**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

**June      30, 2006**

**COMMISSION      FILE NUMBER **
**033-24138-D**

**IMAGENETIX,      INC.**

| **NEVADA**                                                                          |   | **87-0463772**                                      |
|-------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization)  |   | (I.R.S.                Employer Identification No.) |

| **10845                Rancho Bernardo Road, Suite 105** |
|----------------------------------------------------------|
| **San                Diego, California 92127**           |
| (Address                of principal executive offices)  |

**(858)      674-8455**

**Yes**
**x**

**    No      o**

**Yes**
**o      **

**No x**

| Common                  Stock, $.001 par value | 10,721,400                                      |
|------------------------------------------------|-------------------------------------------------|
| (Class)                                        | Outstanding                  at August 11, 2006 |

**    No      **
**x**

----

**Imagenetix,      Inc.**

**INDEX**

|                                                     |                                                                                                                                             | **Page** |
|----------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| PART                I. FINANCIAL INFORMATION             |                                                                                                                                             |
|                                                     |                                                                                                                                             |     |
| Item                1.                                   | Financial                Statements:                                                                                                             |     |
|                                                     |                                                                                                                                             |     |
|                                                     | Consolidated                Balance Sheets as of June 30, 2006 (unaudited) and March 31, 2006                                                    | 3        |
|                                                     |                                                                                                                                             |     |
|                                                     | Consolidated                Statements of Operations for the three months ended June 30, 2006                and 2005                (unaudited) | 4        |
|                                                     |                                                                                                                                             |     |
|                                                     | Consolidated                Statements of Cash Flows for the three months ended June 30, 2006                and 2005                (unaudited) | 5        |
|                                                     |                                                                                                                                             |     |
|                                                     | Notes                to Unaudited Consolidated Financial Statements                                                                              | 6        |
|                                                     |                                                                                                                                             |     |
| Item                2.                                   | Management’s                Discussion and Analysis or Plan of Operation                                                                   | 14       |
|                                                     |                                                                                                                                             |     |
| Item                3.                                   | Controls                and Procedures                                                                                                           | 20       |
|                                                     |                                                                                                                                             |     |
| PART                II. OTHER                INFORMATION |                                                                                                                                             |
|                                                     |                                                                                                                                             |     |
| Item                1.                                   | Legal                Proceedings                                                                                                                 | *        |
| Item                2                                    | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                       | *        |
| Item                3.                                   | Defaults                Upon Senior Securities                                                                                                   | *        |
| Item                4.                                   | Submission                of Matters to a Vote of Security Holders                                                                               | *        |
| Item                5.                                   | Other                Information                                                                                                                 | *        |
| Item                6.                                   | Exhibits                                                                                                                                         | 21       |
|                                                     |                                                                                                                                             |     |
| SIGNATURES                                               |                                                                                                                                             |

