailing market rental rate (but in no event less than the rent for the last month of the then current Term) and shall
thereafter increase annually by 3% for the remainder of the applicable extension period.

The
facility leased by our subsidiary, Corgenix UK Ltd., which commenced January 1, 2008, consists of "office park" type space with offices and storage space. They
currently lease 2,292 square feet under a 10 year lease with an exit clause at the five year point. The rent payments, exclusive of utilities and taxes, will be approximately $3,991 per month
for the first year of the lease, $4,323 per month for the second year, $4,656 per month for the third year, $4,989 for the fourth year, and $5,321 for the fifth year, with subsequent years to be
determined. The facility is rented on a month-by-month basis, with a 90 day notice required for termination of the lease.

We
have not invested in any real estate or real estate mortgages.

Item 3.    Legal Proceedings

None.

Item 4.    Submission of Matters to a Vote of Security Holders.



DIRECTOR

VOTES FOR

VOTES WITHHELDDr. Luis Lopez


22,858,066


954,161Douglass T. Simpson


22,856,066


956,161Robert Tutag


22,910,408


901,819Dennis Walczewski


22,077,680


1,734,547Larry G. Rau


22,910,408


901,819C. David Kikumoto


22,028,339


1,783,888Stephen P. Gouze


22,910,408


901,819




VOTES FOR

VOTES WITHHELD

ABSTENTIONS

BROKER NON-VOTES21,906,982


743,356


161,889


0


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PART II

Item 5.    Market for Common Equity and Related Stockholder Matters.

Our common stock is traded on the OTC Bulletin Board® under the symbol "CONX." On June 30, 2010, the closing price
of our common stock on the OTC Bulletin Board® as reported by the OTC Bulletin Board® was $0.11.

The
following table sets forth, for the periods indicated, the high and low bid prices of our common stock as reported on the OTC Bulletin Board®. The following quotations
reflect
inter-dealer prices, without retail mark-up, markdown or commissions, and may not represent actual transactions.

Stock Price
RangesStock Price Dates

High

LowFiscal Year 2010Quarter Ended:September 30, 2009

$
0.11

$
0.07December 31, 2009

$
0.11

$
0.09March 31, 2010

$
0.19

$
0.09June 30, 2010

$
0.14

$
0.09Fiscal Year 2009Quarter Ended:September 30, 2008

$
0.31

$
0.17December 31, 2008

$
0.15

$
0.05March 31, 2009

$
0.11

$
0.06June 30, 2009

$
0.11

$
0.06


On
June 30, 2010, there were 127 holders of record of our Common Stock.

To
date, we have not paid any dividends on our common stock, and the Board of Directors of the Company does not currently intend to declare cash dividends on our common stock. In
addition to any restrictions imposed by the articles of incorporation with respect to the payment of dividends, any future cash dividends would also depend on future earnings, capital requirements and
the Company's financial condition and other factors deemed relevant by the Board of Directors.



On February 3, 2009, the Company entered into two agreements (the "Restructuring Agreements") to restructure the debt evidenced
by convertible term notes that Truk Opportunity Fund, LLC, a Delaware company; Truk International Fund, LP, a Cayman Islands company (collectively, "Truk"); and CAMOFI Master LDC, a
Cayman Islands company, formerly named DCOFI Master LDC, ("CAMOFI") purchased on May 19, 2005 and December 28, 2005.

Under
the Restructuring Agreements, the Company issued to CAMOFI 200,000 shares of the Company's Series B Convertible Preferred Stock ("Series B"), with a liquidation
preference of $50,000, which will be convertible into 800,000 shares of the Company's common stock at the rate of $0.25 per share, and issued to Truk 36,680 shares of the Company's Series B
Convertible Preferred Stock, with a liquidation preference of $9,170, which will be convertible into 146,720 shares of the Company's common stock at the rate of $0.25 per share.

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Table of Contents

Corgenix Purchase of Equity Securities*

Period

Total number of
shares purchased

Average price paid
per share

Total number of
shares purchased as
part of publicly
announced plans or
programs

Maximum number of
shares that may yet
be purchased under
the plans or
programsSeptember 2009


27,508

$
0.568





October 2009


27,508

$
0.568





June 2010


55,016

$
0.568





Total


110,032

$
0.568





302,600


*Repurchased
from MBL pursuant to notes payable


Item 6.    Selected Financial Data.

Not required.

Item 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the financial statements and accompanying notes included elsewhere herein.



Since our inception, we have been primarily involved in the research, development, manufacturing and marketing/distribution of
diagnostic tests for sale to clinical laboratories. We currently market products covering autoimmune disorders, vascular diseases and liver disease. Our products are sold in the U.S., the UK and other
countries through our marketing and sales organization that includes employee and contract sales representatives, internationally through an extensive distributor network, and to several significant
OEM partners.

We
manufacture products for inventory based upon expected sales demand, usually shipping products to customers within 24 hours of receipt of orders if in stock. Accordingly, we do
not operate with a customer order backlog.

Except
for the fiscal years ending June 30, 2009 and June 30, 1997, we have experienced revenue growth every year since our inception, primarily from sales of products and
contract revenues from strategic partners. Contract revenues consist of service fees from research and development agreements with strategic partners.

Beginning
in fiscal year 1996, we began adding third-party OM licensed products to our diagnostic product line. We expect to expand our relationships with other companies in the future
to gain access to additional products. This category comprises approximately 30-40 products, with an annual growth rate in excess of 10% annually. All of the third-party OM licensed
products support our own manufactured products, adding to our competitive capabilities, especially in many international markets.

Although
we have experienced growth in revenues every year since 1990, except for the fiscal 2009 and fiscal 1997, there can be no assurance that, in the future, we will sustain revenue
growth, current revenue levels, or achieve or maintain profitability. Our results of operations may fluctuate significantly from period-to-period as the result of several
factors, including: (i) whether and when new products are successfully developed and introduced, (ii) market acceptance of current or new products, (iii) seasonal customer demand,
(iv) whether and when we receive research and development payments from strategic partners, (v) changes in reimbursement policies for the products that we sell, (vi) competitive

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Table of Contents

pressures
on average selling prices for the products that we sell, and (vii) changes in the mix of products that we sell.



As of July 1, 2008, we adopted the guidance set forth in theFair Value
MeasurementsTopic of the FASB ASC. This guidance established a framework for measuring fair value in GAAP and clarified the definition of fair value within that framework. The
guidance does not require any new fair value measurements in GAAP. The guidance further introduced, or reiterated a number of key concepts which form the foundation of the fair value measurement
approach to be utilized for financial reporting purposes. The fair value of our financial instruments reflect the amounts that would be received upon sale of an asset or paid to transfer a liability
in an orderly transaction
between market participants at the measurement date (exit price). The guidance also established a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into the
following three levels:



The
adoption of these provisions did not have a material effect on our financial condition and results of operations, but introduced new disclosures about how we value certain assets and
liabilities. Much of the disclosure requirement is focused on the inputs used to measure fair value, particularly in instances where the measurement uses significant unobservable (Level 3)
inputs. Our financial instruments are valued using quoted prices in active markets or based upon other observable inputs. The following table sets forth the fair value of our financial assets that
were measured on a recurring basis as of June 30, 2010:

Level 1

Level 2

Level 3

TotalMoney market funds

$
200,798







$
200,798Total

$
200,798







$
200,798


In
April 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-17 (ASU 2010-17), Revenue Recognition-Milestone Method (Topic 605):
Milestone Method of Revenue Recognition. The amendments in this Update are effective on a prospective basis for milestones achieved in fiscal years, and interim periods within those years, beginning
on or after June 15, 2010. Early adoption is permitted. If a vendor elects early adoption and the period of adoption is not the beginning of the entity's fiscal year, the entity should apply
the amendments retrospectively from the beginning of the year of adoption. The Company does not expect the provisions of ASU 2010-17 to have a material effect on the financial position,
results of operations or cash flows of the Company.



Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP") and
our significant accounting policies are summarized in Note 1 to the accompanying consolidated financial statements. The preparation of financial statements in conformity with GAAP requires
management to make estimates and
assumptions that affect reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses
during the reporting period. Actual results could differ significantly from those estimates.

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Table of Contents

We
maintain an allowance for doubtful accounts based on our historical experience and provide for any specific collection issues that are identified. Such allowances have historically
been adequate to provide for our doubtful accounts but involve a significant degree of management judgment and estimation. Worse than expected future economic conditions, unknown customer credit
problems and other factors may require additional allowances for doubtful accounts to be provided for in future periods.

Equipment
and software are recorded at cost. Equipment under capital leases is recorded initially at the present value of the minimum lease payments. Depreciation and amortization is
calculated primarily using the straight-line method over the estimated useful lives of the respective assets which range from 3 to 7 years.

The
internal and external costs of developing and enhancing software costs related to website development, other than initial design and other costs incurred during the preliminary
project stage, are capitalized until the software has been completed. Such capitalized amounts began to be amortized commencing when the website was placed in service on a straight-line
basis over a three-year period.

When
assets are sold, retired or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and a gain or loss is recognized. Repair and
maintenance costs are expensed as incurred.

We
evaluate the realizability of our long-lived assets, including property and equipment, whenever events or changes in circumstances indicate that the carrying amount of an
asset may not be recoverable. Revenue from sale of products is recognized upon shipment of products.

The
Company serves as a sub-contractor to Tulane University for several NIH funded grants and contracts related to development of diagnostics, vaccines and therapeutics for
hemorrhagic fever viruses. Under the terms of the subcontracts, the Company invoices Tulane monthly for all allocable expenses incurred in support of the grants and contracts. This includes fully
burdened salaries, supplies, production kits, travel and equipment. The Company serves as the principal investigator for an NIH funded two-year contract to develop recombinant diagnostic
tests for the
filoviruses (Ebola and Marburg), and has engaged three subcontractors (Tulane University, Autoimmune Technologies and the Scripps Research Institute) to assist in the development. Each month the
subcontractors invoice the Company for allocable monthly expenses including fully burdened salaries, supplies and travel; the Company consolidates these expenses with its own allocable expense and
invoices the NIH.

Research
and development costs and any costs associated with internally developed patents, formulas or other proprietary technology are expensed as incurred. Research and development
expense for the years ended June 30, 2010 and 2009 totaled $647,103 and $753,523, respectively. Revenue from research and development contracts, as noted above, represents amounts earned
pursuant to agreements to perform research and development activities for third parties and is recognized as earned under the respective agreement. Because research and development services are
provided evenly over the contract period, revenue is recognized ratably over the contract period. Research and development agreements in effect in 2010 and 2009 provided for fees to the Company based
on time and materials in exchange for performing specified research and development functions. Contract research and development revenues were $614,488 and $221,038 for the years ended June 30,
2010 and 2009, respectively. Research and development contracts are generally short term with options to extend, and can be cancelled under specific circumstances.

Inventories
are recorded at the lower of cost or market, using the first-in, first-out method.

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Net sales.Net sales for the fiscal year ended June 30, 2010 were $8,258,170, a 2.4% increase from $8,063,557 for fiscal 2009.
Total North
American sales increased $270,740, or 4.7%, to $5,996,345 while total sales to international distributors decreased $76,126, or 3.3%, to $2,261,826, from $2,337,952 for the prior fiscal year. With
respect to the Company's major revenue categories and product lines, North American direct product-only sales decreased $191,907 or 4.6%, to $4,028,236, whereas international direct
product-only sales decreased $83,391, or 4.7%, to $1,711,668.
Worldwide category results were as follows: Phospholipids kit sales decreased $115,337, or 3.1%, to $3,624,065. Coagulation kit sales decreased $155,599, or 9.1%, to $1,554,004. HA kit sales decreased
$5,185 or less than 1%, to $965,398, while Autoimmune kit sales decreased $34,803 or 17.0%, to $169,826. AspirinWorks sales amounted to $202,375, a 40.6% increase over the $143,951 realized in the
prior year. Additionally, worldwide OEM revenues increased $44,670, or 5.5%, to $858,772. Revenue from contract manufacturing increased $242,931, or 118.3%, to $448,284. Revenue from contract research
and development increased $384,822, or 167.6%, to $614,488. Finally, non-product revenue decreased $202,513, or 40.5%, to $596,722.

Cost of sales.Cost of sales, as a percentage of sales, improved slightly for the fiscal year at 43.8% of sales for the fiscal year
ended
June 30, 2010, compared to 44.4% in fiscal 2009.

Selling and marketing expenses.For the fiscal year ended June 30, 2010, selling and marketing expenses decreased $294,963 or 15.8%
to
$1,575,471 from $1,870,434 in fiscal 2009. Material changes from the prior fiscal year included decreases in advertising expenses, labor related expenses, Corgenix-UK selling expenses,
consulting and outside services, travel and entertainment expenses, and trade show expenses, partially offset by a net increase in the other selling and marketing expenses.

Research and development expenses.Research and development expenses decreased $106,420, or 14.1% to $647,103 for the fiscal year ended
June 30, 2010, from $753,523 in fiscal 2009. This decrease primarily involved decreases in labor-related expenses and clinical studies expense, partially offset by net increases in other
research and development expenses.

General and administrative expenses.For the fiscal year ended June 30, 2010, general and administrative expenses decreased
$113,510 or 5.1%
to $2,093,563 from $2,207,073 in fiscal 2009. This decrease was primarily attributable to decreases in aborted financing costs, consulting and outside services, labor-related expenses, and patent
renewal fees, partially offset by net increases in other general and administrative expenses.

Interest expense.Interest expense decreased $980,161, or 75.3%, to $321,063 for the fiscal year ended June 30, 2010, from
$1,301,224 in
fiscal 2009. This substantial decrease was due primarily to the accelerated write off of 92.3% of the unaccreted discount and unamortized deferred financing costs to
interest expense as a result of the payoff of the convertible notes as part of the Benefactor financing in the fiscal year ended June 30, 2009.



The Company's earnings before interest, taxes, depreciation, amortization and non cash expense associated with stock-based compensation
("Adjusted EBITDA") increased $412,240 or 102.1% to $815,981 for the fiscal year ended June 30, 2010 compared with $403,741 for the prior fiscal year ended June 30, 2009. Although
adjusted EBITDA is not a GAAP measure of performance or liquidity, the Company believes that it may be useful to an investor in evaluating the Company's ability to meet future debt service, capital
expenditures and working capital requirements. However, investors should not consider these measures in isolation or as a substitute for operating income, cash flows from operating activities or any
other measure for determining the Company's operating performance or

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Table of Contents

liquidity
that is calculated in accordance with GAAP. In addition, because adjusted EBITDA is not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures
employed by other companies. A reconciliation of Adjusted EBITDA to net loss as shown on the accompanying Statement of Operations can be made by eliminating depreciation and amortization expense,
corporate stock-based compensation expense, interest expense, and income tax expense, if any, from the net loss and further eliminating any interest income from said net loss as in the following
table:

Fiscal Year
Ended June 30,2010

2009RECONCILIATION OF ADJUSTED EBITDA:Net income (loss)

$
2,391

$
(1,570,600
)Add back:Depreciation and Amortization


439,028


448,018Stock-based compensation expense


54,164


237,050Interest income


(665
)

(11,951
)Interest expense


321,063


1,301,224Adjusted EBITDA

$
815,981

$
403,741




As previously noted, on July 12, 2010 we entered into a Common Stock Purchase Agreement with Elitech and Wescor, Inc. In
accordance with the Common Stock Purchase
Agreement, Wescor will purchase up to two million dollars ($2,000,000) of the Company's common stock in three installments (subject to various conditions) and will receive warrants to purchase
additional shares. Also, in connection with the Common Stock Purchase Agreement, we entered into a Master Distribution Agreement with Elitech UK Limited, and (ii) a Joint Product Development
Agreement with Elitech. The details of the Common Stock Purchase Agreement, Master Distribution Agreement, and Joint Product Development Agreement are again outlined below.

The
investment by Wescor will take place over a maximum of three tranches:

First
Tranche under the Common Stock Purchase AgreementPursuant to the First Tranche of the Common Stock Purchase Agreement, on July 16, 2010, Wescor invested one
million two hundred fifty thousand dollars ($1,250,000) to purchase 8,333,334 shares of the Company's common stock valued at $0.15 per share. For no additional consideration the Company issued a
warrant to Wescor to purchase 4,166,667 shares at $0.15 per share. The Company entered into the Master Distribution Agreement with Elitech UK Limited and the Joint Product Development Agreement with
Elitech, contemporaneously with the issuance of the First Tranche Shares.

Second
Tranche under the Common Stock Purchase AgreementPursuant to the Second Tranche of the Common Stock Purchase Agreement, Wescor will invest two hundred fifty thousand
dollars ($250,000) to purchase 1,666,667 shares of our common stock valued at $0.15 per share. For no additional consideration we will issue a warrant to Wescor to purchase 833,333 shares at $0.15 per
share. As a condition to the closing of the Second Tranche, the Company will have effectively transferred its product distribution activity outside of North America from our subsidiary, Corgenix
U.K. Ltd., to Elitech UK Limited.

