UNITED STATES SECURITIES AND EXCHANGE COMMISSION

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

~~Pursuant~~Date toof ~~Section~~Report: ~~13 or 15(d) of~~ ~~the~~December 3, ~~Securities Exchange Act of 1934~~2008

~~Date~~ISONICS ~~of Report: October 10, 2008~~CORPORATION

~~ISONICS~~(Name ~~CORPORATION~~of small business issuer as specified in its charter)

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

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

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

535 8^th Avenue, 3^rd Floor, New York, NY 10018-2491

~~535~~Address ~~8th~~of principal ~~Avenue,~~executive ~~3rd Floor, New York, NY 10018~~offices

~~Address~~(212) ~~of principal executive offices~~356-7400

~~(212)~~Telephone number, ~~356-7400~~including

~~Telephone~~Area ~~number, including~~code

AreaNot codeapplicable

NotFormer applicablename or former address if changed since last report

~~Former~~Check ~~name~~the orappropriate ~~former~~box ~~address~~below if ~~changed~~the ~~since~~Form 8-K ~~last~~filing ~~report~~is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

~~Check~~o Written ~~the~~communications ~~appropriate~~pursuant ~~box~~to ~~below if the Form~~Rule ~~8-K filing is intended~~425 ~~to simultaneously satisfy the filing obligation of the registrant~~ under ~~any of~~ the ~~following~~Securities ~~provisions:~~Act

o ~~Written~~ Soliciting ~~communications~~material pursuant to Rule ~~425~~14a-12 under the ~~Securities~~Exchange Act

o ~~Soliciting~~ Pre-commencement ~~material~~ communications pursuant to Rule ~~14a~~14d-12 2(b) under the Exchange Act

o Pre-commencement communications pursuant to Rule ~~14d~~13e-24(bc) under the Exchange Act

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

Item 3.02 Unregistered Sales of Equity Securities

In May, June and November 2006, and April 2007, Isonics Corporation (the “Company”) issued YA Global Investments, L.P. (“YA Global”), formerly known as Cornell Capital 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 replace both the debenture originally issued in June 2006 and the debenture originally issued in November 2006. Further, on November 3, 2008 the Company issued YA Global another non-convertible term note in the face amount of $375,000. 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.

On both ~~September~~November 2314, 2008 and ~~October~~December 103, 2008 YA Global converted a portion of the May 2006 Debenture into shares of Company common stock to partially satisfy the amount due under that debenture. On those dates YA Global did not convert any portion of the other debentures or notes issued to YA Global into shares of our common stock, and therefore only the amount 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:

1. On ~~September~~November 2314, 2008 YA Global converted $31,~~500~~ 100 of face amount of the May 2006 Debenture into 1,~~060~~250,~~606~~000 shares of ~~Company~~ Company common stock.

(a) The transaction was completed effective as of ~~September~~November 2314, 2008.

(b) There was no placement agent or underwriter for the transaction.

(c) The shares were not issued in consideration for cash, however the amount due under the May 2006 Debenture was reduced by $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.

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

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.

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

(b) There was no placement agent or underwriter for the transaction.

(c) The shares were not issued in consideration for cash, however the amount due under the May 2006 Debenture was reduced by $1,100.

(d) We relied on the exemptions 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.

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

2. On December 3, 2008 YA Global converted $1,300 of face amount of the May 2006 Debenture into 1,354,167 shares of Company common stock.

(a) The transaction was completed effective as of December 3, 2008.

(db) ~~We relied~~There onwas ~~the exemption from registration provided by Sections 4(2) and 4(6) under~~no ~~the~~placement ~~Securities~~agent ~~Act~~or ofunderwriter ~~1933~~ for ~~this~~the 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.

(c) The shares were not issued in consideration for cash, however the amount due under the May 2006 Debenture was reduced by $1,300.

(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~~9th day of ~~October~~ December 2008.

Isonics Corporation By: /s/ ~~Christopher~~Chris Toffales ~~Christopher~~Chris Toffales Chief Executive Officer

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

535 8th Avenue, 3rd Floor, New York, NY 10018-2491

AreaNot codeapplicable

NotFormer applicablename or former address if changed since last report

535 8^th Avenue, 3^rd Floor, New York, NY 10018-2491

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