Exhibit 99.1
| UNITED STATES DEPARTMENT OF JUSTICE OFFICE OF THE UNITED STATES TRUSTEE SOUTHERN DISTRICT OF CALIFORNIA |
| In Re: | CHAPTER 11 (BUSINESS) | |||
| IMAGENETIX, INC., | CASE NO. ___ 12-16423 MM11 | |||
| OPERATING REPORT NO. 10 | ||||
| Debtor(s). | FOR THE MONTH ENDING: | |||
| 9/30/2013 | ||||
I.CASH RECEIPTS AND DISBURSEMENTS
A.(GENERAL ACCOUNT*)
| 1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS | $ | 1,110,634.33 | ||||||
| 2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS | $ | 1,047,815.90 | ||||||
| 3. BEGINNING BALANCE | $ | 62,818.43 | ||||||
| 4. RECEIPTS DURING CURRENT PERIOD: | ||||||||
| ACCOUNTS RECEIVABLE - PRE-FILING | $ | - | ||||||
| ACCOUNTS RECEIVABLE - POST-FILING | $ | 164,113.60 | ||||||
| GENERAL SALES | $ | - | ||||||
| OTHER (SPECIFY)Customer deposits on future sales | $ | - | ||||||
| OTHER ** (SPECIFY) Insurance refunds | $ | 4,302.90 | ||||||
| TOTAL RECEIPTS THIS PERIOD: | $ | 168,416.50 | ||||||
| 5. BALANCE: | $ | 231,234.93 | ||||||
| 6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD | ||||||||
| TRANSFERS TO OTHER DIP ACCOUNTS | $ | - | ||||||
| DISBURSEMENTS | $ | 106,805.57 | ||||||
| TOTAL DISBURSEMENTS THIS PERIOD***: | $ | 106,805.57 | ||||||
| 7. ENDING BALANCE: | $ | 124,429.36 | ||||||
| 8. GENERAL ACCOUNT NUMBER ____xxxxxx8451__________________________ |
DEPOSITORY NAME AND LOCATION _California Bank & Trust, 16796 Bernardo Center Dr.,
_______________________________________San Diego, CA 92128_______________________________________
| * | All receipts must be deposited into the general account. |
| ** | Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying whatwas sold, to whom, terms, and date of Court Order or Report of Sale. |
| *** | This amount should be the same as the total from page 2. |
IX.BALANCE SHEET
(ACCRUAL BASIS ONLY)
| Current Month End | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Unrestricted Cash | $ | 124,729.36 | ||||||
| Restricted Cash | ____________ | |||||||
| Accounts Receivable | $ | 362,302.48 | ||||||
| Inventory | $ | 82,976.88 | ||||||
| Notes Receivable | ____________ | |||||||
| Prepaid Expenses | ____________ | |||||||
| Other (Itemize) | ____________ | |||||||
| Total Current Assets | $ | 570,008.72 | ||||||
| Property, Plant, and Equipment | $ | 254,873.45 | ||||||
| Accumulated Depreciation/Depletion | $ | (251,815.67 | ) | |||||
| Net Property, Plan, and Equipment | $ | 3,057.78 | ||||||
| Other Assets (Net of Amortization): | ||||||||
| Due from Insiders | ____________ | |||||||
| Other (Itemized) See page 12 disclosure attached | $ | 54,059.90 | ||||||
| Total Other Assets | $ | 54,059.90 | ||||||
| TOTAL ASSETS | $ | 627,126.40 | ||||||
| LIABILITIES | ||||||||
| Post-Petition Liabilities: | ||||||||
| Accounts Payable | $ | 109,786.13 | ||||||
| Taxes Payable | ____________ | |||||||
| Notes Payable | ____________ | |||||||
| Professional Fees | $ | 191,020.40 | ||||||
| Secured Debt | ||||||||
| Other (Itemized) See page 12 disclosure attached | $ | 93,516.37 | ||||||
| Total Post-Petition Liabilities | $ | 394,322.90 | ||||||
| Pre-Petition Liabilities: | ||||||||
