On July 6, 2012, an Administrative Law Judge issued an Order Making Findings and Revoking Registration by Default as to Fonix Corp. The Default Order finds that the Company registered pursuant to Section 12(g) of the Securities Exchange Act of 1934 (Exchange Act), has failed to comply with Section 13(a) of the Exchange Act and Exchange Act Rules 13a-1 and 13a-13 by failing to file required periodic reports with the Securities and Exchange Commission (SEC). As a result, the Administrative Law Judge revoked the registration of each class of registered securities of the Company.

In conjunction with this trading suspension, the Securities and Exchange Commission also instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registration of each class of the securities of Fonix Corp. for failure to make required periodic filings with the Commission. In this Order, the Division of Enforcement (Division) alleges that the company is delinquent in required periodic filings with the Commission. In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the judge will hear evidence from the Division and the Company to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 there under, are true. The judge in the proceeding will then determine whether the registration pursuant to Exchange Act Section 12 of each class of the securities of the Company should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings.