Exhibit 99.1
| FOR IMMEDIATE RELEASE | Contact Imagenetix Investor Relations | William P. Spencer |
| | (858)385-2797 | Chief Executive Officer |
| | | Imagenetix, Inc. |
| | | Tel: (858) 674-8455 |
IMAGENETIX, INC. REPORTS FIRST QUARTER 2010 RESULTS
| · | Revenue Increases by 22% from Prior Year |
| · | Revenue Increases to $1,702,000 from $1,394,000 |
| · | Loss Per Share Equals $0.04 vs. $0.05 Profit for Prior Year |
San Diego, CA***August 10, 2009***Imagenetix, Inc. (OTCBB:IAGX) announced today results for its first fiscal quarter ended June 30, 2009. Net sales increased 22% for the quarter to $1,702,000 from the $1,394,000 reported for the same period last year.
Net loss for the quarter was ($415,000) or ($.04) per share compared to a net profit for the same period of the prior fiscal year of $587,000 or $0.05 per share. The prior fiscal year period was positively impacted by a one time settlement of $1,785,000.
Commenting on the results of the first quarter, Mr. William Spencer, Imagenetix Chief Executive Officer said, “We were encouraged by the increase in sales of our weight loss product and of our own branded product, InflameAway Celadrin, which is beginning to be well received in the food, drug and mass market segments. However, we were disappointed that sales of our raw material to wholesalers and distributors came in lower compared to the previous year as they became negatively impacted by current economic conditions. We continue to expand advertising and marketing to assure increased awareness and acceptability of InflameAway Celadrin. We anticipate this marketing program for the mass market segment to continue to result in improved sales during the balance of our current fiscal year.”
About Imagenetix
Imagenetix, based in San Diego, California, is an innovator of scientifically tested, natural-based, proprietary, bioceutical products developed to enhance human health on a global basis. Imagenetix develops and formulates propriety over-the-counter topical creams, skincare products and nutritional supplements to be marketed globally through multiple channels of distribution. In addition, the company develops patentable compounds for entering into licensing agreements with pharmaceutical partners. Imagenetix is the creator of Inflame Away®-Celadrin®. Please visit, www.celadrin.com or www.imagenetix.net.
Certain matters in this news release are forward-looking statements which are subject to risks and uncertainties that could cause actual results to vary materially from those projected. Such risks and uncertainties include, but are not limited to, adverse fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand, and seasonality of purchases of the company's products and services. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in the company’s SEC filings, including its Form 10-K for the year ended March 31, 2009.
Imagenetix, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| | | First Quarter Ended | |
| | | June 30, | |
| | | 2009 | | | 2008 | |
| | | | | | | |
| Net sales | | $ | 1,702 | | | $ | 1,394 | |
| Cost of sales | | | 1,055 | | | | 819 | |
| Gross profit | | | 647 | | | | 575 | |
| Gross profit percent | | | 38.0 | % | | | 41.2 | % |
| | | | | | | | | |
| Operating expenses: | | | | | | | | |
| General and administrative | | | 808 | | | | 606 | |
| Payroll expense | | | 255 | | | | 372 | |
| Consulting expense | | | 280 | | | | 346 | |
| Operating expenses | | | 1,343 | | | | 1,324 | |
| | | | | | | | | |
| Operating income (loss) | | | (696 | ) | | | (749 | ) |
| Other income | | | 1 | | | | 8 | |
| Settlement income | | | - | | | | 1,785 | |
| Interest expense | | | (2 | ) | | | (1 | ) |
| Income (loss) before income taxes | | | (697 | ) | | | 1,043 | |
| Income tax expense (benefit) | | | (282 | ) | | | 456 | |
| | | | | | | | | |
| Net income (loss) | | $ | (415 | ) | | $ | 587 | |
| | | | | | | | | |
| Income (loss) per share: | | | | | | | | |
| Basic | | $ | (0.04 | ) | | $ | 0.05 | |
| Diluted | | $ | (0.04 | ) | | $ | 0.05 | |
| | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | |
| Basic | | | 11,011 | | | | 10,961 | |
| Diluted | | | 11,011 | | | | 11,021 | |
Imagenetix, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
| | | June 30, | | | March 31, | |
| | | 2009 | | | 2009 | |
| Assets: | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 913 | | | $ | 1,226 | |
| Accounts receivable, net | | | 862 | | | | 1,096 | |
| Inventories, net | | | 1,518 | | | | 1,337 | |
| Prepaid expenses and other current assets | | | 85 | | | | 109 | |
| Deferred tax asset | | | 817 | | | | 535 | |
| Total current assets | | | 4,195 | | | | 4,303 | |
| | | | | | | | | |
| Property and equipment, net | | | 108 | | | | 116 | |
| Long-term prepaid expenses | | | 27 | | | | 30 | |
| Other assets | | | 129 | | | | 134 | |
| | | | | | | | | |
| Total assets | | $ | 4,459 | | | $ | 4,583 | |
| | | | | | | | | |
| Liabilities and stockholders' equity: | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 611 | | | $ | 274 | |
| Accrued liabilities | | | 67 | | | | 81 | |
| Income tax payable | | | - | | | | 70 | |
| Customer deposits | | | 84 | | | | 59 | |
| Contract payable | | | 22 | | | | 43 | |
| Short term license payable | | | - | | | | 3 | |
| Total current liabilities | | | 784 | | | | 530 | |
| | | | | | | | | |
| Stockholders' equity | | | 3,675 | | | | 4,053 | |
| | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 4,459 | | | $ | 4,583 | |
