<PAGE>


                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                    QUARTERLY REPORT FOR THE QUARTERLY PERIOD
                               ENDED JUNE 30, 2006

                           COMMISSION FILE NO. 0-28077

                                 GENELINK, INC.
                 ----------------------------------------------
                 (Name of Small Business Issuer in its charter)

             PENNSYLVANIA                                23-2795613
   -------------------------------          ------------------------------------
   (State or other jurisdiction of          (I.R.S. Employer Identification No.)
    incorporation or organization)

        Newport Financial Center
        113 Povonia Avenue #313
        Jersey City, New Jersey                            07310
----------------------------------------                ----------
(Address of principal executive offices)                (Zip Code)

                    ISSUER'S TELEPHONE NUMBER: (800) 588-4363

      Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

      APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as of the latest
practicable date.

            Number of Shares of Common Stock
            Outstanding on August 3, 2006                    39,517,819

      Transitional Small Business Disclosure Format Yes [ ] No [X]



<PAGE>

PART I.  FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                                                                                     Page
<S>                                                                                                  <C>
ITEM 1.  Financial Statements.

         Consolidated Balance Sheets at June 30, 2006 (unaudited) and December 31, 2005                 3

         Consolidated Statements of Income for the three months and six months ended June 30, 2006      4
         and 2005 (unaudited)

         Consolidated Statements of Cash Flows for the six months ended June 30, 2006 and 2005        5-6
         (unaudited)

         Notes to Interim Consolidated Financial Statements                                           7-9
</TABLE>

                                       2
<PAGE>

                          GENELINK, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                   (UNAUDITED)
                                                                  JUNE 30, 2006      DECEMBER 31, 2005
                                                                  -------------      -----------------
<S>                                                               <C>                <C>
ASSETS

   Cash and cash equivalents                                      $     81,909           $     15,275
   Accounts receivable                                                  37,569                 32,651
   Inventory                                                             7,622                  3,261
   Prepaid expenses                                                     23,625                 37,435
                                                                  ------------           ------------
        Total current assets                                           150,725                 88,622

Property and equipment                                                 143,621                147,519
Other assets                                                           332,641                209,135
                                                                  ------------           ------------
                                  Total assets                        $626,987               $445,276
                                                                  ============           ============
LIABILITIES

   Deferred revenue                                               $     37,699           $          0
   Accounts payable and accrued expenses                               373,923                429,165
   Accrued payroll taxes                                                     0                  7,454
   Loans payable                                                             0                 27,861
                                                                  ------------           ------------
        Total current liabilities                                      411,622                464,480

Loans payable                                                          515,890                      0
Accrued compensation                                                   651,861                593,399
                                                                  ------------           ------------
                                  Total liabilities                  1,579,373              1,057,879
                                                                  ------------           ------------
SHAREHOLDERS' EQUITY (DEFICIENCY)
   Common stock, $.01 par value, 75,000,000 shares authorized,
   39,923,988 and 36,689,550 shares issued, 39,517,819 and
   36,283,387 outstanding as of June 30, 2006 and
   December 31, 2005, respectively                                     399,240                366,896
Additional paid in capital                                           6,977,899              6,910,160
Stock warrants                                                       2,991,209              2,961,809
Accumulated deficit                                                (11,005,679)           (10,536,413)
Treasury stock, 406,169 shares as of June 30, 2006 and
   December 31, 2005, at cost                                         (315,055)              (315,055)
                                                                  ------------           ------------
                    Total shareholders' equity (deficiency)           (952,386)              (612,603)
                                                                  ------------           ------------
                    Total liabilities and shareholders'
                     equity (deficiency)                          $    626,987           $    445,276
                                                                  ------------           ------------
</TABLE>

   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
                                   STATEMENTS

                                       3
<PAGE>

                                                   GENELINK, INC. AND SUBSIDIARY
                                           CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                     (UNAUDITED)

<TABLE>
<CAPTION>

                                                  FOR THE         FOR THE        FOR THE            FOR THE
                                                THREE MONTHS   THREE MONTHS     SIX MONTHS        SIX MONTHS
                                                   ENDED           ENDED          ENDED              ENDED
                                               JUNE 30, 2006   JUNE 30, 2005  JUNE 30, 2006      JUNE 30, 2005
                                               -------------   -------------  -------------      -------------
<S>                                            <C>             <C>            <C>                <C>
REVENUE                                        $     35,642    $    133,602   $     83,337        $   289,185
COST OF GOODS SOLD                                   21,086          57,476         27,728            109,789
                                               ------------    ------------   ------------        -----------
GROSS PROFIT                                         14,556          76,126         55,609            179,396
                                               ------------    ------------   ------------        -----------