Third
Tranche under the Common Stock Purchase AgreementPursuant to the Third Tranche of the Common Stock Purchase Agreement, Wescor will invest five hundred thousand dollars
($500,000) to purchase 3,333,333 shares of our common stock valued at $0.15 per share. For no additional consideration we will issue a warrant to Wescor to purchase 1,666,667 shares at $0.15 per
share. As a

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condition
to the closing of the Third Tranche, the Executive Committee established under the Joint Product Development Agreement will have determined the feasibility of creating not less than two
(2) new Corgenix assays as further described in the Joint Product Development Agreement.

In
connection with the Common Stock Purchase Agreement, at the initial closing, which occurred on July 16, 2010, we entered into the Master Distribution Agreement with Elitech UK
Limited, and we entered into the Joint Product Development Agreement with Elitech. Under the terms and conditions of the Master Distribution Agreement, and as a condition precedent to the closing of
the Second Tranche, Elitech UK Limited became the exclusive distributor of the Company's Products (as that term
is defined therein) outside of North America. Accordingly, we along with Corgenix U.K. Ltd, assigned and/or transferred the economic benefit to Elitech UK Limited, and Elitech UK Limited
assumed all of the obligations of the Company or Corgenix U.K. Ltd. under all distribution agreements executed by us or Corgenix U.K. Ltd., as the case may be, related to any distributor
whose territory is outside of North America.

Under
the terms and conditions of the Joint Product Development Agreement the Company and Elitech will work towards developing efficient technology for the commercialization of
biochemical testing of substances related to human health. The goal of the co-development effort is the modification of certain of our assays for use in Elitech chemistry analyzers,
serology instruments or other instruments, and the commercialization of those modified assays by Elitech and its affiliates. Phase I of the co-development is focused on the sharing
and licensing of our assay technology to facilitate this purpose. The intent is that, in order to achieve joint development of our assays modified to be used with certain Elitech technology, all of
our relevant assay technology will be available to Elitech and its affiliates to establish the broadest common immunoassay technology base to pursue co-development of new Corgenix assay
technology. Such technology would include, for example, manufacturing know-how, testing and reliability information, visits to production facilities, and technical consultation, for which
the burden of disclosure is reasonable.

Wescor
has the right to designate one individual for election or appointment to our Board of Directors, for so long as Wescor owns at least five percent of our outstanding common stock.

After
the First Tranche closed, through to the third (3rd) anniversary of the First Tranche's closing date, the rights and responsibilities of Wescor with respect to a potential change
of control transaction by us will be governed by the Common Stock Purchase Agreement.

Pursuant
to the Common Stock Purchase Agreement, if our board determines to initiate the solicitation of offers or indications of interest in pursuing a Change of Control transaction, as
defined therein, (without having first received an unsolicited offer from a third party) then the board will, consistent with its fiduciary duty to maximize shareholder value, design a process in
consultation with legal counsel and any financial advisor the board elects. Wescor may participate in the process, on terms established by the Company's board to govern the solicitation of offers
process. The terms of the process are further outlined in the Common Stock Purchase Agreement.

Pursuant
to the Common Stock Purchase Agreement, if our board receives an unsolicited third-party offer (or indication of interest in making an offer) with respect to a Change of Control
transaction, we will provide written notice to Wescor. If our board elects to begin a process that could lead to a Change of Control then we will commence negotiations with the unsolicited bidder and
with Wescor to seek the highest value available from those parties. The terms of the process are further outlined in the Common Stock Purchase Agreement.

On
March 15, 2010, Corgenix UK Limited entered into a financing agreement with FGI (see also Note 3 to the Financial Statements). Under the Agreement, Corgenix UK agrees to
sell all of Corgenix UK's right, title and interest in and to specified accounts receivable and all merchandise represented by those accounts. In exchange, FGI will advance funds to the Company. The
Company will use the funds

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for
working capital purposes and to continue to fund the operations of Corgenix UK. The Company, and Corgenix, Inc., a wholly owned subsidiary of the Company, have guaranteed Corgenix UK's
obligations to FGI.

The
purchase price for each sold account is 85% of the face amount of the account, less certain fees set forth in the Agreement. An administrative fee of 1.15% of the average monthly
balance of the purchased accounts (the "Administrative Fee") will be payable monthly. The Company paid FGI a one-time facility fee of $10,000 upon funding, and had already paid an
additional $10,000 deposit to reimburse FGI for actual expenses incurred in connection with FGI's review and approval process as well as auditor fees, attorneys' fees and expenses incurred in
documenting the financing agreement.

Corgenix
UK must maintain an average monthly net balance of funds advanced of no less than US$200,000 during the term of the agreement. If Corgenix UK does not sell at least $200,000 of
account debt to FGI each month, then interest and fees will be applied to the difference between $200,000 and the amount of debt actually sold. Interest will be charged on each advance at the greater
of 8.5% per annum or 1.5% above the U.S. Prime Rate. The maximum amount available for advance to the Company is US$750,000.

Certain
recourse events and events of default will trigger early payment obligations of Corgenix UK under the Agreement, and FGI has certain rights as a secured party in case of any
default or recourse event.

Corgenix
UK makes certain covenants, representations and warranties typical of a secured financing arrangement, and has agreed to report certain information to FGI.

As
previously disclosed, on September 30, 2009, we, along with our wholly owned subsidiary, Corgenix, Inc., entered into the Summit Agreements with Summit. We are jointly
and severally liable for all obligations pursuant to the Summit Agreements. The Summit Agreements provide us and our subsidiary with a maximum credit line of $1,750,000 pursuant to an account
factoring relationship, coupled with a secured line of credit.



At June 30, 2010, our working capital increased by $132,696, to $2,145,930 from $2,013,234 at June 30, 2009, and
concomitantly, our current ratio (current assets divided by current liabilities) increased from 1.69 to 1 at June 30, 2009 to 1.92 to 1 at June 30, 2010. This increase in working capital
is primarily attributable to a reduced net loss for the fiscal year ended June 30, 2010, complimented by the incremental proceeds of the Summit financing at September 30.

At
June 30, 2010, trade and other receivables were $1,408,969 versus $1,339,409 at June 30, 2009. Accounts payable, accrued payroll and other accrued expenses decreased by
a combined $536,810 from the end of fiscal 2009. At June 30, 2010, inventories were $2,499,557, a slight decrease versus the $2,596,048 at June 30, 2009.

For
the fiscal year ended June 30, 2010, cash provided by operating activities amounted to $62,715, versus cash used by operating activities of $400,567 for the fiscal year ended
June 30, 2009. The reduction in the cash used by operations for the current fiscal year resulted primarily from the substantial reduction in the net loss for the period.

Net
cash used in investing activities, the purchase of laboratory equipment, leasehold improvements and computer equipment was $101,955 for the fiscal year ended June 30, 2010,
compared to $90,114 for the fiscal year ended June 30, 2009.

Net
cash used by financing activities amounted to $243,502 for the fiscal year ended June 30, 2010 compared to $229,180 for the fiscal year ended June 30, 2009. This
decrease versus the comparable

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prior
year was primarily due to the proceeds from the Summit inventory loan in addition to the net lower payments on notes payable and capital lease obligations.

We
have incurred operating losses and negative cash flow from operations for most of our history. Losses incurred since our inception, net of dividends on redeemable common and
redeemable preferred stock, have aggregated $13,208,445 and there can be no assurance that we will be able to generate positive cash flows to fund our operations in the future or to pursue our
strategic objectives. Historically, we have financed our operations primarily through long-term debt, factoring of accounts receivables, and the sales of common stock, redeemable common
stock, and preferred stock. We have also financed operations through sales of diagnostic products and agreements with
strategic partners. At June 30, 2010, trade and other receivables amounted to $1,408,969 versus $1,339,409 at June 30, 2009.

We
have developed and are continuing to modify an operating plan intended to eventually achieve sustainable profitability, positive cash flow from operations, and an adequate level of
financial liquidity. Key components of this plan include consistent revenue growth and the cash to be derived from such growth, as well as the expansion of our strategic alliances with other
biotechnology and diagnostic companies, securing diagnostic-related government contracts and grants, improving operating efficiencies to reduce our cost of sales as a percentage of sales, thereby
improving gross margins, and lowering our overall operating expenses. Towards these efforts, the current fiscal year produced positive results in all of the aforementioned components, and management
expects that we will be able to continue this success. However, if our sales were to decline, are flat, or achieve very slow growth, we would undoubtedly incur operating losses and a decreasing level
of liquidity for that period of time. In view of this, and in order to further improve our liquidity and operating results, we entered into the ELITech collaboration and investment, described above.

The
$1,250,000 ELITech common stock investment in addition to the FGI $750,000 March 15, 2010 credit facility and the Summit $1,750,000 September 30, 2009
credit facility, in conjunction with our current revised forecasts, should provide adequate resources to continue operations for longer than 12 months.



We do not have any off-balance sheet arrangements, other than the lease agreement described below.



On February 8, 2006, we entered into a Lease Agreement (the "Lease") with York County, LLC, a California limited
liability company ("Landlord"), pursuant to which we leased approximately 32,000 rentable square feet of Landlord's approximately 102,400 square foot building, commonly known as Broomfield One and
located at 11575 Main Street, Broomfield, Colorado 80020 (the "Property"). The Property is part of Landlord's multi-tenant real property development known as the Broomfield Corporate Center. We use
the Property for our headquarters, laboratory research and development facilities and production facilities.

On
the following dates, we executed the following amendments to the Lease:



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The
term of the Lease (the "Term") is seven years and five months and commenced on July 6, 2006, with tenant options to extend the Term for up to two five-year
periods. We have a one time right of first refusal to lease contiguous premises.

Initially,
there was no base lease rate payable on 25,600 square feet of the Property. However, there were estimated operating expenses of $1.61 per square foot.

The
base lease rate payable on 25,600 square feet of the Property increased to $4.00 per square foot on January 28, 2008, plus amortization of tenant improvements of $5.24 per
square foot, plus estimated operating expenses of $1.61 per square foot. The base lease rate on 25,600 square feet of the Property increased to $5.64 per square foot on January 28, 2009, with
fixed annual increases each January 28 thereafter during the initial Term, plus the amortization of tenant improvements of $5.26 per square foot, and estimated operating expenses of $2.77 per
square foot.

Initially,
there was no base lease rate payable on 6,400 square feet of the Property. However, there were estimated operating expenses of $1.61 per square foot. The base lease rate on
6,400 square feet of the Property increased to $3.00 per square foot commencing on August 28, 2008, and increased to $3.09 on January 28, 2009, with fixed annual increases each
January 28 thereafter during the initial Term, plus estimated operating expenses of $2.77 per square foot.

Thus,
the estimated total rent (this is dependent upon the actual operating expenses) on the entire 32,000 square feet of the Property was initially $1.61 per square foot, then increased
to approximately $9.00 per square foot on January 28, 2008, approximately $9.60 per square foot on August 28 2008, and approximately $12.11 per square foot on January 28, 2009,
with annual increases in the base lease rate each January 28 thereafter during the initial Term, up to an estimated total rent of $14.358 per square foot during the final year of the initial
Term.

The
base lease rate for an extension period is 100% of the then prevailing market rental rate (but in no event less than the rent for the last month of the then current Term) and
thereafter increases annually by 3% for the remainder of the applicable extension period.

The
facility leased by our subsidiary, Corgenix UK Ltd., which commenced January 1, 2008, consists of "office park" type space with offices and storage space. Corgenix
UK Ltd. currently leases 2,292 square feet under a 10 year lease with an exit right that may be exercised by Corgenix UK Ltd. on the fifth anniversary of the lease. The rent
payments, exclusive of utilities and taxes, will be approximately $3,991 per month for the first year of the lease, $4,323 per month for the second year, $4,656 per month for the third year, $4,989
for the fourth year, and $5,321 for the fifth year, with subsequent years to be determined.

We
have not invested in any real estate or real estate mortgages.

Item 8.    Financial Statements and Supplementary Data.

The financial statements listed in the accompanying index to the consolidated financial statements are filed as part of this Annual
Report on Form 10-K.

Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

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Item 9(T).    Controls and Procedures.

Evaluation of disclosure controls and procedures

Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer,
carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-14c and 15d-15(f) under the
Securities Exchange Act of 1934 (the "Exchange Act") as of the end of the period covered by this report (the "Evaluation Date"). Based upon this evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were effective for the purposes of recording, processing, summarizing and timely reporting
information required to be disclosed by us in
the reports that we file under the Exchange Act and that such information is accumulated and communicated to our management in order to allow timely decisions regarding required disclosure.

Changes in internal controls

There have been no significant changes in our internal controls over financial reporting (as defined in
Rules 13a-15(f) and 15d-15(f) under the Exchange Act)or in other factors that materially affected or are reasonably likely to materially affect our internal controls and
procedures over financial reporting during the quarter ended June 30, 2010..

MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in
Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Our internal control over financial reporting is designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

To
evaluate the effectiveness of internal controls over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act, management conducted an assessment, including
testing, using the criteria inInternalControlIntegrated Framework,issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Based on their assessment, management concluded that we maintained effective internal control over financial reporting as of June 30, 2010.

This
annual report does not include an attestation report from our independent registered public accounting firm regarding internal control over financial reporting. Management's report
was not subject to attestation by our registered public accounting firm pursuant to Sarbanes-Oxley Rule 404(c).

Item 9B.    Other Information.

None.

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PART III

Item 10.    Directors, Executive Officers and Corporate Governance.

Directors and Executive Officers

The following table sets forth certain information with respect to the directors and executive officers of Corgenix as of
June 30, 2010:

Name

Age

Position

Director/Officer
SinceLuis R. Lopez


62

Chief Medical Officer and Director


1998Douglass T. Simpson


62

President and Chief Executive Officer, Director


1998Ann L. Steinbarger


57

Senior Vice President Sales and Marketing


1998Taryn G. Reynolds


51

Vice President, Facilities and IT


1998William H. Critchfield


64

Senior Vice President Finance and Administration and Chief Financial Officer


2000Robert Tutag


68

Director


2005Dennis Walczewski


62

Director


2006Stephen P. Gouze


58

Chairman of the Board


2008Larry G. Rau


64

Director


2006C. David Kikumoto


60

Director


2006David Ludvigson*


60

Director


2010


*Director
since July 7, 2010


Luis
R. Lopez, M.D., served as the Chief Executive Officer and Chairman of the Board of Directors of Corgenix from May 1998 until April 2006 when his title was changed to Chairman of the
Board of Directors and Chief Medical Officer. In July 2009, Dr. Lopez stepped down from his role as Chairman. From 1987 to 1990, Dr. Lopez was Vice President of Clinical Affairs at
BioStar Medical Products, Inc., a Boulder, Colorado diagnostic firm. From 1986 to 1987 he served as Research Associate with the Rheumatology Division of the University of Colorado Health
Sciences Center, Denver, Colorado. From 1980 to 1986 he was Professor of Immunology at Cayetano Heredia University School of Medicine in Lima, Peru, during which time he also maintained a medical
practice with the Allergy and Clinical Immunology group at Clinica Ricardo Palma in Lima. From 1978 to 1980 Dr. Lopez held a fellowship in Clinical Immunology at the University of Colorado
Health Sciences Center. He received his M.D.
degree in 1974 from Cayetano Heredia University School of Medicine in Lima, Peru. He is a clinical member of the American College of Rheumatology, and a corresponding member of the American Academy of
Allergy, Asthma and Immunology. Dr. Lopez is licensed to practice medicine in Colorado, and is widely published in the areas of immunology and autoimmune disease.

Douglass
T. Simpson has been the President of Corgenix since May 1998 and was elected a director in May 1998. Mr. Simpson joined Corgenix's operating subsidiary as Vice President
of Business Development in 1992, was promoted to Vice President, General Manager in 1995, to Executive Vice President in 1996, to President in February 1998 and then to Chief Executive Officer in
April 2006. Prior to joining Corgenix's operating subsidiary, he was a Managing Partner at Venture Marketing Group in Austin, Texas, a health care and biotechnology marketing firm, and in that
capacity, served as a consultant to REAADS from 1990 until 1992. From 1984 to 1990 Mr. Simpson was employed by Kallestad Diagnostics, Inc. (now part of BioRad Laboratories, Inc.),
one of the largest diagnostic companies in the world, where he served as Vice President of Marketing, in charge of all marketing and business development. Mr. Simpson holds B.S. and M.S.
degrees in Biology and Chemistry from Lamar University in Beaumont, Texas.