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**Imagenetix,        Inc.**

**Consolidated        Balance Sheets**

|                                                                                                                                                           |   | June                  30, |       |  March                  31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|------------|----------------------------------|--------|
|                                                                                                                                                           |   | 2006                      |       |  2006                       |   |
|                                                                                                                                                           |   | (Unaudited)               |       |                        |   |
| ASSETS                                                                                                                                                         |   |                      |       |                        |   |
|                                                                                                                                                           |   |                      |       |                        |   |
| Current                  assets:                                                                                                                               |   |                      |       |                             |   |   |   |
| Cash                  and cash equivalents                                                                                                                     |   | $                         | 1,079,937  |                             | $      | 1,808,016 |   |
| Accounts                  receivable, net                                                                                                                      |   |                      | 729,884    |                             |   | 811,198 |   |
| Inventories,                  net                                                                                                                              |   |                      | 2,059,924  |                             |   | 1,741,468 |   |
| Prepaid                  expenses                                                                                                                              |   |                      | 176,858    |                             |   | 220,747 |   |
| Income                  tax receivable                                                                                                                         |   |                      | 604,617    |                             |   | 617,570 |   |
| Deferred                  tax asset                                                                                                                            |   |                      | 151,359    |                             |   | 94,200 |   |
|                                                                                                                                                           |   |                      |       |                             |   |   |   |
| Total                  current assets                                                                                                                          |   |                      | 4,802,579  |                             |   | 5,293,199 |   |
|                                                                                                                                                           |   |                      |       |                             |   |   |   |
| Property                  and equipment, net                                                                                                                   |   |                      | 92,866     |                             |   | 97,574 |   |
|                                                                                                                                                           |   |                      |       |                             |   |   |   |
| Other                  assets                                                                                                                                  |   |                      | 498,088    |                             |   | 503,301 |   |
|                                                                                                                                                           |   |                      |       |                             |   |   |   |
|                                                                                                                                                           |   | $                         | 5,393,533  |                             | $      | 5,894,074 |   |
|                                                                                                                                                           |   |                      |       |                             |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                                                                          |   |                      |       |                             |   |   |   |
|                                                                                                                                                           |   |                      |       |                             |   |   |   |
| Current                  liabilities:                                                                                                                          |   |                      |       |                             |   |   |   |
| Accounts                  payable                                                                                                                              |   | $                         | 593,688    |                             | $      | 740,461 |   |
| Accrued                  liabilities                                                                                                                           |   |                      | 60,290     |                             |   | 51,949 |   |
| Customer                  deposits                                                                                                                             |   |                      | 71,299     |                             |   | 48,485 |   |
| Short                  term license payable                                                                                                                    |   |                      | 29,797     |                             |   | 29,209 |   |
|                                                                                                                                                           |   |                      |       |                             |   |   |   |
| Total                  current liabilities                                                                                                                     |   |                      | 755,074    |                             |   | 870,104 |   |
|                                                                                                                                                           |   |                      |       |                             |   |   |   |
| Long                  term license payable                                                                                                                     |   |                      | 61,199     |                             |   | 68,873 |   |
|                                                                                                                                                           |   |                      |       |                             |   |   |   |
| Stockholders'                  equity                                                                                                                          |   |                      |       |                             |   |   |   |
| Preferred                  stock, $.001 par value; 5,000,000 shares                                                                                            |   |                      |       |                             |   |   |   |
| authorized:                  none outstanding                                                                                                                  |   |                      | —    |                             |   | — |   |
| Common                  stock, $.001par value; 50,000,000 shares                                                                                               |   |                      |       |                             |   |   |   |
| authorized:                  10,721,400 issued and outstanding at                                                                                              |   |                      |       |                             |   |   |   |
| June                  30 and March 31, 2006                                                                                                                    |   |                      | 10,721     |                             |   | 10,721 |   |
| Capital                  in excess of par value                                                                                                                |   |                      | 10,344,741 |                             |   | 10,342,395 |   |
| Accumulated                  earnings (deficit)                                                                                                                |   |                      | (5,778,202 | )                                |   | (5,398,019 | ) |
| Total                  stockholders' equity                                                                                                                    |   |                      | 4,577,260  |                             |   | 4,955,097 |   |
|                                                                                                                                                           |   | $                         | 5,393,533  |                             | $      | 5,894,074 |   |
|                                                                                                                                                           |   |                      |       |                             |   |   |   |
| *See                  accompanying summary of accounting policies and notes to unaudited                  consolidated financial                  statements.* |