EXPENSES
        Selling, general and administrative         151,652         296,403        258,664            599,018
        Consulting                                   44,730          39,928         90,810            100,452
        Professional fees                            54,904          35,908        141,092            107,184
        Advertising and promotion                     6,245          54,266          8,494             90,828
        Amortization and depreciation                12,963          10,744         25,815             17,418
                                               ------------    ------------   ------------        -----------
                                                    270,494         437,249        524,875            914,900
                                               ------------    ------------   ------------        -----------


NET LOSS BEFORE PROVISION FOR INCOME TAXES         (255,938)       (361,123)      (469,266)          (735,504)

PROVISIONS FOR INCOME TAXES                               0               0              0                 0
                                               ------------    ------------   ------------        -----------

NET LOSS                                       $   (255,938)   $   (361,123)      (469,266)       $  (735,504)
                                               ============    ============   ============        ===========

NET LOSS PER SHARE, BASIC AND DILUTED
                                               $      (0.01)   $      (0.01)  $      (0.01)       $     (0.02)
                                               ============    ============   ============        ===========

Weighted average common shares and diluted
potential common shares                          38,640,897     35,654,750      37,265,156         34,086,963
                                               ------------    ------------   ------------        -----------
</TABLE>

    THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
                                   STATEMENTS

                                       4
<PAGE>

                                                   GENELINK, INC. AND SUBSIDIARY
                                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                     (UNAUDITED)

<TABLE>
<CAPTION>

SIX MONTHS ENDED JUNE 30                                             2006               2005
--------------------------------------------------------           ----------        ----------
<S>                                                                <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                                           $(469,266)        $(735,504)
Adjustments to reconcile net loss
   to net cash used by operating activities
   Depreciation and amortization                                      25,815            17,418
   Amortization of discounts on loans payable                         27,432            27,548
   Common stock issued for services                                   24,326            46,034
   Fair value of options granted for consulting services                   0            27,520
   Changes in operating assets and liabilities
        Accounts receivable                                           (4,918)          (40,790)
        Inventory                                                     (4,361)           (4,053)
        Prepaid expenses                                              13,810             7,711
        Other assets                                                (119,898)           18,020
        Deferred Revenue                                              37,699                 0
        Accounts payable and accrued expenses                        (47,351)          206,095
        Accrued payroll taxes                                         (7,454)          (14,007)
        Accrued compensation                                          58,462            53,147
                                                                   ---------         ---------

Net cash used by operating activities                               (465,704)         (390,861)
                                                                   ---------         ---------

CASH FLOWS FROM INVESTING ACTIVITIES
   Capital expenditures                                              (12,799)          (52,797)
   Patent acquisition costs                                          (15,599)          (44,954)
                                                                   ---------         ---------

Net cash used by investing activities                                (28,398)          (97,751)
                                                                   ---------         ---------

CASH FLOWS FROM FINANCING ACTIVITIES

   Proceeds from loans and notes payable                             473,439                 0
   Repayment of loan and notes payable                               (17,861)          (25,000)
   Proceeds relating to issuance of common stock (net)               105,158           392,500
                                                                   ---------         ---------
Net cash provided by financing activities                            560,736           367,500
                                                                   ---------         ---------
</TABLE>

    THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
                                   STATEMENTS

                                       5
<PAGE>

                                                   GENELINK, INC. AND SUBSIDIARY
                                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                     (UNAUDITED)

<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30                                              2006             2005
----------------------------------------------------------         ---------         ----------
<S>                                                                <C>               <C>
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                  66,634         $(121,112)

Cash and cash equivalents, beginning of period                        15,275           155,689
                                                                   ---------         ---------
Cash and cash equivalents, end of period                           $  81,909         $  34,577
                                                                   =========         =========
SUPPLEMENTAL CASH FLOW INFORMATION

   Cash paid for interest                                          $     941         $       0

NON-CASH FINANCING TRANSACTIONS:
   Common stock issued for services                                $  24,326         $  46,034
   Stock warrants granted for services                             $       0         $  27,520
   Common stock and stock warrants granted for fundraising         4  44,100         $       0
   Conversion of loans to common stock and warrants                $       0         $ 125,000
   Conversion of bridge loans and accrued interest to
   convertible secured loans                                       $ 207,891         $       0
</TABLE>

