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. 14 | ||
| Debtor(s). | FOR THE MONTH ENDING: | |
| 1/31/2014 |
I.CASH RECEIPTS AND DISBURSEMENTS
A.(GENERAL ACCOUNT*)
| 1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS | $ | 1,729,941.82 | ||||||
| 2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS | $ | 1,543,407.05 | ||||||
| 3. BEGINNING BALANCE | $ | 186,534.77 | ||||||
| 4. RECEIPTS DURING CURRENT PERIOD: | ||||||||
| ACCOUNTS RECEIVABLE - PRE-FILING | $ | - | ||||||
| ACCOUNTS RECEIVABLE - POST-FILING | $ | 156,537.45 | ||||||
| GENERAL SALES | $ | - | ||||||
| OTHER (SPECIFY) _Customer deposits on future sales | $ | 25,000.00 | ||||||
| OTHER ** (SPECIFY) _Rental sublet | $ | 400.00 | ||||||
| TOTAL RECEIPTS THIS PERIOD: | $ | 181,937.45 | ||||
| 5. BALANCE: | $ | 368,472.22 | ||||
| 6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD | ||||||||
| TRANSFERS TO OTHER DIP ACCOUNTS | $ | - | ||||||
| DISBURSEMENTS | $ | 216,094.13 | ||||||
| TOTAL DISBURSEMENTS THIS PERIOD***: | $ | 216,094.13 | ||||||
| 7. ENDING BALANCE: | $ | 152,378.09 | ||||||
| 8. GENERAL ACCOUNT NUMBER ____xxxxxx8451__________________________ |
| DEPOSITORY NAME AND LOCATION _California Bank & Trust, 16796 Bernardo Center Dr., |
___________________________________________San Diego, CA 92128__________________________________________
IX.BALANCE SHEET
(ACCRUAL BASIS ONLY)
| Current Month End | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Unrestricted Cash | $ | 152,678.09 | ||||||
| Restricted Cash | _____________ | |||||||
| Accounts Receivable | $ | 337,162.88 | ||||||
| Inventory | $ | 36,576.59 | ||||||
| Notes Receivable | _____________ | |||||||
| Prepaid Expenses | _____________ | |||||||
| Other (Itemize) | _____________ | |||||||
| Total Current Assets | $ | 526,417.56 | ||||||
| Property, Plant, and Equipment | �� | $ | 254,873.45 | |||||
| Accumulated Depreciation/Depletion | $ | (253,557.21 | ) | |||||
| Net Property, Plan, and Equipment | $ | 1,316.24 | ||||||
| Other Assets (Net of Amortization): | ||||||||
| Due from Insiders | _____________ | |||||||
| Other (Itemized) See page 12 disclosure attached | $ | 50,055.90 | ||||||
| Total Other Assets | $ | 50,055.90 | ||||||
| TOTAL ASSETS | $ | 577,789.70 | ||||||
| LIABILITIES | ||||||||
| Post-Petition Liabilities: | ||||||||
| Accounts Payable | $ | 79,720.35 | ||||||
| Taxes Payable | _____________ | |||||||
| Notes Payable | _____________ | |||||||
| Professional Fees | $ | 244,144.39 | ||||||
| Secured Debt | _____________ | |||||||
| Other (Itemized) See page 12 disclosure attached | $ | 165,865.35 | ||||||
| Total Post-Petition Liabilities | $ | 489,730.09 | ||||||
| Pre-Petition Liabilities: | ||||||||
| Secured Liabilities | $ | 3,832,134.23 | ||||||
| Priority Liabilities | $ | 1,895.00 | ||||||
| Unsecured Liabilities | $ | 949,628.01 | ||||||
| Other (Itemized) See page 12 disclosure attached | $ | 21,039.60 | ||||||
| Total Pre-Petition Liabilities | $ | 4,804,696.84 | ||||||
| TOTAL LIABILITIES | $ | 5,294,426.93 | ||||||
| EQUITY: | ||||||||
| Pre-Petition Owners' Equity | $ | (5,337,578.31 | ) | |||||
| Post-Petition Profit/(Loss) | $ | 620,941.08 | ||||||
| Direct Charges to Equity | _____________ | |||||||
| TOTAL EQUITY | $ | (4,716,637.23 | ) | |||||
| TOTAL LIABILITIES & EQUITY | $ | 577,789.70 | ||||||
| _____________ | ||||||||
IX.PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)
| Current Month | Cumulative Post-Petition | |||||||
| Sales/Revenue: | ||||||||
| Gross Sales/Revenue | $ | 127,554.00 | $ | 2,829,011.80 | ||||
| Less: Returns/Discounts | (_____________) | (_____________) | ||||||
| Net Sales/Revenue | $ | 127,554.00 | $ | 2,829,011.80 | ||||
| Cost of Goods Sold: | ||||||||
| Beginning Inventory at cost | $ | 36,473.26 | $ | 22,488.00 | ||||
| Purchases | $ | 38,972.87 | $ | 596,905.01 | ||||
| Less: Ending Inventory at cost | $ | (36,576.59 | ) | $ | (36,576.59 | ) | ||
| Cost of Goods Sold (COGS) | $ | 38,869.54 | $ | 582,816.42 | ||||
| Gross Profit | $ | 88,684.46 | $ | 2,246,195.38 | ||||
| Other Operating Income (Itemize) | _____________ | _____________ | ||||||
| Operating Expenses: | ||||||||
| Payroll - Insiders | $ | 29,321.20 | $ | 420,607.99 | ||||
| Payroll - Other Employees | $ | 7,606.34 | $ | 174,638.45 | ||||
| Payroll Taxes | $ | 5,351.82 | $ | 46,039.29 | ||||
| Other Taxes (Itemize) | _____________ | _____________ | ||||||
| Depreciation and Amortization | $ | 1,436.39 | $ | 34,649.65 | ||||
| Rent Expense - Real Property | $ | 9,516.70 | $ | 124,861.50 | ||||
| Lease Expense - Personal Property | _____________ | _____________ | ||||||
| Insurance | $ | 10,376.28 | $ | 72,315.97 | ||||
| Real Property Taxes | $ | - | $ | 2,178.97 | ||||
| Telephone and Utilities | $ | 1,090.33 | $ | 38,491.48 | ||||
| Repairs and Maintenance | _____________ | _____________ | ||||||
| Travel and Entertainment (Itemize) business meals and parking | $ | 591.20 | $ | 6,718.93 | ||||
| Miscellaneous Operating Expenses (Itemize) see attached | $ | 13,285.25 | $ | 136,890.88 | ||||
| Total Operating Expenses | $ | (78,575.51 | ) | $ | (1,057,393.11 | ) | ||
| Net Gain/(Loss) from Operations | $ | 10,108.95 | $ | 1,188,802.27 | ||||
| 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 | $ | 4,626.11 | $ | 61,319.05 | ||||
| Legal and Professional (Itemize) | $ | 10,861.57 | $ | 549,441.14 | ||||
| Other (Itemize) | _____________ | _____________ | ||||||
| Total Non-Operating Expenses | $ | (15,487.68 | ) | $ | (610,760.19 | ) | ||
| NET INCOME/(LOSS) | $ | (5,378.73 | ) | $ | 620,941.08 | |||
