SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
(Amendment 1)
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 23, 2008
SIONIX CORPORATION
(Exact name of Company as specified in Charter)
Nevada | 002-95626-D | 87-0428526 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File No.) | (IRS Employee Identification No.) |
2082 Michelson Drive, Suite 306
Irvine, California 92612
(Address of Principal Executive Offices)
(949) 752-7980
(Issuer Telephone number)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Company under any of the following provisions (see General Instruction A.2 below).
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13(e)-4(c)) |
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
On May 28, 2008, Richard H. Papalian, our Chief Executive Officer, determined that the financial statements included in our Annual Report on Form 10-KSB (“Form 10-KSB”) as of and for the year ended September 30, 2007, and our Quarterly Report on Form 10-QSB (“Form 10-QSB”) as of and for the three months ended December 31, 2007, can no longer be relied upon. This determination was based on the results of an analysis performed by the Company on the classification and valuation of all outstanding securities and contracts that were exercisable or convertible into shares of our common stock as of September 30, 2007 and December 31, 2007. We filed a Current Report on Form 8-K disclosing this information on May 29, 2008 (the “Original Report”). We are filing this amendment to the Original Report to provide additional information about the restatement of our financial statements.
We determined that as of July 18, 2007, the number of shares of common stock that would be required to be issued if all of our convertible securities, including debt securities, options and warrants, were converted or exercised would exceed the number of shares of available, unissued, and authorized common stock. The result was that we no longer controlled share settlement under the guidance provided by Emerging Issue Task Force (EITF) 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, and we were, therefore, required to classify all outstanding securities or contracts convertible or exercisable into shares of our common stock as liabilities as of July 18, 2007.
We also determined that our original calculation relating to the number of shares of common stock that we would be required to issue if all of our convertible securities, including debt securities, options and warrants, were exercised or converted had been misstated as of September 30, 2007. The difference between the original calculation and the recalculation is illustrated below.
As Originally Calculated | As Recalculated | ||||||
| Authorized shares per Articles of Incorporation | 150,000,000 | 150,000,000 | |||||
| Outstanding shares | (106,635,201 | ) | (106,635,201 | ) | |||
| Available shares | 43,364,799 | 43,364,799 | |||||
| Securities convertible or exercisable into common stock shares: | |||||||
| 2001 Executive Officers Stock Option Plan | 7,343,032 | 7,034,140 | |||||
| Advisory Board Compensation | 11,520,000 | ||||||
| 2004 Stock Purchase Agreement | 1,463,336 | ||||||
| Warrants Related to 2004 Stock Purchase Agreement | 1,463,336 | ||||||
| Warrants Issued for Services | 1,010,000 | ||||||
| Beneficial Conversion Features | 32,009,087 | 36,606,318 | |||||
| Warrants Related to $1,025,000 of Subordinated Convertible Debentures | 2,159,088 | 2,795,454 | |||||
| 41,511,207 | 61,892,584 | ||||||
Adjustments to the original calculation included the following:
| 1. | In 2001, we adopted the 2001 Executive Officers Stock Option Plan. Options to purchase 7,034,140 shares of common stock have been issued from the plan. The original calculation indicated that options to purchase 7,343,032 shares of common stock were issued from the plan, an overstatement of 308,892 shares of common stock. |
| 2. | On October 1, 2004, we formed an advisory board consisting of four members. Each member was to receive $5,000 monthly from October 1, 2004 to February 22, 2007 (for a total of $576,000), convertible into shares of our common stock at $0.05 per share ($576,000/$.05 = 11,520,000 shares of common stock). This accrued expense, which was convertible into shares of our common stock, was not included in the original calculation. |
| 3. | Under the terms of a 2004 Stock Purchase Agreement, we were to issue 1,463,336 shares of common stock to certain investors that had previously remitted funds to us during the period from February 9, 2004 to August 25, 2004. These shares were not included in the original calculation. |
| 4. | Under the terms of the 2004 Stock Purchase Agreement, we issued warrants to purchase 1,463,336 shares of common stock to these investors at an exercise price of $0.03 per share. The warrants were not included in the original calculation. |
| 5. | On November 14, 2006, we entered into agreements for services pursuant to which we issued warrants to purchase a total of 1,010,000 shares of common stock. Of that amount, 850,000 shares may be purchased at an exercise price of $0.05 per share and 160,000 shares may be purchased at an exercise price of $0.25 per share. The warrants expire on November 13, 2011. These warrants were not included in the original calculation. |
| 6. | As of September 30, 2007, we had Convertible Bridge Notes (“Bridge Notes”) outstanding totaling $1,861,000 that included embedded beneficial conversion features that allowed for the conversion of the Bridge Notes into shares of common stock at rates between $0.01 and $0.22, and matured between June 2008 and December 2008. The Bridge Notes accrue interest at rates between 8% and 10%, and any accrued but unpaid interest is also convertible into shares of common stock. The original calculation of the beneficial conversion feature did not include accrued interest of $209,843 that could be converted into 4,597,231 shares of common stock at maturity. |
| 7. | On July 18, 2007 we completed an offering of $1,025,000 in principal amount of Subordinated Convertible Debentures to a group of institutional and accredited investors. As part of this offering we issued warrants to purchase 2,795,454 shares of common stock at a price of $0.50 per share. The number of warrant shares in the original calculation was 2,159,088. |
Based on the result of the recalculation, we analyzed the effect on the balance sheet and the statements of operations and cash flows for the classification and valuation for all outstanding securities and contracts that were exercisable or convertible into shares of common stock as of September 30, 2007.
In addition to the above analysis, we analyzed the classification of general and administrative expenses for the year ended September 30, 2007, and determined that research and development costs of $526,466, a legal settlement of $89,654 and income tax expense of $2,592 were incorrectly classified as general and administrative expenses.
Based on our analysis to date, table 1 shows the effect we expect the restatement to have on our balance sheet, statement of operations and statement of cash flows for the year ended September 30, 2007.
Table 1
As Previously Stated | 2001 Executive Officers Option Plan | Advisory Board Compensation | Warrants Related to 2004 Stock Purchase Agreement | Warrants Issued for Services | Beneficial Conversion Features and Beneficial Conversion Features Discount | Warrants Related to $1,025,000 of Convertible Bridge Notes and Warrant Discount | Reclassifications | As Restated | ||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
| Accrued expenses | $ | 1,687,673 | $ | 380,441 | $ | 2,068,114 | ||||||||||||||||||||||
| Convertible Notes, net | 920,337 | (73,114 | ) | (70,751 | ) | 776,472 | ||||||||||||||||||||||
| Warrant liability | - | 1,926,914 | 299,635 | 499,932 | 2,726,481 | |||||||||||||||||||||||
| Beneficial conversion | ||||||||||||||||||||||||||||
| feature liability | 576,000 | 1,430,812 | 2,006,812 | |||||||||||||||||||||||||
| Additional paid-in capital | 14,712,527 | (2,271,879 | ) | (45,663 | ) | (274,999 | ) | (1,021,569 | ) | (340,583 | ) | 10,757,834 | ||||||||||||||||
| Deficit accumulated | ||||||||||||||||||||||||||||
| during development stage | (17,300,147 | ) | 344,965 | (956,441 | ) | 45,663 | (24,636 | ) | (336,129 | ) | (88,598 | ) | (18,315,323 | ) | ||||||||||||||
Statement of Operations (for the | ||||||||||||||||||||||||||||
year ended September 30, 2007) | ||||||||||||||||||||||||||||
| General and administrative | $ | 1,423,347 | $ | 153,354 | $ | 55,398 | $ | 87,736 | $ | (618,712 | ) | $ | 1,101,123 | |||||||||||||||
| Research and development | - | 526,466 | 526,466 | |||||||||||||||||||||||||
| Interest expense | (550,935 | ) | (336,129 | ) | (55,179 | ) | (942,243 | ) | ||||||||||||||||||||
| Decrease in | ||||||||||||||||||||||||||||
| warrant liability | - | 344,965 | 70,029 | 30,762 | 54,317 | 500,073 | ||||||||||||||||||||||
| Increase in | ||||||||||||||||||||||||||||
| beneficial conversion feature | (4,044 | ) | (4,044 | ) | ||||||||||||||||||||||||
| Legal settlement | - | 89,654 | 89,654 | |||||||||||||||||||||||||
| Income tax expense | 2,592 | 2,592 | ||||||||||||||||||||||||||
Statement of Operations (since | ||||||||||||||||||||||||||||
inception) | ||||||||||||||||||||||||||||
| General and administrative | $ | 13,153,569 | $ | 250,546 | $ | 24,367 | $ | 55,398 | $ | 87,736 | $ | (618,712 | ) | $ | 12,952,904 | |||||||||||||
| Research and development | 1,449,474 | 526,466 | 1,975,940 | |||||||||||||||||||||||||
| Interest expense | (785,621 | ) | (336,129 | ) | (55,179 | ) | (1,176,929 | ) | ||||||||||||||||||||
| Decrease in | ||||||||||||||||||||||||||||
| warrant liability | - | 344,965 | 70,029 | 30,762 | 54,317 | 500,073 | ||||||||||||||||||||||
| Increase in | ||||||||||||||||||||||||||||
| beneficial conversion feature | (4,044 | ) | (4,044 | ) | ||||||||||||||||||||||||
| Legal settlement | (434,603 | ) | 89,654 | (344,949 | ) | |||||||||||||||||||||||
| Income tax expense | 9,900 | 2,592 | 12,492 | |||||||||||||||||||||||||
Statement of Cash Flows (for the | ||||||||||||||||||||||||||||
year ended September 30, 2007) | ||||||||||||||||||||||||||||
| Net loss | $ | (2,001,094 | ) | $ | 344,965 | $ | (157,398 | ) | $ | 70,029 | $ | (24,636 | ) | $ | (336,129 | ) | $ | (88,598 | ) | $ | (2,192,861 | ) | ||||||
| Advisory board compensation earned | ||||||||||||||||||||||||||||
| prior to October 1, 2007 | (480,000 | ) | (480,000 | ) | ||||||||||||||||||||||||
| Increase in fair value of beneficial | ||||||||||||||||||||||||||||
| conversion features related to | ||||||||||||||||||||||||||||
| advisory board compensation | (269,851 | ) | (269,851 | ) | ||||||||||||||||||||||||
| Amortization of beneficial conversion | ||||||||||||||||||||||||||||
| features liability discount | ||||||||||||||||||||||||||||
| related to advisory board | ||||||||||||||||||||||||||||
| compensation prior to October 1, 2007 | (49,193 | ) | (49,193 | ) | ||||||||||||||||||||||||
| Stock based compensation expense- | ||||||||||||||||||||||||||||
| consultant | 84,292 | 55,398 | 124,697 | 264,387 | ||||||||||||||||||||||||
| Decrease in warrant liability | - | (344,965 | ) | (70,029 | ) | (30,762 | ) | (54,317 | ) | (500,073 | ) | |||||||||||||||||
| Increase in beneficial conversion | ||||||||||||||||||||||||||||
| feature liability | 4,044 | 4,044 | ||||||||||||||||||||||||||
| Accrued expenses | 566,277 | 895,044 | (15,376 | ) | 1,445,945 | |||||||||||||||||||||||
| Accrual of liquidating damages | - | 15,375 | 15,375 | |||||||||||||||||||||||||
As Previously Stated | 2001 Executive Officers Stock Option Plan | Advisory Board Compensation | Warrants Related to 2004 Stock Purchase Agreement | Warrants Issued for Services | Beneficial Conversion Features and Beneficial Conversion Features Discount | Warrants Related to $1,025,000 of Convertible Bridge Notes and Warrant Discount | Reclassifications | As Restated | ||||||||||||||||||||
Statement of Cash Flows (since | ||||||||||||||||||||||||||||
inception) | ||||||||||||||||||||||||||||
| Net loss | $ | (17,300,147 | ) | $ | 344,965 | $ | (956,441 | ) | $ | 45,663 | $ | (24,636 | ) | $ | (336,129 | ) | $ | (88,598 | ) | $ | (18,315,323 | ) | ||||||
| Advisory board compensation earned | ||||||||||||||||||||||||||||
| prior to October 1, 2007 | (480,000 | ) | (480,000 | ) | ||||||||||||||||||||||||
| Increase in fair value of beneficial | ||||||||||||||||||||||||||||
| conversion features related to | ||||||||||||||||||||||||||||
| advisory board compensation | (269,851 | ) | (269,851 | ) | ||||||||||||||||||||||||
| Amortization of beneficial conversion | ||||||||||||||||||||||||||||
| features liability discount | ||||||||||||||||||||||||||||
| related to advisory board | ||||||||||||||||||||||||||||
| compensation prior to October 1, 2007 | (49,193 | ) | (49,193 | ) | ||||||||||||||||||||||||
| Stock based compensation expense- | ||||||||||||||||||||||||||||
| consultant | 84,292 | 55,398 | 124,697 | 264,387 | ||||||||||||||||||||||||
| Decrease in warrant liability | - | - | - | - | - | - | ||||||||||||||||||||||
| Increase in beneficial conversion | ||||||||||||||||||||||||||||
| feature liability | - | - | ||||||||||||||||||||||||||
| Amortization of consulting fees | 13,075 | (13,075 | ) | - | ||||||||||||||||||||||||
| Increase in warranty liability | - | (344,965 | ) | - | (70,029 | ) | (30,762 | ) | (54,317 | ) | (500,073 | ) | ||||||||||||||||
