UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report ~~(Date of earliest date reported)~~: ~~September~~ 17October 10, ~~2007~~2008

ISONICS CORPORATION

(~~Exact~~Name ~~name~~ of ~~registrant~~small business issuer as specified in its charter)

California	001-12531	77-0338561
State of	Commission File	IRS Employer
Incorporation	Number	Identification No.

5906535 McIntyre8th StreetAvenue, Golden3rd Floor, ColoradoNew 80403York, NY 10018

Address of principal executive offices

~~303~~(212) 356-~~279-7900~~7400

Telephone number, including

Area code

Not applicable

Former name or former address if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to to simultaneously satisfy the filing obligation of the registrant under any of ~~the~~ the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Item 3.0102 –Unregistered ~~Notice~~Sales of ~~Delisting~~Equity ~~or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing~~Securities

OnIn ~~September~~May, 17June and November 2006, and April 2007, weIsonics ~~received~~Corporation ~~two~~(the ~~letters~~“Company”) issued ~~from~~YA ~~the~~Global ~~Nasdaq~~Investments, ~~Stock Market~~L.P. (“~~Nasdaq~~YA Global”), ~~advising~~formerly usknown ~~that~~as weCornell Capital ~~failed~~Partners, LP, a total of four convertible debentures having an aggregate face amount of $18,000,000. On June 13, 2008 the Company issued YA Global a non-convertible term note in the face amount of $1,175,000, and on the same date issued non-convertible notes to ~~meet~~replace ~~certain~~both ~~requirements~~the ~~for~~debenture originally issued in June 2006 and the ~~continued~~debenture ~~listing~~originally issued in November 2006. Accordingly, only the debentures originally issued in May 2006 (the “May 2006 Debenture”) and April 2007 are still convertible into shares of our common stock.

~~The~~On ~~first~~both ~~letter~~September 23, ~~from~~2008 ~~Nasdaq~~and ~~advised us that~~October 10, 2008 ~~based~~YA onGlobal ~~our~~converted ~~Form~~a ~~10-Q for~~portion of the ~~three~~May 2006 ~~months~~Debenture ~~ended~~into ~~July~~shares of ~~31,~~Company ~~2007,~~common westock ~~failed~~ to ~~meet~~partially satisfy the ~~requirements~~amount due under that ~~for~~debenture. On ~~continued~~those ~~listing~~dates ~~found~~YA inGlobal ~~Marketplace~~did not ~~Rule~~convert ~~4310(c)(3),~~any ~~which~~portion ~~requires~~of the other debentures or notes issued to YA Global ~~that,~~into ~~for~~shares ~~continued~~of ~~listing~~our oncommon ~~Nasdaq~~stock, weand ~~maintain~~therefore ~~any~~only ~~one~~the ofamount due under the May 2006 was reduced. The following sets forth the information required by Item 701 of Regulation S-K in connection with the issuances:

~~(i) stockholders’ equity of $2~~1.5 On ~~million;~~September 23, ~~(ii)~~2008 ~~market~~YA ~~value~~Global ofconverted $3,500 ~~listed securities~~ of ~~$35~~face ~~million;~~amount ~~or (iii) net income from continuing operations~~ of ~~$500,000 in~~ the ~~most~~May 2006 ~~recently~~Debenture ~~completed~~into ~~fiscal~~1,060,606 ~~year~~shares ~~or in two~~ of Company ~~the~~common ~~last three most recently completed fiscal years~~stock.

(a) The ~~letter went on to state that Nasdaq is reviewing our eligibility~~ ~~for~~transaction ~~continued~~was ~~listing~~completed oneffective ~~the~~as ~~Nasdaq Capital Market and has requested that we provide by October 2, 2007, our plan to achieve and sustain compliance with all the Nasdaq Capital Market listing requirements. If at the conclusion~~ of ~~the review process it is determined that our plan does not adequately address the issues noted~~September 23, ~~we most likely will be delisted from Nasdaq, although we would have the right to appeal Nasdaq’s decision to a Nasdaq Listing Qualifications Panel~~2008. Due to our current financial condition as disclosed in our Form 10-Q for the three months ended July 31, 2007, we can offer no assurance (and, in fact, it may be less likely than not) that we will be able to provide to Nasdaq a plan which indicates our ability to both meet and sustain compliance with all listing requirements.

