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): January 27, 2004

                              Arbios Systems, Inc.
             (Exact Name of Registrant as Specified in its Charter)

                 (State or Other Jurisdiction of Incorporation)

            000-32603                                     91-1955323
------------------------------------        ------------------------------------
    (Commission File Number)                (I.R.S. Employer Identification No.)

110 North George Burns Road, Suite D-4018 Los Angeles, CA           90048
---------------------------------------------------------     ------------------
       (Address of Principal Executive Offices)                   (Zip Code)

                                 (310) 423-7702
               Registrant's Telephone Number, Including Area Code

          (Former Name or Former Address, if Changed Since Last Report)

Item 4.  Changes in Registrant's Certifying Accountant.

         On January 27, 2004,  the board of directors  of Arbios  Systems,  Inc.
(the "Company") approved,  by unanimous written consent,  resolutions to dismiss
its former independent  accountants,  Williams and Webster,  P.S.  ("Williams").
Williams'  report on the Company's  financial  statements for the past two years
did not  contain  an adverse  opinion  or  disclaimer  of  opinion,  and was not
modified as to uncertainty,  audit scope, or accounting principles,  except that
there was an explanatory paragraph relating to the Company's ability to continue
as a going concern.

         During  the  two  most  recent  fiscal   years,   the  Company  had  no
disagreements  with  Williams,  whether  or  not  resolved,  on  any  matter  of
accounting principles or practices,  financial statement disclosure, or auditing
scope or procedure, which, if not resolved to Williams' satisfaction, would have
caused  it to make  reference  to the  subject  matter  of the  disagreement  in
connection  with its report.  Williams  did not advise the Company of any of the
events requiring reporting in this Form 8-K under Item 304(a)(iv)(B).

         On January 27, 2004,  the board also  approved,  by  unanimous  written
consent,  resolutions to engage Stonefield Josephson, Inc. ("Stonefield") as its
independent  accountants  to audit its financial  statements for the year ending
December 31, 2003, and for quarterly statements during 2004.  Stonefield audited
the  financial  statements  of Arbios  Technologies,  Inc., a subsidiary  of the
Company,  for the past two  fiscal  years.  The  Company  did not  consult  with
Stonefield  regarding the  application  of accounting  principles to a specific,
completed or contemplated  transaction,  or the type of audit opinion that might
be rendered on the Company's financial statements prior to the engagement.

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

         (c). Exhibit 16. Letter of Williams and Webster, P.S.


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        ARBIOS SYSTEMS, INC.

Date:  January 29, 2004
                                        By: /s/ Jacek Rozga
                                            Name: Jacek Rozga
                                            Title: President and Chief Financial