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William
H. Critchfield has been Senior Vice President Finance and Administration and Chief Financial Officer of the Company since April 2006 and was Vice President and Chief Financial
Officer from December 2000 to April 2006. Prior to joining Corgenix, Mr. Critchfield was Executive Vice President and Chief Financial Officer of U.S. Medical, Inc., a Denver, Colorado
based privately held distributor of new and used capital medical equipment. From May of 1994 through July of 1999, he served as President and Chief Financial Officer of W.L.C.
Enterprises, Inc., a retail business holding company. From November 1991 to May 1994, Mr. Critchfield served as Executive Vice President and Chief Financial Officer of Air Methods
Corporation, a publicly traded company which is the leading U.S. company in the air medical transportation industry and is the successor company to Cell Technology, Inc., a publicly traded
biotechnology company, where he served in a similar capacity from 1987-1991. From 1986 through September 1987 he served as Vice President of Finance and Administration for Biostar Medical
Products, Inc., a developer and manufacturer of diagnostic immunoassays. In the past, Mr. Critchfield also served as Vice President of Finance for Nuclear Pharmacy, Inc., formerly
a publicly traded company and the world's largest chain of centralized radiopharmacies. Mr. Critchfield is a certified public accountant in Colorado. He graduated magna cum laude from
California State University-Northridge with a Bachelor of Science degree in Business Administration and Accounting.

Ann
L. Steinbarger has been the Senior Vice President, Operations of Corgenix since April 2006 and was the Vice President of Sales and Marketing from May 1998 to April 2006.
Ms. Steinbarger joined Corgenix's operating subsidiary in January 1996 as Vice President, Sales and Marketing with responsibility for its worldwide marketing and distribution strategies. Prior
to joining Corgenix, Ms. Steinbarger was with Boehringer Mannheim Corporation, Indianapolis, Indiana, a $200 million IVD company. At Boehringer from 1976 to 1996, she served in a series
of increasingly important sales
management positions. Ms. Steinbarger holds a B.S. degree in Microbiology from Purdue University in West Lafayette, Indiana.

Taryn
G. Reynolds has been a Vice President of Corgenix since May 1998. Mr. Reynolds joined Corgenix's operating subsidiary in 1992, serving first as Director of Administration,
then as Managing Director, U.S. Operations. He has served as Vice President, Operations and in 1999, became Vice President, Facilities and Information Technology. Prior to joining Corgenix,
Mr. Reynolds held executive positions at Brinker International, MJAR Corporation and M&S Incorporated, all Colorado based property, operational and financial management firms.

Robert
Tutag was appointed to the Company's Board of Directors in September 2005. Mr. Tutag is currently and since 1990, has been President of Unisource, Inc., a privately
held Boulder, Colorado company which identifies and develops niche pharmaceutical products for generic and brand name pharmaceutical companies. From 1964 through 1982, Mr. Tutag was President
and Chief Operating Officer of Tutag Corporation. In that capacity, he developed and managed operations of Cord Laboratories, one of the original generic pharmaceutical manufacturing companies, in
addition to founding and overseeing Geneva Generics, a generic sales and distribution company, which developed into one of the country's premier companies in its industry. Both Cord Laboratories and
Geneva Generics were acquired by Ciba-Geigy Corporation. During that time period, Mr. Tutag also served as a Director of Geneva Generics and as Vice President of Sales and a
Director of Tutag Pharmaceuticals, a branded distribution company. From 1983 through 1989, Mr. Tutag was President and Chief Executive Officer of NBR Financial, Inc., a
multi-bank holding company in Boulder, Colorado. Since 1977 until the present, Mr. Tutag has also been editor of GMP Trends, Inc., Boulder, Colorado, an informational
newsletter that reviews FDA and GMP inspection reports (483's) for the pharmaceutical and medical device industries. Mr. Tutag also served as interim president from 1999-2000 and
was a director from 1997-2001 of the Bank of Cherry Creek in Boulder, Colorado. He received a BBA and an MBA from the University of Michigan.

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Dennis
Walczewski was appointed to the Company's Board of Directors in January, 2006. Mr. Walczewski's background consists of over 30 years experience in the Diagnostic and
Biotechnology industries. Mr. Walczewski has held either management or executive positions in Promega, T-Cell Diagnostics, Endogen and Boehringer Manheim (now Roche). He has been
employed by MBL international or MBLI for the previous five years and now is their Chief Executive Officer. Mr. Walczewski hold a B.S. in Chemistry from Suffolk University and an MBA from
Indiana Wesleyan University. Per our arrangement with MBL, Mr. Walczewski is not compensated in cash by Corgenix for board meetings attended, but does, however, receive stock options in
parallel with the independent members of our Board of Directors.

Stephen
P. Gouze was appointed to the Company's Board of Directors in February, 2008, and in July 2009, was elected Chairman of the Board of Directors. From 1998 through 2008,
Mr. Gouze was President of DiaSorin, Inc., the U.S. subsidiary of a $250 million international diagnostic company, DiaSorin, S.p.A., a company focusing on hepatitis,
endocrinology and instrumentation. From 1997 to 1998, Mr. Gouze was Vice President, Sales and Marketing of IncSTAR Corporation, the predecessor company of DiaSorin. From 1994 to 1997,
Mr. Gouze was Vice President, Sales and Marketing for PathCor, Inc. (Medical Arts Laboratory), an Oklahoma City clinical testing laboratory. From 1989 to 1994, Mr. Gouze was the
Director of Marketing of Sanofi Diagnostics Pasteur, a major international diagnostic company focusing on blood viruses, autoimmunity and allergies, and from 1987 to 1989, he was the Marketing Manager
of Kallestad Diagnostics, Inc. (now part of BioRad Laboratories, Inc.), a predecessor division of Sanofi Diagnostics Pasteur. Mr. Gouze received a Bachelor of Science Degree in
Medical Technology from the University of Wisconsin.

Larry
G. Rau was appointed to the Company's Board of Directors in March, 2006. Mr. Rau is currently and since 1995, has been President and CEO of Rau Financial Services, a Sioux
Falls, South Dakota firm specializing in alternative investments such as 1031 property exchanges, Real Estate, Oil and Gas, and Medical Receivables in addition to stocks and fixed income investments.
From 1986 to 1995, Mr. Rau was an investment executive with A.G. Edwards and UBS PaineWebber, and from 1968 to 1986, he worked in pharmaceutical sales and/or marketing for Cutter Labs, Baxter
International and Fort Dodge Labs.

C.
David Kikumoto was appointed to the Company's Board of Directors in March, 2006. Mr. Kikumoto is the founder and is currently the Chief Executive Officer of Denver Management
Advisors, a firm that has assembled leading team of health care cost containment specialists in the Rocky Mountain West, providing cost containment services to large employers, insurers, and
healthcare providers. From 1999-2000, Mr. Kikumoto was the President and Vice Chairman at Anthem Blue Cross and Blue Shield, Colorado and Nevada. He led the merger of Blue Cross and
Blue Shield to Anthem resulting in the creation of one of the largest private foundations in the State of Colorado. Mr. Kikumoto also provided strategic advice and counsel to the new leadership
team and served as a liaison to customers, community leaders and regulators. From 1987-1999 Mr. Kikumoto served in several roles at Blue Cross and Blue Shield of Colorado, Nevada
and New Mexico. From 1993-1999 Mr. Kikumoto was the President and Chief Executive Officer. He directed, developed and created one the first regional Blue Cross and Blue Shield Plans
with total membership of 750,000 and annual premium income of $800 million. From 1991-1993 he was the Senior Vice President, Chief Marketing Officer. Mr. Kikumoto was
responsible for the marketing and sales of health, life, dental and workers' compensation products in a threestate region while concurrently serving as the CEO of several subsidiary companies. During
1987-1991 Mr. Kikumoto was the Vice President, Alternative Delivery Systems. In that position, he managed health care costs in a three-state region through the development of
alternatives to traditional health care models.

David
Ludvigson was appointed to the Company's Board of Directors in July 2010. Mr. Ludvigson is currently President of Knight-Ludvigson Advisors, a business consultancy firm in
addition to being a Director of China Stem Cells since June of 2010. From 2003 until 2009, Mr. Ludvigson was an

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executive
with Nanogen, Inc., a molecular and point of care diagnostics company. Mr. Ludvigson joined Nanogen full-time as Executive Vice President, Chief Financial Officer
and Treasurer and was appointed to the position of President and Chief Operating Officer in June, 2004. Mr. Ludvigson was a director of Nanogen from 1996 until June 2003. Prior to joining
Nanogen, he was President and Chief Executive Officer of Black Pearl, Inc. ("Black Pearl"), an event-based business intelligence software company, from November 2001 until January, 2003. Prior
to Black Pearl, from August 2000 to January 2001, Mr. Ludvigson was President of InterTrust Technologies, a digital rights management software company. Prior to joining InterTrust Technologies,
Mr. Ludvigson was a Senior Vice President and Chief Operating Officer of Matrix Pharmaceuticals, Inc. ("Matrix") from October 1999 to August 2000. In addition, from 1998 to August 2000
he was also the Chief Financial Officer of Matrix. From February 1996 to June 1998, Mr. Ludvigson was President and Chief Operating Officer of NeTpower. From 1992 to 1995, Mr. Ludvigson
was Senior Vice President and Chief Financial Officer of IDEC Pharmaceuticals. Prior to that time, he served as Senior Vice President of Sales and Marketing for Conner Peripherals and as Executive
Vice President, Chief Financial Officer and a director of MIPS Computer Systems, Inc., a RISC microprocessor developer and systems manufacturer. Mr. Ludvigson is also a Director of China
Stem Cells Ltd. Mr. Ludvigson received a B.S. and an M.A.S. from the University of Illinois.

All
directors serve until their successors have been duly elected and qualified, unless they earlier resign.

Directors
are elected by a plurality of the shareholders at annual or special meetings of shareholders held for that purpose. There have been no material changes to the way in which
shareholders may recommend nominees to the Board of Directors.

Audit Committee

The Audit Committee assists the Board in fulfilling its responsibility for oversight of the quality and integrity of the accounting,
auditing and financial reporting practices of the Company. Because the Company's common stock is traded on the Over the Counter Bulletin Board, the Company is not subject to the listing requirements
of any securities exchange or the NASDAQ regarding the membership of the Company's Audit Committee. However, each of the members of the audit committee is independent as defined in the listing
standards for the American Stock Exchange.

The
Board has adopted a written charter for the Audit Committee. The charter may be viewed on the Company's website atwww.Corgenix.com.

The
Audit Committee currently consists of three Outside Directors: Messrs. Kikumoto, Tutag and Gouze. Mr. William Critchfield, the Senior Vice President and Chief Financial
Officer, usually participates in Audit Committee meetings as requested. The Board has determined that Mr. Kikumoto qualifies as an "Audit Committee Financial Expert" as that term is defined in
rules promulgated by the Securities and Exchange Commission and is independent as defined by the American Stock Exchange listing standards.

The
functions of the Audit Committee include:



Four
Audit Committee meetings were held during the last fiscal year.

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Audit Committee Report

The primary purpose of the Audit Committee is to assist the Board of Directors in fulfilling its responsibilities with respect to
matters involving our accounting, financial reporting and internal control functions. The Audit Committee has sole authority to select our independent registered public accounting firm.

Management
is responsible for preparing the financial statements so that they comply with generally accepted accounting principles of the United States of America and fairly present our
financial condition, results of operations and cash flows; issuing financial reports that comply with the requirements of the Securities and Exchange Commission; and establishing and maintaining
adequate internal control structures and procedures for financial reporting. The Audit Committee's responsibility is to monitor and oversee these processes.

In
this context, the Audit Committee has reviewed and discussed the audited financial statements with management and the independent registered public accounting firm. The Audit
Committee also has discussed with the independent registered public accounting firm the matters required to be discussed
by Statement on Auditing Standards No. 61 (Communication with Audit Committees), as currently in effect, as adopted by the Public Company Accounting Oversight Board (PCAOB) in
Rule 3200T.

Our
independent registered public accounting firm also provided to the Audit Committee the written disclosures and letter required by the PCAOB, as currently in effect, and the Audit
Committee has discussed with the independent registered public accounting firm that firm's independence. The Audit Committee has considered whether the independent registered public accounting firm's
provision of non-audit services is compatible with maintaining the independence of the accountants.

Based
on the above discussion and review with management and the independent registered public accounting firm, the Audit Committee recommended to the Board of Directors that the audited
financial statements be included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2010 for filing with the SEC.

Code of Ethics

We have adopted a written code of ethics that applies to our CEO and CFO. A copy of the code of ethics can be found on our website at www.Corgenix.com.

COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES EXCHANGE ACT OF 1934

Section 16(a) of the Exchange Act requires our directors and executive officers, as well as persons beneficially owning more
than 10% of our outstanding common stock, to file reports of ownership and changes in ownership with the Securities and Exchange Commission within specified time periods. Such officers, directors and
stockholders are also required to furnish us with copies of all Section 16(a) forms they file.

Based
solely on our review of such forms received by us, or written representations from certain reporting persons, we believe that all Section 16(a) filing requirements
applicable to our officers, directors and 10% stockholders were complied with during the fiscal year ended June 30, 2010.

Item 11.    Executive Compensation.

The following table shows how much compensation was paid by Corgenix for the last three fiscal years to our Principal Executive
Officer, and the other two most highly compensated Executive Officers, for services rendered during such fiscal years (collectively, the "Named Executive Officers").

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Summary Compensation Table

Name and principal position

Fiscal
Year

Salary
($)

Bonus
($)

Stock
Awards
($)

Option
Awards
($))

Nonequity
Incentive
Plan
Comp
($)

All other
Comp.
($)(1)

Total
($)Douglass T. Simpson


2010

$
209,470

$


$
20,947

$





$
16,985

$
247,402President, Chief Executive


2009

$
209,094

$


$
12,380

$





$
21,338

$
242,812Officer


2008

$
200,450

$


$


$





$
13,334

$
213,784Dr. Luis R. Lopez


2010

$
188,623

$


$
14,147

$





$
13,419

$
216,189Chief Medical Officer


2009

$
188,285

$


$
7,400

$





$
23,361

$
219,0462008

$
180,500

$


$


$





$
17,383

$
197,883William H. Critchfield,


2010

$
180,502

$


$
13,538

$





$
13,099

$
207,139Senior Senior Vice President


2009

$
180,106

$


$
9,900

$





$
20,038

$
210,044Finance and Administration


2008

$
171,000

$


$


$





$
13,334

$
184,334and CFO


(1)We
paid each executive officer an automobile allowance of $500 per month in 2010, 2009 and 2008, in addition to paying approximately 94% of each officer's
group health insurance premium and the income tax effect of the stock awards.


Outstanding Equity Awards at Fiscal Year End

OPTION AWARDS

STOCK AWARDSName

Number of
Securities
Underlying
Exercisable
Options (#)

Number of
Securities
Underlying
Unexercisable
Options (#)

Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised,
Unearned
Options (#)

Weighted
Average
Option
Exercise
Price
($/Share)

Option
Expiration
Dates

Number of
Shares of
Stock That
Have Not
Vested
(#)

Market
Value of
Shares of
Stock That
Have Not
Vested
($)

Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares
That
Have Not
Vested
(#)

Equity
Incentive
Plan
Awards:
Market or
Payout
Value of
Unearned
Shares
That
Have Not
Vested
($)Douglass T. Simpson


492,000







$
0.347


5/19/12 - 8/1/13











Dr. Luis R. Lopez


243,000







$
0.347


5/19/12 - 8/1/13











William H. Critchfield


326,000







$
0.349


5/19/12 - 8/1/13














Director Compensation

Name

Fees Earned

Stock
Awards ($)

Option
Awards ($)

Non-Equity
Incentive Plan
Compensation ($)

Change in
Pension Value
and Nonqualified
Deferred
Compensation
Earnings

All Other
Compensation ($)

Total ($)Luis R. Lopez M.D.




















Douglass T. Simpson




















Robert Tutag

$
3,250
















$
3,250Dennis Walczewski




















Larry G. Rau

$
4,250
















$
4,250C. David Kikumoto

$
2,750
















$
2,750Stephen P. Gouze

$
3,500
















$
3,500


Our current policy is to pay each independent director $500 per board meeting and $250 per board committee (audit, compensation and nominating)
either attended in person or via telephone. In

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addition,
annually each independent director is granted options to purchase shares of our common stock at the fair market value at the date of grant and vesting 100% upon grant.

The
purpose of the Compensation Committee is to (i) discharge the Board's responsibility relating to compensation of our executive officers; (ii) review and recommend to
the Board compensation plans, policies and programs as well as approve individual executive officer compensation and (iii) prepare the
annual report on executive compensation required to be included in our annual proxy statement. Additionally, the Committee overseas the Chief Executive Officer, or CEO, as well as executive management
appointments at our headquarters and major subsidiaries. Committee members are appointed by the Board of Directors on the recommendation of the Corporate Governance and Nominating Committee and serve
such terms as the Board may determine, or until their earlier resignation, death or removal by the Board.

