SecProbe.io

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                               ION Networks, Inc.
                             120 Corporate Boulevard
                           South Plainfield, NJ 07080

                                         June 15, 2005

Ms. Barbara C. Jacobs
Assistant Director
US Securities and Exchange Commission
Division of Corporation Finance-Mail Stop 4-6
Washington DC 20549

Via Edgar Correspondence and Federal Express

               Re:  ION Networks,  Inc. Registration  Statement on Form SB-2 SEC
                    File No. 333-124274

Dear Ms. Jacobs:

         Reference is made to your comment letter dated May 20, 2005, addressed
to Norman E. Corn, and relating to the Registration Statement on Form SB-2 (the
"Registration Statement"), the Form 10-KSB of ION Networks, Inc. (the "Company")
for the fiscal year ended December 31, 2004, as amended (the "10-KSB") and the
Form 10-QSB of the Company for the fiscal quarter ended March 31, 2005 (the
"10-QSB").

         We are filing via the EDGAR system our responses to the comments in
your letter related to the above referenced registration and reports. The
numbered paragraphs in this letter correspond to the consecutively numbered
paragraphs in your comment letter. To the extent indicated, we proposed to amend
our registration in accordance with our response. For your convenience, enclosed
are two marked and two clean copies of the amendment to the Registration
Statement.

         Please call if you have any questions or further comments.

                                                     Very truly yours,

                                                     Patrick Delaney
                                                     Chief Financial Officer

<PAGE>

FORM SB-2

General
-------

     1.   We have  complied with this comment as reflected in Amendment No. 1 to
          the Registration Statement.

Selling Stockholders, pg. 31
----------------------------

     2.   We have complied with this comment as reflected in Amendment No. 1 to
          the Registration Statement.

     3.   We have complied with this comment as reflected in Amendment No. 1 to
          the Registration Statement.

     4.   None of the selling stockholders are registered broker-dealers. None
          of the selling stockholders are affiliates of registered
          broker-dealers.

Plan of Distribution, pg. 32
----------------------------

     5.   We and the selling shareholders are aware of the SEC's position on
          short sales. We have indicated in the Registration Statement that no
          short sales will be effected prior to the effectiveness of the
          Registration Statement.

Signatures, pg. 65
------------------

     6.   We have complied with this comment as reflected in Amendment No. 1 to
          the Registration Statement.

Legal Opinion
-------------

     7.   Please see the attached written confirmation of Moses & Singer LLP.

                                  FORM 10-KSB/A
                                  -------------

Management's Discussion and Analysis or Plan of Operations, pg. 17
------------------------------------------------------------------

     8.   The Company's OEM revenues increased from $638,000 in 2003 to
          $1,372,000 in 2004. This change was due primarily to the increase in
          unit sales of higher margin 5500 model appliances from 79 to 335 units
          offset in part by a decline in sales of older product models i.e.,
          3100 from 515 to 440. During the two year period of 2003 and 2004 no
          new products were introduced by the Company. The Company has
          considered quantifying and discussing these sales components however
          the Company does not believe that there are any discernable trends
          with respect to the Company's product mix that can be estimated at
          this time.

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     9.   The Company has considered disclosing the segmentation between the
          combination of hardware and hardware accessory products and our other
          products software, maintenance and professional services. However,
          since software, maintenance and professional services do not exceed
          20% of total revenues for either year ended December 31, 2003 or 2004
          the segmentation would not yield useful information for potential
          investors.

     10.  The Company has considered classifying amortization expense in the
          cost of sales. The Company decided that to classify amortization
          expense in the cost of sales would result in a distortion of the gross
          margins, due to the fact that this expense item fluctuates from year
          to year based on varying amounts of capitializable costs for new
          product development in the technological feasibility stage. Therefore,
          in order to increase transparency and clarity the Company classifies
          amortization expense on a separate operating expense line in our
          financial statements.

Controls and Procedures, pg. 19
-------------------------------

     11.  During the quarter ended December 31, 2004 and the quarter ended March
          31, 2005, respectively, there was no changes that materially affected
          or were reasonably likely to materially affect the Company's internal
          controls over financial reporting. The Company's future disclosure
          will conform to the requirements of Item 308(c) of Regulation S-B and
          Rule 13a-15(e).

     12.  The Company's management continues to believe that disclosure controls
          and procedures were effective as of December 31, 2004. The amendment
          to the Form 10-KSB was primarily filed in order to include the
          accountant's consent, which was inadvertently omitted in the process
          of converting the report into EDGAR. The two other amendments were
          immaterial.

     Note 2 Summary of Significant Accounting Policies
     -------------------------------------------------

     Revenue Recognition, pg. 44

     13.  ION's standard payment terms are 30 days from invoice date. The
          Company conducts business with several large companies including
          Avaya, Sprint, and AT&T who's policy is to pay in full in 45 days.
          Revenue is recognized when product is shipped and all fees are fixed
          and determinable for these billings. The Company collected all
          outstanding balances as of December 31, 2004 and during the past two
          years has had nearly zero uncollectible accounts.