| Decrease in other assets | 40,370 | (40,370 | ) | - | ||||||||||||||||||||||||
| Increase in advances to employees | (512,077 | ) | 512,077 | - | ||||||||||||||||||||||||
| Decrease in other receivables | 3,000 | (3,000 | ) | - | ||||||||||||||||||||||||
| Increase in deposits | (104,600 | ) | 104,600 | - | ||||||||||||||||||||||||
| Other current assets | - | (509,077 | ) | (509,077 | ) | |||||||||||||||||||||||
| Other assets | - | (64,230 | ) | (64,230 | ) | |||||||||||||||||||||||
| Accrued expenses | 1,702,873 | (14,427 | ) | 1,688,446 | ||||||||||||||||||||||||
| Accrual of liquidating damages | 15,375 | 15,375 | ||||||||||||||||||||||||||
| Proceeds from issuance of notes | 2,318,433 | (457,433 | ) | 1,861,000 | ||||||||||||||||||||||||
| Proceeds from notes payable, related party | - | 457,433 | 457,433 | |||||||||||||||||||||||||
| Increase in fair value of warrants | ||||||||||||||||||||||||||||
| at date of issuance | (25,050 | ) | (25,050 | ) | ||||||||||||||||||||||||
| Increase in fair value of beneficial | ||||||||||||||||||||||||||||
| conversion features discount | ||||||||||||||||||||||||||||
| at date of issuance | (473,798 | ) | (473,798 | ) | ||||||||||||||||||||||||
| Issuance of common stock for cash | 7,376,094 | 10,000 | 7,386,094 | |||||||||||||||||||||||||
| Receipt of cash for stock to be issued | 53,900 | (10,000 | ) | 43,900 | ||||||||||||||||||||||||
We also undertook this analysis for the three month period ended December 31, 2007 and we again determined that the number of shares of common stock that we would be required to issue if all of our convertible securities were exercised or converted had been misstated.
Based on our analysis to date, table 2 shows the effect we expect the restatement to have on our balance sheet, statement of operations and statement of cash flows for the three months ended December 31, 2007.
Table 2
As Previously Stated | 2001 Executive Officers Option Plan | Advisory Board Compensation | Warrants Related to 2004 Stock Purchase Agreement | Warrants Issued for Services for the Year Ended September 30, 2007 | Beneficial Conversion Features and Beneficial Conversion Features Discount | Warrants Related to $1,025,000 of Convertible Bridge Notes and Warrant Discount | Warrants Issued to Consultant for the Three Months Ended December 31, 2007 | Options Issued to Employees for the Three Month Period Ended December 31, 2007 | Reclassifications | As Restated | ||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||||||||
| Accrued expenses | $ | 1,777,077 | $ | 395,545 | $ | 2,172,622 | ||||||||||||||||||||||||||||
| Convertible Notes, net | 1,229,817 | (17,076 | ) | (40,686 | ) | 1,172,055 | ||||||||||||||||||||||||||||
| Warrant liability | - | 1,223,588 | 206,873 | 321,777 | 1,515,432 | 1,870,362 | 5,138,032 | |||||||||||||||||||||||||||
| Beneficial conversion | ||||||||||||||||||||||||||||||||||
| feature liability | - | 576,000 | 1,222,662 | 1,798,662 | ||||||||||||||||||||||||||||||
| Additional paid-in capital | 15,643,156 | (2,271,879 | ) | (45,663 | ) | (375,810 | ) | (1,021,569 | ) | (340,583 | ) | (414,909 | ) | (414,909 | ) | 10,757,834 | ||||||||||||||||||
| Deferred warrant expense | (67,038 | ) | 67,038 | |||||||||||||||||||||||||||||||
| Deficit accumulated | ||||||||||||||||||||||||||||||||||
| during development stage | (19,096,592 | ) | 1,048,291 | (971,545 | ) | 45,663 | 101,899 | (184,017 | ) | 59,492 | (1,100,523 | ) | (1,455,452 | ) | (21,552,784 | ) | ||||||||||||||||||