The
main objective of the Compensation Committee is the development of the philosophy and policy that will guide executive pay practices and decisions, such
as:



The
most significant duties and responsibilities of the Compensation Committee are as follows:



Our
compensation Committee has the authority to see advice and assistance from outside consultants and our executive officers in determining and evaluating director, CEO and other
executive officer compensation. The overall goals have been to attract, retain, motivate, and align the executives and directors with stockholder share value. During fiscal 2010, we solicited advice
from Sharon L. Anderson, HR Consulting ("the consultant"). The data provided in 2010 is referred to as the "2010 Report." The consultant provided us with recommendations and findings on executive base
pay, bonus, long-term incentive cash and equity awards. The recommendations and findings are used for executives as a long-term target to give the various pay components a
grounded focus. The Compensation Committee has the authority to obtain advice and assistance from any officer or any outside legal experts or other advisors. The Compensation Committee has also
utilized the advice of the CEO in determining compensation and performance of executive officers.

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Long-Term Incentive Compensation

Effective January 1, 1999, we adopted a Stock Compensation Plan to provide executive officers an opportunity to purchase shares
of our common stock as a bonus or in lieu of cash compensation for services rendered. For the fiscal year ended June 30, 2010, no shares of our common stock were issued to the corporate
officers under the Stock Compensation Plan. No issuance of stock was made under the Stock Compensation Plan to any Named Executive Officer during the fiscal years ended June 30, 2010 and
June 30, 2009.

Short-Term Incentive Compensation

For the fiscal year ended June 30, 2009, effective September 8, 2008, we adopted a One Year Short-term
Incentive Compensation Plan to provide executive officers an opportunity to earn shares of our common stock as a bonus and in lieu of cash compensation upon the achievement by the Company of certain
stipulated and targeted EBITDA amounts. The shares of common stock issued under this plan were based upon the closing stock price
of the company's common stock as of June 30, 2009, which was $0.095. Based upon the reported EBITDA figures for the fiscal year ended June 30, 2009 (see Managements' Discussion and
Analysis), 737,099 shares of our common stock were earned by the corporate officers and were issued to the corporate officers at the end of September 2009., The shares issued under this plan vested
immediately upon issuance. No similar plan or issuance of stock was previously made under such a short-term plan at any time in the Company's history prior to the fiscal year ended
June 30, 2009, and no such plan or stock issuance was made for the current fiscal year ended June 30, 2010.

Aggregated Option Exercises in Last Fiscal Year and Fiscal Year-End Option Values

The following table sets forth information concerning option exercises by the Named Executive Officers during the fiscal year ended
June 30, 2010 and outstanding options held by the Named Executive Officers as of June 30, 2010:

Name

Number of
Shares
Acquired
on Exercise

Value
Realized ($)

Number of Shares
Underlying
Options at FY-End #
Exercisable and
Unexercisable

Value of In-the-Money
Options at FY-End ($)
Exercisable/Unexercisable(1)Douglass T. Simpson


0


0


455,405 and 0

$
0/$0Dr. Luis R. Lopez


0


0


237,233 and 0

$
0/$0William H. Critchfield


0


0


293,119 and 0

$
0/$0


(1)Based
on the closing price of the Company's common stock at June 30, 2010 of $0.11 per share.


Employment Agreements

Since 2001, we have entered into employment agreements with each of the Company's five executive officers. Effective May 1,
2010, these contracts were modified. As of July 1, 2010 the annual salaries for the five Executive Officers are as noted opposite each of their names:

Officer

Current Annual SalaryDouglass T. Simpson

$
218,970 as of July 1, 2010Dr. Luis R. Lopez

$
192,123 as of July 1, 2010William H. Critchfield

$
191,502 as of July 1, 2010Ann L. Steinbarger

$
165,550 as of July 1, 2010Taryn G. Reynolds

$
125,590 as of July 1, 2010


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Table of Contents

Each
of the above employment agreements is for an initial term of three years, provides for severance payments equal to twelve month's salary and benefits if the employment of the
officer is terminated without cause (as defined in the respective agreements), and an automobile expense reimbursement of $500 per month.

Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following table sets forth, as of June 30, 2010, certain information regarding the ownership of our common stock by
(i) each person known by us to be the beneficial owner of more than 5% of the outstanding shares of common stock (ii) each of our directors, (iii) each executive officer and
(iv) all of our executive officers and directors as a group. Unless otherwise indicated, the address of each person shown is c/o Corgenix, 11575 Main Street, Suite 400, Broomfield, CO
80020. Beneficial ownership, for purposes of this table, includes debt convertible into common stock and options and warrants to purchase common stock that are either currently exercisable or
convertible or will be exercisable or convertible within 60 days of June 30, 2010. No director or executive officer beneficially owned more than 5% of the common stock.

The
percentage ownership data is based on 30,982,803 shares of our common stock outstanding as of June 30, 2010, plus warrants and stock options outstanding in addition to common
shares underlying convertible debt and redeemable convertible preferred stock. Under the rules of the SEC, beneficial ownership includes shares over which the indicated beneficial owner exercises
voting and/or investment power. Shares of common stock subject to options or warrants or underlying convertible debt that are currently exercisable or convertible, or will become exercisable or
convertible, within 60 days of June 30, 2010 are deemed outstanding for the purpose of computing the percentage ownership of the person holding the option or warrant, or convertible
promissory note, but are not deemed outstanding for the purpose of computing the percentage ownership of any other person. Except as otherwise

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Table of Contents

noted,
we believe that the beneficial owners of the shares of common stock listed below have sole voting and investment power with respect to all shares beneficially owned.

Amount and Nature
of Beneficial OwnerName and Address of Beneficial Owner

Number

Percent of ClassMid South Investor Fund


3,733,335


11.64
%Barron Partners LP(2)


1,596,380


4.90
%c/o Barron Capital Advisors, LLC730 Fifth Avenue, 9th FloorNew York, NY 10019Warrant Strategies Fund LLC(3)


1,627,241


4.99
%350 Madison Avenue, 11th FloorNew York, NY 10017Shelter Opportunity Fund (formerly Truk Opportunity Fund)(3)


1,627,241


4.99
%c/o RAM Capital Resources, LLCOne East 52nd Street, Sixth FloorNew York, NY 10022Ascendiant Capital Group LLC, Ascendiant Securities LLC(4)


1,627,241


4.99
%18881 Von Karman Avenue, 16th FloorIrvine, CA 92612Medical & Biological Laboratories Co., Ltd.


1,182,883


3.71
%Taryn G. Reynolds(1)


1,178,823


3.72
%Dr. Luis R. Lopez(1)


1,199,414


3.82
%Douglass T. Simpson(1)


1,096,474


3.47
%William H. Critchfield(1)


728,002


2.32
%Robert Tutag(1)


290,000


0.93
%Ann L. Steinbarger(1)


425,855


1.36
%Larry G. Rau(1)


162,000


0.52
%Stephen P. Gouze(1)


80,000


0.26
%David Kikumoto(1)


195,000


0.63
%Dennis Walczewski(1)


120,000


0.39
%All current directors and current executive officers as a group (10 persons)


5,275,568


16.79
%


(1)Current
director or officer(2)Contractual
restrictions in the Barron Partners preferred stock purchase agreement and warrants prohibit Barron Partners, L.P. from exercising any
warrants or converting any preferred stock if such conversion or exercise would cause it to exceed 4.90% beneficial ownership of Corgenix. Barron Partners holds warrants to acquire up to 15,462,964
shares of common stock.(3)Contractual
restrictions in its warrants and/or convertible note and purchase agreement with Corgenix prohibit each of Warrant Strategies Fund and Shelter
Opportunity Fund (formerly Truk Opportunity Fund) from exercising any warrants or converting any debt if such conversion or exercise would cause either entity to exceed 4.99% beneficial ownership of
Corgenix. Warrant Strategies Fund holds warrants to acquire up to 6,485,455 shares of common stock. Shelter Opportunity Fund (formerly Truk Opportunity Fund) holds convertible debt, redeemable
convertible preferred stock, and warrants to acquire up to 3,414,454 shares of common stock, without taking into account interest on the debt, which may also be converted into shares of common stock.
Michael E. Fein and Stephen E. Saltzstein, as principals of Atoll Asset Management, LLC, the Managing Member of Shelter Opportunity Fund, LLC, exercise investment and voting control over
the securities owned by Shelter Opportunity Fund, LLC. Both Mr. Fein


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Table of Contents

and
Mr. Saltzstein disclaim beneficial ownership of the securities owned by Shelter Opportunity Fund, LLC. (4)For
purposes of this calculation, the holdings of Ascendiant Capital Group, LLC have been aggregated with Ascendiant Securities, L.P.
Contractual restrictions in the warrants held by the Ascendiant entities prohibit them from exercising any warrants if such exercise would cause either entity to exceed 4.99% beneficial ownership of
Corgenix. The Ascendiant entities together hold warrants to acquire up to 3,726,253 shares of common stock.


Equity Compensation

Equity Compensation Plan Information

Plan Category

Number of securities to
be issued upon exercise
of outstanding options,
and rights
(a)

Weighted average
exercise price of
outstanding options,
warrants and rights
(b)

Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected
in column (a)
(c)Equity compensation plans approved by security holders


2,440,000

$
0.32


1,992,969Equity compensation plans not approved by security holders








Total


2,440,000

$
0.32


1,992,969


Item 13.    Certain Relationships and Related Transactions and Director Independence.

Certain Relationships and Related Transaction and Director Independence

There have not been any transactions, or series of similar transactions, since the beginning of the our last fiscal year, or any
currently proposed transaction, or series of similar transactions, to which the Company or any of its subsidiaries was or is to be a party, in which the amount involved exceeds $120,000 and in which
any director or executive officer of the Company, nominee for election as a director, any five percent security holder or any member of the immediate family of any of the foregoing persons had, or
will have, a direct or indirect material interest.

Director Independence

Because the Company's common stock is traded on the Over the Counter Bulletin Board, the Company is not subject to the independence
requirements of any securities exchange or the Nasdaq regarding our directors, the membership of our board of directors or our committees. However, the Board has determined that Messrs. Tutag,
Kikumoto, Gouze and Rau are each "independent" as that term is defined by the American Stock Exchange. Under the American Stock Exchange definition, an independent director is a person who
(1) is not an executive officer or employee of the Company; (2) is not currently and has not been over the past three years employed by the Company, other than prior employment as an
interim executive officer (provided the interim employment did not last longer than one year); (3) has not (or whose immediate family members have not) been paid more than $120,000 during any
period of twelve consecutive months within the past three fiscal years [excluding compensation for board or board committee service, compensation paid to an immediate family member who is
an employee (other than an executive officer) of the company, compensation received for former service as an interim executive officer (provided the interim employment did not last longer than one
year), or benefits under a tax-qualified retirement plan or non-discretionary compensation]; (4) is not an immediate family member of an individual who is,
or at any time during the past three

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fiscal
years was, employed by the Company as an executive officer; (5) is not (or whose immediate family member is not) a partner in, controlling shareholder or an executive officer of, any
organization to which the Company made, or from which the Company received, payments (other than those arising solely from investments in the Company's securities or payments under
non-discretionary charitable contribution matching programs) that exceed 5% of the organization's consolidated gross revenues for that year, or $200,000, whichever is more, in any of the
most recent three fiscal years; (6) is not (or whose immediate family member is not) employed as an executive officer of another entity where at any time during the most recent three fiscal
years any of the issuer's executive officers serve
on the compensation committee of such other entity; or (7) is not (or whose immediate family member is not) a current partner of the Company's outside auditor, or was a partner or employee of
the Company's outside auditor who worked on the Company's audit at any time during any of the past three years.

Item 14.    Principal Accountant Fees and Services.

Our principal outside accountant who serves as our auditor and our principal outside accountant for preparation of our Federal and
State income tax returns is Hein & Associates LLP. The aggregate fees billed for each of the last two fiscal years for professional services rendered by our principal accountants are as
follows:

Audit Fees
(Includes Form
10-Q Reviews &
Consents)

Audit Related
Fees

Tax Fees

All Other Fees2010

$
121,046

$


$
8,700

$
2009

$
108,588

$


$
12,645

$



Our
Audit Committee (the "Committee"), consisting of Messrs. Kikumoto (Chairman), Tutag and Gouze, is responsible for the appointment, compensation, retention and oversight of the
work of the registered public accounting firm (including resolution of disagreements between management and the independent auditor regarding financial reporting) for the purpose of preparing or
issuing an audit report or performing other audit, review or attest services for the Company. The Committee pre-approves all permissible non-audit services and all audit,
review or attest engagements required under the securities laws (including the fees and terms thereof) to be performed for us by its registered public accounting firm, provided, however, that
de-minimus non-audit services may instead be approved in accordance with applicable SEC rules.

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Item 15.    Exhibits and Reports to Form 10-K



Exhibit
Number

Description of Exhibit3.1

Articles of Incorporation, as amended, filed with the Company's Registration Statement on Form 10-SB filed June 29, 1998 and incorporated herein by reference.3.2

Articles of Amendment to the Articles of Incorporation, filed with the Company's Registration Statement on Form SB-2 filed April 6, 2006 and incorporated herein by reference.3.3

Amended and Restated Certificate of Designations, Preferences, Rights and Limitations of Series A Convertible Preferred Stock for Corgenix Medical Corporation, filed with the Company's Form 8-K filed
December 30, 2005 and incorporated herein by reference.3.4

Bylaws, filed with the Company's Registration Statement on Form 10-SB filed June 29, 1998 and incorporated herein by reference.3.5

Amended and Restated Articles of Incorporation, dated June 9, 2008.3.6

Amended and Restated Articles of Incorporation, dated February 3, 2009.10.2

Management Agreement dated May 1, 2010 between Luis R. Lopez and the Company, filed with the Company's Form 8-K filed May 5, 2010 and incorporated herein by reference.10.4

Management Agreement dated May 1, 2010 between Douglass T. Simpson and the Company, filed with the Company's Form 8K filed May 5, 2010 and incorporated herein by reference.10.5

Management Agreement dated May 1, 2010 between Ann L. Steinbarger and the Company, filed with the Company's Form 8-K filed May 5, 2010 and incorporated herein by reference.10.6

Management Agreement dated May 1, 2010 between Taryn G. Reynolds and the Company, filed with the Company's Form 8-K filed May 5, 2010 and incorporated herein by reference.10.7

Management Agreement dated May 1, 2010 between William H. Critchfield and the Company, filed with the Company's filing on Form 8K filed May 5, 2010 and incorporated herein by reference.10.8

Form of Indemnification Agreement between the Company and its directors and officers, filed with the Company's Registration Statement on Form 10-SB/A-1 filed September 24, 1998 and incorporated herein by
reference.10.11

License Agreement dated September 29, 2002 between Eiji Matsuura, PhD and the Company, filed as exhibit 10.33 to the Company's Form 10-QSB filed November 14, 2002 and incorporated herein by
reference.10.12

Amended License Agreement dated April 14, 2010 between Eiji Matsuura, PhD and the Company, filed as an exhibit to the Company's Form 8-K filed April 19, 2010.10.13

Amended and Restated 1999 Incentive Stock Plan filed with the Company's filing of Proxy Statement Schedule 14A Information on October 23, 2002 and incorporated herein by reference.10.14

Amended and Restated Employee Stock Purchase Plan, filed with the Company's filing of Proxy Statement Schedule 14A Information on October 23, 2002 and incorporated herein by reference.


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Exhibit
Number

Description of Exhibit10.18

Form of Securities Purchase Agreement dated May 19, 2005, filed as exhibit 2.1 to the Company's Registration Statement on Form SB-2 filed June 24, 2005 and incorporated herein by reference.10.19

Form of Secured Convertible Term Note dated May 19, 2005, filed as exhibit 10.32 to the Company's Registration Statement on Form SB-2 filed June 24, 2005 and incorporated herein by
reference.10.20

Form of Registration Rights Agreement dated May 19, 2005, filed as exhibit 10.33 to the Company's Registration Statement on Form SB-2 filed June 24, 2005 and incorporated herein by
reference.10.21

Form of Restricted Account Agreement dated May 19, 2005, filed as exhibit 10.34 to the Company's Registration Statement on Form SB-2 filed June 24, 2005 and incorporated herein by
reference.10.22

Form of Restricted Account Side Letter dated May 19, 2005, filed as exhibit 10.35 to the Company's Registration Statement on Form SB-2 filed June 24, 2005 and incorporated herein by
reference.10.23

Form of Stock Pledge Agreement dated May 19, 2005, filed as exhibit 10.36 to the Company's Registration Statement on Form SB-2 filed June 24, 2005 and incorporated herein by reference.10.24

Form of Lockup Letter dated May 19, 2005, filed as exhibit 10.37 to the Company's Registration Statement on Form SB-2 filed June 24, 2005 and incorporated herein by reference.10.25

Form of Subsidiary Guaranty dated May 19, 2005, filed as exhibit 10.38 to the Company's Registration Statement on Form SB-2 filed June 24, 2005 and incorporated herein by reference.10.26

Form of Letter Agreement dated June 7, 2005 between the Company and certain officers, directors and affiliated persons, filed as exhibit 10.39 to the Company's Registration Statement on Form SB-2 filed
June 24, 2005 and incorporated herein by reference.10.27

Lease Agreement dated February 8, 2006 between Corgenix Medical Corporation and York County, LLC, a California limited liability company (as landlord), filed with the Company's Registration Statement on
Form SB-2 filed April 6, 2006 and incorporated herein by reference.10.28

First Amendment to Lease Agreement between Corgenix Medical Corporation and York County, LLC, dated December 11, 2006 and incorporated herein by reference.10.29

Second Amendment to Lease Agreement between Corgenix Medical Corporation and York County, LLC, dated June 19, 2008 and incorporated herein by reference.10.30

Third Amendment to Lease Agreement between Corgenix Medical Corporation and York County, LLC, dated July 19, 2008 and incorporated herein by reference.10.31

Preferred Stock Purchase Agreement between Corgenix Medical Corporation and Barron Partners L.P., dated December 28, 2005, filed as exhibit 10.1 to the Company's quarterly report on Form 10-QSB
filed February 13, 2006 and incorporated herein by reference.