The second letter from Nasdaq advised us that the minimum bid price of our common stock had closed below $1.00 per share for the previous 30 consecutive business days, and, as a result, did not comply with Marketplace Rule 4310(cb)~~(4) (the “Rule”). Therefore,~~ There inwas ~~accordance~~no ~~with~~placement ~~Marketplace~~agent ~~Rule 4310(c)(8)(D), we have been provided 180 calendar days,~~ or ~~until~~underwriter March 17, 2008, to regain compliance with the Rule (which consists of the bid price of our common stock closing at $1.00 per share or more or a minimum of 10 consecutive business days). If we are delisted from Nasdaq because of our failure to meet the requirements of Marketplace Rule 4310(c)(3) (discussed above), the requirements of this letter become moot. If we remain listed on Nasdaq for the ~~180 day curative period and still fail to obtain compliance with the $1~~transaction.00 minimum bid price as of March 17, 2008, we will be granted an additional 180 calendar days to obtain compliance as long as we meet the Nasdaq Capital Market initial listing criteria as set forth in Marketplace Rule 4310(c), except for the bid price requirement. If we are not eligible for the additional compliance period, we may be delisted by Nasdaq at that time.

On(c) The shares ~~September~~were ~~21,~~not ~~2007~~issued ~~and~~ in ~~accordance~~consideration ~~with~~for ~~Marketplace Rule 4803(a)~~cash, we ~~issued~~however ~~a press release regarding~~ the ~~letters~~amount ~~received~~due ~~from Nasdaq, a copy of~~under ~~which~~the isMay 2006 ~~attached~~Debenture ~~hereto~~was asreduced ~~Exhibit 99.1 and incorporated herein~~ by ~~reference~~$3,500.

(d) We relied on the exemption from registration provided by Sections 4(2) and 4(6) under the Securities Act of 1933 for this transaction. We did not engage in any public advertising or general solicitation in connection with this transaction, and we provided YA Global with disclosure of all aspects of our business, including our reports filed with the Securities and Exchange Commission, our press releases, and other financial, business, and corporate information. We believe that YA Global obtained all information regarding the Company it requested, received answers to all questions it (and its advisors) posed, and otherwise understood the risks of accepting our securities for investment purposes. Further, based on representations previously made to us, we believe that YA Global is an accredited investor.

~~Item~~(e) The common ~~9.01~~stock –issued ~~Financial~~in ~~Statements~~this ~~and~~transaction ~~Exhibits~~is not convertible or exchangeable.

(a)	Financial Statements of Businesses Acquired.
	Not applicable.
(b)	Pro forma financial information.
	Not applicable.
(d)	Exhibits
	99.1	Press release dated September 21, 2007.

2. On October 10, 2008 YA Global converted $1,100 of face amount of the May 2006 Debenture into 1,100,000 shares of Company common stock.

~~SIGNATURES~~(a) The transaction was completed effective as of October 10, 2008.

~~Pursuant to the requirements of the Securities Exchange Act of 1934,~~(b) There ~~the~~was ~~registrant~~no ~~caused~~placement ~~this~~agent ~~report~~or tounderwriter befor ~~signed on its behalf by~~ the ~~undersigned,~~ ~~thereunto duly authorized, on the 21st day of September 2007~~transaction.

~~Isonics~~(c) The shares ~~Corporation~~were ~~By:~~not ~~/s/~~issued ~~John~~in ~~Sakys~~consideration ~~John~~for ~~Sakys~~cash, ~~President~~however the amount due under the May 2006 Debenture was reduced by $1,100.

(e) The common stock issued in this transaction is not convertible or exchangeable.

SIGNATURES

Pursuant to 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, on the 14th day of October 2008.

	Isonics Corporation


	By:	/s/ Christopher Toffales
		Christopher Toffales
	Chief Executive Officer

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