Statement of Operations (for the three months ended December 31, 2007) | ||||||||||||||||||||||||||||||||||
| General and administrative | $ | 1,367,677 | $ | 15,104 | $ | (33,773 | ) | $ | 1,033,412 | $ | 1,372,624 | $ | 3,755,044 | |||||||||||||||||||||
| Interest expense | (188,625 | ) | (288,036 | ) | (30,065 | ) | (506,726 | ) | ||||||||||||||||||||||||||
| Decrease (increase) in | ||||||||||||||||||||||||||||||||||
| warrant liability | 703,326 | 92,762 | 178,155 | (67,111 | ) | (82,829 | ) | 824,303 | ||||||||||||||||||||||||||
| Increase in beneficial | ||||||||||||||||||||||||||||||||||
| conversion feature liability | 208,150 | 208,150 | ||||||||||||||||||||||||||||||||
| Beneficial conversion | ||||||||||||||||||||||||||||||||||
| feature expense | (231,998 | ) | 231,998 | - | ||||||||||||||||||||||||||||||
Statement of Operations (since inception) | ||||||||||||||||||||||||||||||||||
General and administrative | $ | 14,519,764 | $ | 265,650 | $ | 24,367 | $ | 21,625 | $ | 87,736 | $ | 1,033,412 | $ | 1,372,624 | $ | (618,712 | ) | $ | 16,706,466 | |||||||||||||||
| Research and development | 1,449,474 | 526,466 | 1,975,940 | |||||||||||||||||||||||||||||||
| Interest expense | (658,869 | ) | (939,542 | ) | (85,244 | ) | (1,683,655 | ) | ||||||||||||||||||||||||||
| Decrease in | ||||||||||||||||||||||||||||||||||
| warrant liability | 1,048,291 | 70,029 | 123,524 | 232,472 | (67,111 | ) | (82,829 | ) | 1,324,376 | |||||||||||||||||||||||||
| Increase in beneficial | ||||||||||||||||||||||||||||||||||
| conversion feature liability | (273,895 | ) | 208,150 | (65,745 | ) | |||||||||||||||||||||||||||||
| Beneficial conversion | ||||||||||||||||||||||||||||||||||
| feature expense | (548,858 | ) | 548,858 | - | ||||||||||||||||||||||||||||||
| Legal settlement | 434,603 | (89,654 | ) | 344,949 | ||||||||||||||||||||||||||||||
| Income taxes | 10,800 | 2,592 | 13,392 | |||||||||||||||||||||||||||||||
Statement of Cash Flows (for the three months ended December 31, 2007) | ||||||||||||||||||||||||||||||||||
| Net loss | $ | (1,796,444 | ) | $ | 703,326 | $ | (15,104 | ) | $ | 126,535 | $ | (207,898 | ) | $ | 208,220 | $ | (966,301 | ) | $ | (1,289,795 | ) | $ | (3,237,461 | ) | ||||||||||
Amortization of beneficial conversion | ||||||||||||||||||||||||||||||||||
features discount and warrant discount | 309,480 | 15,104 | 56,038 | 30,065 | 410,687 | |||||||||||||||||||||||||||||
| Stock based compensation | ||||||||||||||||||||||||||||||||||
expense-employee | 414,909 | 1,372,624 | 1,787,533 | |||||||||||||||||||||||||||||||
| Stock based compensation | ||||||||||||||||||||||||||||||||||
expense-consultant | 414,909 | 1,033,412 | 1,448,321 | |||||||||||||||||||||||||||||||
(Decrease) increase in warrant liability | (703,326 | ) | (92,762 | ) | (178,155 | ) | 67,111 | 82,829 | (824,303 | ) | ||||||||||||||||||||||||
| Increase in beneficial conversion | ||||||||||||||||||||||||||||||||||
| feature liability | (208,150 | ) | (208,150 | ) | ||||||||||||||||||||||||||||||
| Accrued expenses | 135,529 | (46,125 | ) | 89,404 | ||||||||||||||||||||||||||||||
| Accrual of liquidating damages | 46,125 | 46,125 |