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Exhibit
Number

Description of Exhibit10.32

Escrow Agreement between Corgenix Medical Corporation, Barron Partners LP and Epstein, Becker & Green, P.C., dated December 28, 2005, filed as exhibit 10.2 to the Company's quarterly report on
Form 10-QSB filed February 13, 2006 and incorporated herein by reference.10.33

Registration Rights Agreement between Corgenix Medical Corporation and Barron Partners L.P., dated December 28, 2005, filed as exhibit 10.3 to the Company's quarterly report on Form 10-QSB filed
February 13, 2006 and incorporated herein by reference.10.34

Common Stock Purchase Warrant "A" dated December 28, 2005 issued to Barron Partners, filed as exhibit 10.4 to the Company's quarterly report on Form 10-QSB filed February 13, 2006 and incorporated
herein by reference.10.35

Common Stock Purchase Warrant "B" dated December 28, 2005 issued to Barron Partners, filed as exhibit 10.5 to the Company's quarterly report on Form 10-QSB filed February 13, 2006 and incorporated
herein by reference.10.36

Common Stock Purchase Warrant "C" dated December 28, 2005 issued to Barron Partners, filed as exhibit 10.6 to the Company's quarterly report on Form 10-QSB filed February 13, 2006 and incorporated
herein by reference.10.37

Common Stock Purchase Warrant #118 dated December 28, 2005 issued to Ascendiant Securities, L.L.C., filed as exhibit 10.7 to the Company's quarterly report on Form 10-QSB filed February 13, 2006
and incorporated herein by reference.10.38

Common Stock Purchase Warrant #119 dated December 28, 2005 issued to Ascendiant Securities, L.L.C., filed as exhibit 10.8 to the Company's quarterly report on Form 10-QSB filed February 13, 2006
and incorporated herein by reference.10.39

Common Stock Purchase Warrant #120 dated December 28, 2005 issued to Ascendiant Securities, L.L.C., filed as exhibit 10.9 to the Company's quarterly report on Form 10-QSB filed February 13, 2006
and incorporated herein by reference.10.40

Form of Barron Lockup Letter, filed as exhibit 10.3 to the Company's Form 8-K filed December 20, 2005 and incorporated herein by reference.10.41

Form of Lockup Letter in connection with Secured Convertible Term Note financing, filed as exhibit 10.7 to the Company's Form 8-K filed December 20, 2005 and incorporated herein by
reference.10.42

Securities Purchase Agreement dated December 28, 2005 by and among Corgenix Medical Corporation and Truk Opportunity Fund, LLC, Truk International Fund, LP, and CAMOFI Master LDC and incorporated herein
by reference.10.43

Registration Rights Agreement among Truk International Fund, LP, Truk Opportunity Fund, LLC, CAMOFI Master LDC and Corgenix Medical Corporation, filed as exhibit 10.6 to the Company's Form 8-K
filed December 20, 2005 and incorporated herein by reference.10.44

Product Development, Manufacturing and Distribution Agreement dated May 13, 2004 between Creative Clinical Concepts, Inc. and the Company, filed as exhibit 10.26 to the Company's Form 10-K filed
September 22, 2005 and incorporated herein by reference.10.45

Supply Agreement dated September 12, 2003 between DiaDexus, Inc. and the Company, filed as exhibit 10.31 to the Company's Form 10-K filed September 22, 2005 and incorporated herein by
reference.


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Exhibit
Number

Description of Exhibit10.46

Distribution Agreement and OEM Supply Agreement dated March 31, 2005 between MBL International, Inc. and the Company, filed as exhibit 10.33 to the Company's Form 10-K filed September 22, 2005 and
incorporated herein by reference.10.47

Form of Term Note Security Agreement dated May 19, 2005, filed as exhibit 4.1 to the Company's Registration Statement on Form SB-2 filed June 24, 2005 and incorporated herein by
reference.10.48

Form of Common Stock Purchase Warrant dated May 19, 2005, filed as exhibit 4.2 to the Company's Registration Statement on Form SB-2 filed June 24, 2005 and incorporated herein by
reference.10.49

Form of Secured Convertible Term Note dated December 30, 2005, filed as exhibit 4.3 to the Company's Form 8-K filed December 30, 2005 and incorporated herein by reference.10.50

Form of AIR Warrant dated December 30, 2005, filed as exhibit 4.4 to the Company's Form 8-K filed December 30, 2005 and incorporated herein by reference.10.51

Corgenix Medical Corporation 2005 Incentive Compensation Plan, filed with the Company's filing of Proxy Statement Schedule 14A Information on October 27, 2005 and incorporated herein by
reference.10.52

Amendment Concerning Secured Convertible Term Notes (including Amendment No. 1 to each Secured Convertible Term Note), filed as exhibit 10 to the Company's Form 8-K filed December 5, 2006 and
incorporated herein by reference.10.53

Corgenix Medical Corporation 2007 Incentive Compensation Plan, filed with the Company's filing of Proxy Statement Schedule 14A Information on April 26, 2007 and incorporated herein by reference.10.54

Placement Agent Agreement dated June 17, 2008, filed as Exhibit 4.4 to the Company's Form 8-K filed July 27, 2008 and incorporated herein by reference.10.55

Form of Common Stock Purchase Warrant, filed as Exhibit 4.1 to the Company's Form 8-K filed July 27, 2008 and incorporated herein by reference.10.56

Form of Subscription Agreement, filed as Exhibit 4.2 to the Company's Form 8-K filed July 27, 2008 and incorporated herein by reference.10.57

Form of Registration Rights Agreement, filed as Exhibit 4.3 to the Company's Form 8-K filed July 27, 2008 and incorporated herein by reference.10.58

Consulting Agreement dated March 1, 2006 between Corgenix Medical Corporation and Gordon E. Ens, filed as Exhibit 10.1 to the Company's Form 10-QSB filed May 15, 2008 and incorporated herein by
reference.10.59

License Agreement dated March 1, 2008 between Corgenix Medical Corporation and Creative Clinical Concepts, filed as Exhibit 10.2 to the Company's Form 10-QSB filed May 15, 2008 and incorporated
herein by reference.(1)10.60

Letter Agreement dated August 13, 2008 between Corgenix Medical Corporation and Barron Partners, LP. and incorporated herein by reference.10.61

Lease Agreement dated January 1, 2009 between Andrew Dean T/A Andrew Dean Investments and Corgenix UK, Ltd., filed as exhibit 21.6 to the Company's Form 10-QSB filed February 12,
2002.


54

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Table of Contents

Exhibit
Number

Description of Exhibit10.62

Common Stock Purchase Agreement dated July 12, 2010 by and among Corgenix Medical Corporation, Financière Elitech SAS, and Wescor, Inc., filed as Exhibit 10.1 to the Company's Form 8-K filed
July 15, 2010.10.63

Form of Warrant by and among Corgenix Medical Corporation and Wescor, Inc., filed as Exhibit 10.2 to the Company's Form 8-K filed July 15, 2010.10.64

Mutual Confidentiality Agreement dated as of July 16, 2010 by and among Financière Elitech SAS, Wescor, Inc., Elitech UK Limited, Corgenix Medical Corporation, and Corgenix U.K. Ltd. filed as
Exhibit 10.3 to the Company's Form 8-K filed July 15, 2010.10.65

Form of Assignment and Assumption Agreement by and among Elitech UK Limited, Corgenix Medical Corporation, and Corgenix U.K. Ltd. filed as Exhibit 10.4 to the Company's Form 8-K filed July 15,
2010.10.66

Master Distribution Agreement dated July 16, 2010 by and between Corgenix Medical Corporation and Elitech UK Limited filed as Exhibit 10.5 to the Company's Form 8-K filed July 15, 2010.10.67

Joint Product Development Agreement dated July 16, 2010 by and between Corgenix Medical Corporation and Financière Elitech SAS filed as Exhibit 10.6 to the Company's Form 8-K filed July 15,
2010.21.1

Subsidiaries of the Registrant, filed as Exhibit 21.1 to the Company's Registration Statement on Form 10-SB, filed June 29, 1998 and incorporated herein by reference.23.1
*
Consent of Independent Registered Public Accounting Firm31.1
*
Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002.31.2
*
Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002.32.1
*
Certification by Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, or adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


(1)Exhibit
omits certain information that has been filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request
under Rule 24b-2 of the Securities and Exchange Act of 1934, as amended.*Filed
herewith


55

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Table of Contents

CORGENIX MEDICAL CORPORATION  AND SUBSIDIARIES

Consolidated
Financial Statements
June 30, 2010 and 2009
(With Independent Registered Public Accounting Firm's Report Thereon)

56

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Table of Contents

CORGENIX MEDICAL CORPORATION  AND SUBSIDIARIES        Consolidated Financial Statements        June 30, 2010 and 2009



Index to Consolidated Financial Statements


57Report of Independent Registered Public Accounting Firm


58Consolidated Balance Sheets as of June 30, 2010 and 2009


59Consolidated Statements of Operations and Comprehensive Loss for the years ended June 30, 2010 and 2009


60Consolidated Statements of Stockholders' Equity for the years ended June 30, 2010 and 2009


61Consolidated Statements of Cash Flows for the years ended June 30, 2010 and 2009


62Notes to Consolidated Financial Statements


63


57

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Table of Contents

Report of Independent Registered Public Accounting Firm

The
Board of Directors and Shareholders
Corgenix Medical Corporation:

We
have audited the accompanying consolidated balance sheets of Corgenix Medical Corporation and subsidiaries (Company) as of June 30, 2010 and 2009, and the related consolidated
statements of operations and comprehensive loss, stockholders' equity and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.

In
our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Corgenix Medical Corporation and subsidiaries
as of June 30, 2010 and 2009, and the results of their operations and their cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.

We
were not engaged to examine management's assertion about the effectiveness of Corgenix Medical Corporation and subsidiaries' internal control over financial reporting as of
June 30, 2010 included in the accompanying Management's Annual Report on Internal Control over Financial Reporting and, accordingly, we do not express an opinion thereon.



Denver,
Colorado
September 22, 2010

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Table of Contents



CORGENIX MEDICAL CORPORATION  AND SUBSIDIARIES        Consolidated Balance Sheets

June 30,
2010

June 30,
2009AssetsCurrent assets:Cash and cash equivalents

$
494,096

$
785,466Accounts receivable, less allowance for doubtful accounts of $30,000 and $103,689


1,269,795


1,339,409Other receivables


139,174


Inventories


2,499,557


2,596,048Prepaid expenses


77,425


205,320Total current assets


4,480,047


4,926,243Property and Equipment:Capitalized software costs


258,947


255,617Machinery and laboratory equipment


1,061,357


1,024,848Furniture, fixtures and office equipment


1,862,179


1,816,4623,182,483


3,096,927Accumulated depreciation and amortization


(2,014,327
)

(1,609,361
)Net Property and equipment


1,168,156


1,487,566Intangible assets:License


340,934


369,671Other assets:Deferred financing costs, net of amortization of $1,966,739 and $1,929,008


55,879


24,595Due from officer


12,000


12,000Other


97,749


85,706Total assets

$
6,154,765

$
6,905,781Liabilities, Redeemable Stocks, and Stockholders' EquityCurrent liabilities:Current portion of notes payable, net of discount

$
43,953

$
100,439Current portion of capital lease obligations


70,758


203,506Inventory loan payable


306,556


Due to factor (note 3)


826,955


1,112,299Accounts payable


487,576


858,887Accrued payroll and related liabilities


291,831


369,824Accrued interest





5,527Accrued liabilities


306,488


262,527Total current liabilities


2,334,117


2,913,009Notes payable, net of discount, less current portion


23,742


10,600Capital lease obligation, less current portion


8,612


60,008Deferred Facility Lease Payable, less current portion


452,266


673,315Total liabilities


2,818,737


3,656,932Commitments and contingencies (note 5)Redeemable common stock, $0.001par value. 302,600 and 412,633 shares issued and outstanding, aggregate redemption value of $171,877 and $234,376


122,306


89,973Redeemable preferred stock, $0.001 par value. 236,680 shares issued and outstanding Aggregate redemption value of $59,170, net of unaccreted discount of
$18,672 and $30,809 (note 4)


57,066


45,863Stockholders' Equity:Common stock, $0.001 par value. Authorized 200,000,000 shares; Issued and outstanding 30,982,803 and 30,294,505 shares in 2010 and 2009,
respectively


30,680


29,881Additional paid-in capital


18,724,906


18,595,066Accumulated deficit


(15,566,597
)

(15,525,451
)Accumulated other comprehensive income (loss)


(32,333
)

13,517Total stockholders' equity


3,156,656


3,113,013Total liabilities, redeemable stocks, and stockholders' equity

$
6,154,765

$
6,905,781


See accompanying notes to consolidated financial statements.

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Table of Contents



CORGENIX MEDICAL CORPORATION  AND SUBSIDIARIES        Consolidated Statements of Operations and Comprehensive Loss        Years ended June 30, 2010 and 2009

2010

2009Net sales

$
8,258,170

$
8,063,557Cost of sales


3,613,562


3,582,017Gross profit


4,644,608


4,481,540Operating expenses:Selling and marketing


1,575,471


1,870,434Research and development


647,103


753,523General and administrative


2,093,563


2,207,073Total expenses


4,316,137


4,831,030Operating income (loss)


328,471


(349,490
)Other income (expense)Other income (net)


665


91,951Loss on early extinguishment of debt


(22,000
)

Interest expense


(321,063
)

(1,301,224
)Net income (loss) before income taxes


(13,927
)

(1,558,763
)Income tax benefit (expense)


16,318


(11,837
)Net income (loss)


2,391


(1,570,600
)Accreted dividends on redeemable preferred and redeemable common stock


43,537


34,616Net income (loss) attributable to common stockholders

$
(41,146
)
$
(1,605,216
)Net income (loss) attributable to common stockholders per share, basic and diluted

$
0.00
*
$
(0.05
)Weighted average shares outstanding, basic and diluted (note 2)


30,848,468


30,237,813Net income (loss)

$
2,391

$
(1,570,600
)Other comprehensive income (loss)foreign currency translation


(45,850
)

19,892Total comprehensive income (loss)

$
(43,459
)
$
(1,550,708
)


*Less
than $.01 per share


See
accompanying notes to consolidated financial statements.

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Table of Contents



CORGENIX MEDICAL CORPORATION  AND SUBSIDIARIES        Consolidated Statements of Stockholders' Equity        Years ended June 30, 2010 and 2009

Common
Stock,
Number
of Shares

Common
Stock,
$0.001
par

Additional
Paid-in
Capital

Accumulated
Deficit

Accumulated
Other
Comprehensive
Income

Total
Stockholders'
EquityBalances at July 1, 2008


30,021,935

$
29,521

$
18,049,673

$
(13,920,235
)
$
(6,375
)
$
4,152,584Issuance of common stock for services


289,819


290


58,226








58,516Warrant extension as a result of note modification








279,527








279,527Warrant extension as a result of MBL agreement amendment








65,907








65,907Compensation expense recorded as a result of stock options issued








108,510








108,510Issuance of common stock for license


70,124


70


20,266








20,336Issuance of warrants for license








12,957








12,957Cancellation of redeemable stock upon note pay down


(87,373
)













Accreted dividend on redeemable Common and redeemable Preferred stock











(34,616
)




(34,616
)Foreign currency translation














19,892


19,892Net loss











(1,570,600
)




(1,570,600
)Balances at June 30, 2009


30,294,505


29,881


18,595,066


(15,525,451
)

13,517


3,113,013Issuance of common stock for services


775,166


776


72,211








72,987Compensation expense recorded as a result of stock options issued








51,201








51,201Issuance of common stock for license


23,164


23


2,525








2,548Issuance of warrants for license








3,903








3,903Cancellation of redeemable stock upon note pay down


(110,032
)













Accreted dividend on redeemable Common and redeemable preferred stock











(43,537
)




(43,537
)Foreign currency translation














(45,850
)

(45,850
)Net income











2,391





2,391Balances at June 30, 2010


30,982,803

$
30,680

$
18,724,906

$
(15,566,597
)
$
(32,333
)
$
3,156,656


See accompanying notes to consolidated financial statements.