 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
                                   STATEMENTS

                                       6
<PAGE>

1 - DESCRIPTION OF
    ORGANIZATION

                        ORGANIZATION

                        GeneLink, Inc. (the Company) and Subsidiary
                        (Dermagenetics, Inc.) operate in New Jersey. The Company
                        was organized under the laws of the Commonwealth of
                        Pennsylvania and Dermagenetics, Inc. was organized under
                        the laws of the State of Delaware. The Company is the
                        successor to a Delaware corporation organized under the
                        same name on September 21, 1994. The Company's offices
                        are located in Jersey City, New Jersey.

                        The Company was founded in response to the information
                        being generated in the field of human molecular
                        genetics. Scientists are discovering an increasing
                        number of connections between genes and specific
                        diseases or physical attributes and tendencies. These
                        findings are a direct result of the National Institute
                        of Health Genome Project.

                        The Company has developed and received a patent on a DNA
                        Collection Kit (R) for the collection of DNA specimens
                        of clients. The kit is classified as a non-medical
                        device.

                        The Company has also developed proprietary SNP-based
                        genetic profiles (named GeneLink Nutragenetic Profile
                        (TM) and Dermagenetics (R) profiles). These profiles
                        provide a means of predicting an individual's inherent
                        genetic capacity to combat such conditions as oxidative
                        stress and other important selected areas of physiologic
                        health. The profiles, for example, can measure a
                        person's potential to efficiently control oxygen free
                        radical damage, eliminate hydrogen peroxide, protect and
                        repair oxidized phospholipids and destroy harmful
                        environmental compounds. The Company's profile
                        assessment enables nutritional and skin care companies
                        and health care professionals to recommend a specific
                        and targeted regime of antioxidant vitamins, nutrients
                        or skin care formulations that have been specifically
                        designed to compensate for predicted deficiencies and to
                        help provide individuals the best of health and
                        appearance.

                                       7
<PAGE>

2 - BASIS OF
    PRESENTATION        The accompanying unaudited financial statements have
                        been prepared by the Company in accordance with the
                        instructions to Form 10-QSB and Article 10 of Regulation
                        S-X relating to interim financial statements.
                        Accordingly, they do not include all of the information
                        and footnotes required by generally accepted accounting
                        principles for complete financial statements and should
                        be read in conjunction with the financial statements and
                        notes thereto included in the Annual Report on Form
                        10-KSB of GeneLink, Inc. and subsidiary for the year
                        ended December 31, 2005.

                        In the opinion of management, all adjustments
                        (consisting of normal recurring accruals) necessary to
                        present fairly the information set forth in the
                        accompanying financial statements have been included.
                        The results reported in these financial statements for
                        the six-month period ended June 30, 2006 should not be
                        regarded as necessarily indicative of results that may
                        be expected for the year ended December 31, 2006.

3 - LOANS PAYABLE

                        In January 2006, the Company entered into a Bridge Loan
                        Agreement pursuant to which the Company borrowed
                        $200,000 and pledged all of its intellectual assets as
                        collateral. The Bridge Loan Financing accrues interest
                        at a rate of 12% per year and matures on December 31,
                        2006. In connection with the Bridge Loan Agreement, the
                        Company issued 400,000 shares of common stock to the
                        Bridge Lenders.

                        On June 8, 2006, pursuant to the terms of a Convertible
                        Secured Loan Agreement dated May 12, 2006, the Company
                        issued $497,890 of convertible secured loan promissory
                        notes and pledged all of its assets as collateral. The
                        notes accrue interest at a rate of 12% per year and
                        mature on May 12, 2011. In connection with the notes,
                        the Company issued 2,489,452 shares of common stock to
                        the holders of the notes. The Company incurred debt
                        issuance costs of $114,897 related to the issuance of
                        the stock. The debt issuance costs are being amortized
                        to interest expense over the term of the notes.

                        All of the principal amount of and accrued interest on
                        the $200,000 Bridge Loans entered into by the Company on
                        January 12, 2006 converted into the loans under the Loan
                        Agreement, and the Company's obligations with respect to
                        the Bridge Loans terminated along with the security
                        interest

                                       8
<PAGE>

                        in its intellectual property granted by the Company to
                        secure such obligations.

