8-K

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 event reported):  October 17, 2007

ISONICS CORPORATION

(Exact name of registrant as specified in its charter)

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

5906 McIntyre Street, Golden, Colorado 80403

Address of principal executive offices

303-279-7900

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 simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act

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

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

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

Item 3.01 – Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

On September 17, 2007, we received notification from the Nasdaq Stock Market (“Nasdaq”) that based on our Form 10-Q for the three months ended July 31, 2007, we failed to meet the requirement for continued listing found in Marketplace Rule 4310(c)(3). Rule 4310(c)(3) requires that we maintain any one of the following:

(i)stockholders’ equity of $2.5 million;

(ii)market value of listed securities of $35 million; or

(iii)net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years.

On October 2, 2007 we submitted a written plan of compliance to Nasdaq describing our plan to achieve and sustain compliance with Rule 4310(c)(3) and all of the Nasdaq Capital Market listing requirements. However, on October 17, 2007 Nasdaq informed us that our request for continued listing on the Nasdaq Capital Market had been denied. We intend to  appeal Nasdaq’s decision and request a hearing before a Nasdaq Listing Qualifications Panel (the “Panel”). If we appeal, our hearing request will stay the delisting of our common stock pending the Panel’s decision. If we appeal the initial decision, there can be no assurance that the Panel will grant the Company’s request for continued listing.

On October 22, 2007, the Company issued a press release in connection with the foregoing matters, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01 – Financial Statements and Exhibits

(d)	Exhibits
	99.1	Press release dated October 22, 2007.

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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 22nd day of October 2007.

Isonics Corporation
By:	/s/ John Sakys
	John Sakys
	President and Chief Executive Officer

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EX-99.1

Exhibit 99.1

Isonics Receives Letter From Nasdaq

GOLDEN, Colo.—(BUSINESS WIRE)— October 22, 2007—Isonics Corporation (NASDAQ: ISON), a company that is focused on the development and provision of products and services for the semiconductor and homeland security markets, announced that on October 17, 2007 it received a staff determination letter from the Nasdaq Stock Market Listings Qualification Department notifying the Company that the Listings Qualification Department staff did not accept Isonics’ plan for regaining compliance with Marketplace Rule 4310(c)(3) requiring that the Company have a minimum of $2.5 million in stockholders’ equity or $35 million in market value of securities or $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years.  The letter advised Isonics that its common stock will be delisted at the opening of business on October 26, 2007, although that date will be delayed if Isonics appeals the staff determination as described below.

Under the Nasdaq rules, Isonics is entitled to and intends to request a hearing with a Nasdaq Listings Qualification Panel to attempt to obtain an additional period to regain compliance with the Nasdaq listing requirements.  If Isonics appeals, Isonics will provide the Panel with additional information regarding Isonics’ proposed plan for regaining compliance with the Nasdaq listing requirements. The suspension of Isonics’ listing will be stayed pending the Panel’s decision.  If the Panel does not find the Company’s approaches to be acceptable, the Panel could immediately delist the Company’s common stock.  There can be no assurance the Panel will grant the Company’s request for continued listing.

In the event that Isonics’ common stock is delisted from Nasdaq’s Capital Market, Isonics intends to work with its market makers as necessary to obtain quotation on the OTC Bulletin Board market.

About Isonics Corporation

Isonics Corporation is focused on the development and provision of homeland security products and services and the manufacture of 300-millimeter (and smaller diameter) silicon wafer reclaim and test products, wafer thinning and custom wafer products for the semiconductor industry. Additional information may be obtained at the Company’s Web site at www.isonics.com.

Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995. These statements involve estimates, assumptions, known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company’s control. Other important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company’s 10-K for the year ended April 30, 2007 and reports subsequently filed with the Securities and Exchange Commission, which include the Company’s historical cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in these filings with the Securities and Exchange Commission.

Contact:

Isonics Corporation

John Sakys, 303-279-7900

or

CEOcast, Inc. for Isonics

Andrew Hellman, 212-732-4300