| Secured Liabilities | $ | 4,114,134.23 | ||||||
| Priority Liabilities | $ | 1,895.00 | ||||||
| Unsecured Liabilities | $ | 949,628.01 | ||||||
| Other (Itemized) See page 12 disclosure attached | $ | 21,039.60 | ||||||
| Total Pre-Petition Liabilities | $ | 5,086,696.84 | ||||||
| TOTAL LIABILITIES | $ | 5,481,019.74 | ||||||
| EQUITY: | ||||||||
| Pre-Petition Owners' Equity | $ | (5,337,578.31 | ) | |||||
| Post-Petition Profit/(Loss) | $ | 483,684.97 | ||||||
| Direct Charges to Equity | ____________ | |||||||
| TOTAL EQUITY | $ | (4,853,893.34 | ) | |||||
| TOTAL LIABILITIES & EQUITY | $ | 627,126.40 | ||||||
IX.PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)
| Current Month | Cumulative Post-Petition | |||||||
| Sales/Revenue: | ||||||||
| Gross Sales/Revenue | $ | 305,169.60 | $ | 2,023,172.96 | ||||
| Less: Returns/Discounts | (____________ | ) | (____________ | ) | ||||
| Net Sales/Revenue | $ | 305,169.60 | $ | 2,023,172.96 | ||||
| Cost of Goods Sold: | ||||||||
| Beginning Inventory at cost | $ | 72,372.69 | $ | 22,488.00 | ||||
| Purchases | $ | 58,986.83 | $ | 429,279.63 | ||||
| Less: Ending Inventory at cost | $ | (82,976.88 | ) | $ | (82,976.88 | ) | ||
| Cost of Goods Sold (COGS) | $ | 48,382.64 | $ | 368,790.75 | ||||
| Gross Profit | $ | 256,786.96 | $ | 1,654,382.21 | ||||
| Other Operating Income (Itemize) | ____________ | ____________ | ||||||
| Operating Expenses: | ||||||||
| Payroll - Insiders | $ | 32,835.99 | $ | 288,662.59 | ||||
| Payroll - Other Employees | $ | 14,635.92 | $ | 140,409.92 | ||||
| Payroll Taxes | $ | 2,772.24 | $ | 33,384.67 | ||||
| Other Taxes (Itemize) | ____________ | ____________ | ||||||
| Depreciation and Amortization | $ | 1,436.40 | $ | 28,904.11 | ||||
| Rent Expense - Real Property | $ | 9,645.40 | $ | 86,808.60 | ||||
| Lease Expense - Personal Property | ____________ | ____________ | ||||||
| Insurance | $ | 176.54 | $ | 45,063.56 | ||||
| Real Property Taxes | $ | - | $ | 2,178.97 | ||||
| Telephone and Utilities | $ | 2,364.56 | $ | 29,853.58 | ||||
| Repairs and Maintenance | ____________ | ____________ | ||||||
| Travel and Entertainment (Itemize) business meals and parking | $ | 573.37 | $ | 5,245.02 | ||||
| Miscellaneous Operating Expenses (Itemize) see attached | $ | 8,398.70 | $ | 84,822.47 | ||||
| Total Operating Expenses | $ | (72,839.12 | ) | $ | (745,333.49 | ) | ||
| Net Gain/(Loss) from Operations | $ | 183,947.84 | $ | 909,048.72 | ||||
| Non-Operating Income: | ||||||||
| Interest Income | ____________ | ____________ | ||||||
| Net Gain on Sale of Assets (Itemize) | ____________ | ____________ | ||||||
| Other (Itemize) | $ | - | $ | 42,899.00 | ||||
| Total Non-Operating Income | $ | - | $ | 42,899.00 | ||||
| Non-Operating Expense: | ||||||||
| Interest Expense | $ | 4,476.88 | $ | 42,963.83 | ||||
| Legal and Professional (Itemize) | $ | 32,477.96 | $ | 425,298.92 | ||||
| Other (Itemize) | ____________ | ____________ | ||||||
| Total Non-Operating Expenses | $ | (36,954.84 | ) | $ | (468,262.75 | ) | ||
| NET INCOME/(LOSS) | $ | 146,993.00 | $ | 483,684.97 | ||||