                        The Company issued as fees for raising funds invested
                        pursuant to the Loan Agreement an aggregate of 245,000
                        shares of its restricted common stock, warrants to
                        acquire 980,000 shares of its common stock at an
                        exercise price of $.05 per share and $34,300 in cash.

4 - SHAREHOLDERS'
EQUITY TRANSACTION

                        The Company issued 100,000 shares of restricted common
                        stock as payment for legal services rendered.

                                       9
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

Statements in this Report that relate to future results and events are based on
the Company's current expectations. Actual results in future periods may differ
materially from those currently expected or desired because of a number of risks
and uncertainties. For a discussion of factors affecting the Company's business
and prospects, see "Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations - Factors Affecting the Company's Business
and Prospects."

Operating results for the six-month period ended June 30, 2006 are not
necessarily indicative of the results that may be expected for the full fiscal
year.

BUSINESS OPERATIONS AND HISTORY

The Company was founded in response to the information being generated in the
field of human molecular genetics. Scientists are discovering an increasing
number of connections between genes and specific diseases or physical attributes
and tendencies. These findings are a direct result of the National Institute of
Health Genome Project.

The Company has developed and received a patent on a DNA Collection Kit (R) for
the collection of DNA specimens of clients. The kit is classified as a
non-medical device.

The Company has also developed proprietary SNP-based genetic profiles (named
GeneLink Nutragenetic Profile (TM) and Dermagenetics (R) profiles). These
profiles provide a means of predicting an individual's inherent genetic capacity
to combat such conditions as oxidative stress and other important selected areas
of physiologic health. The profiles, for example, can measure a person's
potential to efficiently control oxygen free radical damage, eliminate hydrogen
peroxide, protect and repair oxidized phospholipids and destroy harmful
environmental compounds. The Company's profile assessment enables nutritional
and skin care companies and health care professionals to recommend a specific
and targeted regime of antioxidant vitamins, nutrients or skin care formulations
that have been specifically designed to compensate for predicted deficiencies
and to help provide individuals the best of health and appearance.

In July 2006, the United States Government Accountability Office ("GAO")
delivered testimony before the United States Senate Special Committee on Aging.
The GAO testified that in an evaluation of genetic tests purchased from the
websites of four of the Company's competitors, the GAO determined that the tests
were misleading, that they made predictions that were medically unproven and
unambiguous and that did not provide meaningful information to customers. The
GAO found that the recommendation were instead based upon information submitted
on questionnaires accompanying the genetic tests. The GAO also found that the
recommendation of costly personalized dietary supplements in connection with the
test results misled consumers and could be harmful. The GAO also recommended
oversight of laboratories that perform genetic tests. The GAO included that with
future advances in science, nutragenetic tests may be valid in the future.

The Company believes that its tests and products differ from those tested by the
GAO in a number of ways. The Company does not currently market genetically
guided nutragenetic products directly to consumers and currently does not market
any nutragenetic or other

                                       10
<PAGE>

nutritional products. The Company does not utilize any lifestyle type of
questionnaire in making any health-related recommendations or in making any
product or service recommendations. Additionally, with respect to its
Dermagenetics(R) line of products, the Company offers a money-back guarantee.
However, the Company and its genetic tests and products may be harmed or damaged
by negative publicity or market and consumer reaction to the GAO testimony and
report.

LIQUIDITY AND CAPITAL RESOURCES

For the six month period ended June 30, 2006, the Company's primary liquidity
requirements have been the funding of its sales and marketing efforts, the
funding of its research and development efforts, the payment of compensation to
officers and other employees and the payment of accounts payable.

Cash and cash equivalents at June 30, 2006 amounted to $81,909 as compared to
$15,275 at December 31, 2005, an increase of $66,634, primarily resulting from
proceeds remaining from the June 2006 Convertible Secured Loan financing
undertaken by the Company. During the first six months of 2006, the Company's
operating activities utilized $465,704, as compared to $390,861 for the first
six months of 2005, an increase of $74,843. Cash utilized during the six month
period ended June 30, 2006 partially funded losses for such period.

The Company will require approximately $1,000,000 to implement its sales,
marketing and promotion strategies, for working capital and to pay accounts
payable for the remainder of 2006. The Company intends to raise funds through
private placements of securities or loans. Unless the Company can increase its
revenues and increase its stock price, it is unlikely that the Company will be
able to secure such financing. If the Company is not able to secure such
additional required capital, it will continue to realize negative cash flow and
losses and may not be able to continue operations.