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Table of Contents



CORGENIX MEDICAL CORPORATION  AND SUBSIDIARIES        Consolidated Statements of Cash Flows

Years ended June 30, 2010 and 2009

2010

2009Cash flows from operating activities:Net income (loss)

$
2,391

$
(1,570,600
)Adjustments to reconcile net income (loss) to net cash used in operating activities:Depreciation and amortization


439,029


448,018Accretion of discount on notes payable


2,244


325,379Amortization of deferred financing costs


37,731


747,872Common stock issued for services


2,963


58,516Accrued stock based compensation





70,024Compensation expense recorded for stock options issued


51,201


108,510Changes in operating assets and liabilities:Accounts receivable, net


(7,081
)

(384,290
)Inventories


86,579


(179,391
)Prepaid expenses and other assets


(15,532
)

21,431Accounts payable


(350,326
)

147,766Accrued payroll and related liabilities


9,181


10,022Accrued interest and other liabilities


(195,665
)

(203,824
)Net cash provided by (used in) operating activities


62,715


(400,567
)Cash flows used in investing activities:Additions to equipment


(101,955
)

(90,114
)Net cash used in investing activities


(101,955
)

(90,114
)Cash flows from financing activities:Increase (decrease) in amount due to factor


(285,344
)

1,112,299Proceeds from inventory loan


306,556


Proceeds from issuance of note payable


125,000


Payment for deferred financing costs


(37,491
)

(15,318
)Payments on notes payable


(170,589
)

(1,073,956
)Payments on capital lease obligations


(181,634
)

(252,205
)Net cash used in financing activities


(243,502
)

(229,180
)Net decrease in cash and cash equivalents


(282,742
)

(719,861
)Impact of exchange rate changes on cash


(8,628
)

(14,772
)Cash and cash equivalents at beginning of year


785,466


1,520,099Cash and cash equivalents at end of year

$
494,096

$
785,466Supplemental cash flow disclosures:Cash paid for interest

$
284,353

$
219,118Noncash investing and financing activitiesEquipment acquired under capital leases




$
43,968Issuance of warrant for license

$
3,903

$
12,957Issuance of stock for license

$
2,548

$
20,336Conversion of redeemable common stock to note payable




$
125,000Issuance of redeemable convertible preferred stock as additional consideration for note Modification




$
42,129Warrant extensions as a result of note modification




$
279,527Common stock issued for accrued stock-based compensation


70,024


Accreted dividends on redeemable common and redeemable preferred stock

$
43,537

$
34,616


See accompanying notes to consolidated financial statements.

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Table of Contents

CORGENIX MEDICAL CORPORATION  AND SUBSIDIARIES        Notes to Consolidated Financial Statements        June 30, 2010 and 2009

(1) Summary of Significant Accounting Policies

(a)   Business and Basis of Presentation

Corgenix (formerly known as REAADS Medical Products) develops, manufactures and markets diagnostic products for the serologic diagnosis of certain vascular
diseases and autoimmune disorders using proprietary technology. The Company markets its products to hospitals and free-standing laboratories worldwide through a network of sales
representatives, distributors and private label (OEM) agreements. The Company's corporate offices and manufacturing facility are located in Broomfield, Colorado.

The
consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Corgenix, Inc. and Corgenix (UK) Limited ("Corgenix UK"). Corgenix UK
was established
as a United Kingdom company during 1996 to market the Company's products in Europe. Transactions are generally denominated in U.S. dollars.

(b)   Principles of Consolidation

The consolidated financial statements include the financial statements of Corgenix Medical Corporation and its wholly owned subsidiaries. Inter-company balances
and transactions have been eliminated in consolidation.

(c)   Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue
and expenses during the reporting period. Significant estimates in these consolidated financial statements include allowance for doubtful accounts, share-based compensation expense, useful lives of
long-lived assets, and the recognition and measurement of income tax benefits and related deferred tax asset valuantion allowances. Actual results could differ significantly from those
estimates.

(d)   Cash and Cash Equivalents

The Company considers all highly liquid debt instruments purchased with original maturities of three months or less at purchase to be cash equivalents.

(e)   Trade Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company's best estimate of the
amount of probable credit losses in the Company's existing accounts receivable. The Company determines the allowance based on historical write-off experience. The Company reviews its
allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. Account balances are charged off against the
allowance after all means of collection have been
exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to customers.

63

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Table of Contents

CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(1) Summary of Significant Accounting Policies (Continued)

(f)    Inventories

Inventories are recorded at the lower of average cost or market, using the first-in, first-out method. A provision is recorded to reduce
excess and obsolete inventories to their estimated net realizable value, when necessary. No such provision was recorded as of and for the two years ended June 30, 2010. Components of
inventories as of June 30 are as follows:

2010

2009Raw materials

$
431,235

$
589,025Work-in-process


883,272


700,658Finished goods


1,185,050


1,306,365$
2,499,557

$
2,596,048


(g)   Equipment and Software

Equipment and software are recorded at cost. Equipment under capital leases is recorded initially at the present value of the minimum lease payments. Equipment
acquired under capital leases amounted to $0 and $43,968 in fiscal 2010 and 2009, respectively. Depreciation and amortization expense, which totaled $439,028 and $448,018 for the years ended
June 30, 2010 and 2009, respectively, is calculated primarily using the straight-line method over the estimated useful lives of the respective assets which range from 3 to
7 years. Capitalized software costs are related to the Company's web site development, which is being amortized over three years, beginning in October 2002 and its accounting software, which is
being amortized over five years, beginning in March 2008.

(h)   Intangible Assets

Intangible assets consist of purchased licenses. Purchased licenses are amortized using the straight-line method over the shorter of 15 years
or the remaining life of the license. The Company adopted the guidance set forth in theGoodwill and Other Intangible AssetsTopic of the FASB ASC.
Pursuant to the aforementioned guidance, goodwill and intangible assets acquired in a purchase business combination and determined to have indefinite lives and licenses acquired with no definite term
are not amortized, but instead are tested for impairment at least annually in accordance with the provisions of this guidance. Identifiable intangibles with estimated useful lives continue to be
amortized
over their respective estimated useful lives and reviewed for impairment in accordance with the guidance set forth in theAccounting for Impairment or Disposal of Long Lived
AssetsTopic of the FASB ASC.

On
March 1, 2008, we executed an exclusive license agreement (the "License Agreement") with Creative Clinical Concepts, Inc. ("CCC"). The License Agreement provides that
CCC license to us certain products and assets related to determining the effectiveness of aspirin and / or anti-platelet therapy (collectively, "Aspirin Effectiveness Technology," or the
"Licensed Products"). The Aspirin Effectiveness Technology includes US trademark registration number 2,688,842, which includes the term "AspirinWorks"® and related designs.

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Table of Contents

CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(1) Summary of Significant Accounting Policies (Continued)

The
License Agreement imposes caps on the total amount of cash, common stock, and warrant payments from us to CCC from the date of execution through to and including the third
anniversary payment. Under that cap limitation, the total of all anniversary payments will not exceed $200,000 in cash, with each anniversary cash payment determined by multiplying $50,000 by an
anniversary ratio which is the ratio of cumulative revenue at the respective anniversary date divided by the cumulative sales target for the same period of time. Likewise, the total of all anniversary
common stock payments will not exceed $300,000 in value of shares of common stock (as valued on the date of issue), with the number of shares for each anniversary stock issuance determined by dividing
75,000 by the closing stock price as of the respective anniversary date and multiplying that result by the anniversary ratio noted above. Finally, the total of all anniversary warrant payments will
not exceed 300,000 warrants, with the value of each anniversary warrant issuance determined by multiplying 75,000 (the number of warrants to be issued) by a newly calculated Black Scholes value per
warrant as of the fiscal year end. As of June 30, 2010, the Company had accrued a total of $3,075 payable to CCC as a result of the anniversary calculations.

The
License Agreement also requires that, for all sales of the Licensed Products subsequent to the execution of the agreement, we pay CCC a quarterly royalty fee equal to seven percent
of net sales of the Licensed Products during the immediately preceding quarter. The License Agreement's caps on payments from us to CCC do not apply to royalty payments.

(i)    Financial Instruments

Financial instruments consist principally of cash, money market funds, accounts receivable, accounts payable and notes payable. We believe that the fair value of
financial instruments approximates the
recorded book value of those instruments due to the short term nature of the instruments, or stated interest rates that approximate market interest rates.

(j)    Advertising Costs

Advertising costs are expensed when incurred. Advertising costs included in selling and marketing expenses totaled $46,274 and $95,859 in fiscal 2010 and 2009,
respectively.

(k)   Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for net operating loss and other credit
carry forwards and the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the tax effect of transactions are expected to be realized. The effect on
deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date.

Deferred
tax assets are reduced by a valuation allowance for the portion of such assets for which it is more likely than not that the amount will not be realized. Deferred tax assets and
liabilities are

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Table of Contents

CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(1) Summary of Significant Accounting Policies (Continued)

classified
as current or noncurrent based on the classification of the underlying asset or liability giving rise to the temporary difference or the expected date of utilization of the carry forwards.

(l)    Revenue Recognition

Revenue is recognized upon shipment of products. Sales discounts and allowances are recorded at the time product sales are recognized and are offset against sales
revenue. When revenue is received by a customer in advance of shipment of products, in exchange for a discount, it is credited to deferred revenue and taken into revenue upon eventual shipment of the
products. The Company also has arrangements in which it manufactures products for other companies, and, in some cases, holds the product for shipment to designated customers, pursuant to the
manufacturing agreement. Revenue
under these arrangements is recognized when the manufacturing process is complete and risk of ownership has passed.

(m)  Research and Development

The Company serves as a sub-contractor to Tulane University for several NIH funded grants and contracts related to development of diagnostics,
vaccines and therapeutics for hemorrhagic fever viruses. Under the terms of the subcontracts, the Company invoices Tulane monthly for all allocable expenses incurred in support of the grants and
contracts. This includes fully burdened salaries, supplies, production kits, travel and equipment. The Company serves as the principal investigator for an NIH funded two-year contract to
develop recombinant diagnostic tests for the filoviruses (Ebola and Marburg), and has engaged three subcontractors (Tulane University, Autoimmune Technologies and the Scripps Research Institute) to
assist in the development. Each month the subcontractors invoice the Company for allocable monthly expenses including fully burdened salaries, supplies and travel; the Company consolidates these
expenses with its own allocable expense and invoices the NIH.

Research
and development costs and any costs associated with internally developed patents, formulas or other proprietary technology are expensed as incurred. Research and development
expense for the years ended June 30, 2010 and 2009 totaled $647,103 and $753,523, respectively. Revenue from research and development contracts, as noted above, represents amounts earned
pursuant to agreements to perform research and development activities for third parties and is recognized as earned under the respective agreement. Because research and development services are
provided evenly over the contract period, revenue is recognized ratably over the contract period. Research and development agreements in effect in 2010 and 2009 provided for fees to the Company based
on time and materials in exchange for performing specified research and development functions. Contract research and development revenues were $614,488 and $221,038 for the years ended June 30,
2010 and 2009, respectively. Research and development contracts are generally short term with options to extend, and can be cancelled under specific circumstances.

(n)   Long-Lived Assets

The Company reviews long-lived assets, including intangibles, for impairment whenever events or changes in circumstances indicate that the carrying
amount of such assets may not be recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions,

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Table of Contents

CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(1) Summary of Significant Accounting Policies (Continued)

recurring
losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based
upon forecasted undiscounted cash flows. Should an impairment in value be indicated, the carrying value of intangible assets will be adjusted based on estimates of future discounted cash flows
resulting from the use and ultimate disposition of the asset.

(o)   Stock-Based Compensation

The Company accounts for share-based payments under the guidance as set forth in theShare-Based PaymentTopic of
the FASB ASC, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, officers, directors, and consultants, including employee
stock options based on estimated fair values. This guidance requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of
the portion of the award that is ultimately expected to vest is recognized as expense over the required service period in the Company's Statements of Operations. Stock-based compensation is based on
awards ultimately expected to vest and is reduced for estimated forfeitures. The guidance further requires forfeitures to be estimated at the time of grant and revised, as necessary, in subsequent
periods if actual forfeitures differ from those estimates.

For
purposes of determining estimated fair value of share-based payment awards on the date of grant under this guidance, the Company uses the Black-Scholes option-pricing model (Black
Scholes Model). The Black Scholes Model requires the input of highly subjective assumptions. Because the Company's employee stock options may have characteristics significantly different from those of
traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models may not provide a reliable single
measure of the fair value of the Company's employee stock options. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of share-based
compensation. Circumstances may change and additional data may become available over time, which result in changes to these assumptions and methodologies, which could materially impact the Company's
fair value determination.

The
application of this guidance may be subject to further interpretation and refinement over time. There are significant differences among option valuation models, and this may result
in a lack of comparability with other companies that use different models, methods and assumptions. If factors change and the Company employs different assumptions in the application of the guidance
in future periods, or if the Company decides to use a different valuation model, the compensation expense that the Company records in the future under this guidance may differ significantly from what
it has
recorded in the current period and could materially affect its loss from operations, net loss and net loss per share.

(p)   Earnings per Share

Basic earnings (loss) per share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding.
Diluted earnings (loss) per share is computed by dividing net loss attributable to common stockholders by the weighted

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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(1) Summary of Significant Accounting Policies (Continued)

average
number of common shares outstanding increased for potentially dilutive common shares outstanding during the period. The dilutive effect of stock options and their equivalents is calculated
using the treasury stock method. Options and warrants to purchase common stock, plus common shares underlying convertible preferred stock , totaling 37,114,897 and 39,039,941 shares for fiscal years
2010 and 2009, respectively, are not included in the calculation of weighted average diluted common shares below as their effect would be to lower the net loss per share and thus be
anti-dilutive. Redeemable common stock is included in the common shares outstanding for purposes of calculating net income (loss) per share.

2010

2009Net (loss) attributable to common stockholders

$
(41,146
)
$
(1,605,216
)Common and common equivalent shares outstanding:Historical common shares outstanding at beginning of year


30,294,505


30,021,935Weighted average common equivalent shares issued during year


553,963


215,878Weighted average common sharesbasic and diluted


30,848,468


30,237,813Net income (loss) per sharebasic and diluted

$
0.00
*
$
(0.05
)


*Less
than ($0.01) per share


(q)   Foreign Currency Transactions

The accounts of the Company's foreign subsidiary are generally measured using the local currency as the functional currency. For those operations, assets and
liabilities are translated into U.S. dollars at period-end exchange rates. Income and expense accounts are translated at average monthly exchange rates. Adjustments resulting from such
translation are accumulated in other comprehensive income as a separate component of stockholders' equity.

(r)   Liquidity

We have incurred operating losses and negative cash flow from operations for most of our history. Losses incurred since our inception, net of dividends on
redeemable common and redeemable preferred stock, have aggregated $13,208,445 and there can be no assurance that we will be able to generate positive cash flows to fund our operations in the future or
to pursue our strategic objectives. Historically, we have financed our operations primarily through long-term debt, factoring of accounts receivables, and the sales of common stock,
redeemable common stock, and preferred stock. We have also financed operations through sales of diagnostic products and agreements with strategic partners. At June 30, 2010, trade and other
receivables amounted to $1,408,969 versus $1,439,254 at June 30, 2009.

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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(1) Summary of Significant Accounting Policies (Continued)

We have developed and are continuing to modify an operating plan intended to eventually achieve sustainable profitability, positive cash flow from operations, and an adequate level of
financial liquidity. Key components of this plan include consistent revenue growth and the cash to be derived from such growth, as well as the expansion of our strategic alliances with other
biotechnology and diagnostic companies, securing diagnostic-related government contracts and grants, improving operating efficiencies to reduce our cost of sales as a percentage of sales, thereby
improving gross margins, and lowering our overall operating expenses. Towards these efforts, the current fiscal year produced positive results in all of the aforementioned components, and management
expects that we will be able to continue this success. However, if our sales were to decline, are flat, or achieve very slow growth, we would undoubtedly incur operating losses and a decreasing level
of liquidity for that period of time. In view of this, and in order to further improve our liquidity and operating results, we entered into the ELITech collaboration and investment, as described in
Note 9.

The
$1,250,000 ELITech common stock investment in addition to the FGI $750,000 March 15, 2010 credit facility and the Summit $1,750,000 September 30, 2009
credit facility, in conjunction with our current forecasts, should provide adequate resources to continue operations for longer than 12 months.

(s)   Shipping and Handling Costs

Shipping and handling costs are included in cost of goods sold.