| As Previously Stated | 2001 Executive Officers Option Plan | Advisory Board Compensation | Warrants Related to 2004 Stock Purchase Agreement | Warrants Issued for Services for the Year Ended September 30, 2007 | Beneficial Conversion Features and Beneficial Conversion Features Discount | Warrants Related to $1,025,000 of Convertible Bridge Notes and Warrant Discount | Warrants Issued to Consultant for the Three Months Ended December 31, 2007 | Options Issued to Employees for the Three Month Period Ended December 31, 2007 | Reclassifications | As Restated | ||||||||||||||||||||||||
Statement of Cash Flows (since inception) | ||||||||||||||||||||||||||||||||||
| Net loss | $ | (19,096,592 | ) | $ | 1,048,291 | $ | (32,504 | ) | $ | 45,662 | $ | 126,535 | $ | (1,147,692 | ) | $ | 59,492 | $ | (1,100,523 | ) | $ | (1,455,453 | ) | $ | (21,552,784 | ) | ||||||||
Amortization of beneficial conversion feature discount and warrant discount | 231,998 | 265,650 | 661,620 | 85,244 | 1,244,512 | |||||||||||||||||||||||||||||
Stock based compensation expense - employee | 414,909 | 1,372,624 | 1,835,957 | 3,623,490 | ||||||||||||||||||||||||||||||
Stock based compensation expense - consultant | 414,909 | 1,033,412 | 2,360,944 | 3,809,265 | ||||||||||||||||||||||||||||||
| Warrants issued for consulting services | 217,366 | (217,366 | ) | - | ||||||||||||||||||||||||||||||
| Issuance of Common Stock for compensation | 1,835,957 | (1,835,957 | ) | - | ||||||||||||||||||||||||||||||
| Issuance of Common Stock for services | 2,181,486 | (2,181,486 | ) | - | ||||||||||||||||||||||||||||||
| Decrease in warrant liability | (1,048,291 | ) | (70,029 | ) | (123,524 | ) | (232,472 | ) | 67,111 | 82,829 | (1,324,376 | ) | ||||||||||||||||||||||
| Decrease in beneficial conversion feature liability | 4,044 | (208,150 | ) | (204,106 | ) | |||||||||||||||||||||||||||||
| Increase in other assets | 40,372 | (40,372 | ) | - | ||||||||||||||||||||||||||||||
| Increase in advances to employees | (512,077 | ) | 512,077 | - | ||||||||||||||||||||||||||||||
| Decrease in other receivables | 3,000 | (3,000 | ) | - | ||||||||||||||||||||||||||||||
| Increase in deposits | (104,600 | ) | 104,600 | - | ||||||||||||||||||||||||||||||
| Other current assets | (509,077 | ) | (509,077 | ) | ||||||||||||||||||||||||||||||
| Other assets | (64,228 | ) | (64,228 | ) | ||||||||||||||||||||||||||||||
| Accrued expenses | 1,702,873 | 970,021 | 2,672,894 | |||||||||||||||||||||||||||||||
| Accrual of liquidating damages | - | |||||||||||||||||||||||||||||||||
| P roceeds from issuance of notes | 2,313,433 | (2,313,433 | ) | - | ||||||||||||||||||||||||||||||
| Proceeds from convertible notes payable | 1,861,000 | 1,861,000 | ||||||||||||||||||||||||||||||||
| Proceeds from notes payable to related party | 457,433 | 457,433 | ||||||||||||||||||||||||||||||||
| P ayments on notes payable to related party | (5,000 | ) | (5,000 | ) | ||||||||||||||||||||||||||||||
| Issuance of common stock for cash | 7,376,094 | 10,000 | 7,386,094 | |||||||||||||||||||||||||||||||
| Receipt of cash for stock to be issued | 53,900 | (10,000 | ) | 43,900 | ||||||||||||||||||||||||||||||
We are in the process of amending our 10-KSB and 10-QSB to include the restated financial information. We intend to file these amendments as soon as practicable.
Our Chief Executive Officer discussed with our independent public accountant, Kabani & Company, Inc., the matters disclosed in the Original Report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Current Report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 23, 2008
| SIONIX CORPORATION | |||
| By: | /s/ Richard H. Papalian | ||
| Richard H. Papalian, Chief Executive Officer | |||