COMPARISON OF THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2006 TO SIX MONTHS
ENDED JUNE 30, 2005

FINANCIAL CONDITION

Assets of the Company increased from $445,276 at December 31, 2005 to $626,987
at June 30, 2005, an increase of $181,711. This increase was primarily due to an
increase of cash from $15,275 at December 31, 2005 to $81,909 at June 30, 2006,
an increase of $66,634, as a result of funds remaining from the June 2006
Convertible Secured Loan Financing undertaken the Company, and an increase in
other assets from $209,135 at December 31, 2005 to $332,641 at June 30, 2006, an
increase of $123,506, primarily resulting from $112,025 of unamortized debt
issuance costs incurred in connection with the June 2006 Convertible Secured
Loan Financing, representing the value of the shares of the Company's common
stock issued to lenders in the financing.

Liabilities increased from $1,057,879 at December 31, 2005 to $1,579,373 at June
30, 2006, an increase of $521,494. This increase was primarily due to an
increase in loans payable from $0 at December 31, 2005 to $515,890 at June 30,
2006, representing funds raised by the Company in the June 2006 Convertible
Secured Loan Financing.

                                       11
<PAGE>

CURRENT YEAR PERFORMANCE AND EARNINGS OUTLOOK

Revenues. Total revenues for the six months ended June 30, 2006 were $83,337 as
compared to $289,185 for the six months ended June 30, 2005, a decrease of
$205,848, as the Company did not have sufficient resources to fully fund its
sales and marketing efforts or to fully fund its business plan. Costs of goods
sold decreased from $109,789 for the six months ended June 30, 2005 to $27,728
for the six months ended June 30, 2006, a decrease of $82,061, resulting in a
decrease in gross profit from $179,396 for the six months ended June 30, 2005 to
$55,609 for the six months ended June 30, 2006. Gross profit margin was 62.0% of
revenue for the six months ended June 30, 2005 as compared to 66.7% for the six
months ended June 30, 2006.

Total revenues for the three months ended June 30, 2006 were $35,642, as
compared to $133,602 for the three months ended June 30, 2005, a decrease of
$97,960, which decrease was primarily caused by the Company's inability to
secure sufficient resources to fully fund its sales and marketing efforts and to
fully fund its business plan. Costs of good sold decreased from $57,476 for the
three months ended June 30, 2005 to $21,086 for the three months ended June 30,
2006, a decrease of $36,390, resulting in a decrease in gross profit from
$76,126 for the three months ended June 30, 2005 to $14,556 for the three months
ended June 30, 2006, a decrease of $61,570. Gross profit margin was 57.0% for
the three months ended June 30, 2005 as compared to 40.8% for the three months
ended June 30, 2006.

Expenses. Total expenses for the six months ended June 30, 2006 were $524,875 as
compared to $914,900 for the six months ended June 30, 2005, a decrease of
$390,025, primarily resulting from a decrease in selling, general and
administrative expenses from $599,018 for the six months ended June 30, 2005 to
$258,664 for the six months ended June 30, 2006, a decrease of $340,354, which
decrease was caused in part from not incurring the salary and benefits expenses
associated with the Company's former Chief Executive Officer and President and
his spouse during the six month period ended June 30, 2006, and a decrease in
advertising and promotion expense from $90,828 for the six month period ended
June 30, 2005 to $8,494 for the six month period ended June 30, 2006, a decrease
of $82,334, as the Company did not have sufficient financial resources to fund
its advertising and marketing efforts. These decreases were partially offset by
an increase in professional fees from $107,184 for the six months ended June 30,
2005 to $141,092 for the six months ended June 30, 2006, an increase of $33,908,
related to legal fees incurred by the Company in connection with a lawsuit
against the Company by John R. DePhillipo, the former Chief Executive Officer
and President of the Company, in connection with the termination of his
employment.