(t)    Recently Issued Accounting Pronouncements

With respect to the guidance set forth in theDisclosures of Derivative Instruments and Hedging ActivitiesTopic
of the FASB ASC, which enhances required disclosures regarding derivatives and hedging activities, including enhanced disclosures regarding how: a) an entity uses derivative instruments;
b) derivative instruments and related hedged items are accounted for; and c) derivative instruments and related hedged items affect an entity's financial position, financial performance
and cash flows, we do not expect that the application of the principles set forth under this Topic will be applicable to our financial statements.

In
April 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-17 (ASU 2010-17), Revenue Recognition-Milestone Method
(Topic 605): Milestone Method of Revenue Recognition. The amendments in this Update are effective on a prospective basis for milestones achieved in fiscal years, and interim periods within those
years, beginning on or after June 15, 2010. Early adoption is permitted. If a vendor elects early adoption and the period of adoption is not the beginning of the entity's fiscal year, the
entity should apply the amendments retrospectively from the beginning of the year of adoption. The Company does not expect
the provisions of ASU 2010-17 to have a material effect on the financial position, results of operations or cash flows of the Company.

As
of July 1, 2008, we adopted the guidance set forth in theFair Value MeasurementsTopic of the FASB ASC. This guidance
established a framework for measuring fair value in GAAP and clarified the definition of fair value within that framework. The guidance does not require any new fair value

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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(1) Summary of Significant Accounting Policies (Continued)

measurements
in GAAP. The guidance further introduced, or reiterated a number of key concepts which form the foundation of the fair value measurement approach to be utilized for financial reporting
purposes. The fair value of our financial instruments reflect the amounts that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date (exit price). The guidance also established a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into the following three levels:



The
adoption of these provisions did not have a material effect on our financial condition and results of operations, but introduced new disclosures about how we value certain assets and
liabilities. Much of the disclosure requirement is focused on the inputs used to measure fair value, particularly in instances where the measurement uses significant unobservable (Level 3)
inputs. Our financial instruments are valued using quoted prices in active markets or based upon other observable inputs. The following table sets forth the fair value of our financial assets that
were measured on a recurring basis as of June 30, 2010:

Level 1

Level 2

Level 3

TotalMoney market funds

$
200,757







$
200,757Total

$
200,757







$
200,757


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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(2) Notes Payable

Notes payable consist of the following at June 30, 2010 and 2009:

June 30, 2010

June 30, 2009Convertible term note payable to institutional investors, net of discount of $0 and $2,244 with interest at the greater of 12%, as adjusted by a stock
trading formula, or prime plus 3% (6.25% as of June 30, 2010 and June 30, 2009), interest only from December 28, 2005 through June, 2006 and, via a note modification dated November 30, 2006, December 1, 2006 through
November 1, 2007 and then due in monthly installments of $42,546 plus interest from December 1, 2007 through March 16, 2009, and via note modification dated February 3, 2009, due in monthly installments of $6,714 plus interest,
collateralized by all assets of the company and a partial guaranty by an officer of the Company

$


$
38,039Note payable, unsecured, to redeemable common stockholders, with interest at prime plus 2.0% (5.25% as of June 30, 2010 and
June 30, 2009) due in monthly installments with principal payments of $5,200 plus interest through August 2010


26,200


73,000Note payable to Summit Financial Resources, with interest at prime rate plus 2.75% (6.0% as of June 30, 2010) due in monthly
installments with principal payments of $3,804 plus interest through November 2009 plus interest, and via a note modification dated November 30, 2009, weekly principal payments of $12,500 plus interest, on December 7, 2009 and
December 14, 2009, and $21,835 plus interest on December 28, 2009, and then in monthly installments with principal and interest of $1,647, commencing January 1, 2010 through September 30, 2012, collateralized by all assets of
Corgenix


41,494


67,694


111,039Current portion, net of current portion of discount


(43,953
)

(100,439
)Notes payable, excluding current portion and net of long-term portion of discount

$
23,741

$
10,600


Aggregate
maturities of notes payable by year, as of June 30, 2010, are as follows:

Years ending June 30:2011

$
43,9532012


23,741Total

$
67,694


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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(3) Due to Factor

On March 15, 2010, Corgenix UK entered into a financing agreement with FGI. Under the Agreement, Corgenix UK agrees to sell all of Corgenix UK's right, title and interest in and
to specified accounts receivable and all merchandise represented by those accounts. In exchange, FGI will advance funds to the Company. The Company will use the funds for working capital purposes and
to continue to fund
the operations of Corgenix UK. The Company, and Corgenix, Inc., a wholly owned subsidiary of the Company, have guarantee Corgenix UK's obligations to FGI.

The
purchase price for each sold account is 85% of the face amount of the account, less certain fees set forth in the Agreement. An administrative fee of 1.15% of the average monthly
balance of the purchased accounts (the "Administrative Fee") will be payable monthly. The Company paid FGI a one-time facility fee of $10,000 upon funding, and had already paid an
additional $10,000 deposit to reimburse FGI for actual expenses incurred in connection with FGI's review and approval process as well as auditor fees, attorneys' fees and expenses incurred in
documenting the financing agreement.

Corgenix
UK must maintain an average monthly net balance of funds advanced of no less than $200,000 during the term of the agreement. If Corgenix UK does not sell at least $200,000 of
account debt to FGI each month, then interest and fees will be applied to the difference between $200,000 and the amount of debt actually sold. Interest will be charged on each advance at the greater
of 8.5% per annum or 1.5% above the U.S. Prime Rate. The maximum amount available for advance to the Company is $750,000. On March 31, 2010, the initial advance to us from FGI on eligible
international accounts receivable amounted to $114,459 which represented approximately 85% of international accounts receivable sold to them totaling $134,658. As of June 30, 2010, the amount
due to FGI was $277,927.

The
Agreement term is 36 months; however Corgenix UK may terminate the Agreement at any time after two years by giving FGI not less than ninety days prior written notice and
paying a termination fee of $25,000. FGI may terminate the Agreement at any time by giving Corgenix UK not less than thirty days prior written notice or without notice if any event of default or
recourse event occurs.

On
September 30, 2009, we, along with our wholly owned subsidiary, Corgenix, Inc., entered into a Financing Agreement, an Addendum to Financing Agreement, a Loan and
Security Agreement and a Promissory Note (collectively, the "Summit Agreements") with Summit. We are jointly and severally liable for all obligations pursuant to the Summit Agreements. The Agreements
with Summit provide us and our subsidiary with a maximum credit line of $1,750,000 pursuant to an account factoring relationship, coupled with a secured line of credit.

Under
the Financing Agreement, we agree to sell all of our right, title and interest in and to accounts identified for purchase by Summit from time to time. The purchase price for each
sold account equals the face amount of each account multiplied by the applicable advance rate, minus all interest and fees and charges as described in the Financing Agreement. In addition, interest
will accrue on advances made by way of purchased accounts at the rate of prime plus 1.5% per annum until Summit receives payment in full on each account. If Summit does not receive full payment on a
purchased account by the due date specified in the Financing Agreement, then we or our subsidiary (as applicable) must repurchase that account, and pay Summit the default interest rate until it is
repaid.

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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(3) Due to Factor (Continued)

During
the initial funding period (which is the earlier of 120 days after the date of the Agreements, or the date of the second term loan advance), the advance rate on eligible
accounts receivable will be 90%, and 85% thereafter, unless Summit elects in its discretion to apply a different percentage. On September 30, 2009, the initial advance to us from Summit on
eligible accounts receivable amounted to $632,553, which represented 90% of eligible accounts receivable of $702,908.

The
accounts receivable sold to factors are treated as a secured borrowing. During fiscal 2010 and 2009, we sold $5,263,328 and $2,143,260, respectively, of our accounts receivable
invoices to factors for approximately $4,647,499 and $1,964,521. Fees paid to factors for interest and other services for the fiscal years ended June 30, 2010 and 2009 totaled $258,301 and
$69,199, respectively.

Pursuant
to the Addendum to Financing Agreement, Summit may, in its sole discretion and without any duty to do so, elect from time to time to make advances based upon Acceptable
Inventory, which is defined in the addendum to mean inventory approved for intended use by the Food and Drug Administration, among other criteria.

Advances
based upon Acceptable Inventory may be made upon request so long as the aggregate amount of all advances based upon Acceptable Inventory outstanding and unpaid does not exceed
the lesser of (a) Fifty Percent (50%) of the lower of book value, as determined in accordance with generally accepted accounting principles, of the Acceptable Inventory, (b) Four Hundred
Fifty Thousand Dollars ($450,000), (c) Fifty Percent (50%) of Client's outstanding Acceptable Accounts, and (d) together with the aggregate amount of all other outstanding Advances, the
Maximum Credit Line. On September 30, 2009, the initial advance to us from Summit on Acceptable Inventory amounted to $351,454, and at June 30, 2010, the inventory loan payable amounted
to $306,556. As of June 30, 2010, the amount due to Summit was $549,028.

Summit
may decline to make advances based upon Acceptable Inventory for any reason or for no reason, without notice, regardless of any course of conduct or past advances based upon
Acceptable Inventory by Summit.

We
used a portion of the initial advance to retire the debt evidenced by the Factoring and Security Agreement to Benefactor Funding Corp, a Colorado corporation. The payoff to Benefactor
amounted $580,786.

Other
Receivables at June 30, 2010 and June 30, 2009 represent the retained percentages of the factored accounts receivable, which in the case of both FGI and Summit, is
15% of each invoice factored.

(4) Equity

(a)   Employee Stock Purchase Plan

Effective January 1, 1999, the Company adopted an Employee Stock Purchase Plan to provide eligible employees an opportunity to purchase shares of its
common stock through payroll deductions, up to 10% of eligible compensation. On April 26, 2008, Shareholders approved the Company's Second Amended and Restated Employee Stock Purchase Plan.
These plans are registered under Section 423 of the Internal Revenue Code of 1986. Each quarter, participant account balances are used to purchase

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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(4) Equity (Continued)

shares
of stock at the lesser of 85% of the fair value of shares on the first business day (grant date) and last business day (exercise date) of each quarter. No right to purchase shares shall be
granted if, immediately after the grant, the employee would own stock aggregating 5% or more of the total combined voting power or value of all classes of stock. A total of 600,000 common shares have
been registered with the Securities and Exchange Commission (SEC) for purchase under the two plans. In fiscal 2010, 38,068 shares were issued under the plans. In fiscal 2009, 83,819 shares were issued
under the plans.

In
fiscal 2010 and 2009, the benefits expense recognized for the 15% discount on shares purchased under this plan amounted to $444 and $1,431, respectively.

(b)   Incentive Stock Option Plan

The Company's Amended and Restated 1999 Incentive Stock Plan and the 2007 Incentive Compensation Plan (the "Plan") provides for two separate components. The Stock
Option Grant Program, administered by the Compensation Committee (the "Committee") appointed by the Company's Board of Directors, provides for the grant of incentive and non-statutory
stock options to purchase common stock to employees, directors or other independent advisors designated by the Committee. The Restricted Stock Program administered by the Committee, provides for the
issuance of Restricted Stock Awards to employees, directors or other independent advisors designated by the Committee.

The
following table summarizes stock options outstanding and changes during the fiscal years ended June 30, 2010 and 2009:

Outstanding OptionsNumber of
Shares

Weighted
Average
Exercise Price

Weighted
Average
Remaining
Contractual
Term (in
months)

Aggregate
Intrinsic
ValueOptions outstanding at June 30, 2008


2,497,100

$
0.36





Granted


40,000

$
0.06


Exercised




$



Cancelled, expired or forfeited


(29,500
)
$
0.42


Options outstanding at June 30, 2009


2,507,600

$
0.36


42.87


Granted


240,000

$
0.10


Exercised




$



Cancelled, expired or forfeited


(307,600
)
$
0.42


Options outstanding at June 30, 2010


2,440,000

$
0.32


41.28

$
Options exercisable at June 30, 2010


2,440,000

$
0.32


41.28

$



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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(4) Equity (Continued)

The aggregate intrinsic value as of June 30, 2010 measures the difference between the market price as of June 30, 2010 and the exercise price. No options were exercised
during the two year period ended June 30, 2010. Consequently, no cash was received, nor did the Company realize any tax deductions related to exercise of stock options during the year.

At
June 30, 2010, there was no unrecognized compensation cost from unvested stock options.

The
weighted average per share fair value range of stock options granted during the twelve-month periods ending June 30, 2010 and 2009 was $0.095-$0.099 and $0.046,
respectively. The fair value was estimated as of the grant date using the Black-Scholes option pricing model with the following assumptions:

Fiscal Year Ended
June 30,2010

2009Volatility


84.7% - 135.8
%

84.7
%Expected option term


7 years


7 yearsRisk-free interest rate


2.69
%

2.69
%Expected dividend yield


0
%

0
%


In
addition to the stock options discussed above, the Company recognized share-based compensation expense related to Restricted Stock awards of $0 and $50,088 for the fiscal years ended
June 30, 2010 and 2009, respectively. The following table summarizes Vested and non-vested Restricted Stock and the related activity as of and for the fiscal year ended
June 30, 2010:

Shares

Weighted
Average
Grant-Date
Fair ValueNon-vested at July 1, 2009




$
Granted


737,099

$
0.095Vested


737,099

$
0.095Non-vested at June 30, 2010




$



As
of June 30, 2010, there were also 35,728,177 warrants issued to institutional investors, consultants, and employees outstanding and exercisable ranging in prices from $.23 to
$.68 per share with a weighted average exercise price of $.35 per share. Of these warrants, none were newly or incrementally issued in fiscal 2010 and 2009.

(c)   Short-Term Incentive Compensation

For the fiscal year ended June 30, 2009, effective September 8, 2008, we adopted a One Year Short-term Incentive Compensation Plan to
provide executive officers an opportunity to earn shares of our common stock as a bonus and in lieu of cash compensation upon the achievement by the Company of certain stipulated and targeted EBITDA
amounts. The shares of common stock issued under this

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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(4) Equity (Continued)

plan
were based upon the closing stock price of the company's common stock as of June 30, 2010, which was $0.095. Based upon the reported EBITDA figures for the fiscal year ended
June 30, 2009 (see Managements' Discussion and Analysis), 737,099 shares of our common stock were earned by the corporate officers and were issued to the corporate officers at the end of
September 2009. The shares issued under this plan vested immediately upon issuance. No similar plan or issuance of stock was previously made under such a short-term plan at any time in the
Company's history prior to the fiscal year ended June 30, 2009, and no such plan or stock issuance was made for the current fiscal year ended June 30, 2010.

(d)   Redeemable Convertible Preferred Stock

On February 3, 2009, the Company entered into two agreements (the "Restructuring Agreements") to restructure the debt evidenced by convertible term notes
that Truk Opportunity Fund, LLC, a Delaware company; Truk International Fund, LP, a Cayman Islands company (collectively, "Truk"); and CAMOFI Master LDC, a Cayman Islands company,
formerly named DCOFI Master LDC, ("CAMOFI") purchased on May 19, 2005 and December 28, 2005. The Restructuring Agreements suspended all amortizing principal amount payments otherwise due
under each note, beginning November 1, 2008 and ending on the earlier of (i) the first day of the month next succeeding the closing of any new financing transaction or
(ii) May 1, 2009 (the "Repayment Date"), at which time payments would again have become due and payable on the first day of each subsequent month until December 31, 2009 (the
"Maturity Date"). Payments would be equal to the amount of principal outstanding divided by the number of months from the Repayment Date until the Maturity Date. On the Maturity Date, the amortizing
principal amount for each of the term notes and all other amounts due and owing must be repaid in full, whether by payment of cash, or at Truk's or CAMOFI's option, by the conversion into common
stock.

Under
the Restructuring Agreements, Truk and CAMOFI agreed that their security interest in the Company's accounts receivable and inventory would only be subordinated to that of the
lenders in any new financing, but that their security interest in all other assets of the Company will remain a perfected first security interest. This provision was effective upon completion of the
Financing Agreement with Benefactor. In addition, upon the closing of the Financing Agreement with Benefactor, the remaining principal balance of each outstanding term note held by Truk was increased
by five percent (5%), and is being accounted for as additional interest expense.

Simultaneously
with the execution of the Agreements:



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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(4) Equity (Continued)



(5) Commitments and Contingencies

(a)   Leases

The Company is obligated under various non-cancellable operating and capital leases primarily for its operating facilities and certain office
equipment. The leases generally require the Company to pay related insurance costs, maintenance costs and taxes. Rent expense on operating leases is reflected on a straight-line basis over
the lease term. Future minimum lease payments under non-cancelable leases, with initial or remaining terms in excess of one year, as of June 30, 2010, are as follows:

Capital
Leases

Operating
LeasesYears ending June 30:2011

$
74,758

$
567,8862012


8,779


581,5572013





575,4072014





213,313Total future minimum lease Payments

$
83,537

$
1,938,163Less amounts representing interest


(4,167
)Present value of minimum capital lease payments


79,370Less current portion


(70,758
)Capital lease obligations less current portion

$
8,612


Rent
expense totaled $308,870 and $322,191 for the years ended June 30, 2010 and 2009, respectively.