     14.  The Company sells individually packaged and complete hardware units
          and recognizes revenue from the date shipped. The Company also sells
          individual software packages. The sales of both products are complete
          and independent of the other and not part of multi-element
          arrangements. Maintenance contracts are sold and revenue is recognized
          ratably over the term of the contract. Maintenance contracts do not
          impact the pricing of other products.

<PAGE>

     Foreign Currency Translation, pg. 45

     15.  During 2004 the Company was not impacted by foreign currency
          translation adjustments and during 2003 translations and adjustments
          totaled $13,269, an immaterial amount. The Company settles all
          international sales invoices and operating expenses in US dollars.

     Note 3 Restructuring, Asset Impairments and Other Credits, pg. 46
     -----------------------------------------------------------------

     16.  ION has in FORM 10-KSB for the years ended December 31, 2003 and 2004
          disclosed the nature and amounts of all significant restructuring,
          asset impairments and other credits in both the Management Discussion
          and Analysis and Note 3 to the financial statements. Listed below are
          further explanations concerning the significant related items:

               California lease abandonment: Reserve of $123,510 was estimated
          in March 2003. The estimate represented the total lease payments
          from December 2002 through May 2004 offset by the landlord's
          stated sub-lease payments. During 2003, the Company requested, of
          the landlord, verification of the sub-lease payments for the
          period and did not receive any accounting from the landlord.
          Therefore, based on the lack of response from the landlord,during
          the quarter ended September 30, 2004, the Company lowered it's
          estimate of potential liability and reversed $63,716 leaving a
          balance of $59,794 accrued at December 31, 2004. ION will
          continue to monitor this liability and will adjust when
          appropriate.

               Xetel Payment: During the period from March 2002 through May
          2002, the Company was billed and it booked accounts payable invoices
          totaling $243,071 from Xetel. Xetel filed for bankruptcy and ION
          settled the entire balance during the third quarter 2003 for a payment
          in the amount of $30,000. There is no balance remaining at December
          31, 2004.

               Livingston lease abandonment: The Company reserved an estimate of
          $508,458 in the quarter ended December 31, 2002 for the total
          potential remaining lease payments. During the quarter ended June 30,
          2003, the Company completed a voluntary liquidation which by court
          action abated all future liabilities and therefore the Company
          reversed the original accrual estimate. There is no balance remaining
          at December 31, 2004.

               New Jersey Headquarter Moved: During the quarter ended June 30,
          2003, the Company was notified by the landlord of the exercise of the
          landlord's right to cancel the lease at the Piscataway, NJ facility
          effective August 15, 2003. During the quarter ended June 30, 2003 the
          Company recorded an impairment loss of $163,662, which represents the
          difference between the cash proceeds of August 2003 sale of certain
          assets and carrying value prior to the impairment and an additional
          charge to write-off a balance of $28,955 for the net book value of
          leasehold improvements. There is no longer a value on the books at
          December 31, 2004.

               Disputed Liabilities Amounts: As of December 31, 2004, the
          Company has amounts totaling $332,357 either accrued or in accounts
          payable. At the present time, the Company has disputed these amounts

<PAGE>

          with certain vendors, however, management is unable to estimate the
          final determination of these amounts. Management will continue to
          monitor these liabilities and will adjust each item when appropriate.

                                   FORM 10-QSB
                                   -----------

     17.  Please see our response in No. 11 above with respect to the disclosure
          of "changes in controls and procedures" as it relates to the Company's
          Form 10-QSB for the quarter ended March 31, 2005. We have been
          verbally advised that at this time the SEC will not be providing any
          further comments to the Company's Form 10-QSB for the quarter ended
          March 31, 2005.

<PAGE>

                              Moses & Sinclair LLP
                          1301 Avenue of the Americas
                         New York, New York 10019-6076

DIRECT DIAL: 212.554.7800                                FACSIMLIE: 212.554.7700

                                         June 10, 2005

Ms. Barbara Jacobs
Assistant Director
US Securities and Exchange Commission
Division of Corporation Finance Mail Stop 4-6
Washington, DC 20549

               Re:  ION Networks,  Inc. Registration  Statement on Form SB-2 SEC
                    File No. 333-124274

Dear Ms. Jacobs:

     Reference is made to your comment letter dated May 20, 2005, addressed to
Norman E. Corn and relating to the above referenced Registration Statement on
form SB-2 of ION Networks, Inc. Specifically, reference is made to comment No. 7
of your letter.

     This is to confirm to you that we concur with the U.S. Securities and
Exchange Commission's understanding that the reference and limitation to the
"General Corporation Law of the State of Delaware" in our opinion issued in
connection with the above referenced Registration Statement, includes these
statutory provisions and also all applicable provisions of the Delaware
Constitution and reported judicial decisions interpreting these laws.

                                              Very truly yours,

                                              /s/ Moses & Singer LLP
                                              ----------------------
                                              MOSES & SINGER LLP
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