Total expenses for the three months ended June 30, 2006 were $270,494 as
compared to $437,249 for the three months ended June 30, 2005, a decrease of
$166,755, primarily resulting from a decrease in selling, general and
administrative expenses from $296,403 for the three months ended June 30, 2005
to $151,652 for the three months ended June 30, 2006, a decrease of $144,751,
which decrease was caused in part from not incurring the salary and benefits
expenses associated with the Company's former Chief Executive Officer and
President and his spouse during the three month period ended June 30, 2006, and
a decrease in advertising and promotion expense from $54,266 for the three
months ended June 30, 2005 to $6,245 for the three months ended June 30, 2006, a
decrease of $48,021, as the Company did not have sufficient financial resources
to fund its advertising and marketing efforts. These decreases were partially
offset by an increase in professional fees from $35,908 for the three months
ended June 30, 2005 to $54,904 for the three months ended June 30, 2006, an
increase of $18,996, related to legal fees incurred by the Company in connection
with the lawsuit against the Company by John R.

                                       12
<PAGE>

DePhillipo, the former Chief Executive Officer and President of the Company, in
connection with the termination of his employment.

Losses. The Company incurred a loss $469,266 for the six months ended June 30,
2006 as compared to a loss of $735,504 for the six months ended June 30, 2005, a
decrease of $266,238, as the $205,848 decrease in revenues was offset by a
$82,061 decrease in costs of good sold and a $390,025 decrease in expenses.

FACTORS AFFECTING THE COMPANY'S BUSINESS AND PROSPECTS

Statements included in this Report on Form 10-QSB, including within the
Management's Discussion and Analysis of Financial Condition and Results of
Operations which are not historical in nature, are intended to be and are hereby
identified as "forward looking statements" for purposes of the safe harbor
provided by the Private Securities Litigation Reform Act of 1995. Forward
looking statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those indicated in the forward
looking statements due to several factors. The Company undertakes no obligation
to publicly release any revisions to these forward looking statements or reflect
events or circumstances after the date hereof.

There are a number of factors that affect the Company's business and the result
of its operations. These factors include general economic and business
conditions; the level of acceptance of the Company's products and services; the
rate and commercial applicability of advancements and discoveries in the
genetics field; and the Company's ability to enter into strategic alliances with
companies in the genetics industry; the ability of the Company to raise the
financing necessary to implement its business and marketing plan, to pay
salaries to its officers and employees and to pay its accounts payable.

ITEM 3.  CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in its Exchange Act reports is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms, and that such
information is accumulated and communicated to management, including the Acting
Chief Executive Officer and Acting Chief Financial Officer, as appropriate, to
allow timely decisions regarding required disclosure. Management necessarily
applies its judgment in assessing the costs and benefits of such controls and
procedures, which, by their nature, can provide only reasonable assurance
regarding management's control objectives.

With the participation of management, the Company's Acting Chief Executive
Officer and Acting Chief Financial Officer evaluated the effectiveness of the
design and operation of the Company's disclosure controls and procedures at the
conclusion of the fiscal quarter ended June 30, 2006. Based upon this
evaluation, the Acting Chief Executive Officer and Acting Chief Financial
Officer concluded that the Company's disclosure controls and procedures were
effective in ensuring that material information required to be disclosed is
included in the reports that it files with the Securities and Exchange
Commission.

                                       13
<PAGE>

Change In Internal Controls

There were no significant changes in the Company's internal control or, to the
knowledge of management, in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation of its
disclosure controls and procedures utilized to compile information included in
this filing.

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

      In July 2006, the former Chief Executive Officer and President of the
Company received notice from a shareholder of the Company that it submitted a
complaint with the Securities and Exchange Commission against the Company and
the former Chief Executive Officer and President purporting to allege that
misstatements were made by the former Chief Executive Officer and President to
such shareholder when such shareholder acquired its shares. The Company has not
received any notice from the Securities and Exchange Commission with respect to
this matter and has not received any complaint from such shareholder. The
Company does not know what the precise nature of the allegations are or when the
purported actions and misstatements were alleged to have occurred.

Item 4.  Exhibits and Reports on Form 8-K.

     (a)   Exhibits

     31.1  Certification of Chief Executive Officer and Chief Financial Officer
     pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

     32.1  Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
     to Section 906 of the Sarbanes-Oxley Act of 2002.

     (b)   Reports on Form 8-K.

            The Registrant filed a Current Report on Form 8-K on June 14, 2006
            with respect to its entering into a Convertible Secured Loan
            Agreement and other related loan documents.

* * * * * *
      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 thereunto duly authorized.

                                         GENELINK, INC.
                                         (Registrant)

Date: August 11, 2006                    By: /s/ Monte E. Taylor, Jr.
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                                             Monte E. Taylor, Jr.
                                             Acting Chief Executive Officer

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