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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(5) Commitments and Contingencies (Continued)

(b)   Employment Agreements

The Company has employment agreements with five key employees, all of whom are also stockholders. In addition to salary and benefit provisions, each of the above
employment agreements is for an initial term of three years, provides for severance payments equal to twelve month's salary and benefits if the employment of the officer is terminated without cause
(as defined in the respective agreements), and an automobile expense reimbursement of $500 per month.

(c)   Redeemable Common Stock and Warrants

On July 1, 2002, as part of the Medical & Biological Laboratories Co., Ltd. (MBL) Agreement, MBL purchased shares of the Company's
common stock for $500,000, which MBL can require the Company to repurchase at the same price in the event that a previously existing distribution agreement with RhiGene, Inc. is terminated. For
no additional consideration, MBL was also issued warrants to purchase an additional 880,282 shares of Common Stock at a price of $.568 per share, which is equal to an aggregate amount of $500,000.
These warrants were due to expire on July 3, 2009 and may be exercised in whole or in part at any time prior to their expiration. The estimated fair value of the warrant upon issuance was
calculated as $401,809 using the Black-Scholes option-pricing model with the following assumptions: no expected dividend yield, 143% volatility, risk free interest rate of 4.2% and an expected life of
five years. The gross proceeds of $500,000 were allocated $277,221 to redeemable common stock and $222,779 to the related warrants based on the relative fair values of the respective instruments to
the fair value of the aggregate transaction. Issuance costs and the discount attributed to the redeemable common stock upon issuance were accreted over the 33-month period to the first
date whereupon the put option may be exercised, which was the expiration date of the distribution agreement between the Company and RhiGene, Inc. (March 31, 2008). Furthermore, pursuant
to the agreement with MBL, as long as MBL holds at least 50% of the common stock purchased under the MBL agreement, MBL must give its written consent with respect to the payment of any dividend, the
repurchase of any of the Company's equity securities, the liquidation or dissolution of the Company or the amendment of any provision of the Company's Articles of Incorporation or Bylaws which would
adversely affect the rights of MBL under the stock purchase transaction
documents. MBL was granted standard anti-dilution rights with respect to stock issuances not registered under the Securities Act. MBL also received standard piggyback registration rights
along with certain demand registration rights.

On
March 31, 2005, our distribution agreement with RhiGene expired, and we signed a new distribution and OEM Supply Agreement with MBL International, Inc., a wholly owned
subsidiary of MBL ("MBLI"), which granted us non-exclusive rights to distribute MBL's complete diagnostic line of autoimmune testing products in the U.S. and exclusive
distribution rights to the OEM label products worldwide, excluding the U.S., Japan, Korea and Taiwan. In addition, on August 1, 2005 the Company and MBL executed an Amendment to the Common
Stock Purchase Agreement and Common Stock Purchase Warrant wherein one-half, or 440,141, of the original redeemable shares were exchanged for a three-year promissory note
payable with interest at prime plus two percent (5.25% as of June 30, 2010) with payments having commenced in September, 2005. As of June 30, 2010, a total of 577,682 shares have been
returned to us pursuant to the two notes payable. The shares exchanged for the promissory

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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(5) Commitments and Contingencies (Continued)

note
will be returned to us quarterly on a pro rata basis as payments are made on the promissory note. The remaining 440,141 shares not covered by the promissory note were originally due to be
redeemed by us at $0.568 per share on August 1, 2009 for any shares still owned at that time by MBL but only to the extent that MBL has not realized at least $250,000 in gross proceeds upon the
sale of its redeemable shares in the open market for the time period August 1, 2006 through August 30, 2009. Finally, the warrants originally issued to MBL to purchase 880,282 shares
were initially extended to August 31, 2009 and re-priced from $0.568 per share to $0.40 per share in fiscal 2005.

As
of July 15, 2008, the Company reached agreement with MBL to amend certain provisions of our February 1, 2005 Exclusive Distribution Agreement, entered into a Memorandum
of Understanding Regarding AspirinWorks Distribution Rights in Japan, and executed a Second Amendment to Common Stock Purchase Agreement and Warrant. These new agreements and amendments add certain
products and transfer prices, call for the discussion of terms whereby MBL would be granted a worldwide OEM agreement for certain of the products in a designated territory, call for the payment by
Corgenix of royalties on certain proprietary products, which include proprietary technology of MBL, and call for the negotiation of terms of an exclusive distribution agreement for sales of
AspirinWorks in Japan. In addition, the Company and MBL, pursuant to the Second Amendment to Common Stock Purchase Agreement and Warrant, agreed that the warrant term was extended to August 1,
2010 and that one-half, or 220,071, of the remaining 440,171 redeemable shares were exchanged for a two-year promissory note payable with interest at prime plus two percent
(5.25% as of June 30, 2010) with payments having commenced September 1, 2008. The applicable prime rate is adjusted on a monthly basis. Based on our recalculations of the fair value of
the extended term warrants, we determined that the newly calculated value of said warrants did not materially increase in value as a result of this modification, and therefore, no adjustment to our
financial statements was considered necessary. The shares exchanged for the promissory note will be returned to the Company quarterly on a pro rata basis as payments are made on the promissory note.
As noted above, as of June 30, 2010, a total of 577,682 shares have been returned to us pursuant to the two notes payable. The companies further agreed that beginning September 1, 2008,
and continuing through August 1, 2010 (the maturity date of the Second Promissory Note), MBL will attempt to sell on the open market, the remaining 220,071 shares not subject to the Second
Promissory Note, at a price of $0.62 or greater. At
the close of business on August 1, 2010, MBL will then have the right to sell, and Corgenix will have the obligation to purchase, any remaining stock then held by MBL, at a price of $0.568 per
share. As of September, 2010, MBL and the Company have agreed to exchange the remaining redeemable shares for a two-year note, on similar terms to the two original notes.

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Table of Contents

CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(6) Income Taxes

On July 1, 2007, the Company adopted the guidance as set forth in theAccounting for Uncertainty in Income TaxesTopic of the FASB
ASC, which prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements, tax positions taken or expected to be taken on a tax return, including a
decision whether to file or not to file in a particular jurisdiction. If there are changes in net assets as a result of application of the guidance, these will be accounted for as an adjustment to
retained earnings. There were no unrecognized tax benefits as of July 1, 2007, the date that the guidance was adopted. If there was an adjustment related to implementation of the guidance,
there would be a reduction to the deferred tax assets and a corresponding reduction to the valuation allowance, resulting in no net effect on accumulated deficit. If any unrecognized benefit would be
recognized, it would not affect the Company's effective tax rate since it is subject to a full valuation allowance.

The
Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company has accrued $0 for interest and penalties as of
June 30, 2010.

Income
tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 38% to pretax income as a result of the following:

2010

2009Computed expected tax benefit

$
(2,000
)
$
(555,000
)Reduction (increase) in income taxes resulting from:Permanent differences:Amortization of debt discount


1,000


114,000Deferred financing costs


3,000


110,000Stock Options and Other


24,000


45,000Change in valuation allowance


(86,000
)

335,000Section 382 Limitation Free-up


(7,000
)

(92,000
)Expiration of research and development credit and other


67,000


43,000Foreign income tax benefit (expense)


16,318


(11,837
)$
16,318

$
(11,837
)


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Table of Contents

CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(6) Income Taxes (Continued)

Deferred
tax assets related to the Company's operations are comprised of the following at June 30, 2010.

2010

2009Deferred tax assets (liabilities):CurrentSalary and other accruals

$
51,000

$
36,000Bad debt allowance


11,000


39,000Section 263A inventory capitalization


41,000


32,000Non-CurrentTax effect of net operating loss carry forward and R & D credit carryforward


2,598,000


2,760,000Long-lived assets


176,000


95,000Net deferred tax assets


2,877,000


2,962,000Less valuation allowance


(2,877,000
)

(2,962,000
)Net deferred tax assets

$


$



At
June 30, 2010, the Company has a net operating loss carry forward for income tax purposes of approximately $5,800,000 expiring during the period from 2014 to 2028. Research and
experimentation tax credit carry forwards approximate $380,000. The utilization of net operating losses may also be limited due to a change in ownership under Internal Revenue Code Section 382.

A
valuation allowance in the amount of the deferred tax asset has been recorded due to management's determination that it is not more likely than not that the tax assets will be
utilized.

(7) Concentration of Credit Risk

The Company's customers are principally located in the U.S., although there are a few significant foreign customers. The Company performs periodic credit evaluations of its customers'
financial condition but generally does not require collateral for receivables. The Company's largest customer in 2010 and 2009 is headquartered in the U.S. and represented approximately 7.2% and 7.1%
of sales in the years ended June 30, 2010 and 2009, respectively, and 7.0% and 3.4% of accounts receivable at June 30, 2010 and 2009, respectively.

(8) Reportable Segments

The Company has two segments of business, North American and international operations. North American operations represent all sales in North America (U.S., Canada and Mexico).
International

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CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(8) Reportable Segments (Continued)

operations,
principally European, represent all other sales. The following table sets forth selected financial data for these segments for the years ended June 30, 2010 and 2009.

Year ended June 30, 2010North America

International

TotalNet sales

$
7,142,090

$
2,261,825

$
9,403,915Net salesintercompany


(1,145,745
)




(1,145,745
)Total net sales

$
5,996,345

$
2,261,825

$
8,258,170Depreciation and amortization

$
410,904

$
28,125

$
439,029Interest expense

$
313,590

$
7,473

$
321,063Net income (loss)

$
(521,012
)
$
523,403

$
2,391Segment assets

$
5,385,912

$
768,853

$
6,154,765




Year ended June 30, 2009North America

International

TotalNet salesexternal customers

$
6,986,663

$
2,337,952

$
9,324,615Net salesintercompany


(1,261,058
)




(1,261,058
)Total net sales

$
5,725,605

$
2,337,952

$
8,063,557Depreciation and amortization

$
428,410

$
19,608

$
448,018Interest expense

$
1,298,238

$
2,986

$
1,301,224Net income (loss)

$
(2,171,894
)
$
601,294

$
(1,570,600
)Segment assets

$
6,121,049

$
784,732

$
6,905,781


Intercompany
sales are recorded based upon normal sellng prices and are eliminated in consolidation.

(9) Subsequent Events

On July 12, 2010 we entered into a Common Stock Purchase Agreement (the "Common Stock Purchase Agreement") with Financière Elitech SAS, a
société par actions simplifiée organized under the laws of France ("Elitech"), and Wescor, Inc., a Utah corporation and subsidiary of Elitech
("Wescor"). In accordance with the Common Stock Purchase Agreement, Wescor will purchase up to two million dollars ($2,000,000) of the Company's common stock in three installments (subject to various
conditions) and will receive warrants to purchase additional shares. Also, in connection with the Common Stock Purchase Agreement, we entered into (i) a distribution agreement ("Master
Distribution Agreement") with Elitech UK Limited, a private limited company formed under the laws of the United Kingdom ("Elitech UK Limited") and (ii) a joint product development agreement
("Joint Product Development Agreement") with Elitech. The details of the Common Stock Purchase Agreement, Master Distribution Agreement, and Joint Product Development Agreement are outlined below.

The
investment by Wescor will take place over a maximum of three tranches:

First
Tranche under the Common Stock Purchase AgreementPursuant to the First Tranche of the Common Stock Purchase Agreement, on July 16, 2010, Wescor invested one
million two hundred

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Table of Contents

CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(9) Subsequent Events (Continued)

fifty
thousand dollars ($1,250,000) to purchase 8,333,334 shares of the Company's common stock valued at $0.15 per share. For no additional consideration the Company issued a warrant to Wescor to
purchase 4,166,667 shares at $0.15 per share. The Company entered into the Master Distribution Agreement with Elitech UK Limited and the Joint Product Development Agreement with Elitech,
contemporaneously with the issuance of the First Tranche Shares.

Second
Tranche under the Common Stock Purchase AgreementPursuant to the Second Tranche of the Common Stock Purchase Agreement, Wescor will invest two hundred fifty thousand
dollars ($250,000) to purchase 1,666,667 shares of our common stock valued at $0.15 per share. For no additional consideration we will issue a warrant to Wescor to purchase 833,333 shares at $0.15 per
share. As a condition to the closing of the Second Tranche, the Company will have effectively transferred its product distribution activity outside of North America from our subsidiary, Corgenix
U.K. Ltd., to Elitech UK Limited.

Third
Tranche under the Common Stock Purchase AgreementPursuant to the Third Tranche of the Common Stock Purchase Agreement, Wescor will invest five hundred thousand dollars
($500,000) to purchase 3,333,333 shares of our common stock valued at $0.15 per share. For no additional consideration we will issue a warrant to Wescor to purchase 1,666,667 shares at $0.15 per
share. As a condition to the closing of the Third Tranche, the Executive Committee established under the Joint Product Development Agreement will have determined the feasibility of creating not less
than two (2) new Corgenix assays as further described in the Joint Product Development Agreement.

In
connection with the Common Stock Purchase Agreement, at the initial closing, which occurred on July 16, 2010, we entered into the Master Distribution Agreement with Elitech UK
Limited, and we entered into the Joint Product Development Agreement with Elitech. Under the terms and conditions of the Master Distribution Agreement, and as a condition precedent to the closing of
the Second Tranche, Elitech UK Limited became the exclusive distributor of the Company's Products (as that term is defined therein) outside of North America. Accordingly, we along with Corgenix
U.K. Ltd, assigned and/or transferred the economic benefit to Elitech UK Limited, and Elitech UK Limited assumed all of the obligations of the Company or Corgenix U.K. Ltd. under all
distribution agreements executed by us or Corgenix U.K. Ltd., as the case may be, related to any distributor whose territory is outside of North America.

Under
the terms and conditions of the Joint Product Development Agreement the Company and Elitech will work towards developing efficient technology for the commercialization of
biochemical testing of substances related to human health. The goal of the co-development effort is the modification of certain of our assays for use in Elitech chemistry analyzers,
serology instruments or other instruments, and the commercialization of those modified assays by Elitech and its affiliates.
Phase I of the co-development is focused on the sharing and licensing of our assay technology to facilitate this purpose. The intent is that, in order to achieve joint development
of our assays modified to be used with certain Elitech technology, all of our relevant assay technology will be available to Elitech and its affiliates to establish the broadest common immunoassay
technology base to pursue co-development of new Corgenix assay technology. Such technology would include, for example, manufacturing know-how, testing and reliability
information, visits to production facilities, and technical consultation, for which the burden of disclosure is reasonable.

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Table of Contents

CORGENIX MEDICAL CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

June 30, 2010 and 2009

(9) Subsequent Events (Continued)

Wescor
has the right to designate one individual for election or appointment to our Board of Directors, for so long as Wescor owns at least five percent of our outstanding common stock.

After
the First Tranche closed, through to the third (3rd) anniversary of the First Tranche's closing date, the rights and responsibilities of Wescor with respect to a potential change
of control transaction by us will be governed by the Common Stock Purchase Agreement.

Pursuant
to the Common Stock Purchase Agreement, if our board determines to initiate the solicitation of offers or indications of interest in pursuing a Change of Control transaction, as
defined therein, (without having first received an unsolicited offer from a third party) then the board will, consistent with its fiduciary duty to maximize shareholder value, design a process in
consultation with legal counsel and any financial advisor the board elects. Wescor may participate in the process, on terms established by the Company's board to govern the solicitation of offers
process. The terms of the process are further outlined in the Common Stock Purchase Agreement.

Pursuant
to the Common Stock Purchase Agreement, if our board receives an unsolicited third-party offer (or indication of interest in making an offer) with respect to a Change of Control
transaction, we will provide written notice to Wescor. If our board elects to begin a process that could lead to a Change of Control then we will commence negotiations with the unsolicited bidder and
with Wescor to seek the highest value available from those parties. The terms of the process are further outlined in the Common Stock Purchase Agreement.

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Table of Contents

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

CORGENIX MEDICAL CORPORATIONSeptember 23, 2010By:

/s/ WILLIAM H. CRITCHFIELD William H. Critchfield Senior Vice President and
Chief Financial Officer

By:

/s/ DOUGLASS T. SIMPSON Douglass T. Simpson President, Chief Executive Officer and DirectorBy:

/s/ LUIS R. LOPEZ Luis R. Lopez Chief Medical Officer and DirectorBy:

/s/ ROBERT TUTAG Robert Tutag DirectorBy:

/s/ STEPHEN P. GOUZE Stephen P. Gouze Director and Chairman of the BoardBy:

/s/ LARRY G. RAU Larry G. Rau DirectorBy:

/s/ DENNIS WALCZEWSKI Dennis Walczewski DirectorBy:

/s/ C. DAVID KIKUMOTO C. David Kikumoto DirectorBy:

/s/ DAVID LUDVIGSON David Ludvigson Director


85

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