LOS ANGELES, CA--(Marketwire - May 18, 2011) - Sionix Corporation (OTCBB: SINX), designer of innovative and patented advanced mobile water treatment systems, today reported financial results for the second quarter of fiscal 2011 ended March 31, 2011.
"The Sionix unit initially sold to Wenning Poultry is in the process of being repurposed for another customer opportunity," said James R. Currier, chairman and chief executive officer of Sionix. "This contract taught us valuable lessons as we establish the commercial benefit of our mobile water treatment systems (MWTS) for the need to conduct more extensive testing and evaluation of customer needs and water characteristics."
"Our patent protected product is designed to fill the need for a mobile, cost effective water filtering process for very small particle contaminants. We believe our solution has wide application across many industries and we are focusing initially on oil and gas, agriculture, and disaster relief. We are in the process of building a pipeline of sales opportunities in all these areas," added Mr. Currier.
"In oil and gas we are in discussions with several companies where we believe our product fills the continuous need for treated water required in the drilling process, typically in remote locations. In agriculture, we believe that our process can help improve the profitability of farmers and food producers who can resell the by-products of the water treatment process. And in disaster relief our product can provide the solutions for many types of water issues. For example, the recent events in Japan have created a need for water treatment of water contaminated with radioactive particles, as well as sewage and potable water needs at refugee centers. We are pleased to be able to provide assistance with the many needs for treated water in Japan."
Operating expenses were $1,043,830 in the second quarter of fiscal 2011 ended March 31, 2011 compared to $511,995 in the quarter ended March 31, 2010. The increase was due primarily to a non-cash charge for stock compensation related to new management personnel in the amount of $378,345, as well as initial sales and marketing expenses. Other income in the second quarter of fiscal 2011 was $354,250 which included the recognition of the net value of the Wenning Poultry deposit of $470,132. The net loss for the quarter ended March 31, 2011 was $(689,580), or $0.00 per share, compared to a net loss of $(400,364), or $0.00 per share, for the comparable period in fiscal 2010. The per share number was based on diluted weighted average common shares outstanding of 242,087,740 in the second quarter of fiscal 2011 compared to 149,055,621 diluted weighted average common shares outstanding in the second quarter of fiscal 2010.
For the six month period ended March 31, there was no revenue recorded in the first six months of fiscal 2011 compared to revenue of $1,620,000 for the six months ended March 31, 2010. Operating expenses were $1,861,141 in the first six months of fiscal 2011 ended March 31, 2011 compared to $882,562 in the six months ended March 31, 2010. The increase was due to non-cash charges for stock compensation related to new management personnel in the amount of $533,193, and initial spending for sales and marketing. The net loss for the six months ended March 31, 2011 was $(1,920,171), or a loss of $(0.01) per share, compared to net income of $4,337,611, or $0.03 per share, for the comparable period in fiscal 2010. Net income in the six months of fiscal 2010 included a gain on the change in the fair value of warrant/option liability and beneficial conversion liability of $5,319,942. The per share numbers were based on diluted weighted average common shares outstanding of 234,246,823 in the six months of fiscal 2011 compared to 177,006,938 diluted weighted average common shares outstanding in the six months of fiscal 2010.
About Sionix Corporation
Based in Los Angeles, CA, Sionix designs innovative and advanced water treatment systems intended for use in energy, government facilities, healthcare facilities, emergency water supplies during natural disasters, housing development projects, and various industrial processes including subterranean fracturing used in oil and gas drilling. These systems are designed to be located adjacent to contaminated water sites thus reducing cost and toxic exposure and can be used to remove organic materials including oil, waste and other infectious bacteria from contaminated resources. They can be also used as pre-treatment for reverse osmosis and other membrane applications. Industries involved in dairy, agribusiness, meat processing, mining, poultry operations, and many others can benefit from Sionix's cost-effective, easily maintained, portable water treatment systems. For more information about the company, go to www.sionix.com.
About Sionix Technology
Using a patented dissolved air flotation (DAF) technology packaged in a mobile shipping container, air bubbles between the size of 1 and 2 microns are injected and float organic contaminants to the surface where 99.95% are skimmed off, and a majority of inorganic contaminants are also captured and removed. This compares to standard DAF units which historically have been limited to using bubble sizes of 50 microns or larger. The size of these bubbles are important because the smaller the bubble, the greater the surface tension and the greater the electrical charge. They can then hold together longer and elevate more organic contaminants to the surface for removal.
Sionix Corporation
Balance Sheets
(Unaudited)
As of As of
March 31, September 30,
2011 2010
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 3,757 $ 23,084
Other receivable - 1,500
Inventory 638,865 579,160
Other current assets 54,343 11,750
------------ ------------
Total current assets 696,965 615,494
Non-current assets:
Property and equipment, net 36,492 38,599
------------ ------------
Total assets $ 733,457 $ 654,093
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 308,084 $ 215,842
Accrued expenses 968,153 943,485
Deferred revenue - 300,000
Notes payable - related parties 37,000 27,000
Convertible notes, net of debt discount 1,459,527 1,470,776
10% subordinated convertible notes 56,615 56,615
Shares to be issued 4,800 -
Derivative liability 125,233 137,053
------------ ------------
Total current liabilities 2,959,412 3,150,771
------------ ------------
Stockholders' deficit:
Preferred stock, $0.001 par value,
10,000,000 shares authorized at December
31, 2010 - -
Common stock, $0.001 par value (600,000,000
shares authorized; 244,088,755 and
217,154,741 shares issued and outstanding
at March 31, 2011 and September 30, 2010,
respectively) 244,089 217,155
Additional paid-in capital 25,049,194 22,885,234
Accumulated deficit (27,519,238) (25,599,067)
------------ ------------
Total stockholders' deficit (2,225,955) (2,496,678)
------------ ------------
Total liabilities and stockholders'
deficit $ 733,457 $ 654,093
============ ============
Sionix Corporation
Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
-------------------------- --------------------------
2011 2010 2011 2010
------------ ------------ ------------ ------------
Net revenues $ - $ - $ - $ 1,620,000
Cost of sales - - - 1,091,500
------------ ------------ ------------ ------------
Gross profit - - - 528,500
------------ ------------ ------------ ------------
Operating expenses
General and
administrative 827,584 498,965 1,477,194 751,720
Sales and
marketing 120,237 - 204,507 -
Research and
development 92,579 7,323 174,206 118,266
Depreciation and
amortization 3,430 5,707 5,234 12,576
------------ ------------ ------------ ------------
Total operating
expenses 1,043,830 511,995 1,861,141 882,562
------------ ------------ ------------ ------------
(Loss) income from
operations (1,043,830) (511,995) (1,861,141) (354,062)
------------ ------------ ------------ ------------
Other income
(expense)
Interest expense
and financing
costs (90,421) (365,587) (195,613) (449,597)
Gain (loss) on
change in fair
value of:
Derivative
liability (16,900) - (22,457) -
Warrant and
option
liability - 353,353 - 4,359,957
Beneficial
conversion
liability - 93,595 - 959,985
Other income 470,132 - 470,132 -
Legal settlements - - (236,821) -
Gain (loss) on
settlement of
debt (8,561) 30,000 (74,271) 30,000
Loss on lease
termination - - - (197,455)
Loss on asset
disposition - - - (11,217)
------------ ------------ ------------ ------------
Total other
income
(expense) 354,250 111,361 (59,030) 4,691,673
------------ ------------ ------------ ------------
(Loss) income
before income
taxes (689,580) (400,634) (1,920,171) 4,337,611
Income taxes - - - -
------------ ------------ ------------ ------------
Net (loss) income
attributable to
common
shareholders $ (689,580) $ (400,634) $ (1,920,171) $ 4,337,611
============ ============ ============ ============
Basic (loss) income
per share $ (0.00) $ (0.00) $ (0.01) $ 0.03
============ ============ ============ ============
Diluted (loss)
income per share $ (0.00) $ (0.00) $ (0.01) $ 0.03
============ ============ ============ ============
Basic weighted
average number of
shares of common
stock outstanding 242,087,740 149,055,621 234,246,823 148,682,785
============ ============ ============ ============
Diluted weighted
average number of
shares of common
stock outstanding 242,087,740 149,055,621 234,246,823 177,006,938
============ ============ ============ ============
Contact Information:
Company Contact:
David R. Wells
President & Chief Financial Officer
T:704-971-8403
drwells@sionix.com
Investor Relations Contact:
Stephanie Prince/Jody Burfening
Lippert/Heilshorn & Associates
T: 212-838-3777
sprince@lhai.com