----

**Imagenetix,        Inc.**

**Consolidated        Statements of Operations**

|                                                                                                                                                           |   | Three                  Months Ended    |     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|----------|
|                                                                                                                                                           |   |  June                  30,                       |     |  June                  30, |   |
|                                                                                                                                                           |   |  2006                                            |     |  2005 |   |
|                                                                                                                                                           |   |                                             |     |    |   |
| Net                  sales                                                                                                                                     |   | $                                                     | 931,569  |   | $ | 2,869,745 |   |
|                                                                                                                                                           |   |                                                  |     |   |   |   |   |
| Cost                  of sales                                                                                                                                 |   |                                                  | 503,800  |   |   | 1,596,807 |   |
|                                                                                                                                                           |   |                                                  |     |   |   |   |   |
| Gross                  profit                                                                                                                                  |   |                                                  | 427,769  |   |   | 1,272,938 |   |
|                                                                                                                                                           |   |                                                  |     |   |   |   |   |
| Operating                  expenses:                                                                                                                           |   |                                                  |     |   |   |   |   |
| General                  and administrative                                                                                                                    |   |                                                  | 378,268  |   |   | 291,409 |   |
| Payroll                  expense                                                                                                                               |   |                                                  | 160,483  |   |   | 177,732 |   |
| Consulting                  expense                                                                                                                            |   |                                                  | 323,550  |   |   | 261,417 |   |
| Operating                  expenses                                                                                                                            |   |                                                  | 862,301  |   |   | 730,558 |   |
| Operating                  income                                                                                                                              |   |                                                  | (434,532 | ) |   | 542,380 |   |
| Other                  income (expense):                                                                                                                       |   |                                                  |     |   |   |   |   |
| Other                  income                                                                                                                                  |   |                                                  | 9,889    |   |   | 8,912 |   |
| Interest                  expense                                                                                                                              |   |                                                  | (1,915   | ) |   | (12,981 | ) |
| Other                  income (expense)                                                                                                                        |   |                                                  | 7,974    |   |   | (4,069 | ) |
| Income                  (loss) before income taxes                                                                                                             |   |                                                  | (426,558 | ) |   | 538,311 |   |
|                                                                                                                                                           |   |                                                  |     |   |   |   |   |
| Provision                  for (benefits from) taxes                                                                                                           |   |                                                  | (48,721  | ) |   | 234,300 |   |
|                                                                                                                                                           |   |                                                  |     |   |   |   |   |
| Net                  income (loss)                                                                                                                             |   | $                                                     | (377,837 | ) | $ | 304,011 |   |
|                                                                                                                                                           |   |                                                  |     |   |   |   |   |
| Basic                  income (loss) per share                                                                                                                 |   | $                                                     | (0.04    | ) | $ | 0.03 |   |
|                                                                                                                                                           |   |                                                  |     |   |   |   |   |
| Diluted                  income (loss) per share                                                                                                               |   | $                                                     | (0.04    | ) | $ | 0.02 |   |
|                                                                                                                                                           |   |                                                  |     |   |   |   |   |
| *See                  accompanying summary of accounting policies and notes to unaudited                  consolidated financial                  statements.* |

----

**Imagenetix,      Inc.**

**Consolidated      Statements of Cash      Flows**

|                                                                                                                                                     |   | **Three                Months Ended**   |          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------------|
|                                                                                                                                                     |   | **June                30, 2006**                  |          | June                30, 2005 |   |
| **Operating                activities:**                                                                                                                 |   |                                              |          |    |   |
| Net                income (loss)                                                                                                                         |   | **$**                                             | **(377,837**  | **)** | $ | 304,011 |   |
| Adjustments                to reconcile net income                                                                                                       |   |                                              |          |   |   |   |   |
| to                cash provided by (used in) operating activities:                                                                                       |   |                                              |          |   |   |   |   |
| Amortization                and depreciation                                                                                                             |   |                                              | **9,071**     |   |   | 6,797 |   |
| Provision                for doubtful accounts                                                                                                           |   |                                              | **—**   |   |   | (22,070 | ) |
| Provision                for inventory obsolescence                                                                                                      |   |                                              | **32,412**    |   |   | 81,096 |   |
| Non                cash expense related to issuance of warrants                                                                                          |   |                                              | **—**   |   |   | 38,607 |   |
| Change                in deferred taxes                                                                                                                  |   |                                              | **(62,559**   | **)** |   | (19,000 | ) |
| Changes                in assets and liabilities:                                                                                                        |   |                                              |          |   |   |   |   |
| (Increase)                decrease in accounts receivable                                                                                                |   |                                              | **81,314**    |   |   | (632,284 | ) |
| (Increase)                decrease in employee receivable                                                                                                |   |                                              | **(11,982**   | **)** |   | — |   |
| (Increase)                decrease in inventory                                                                                                          |   |                                              | **(350,868**  | **)** |   | (82,527 | ) |
| (Increase)                decrease in other assets                                                                                                       |   |                                              | **62,121**    |   |   | (24,481 | ) |
| Increase                (decrease) in accounts payable                                                                                                   |   |                                              | **(146,773**  | **)** |   | 130,264 |   |
| Increase                (decrease) in accrued liabilities                                                                                                |   |                                              | **8,341**     |   |   | 9,868 |   |
| Increase                (decrease) in customer deposits                                                                                                  |   |                                              | **22,814**    |   |   | (75,391 | ) |
| Increase                (decrease) in income taxes payable                                                                                               |   |                                              | **12,953**    |   |   | (242,608 | ) |
| Net                cash provided by (used in) operating activities                                                                                       |   |                                              | **(720,993**  | **)** |   | (527,718 | ) |
| **Investing                activities:**                                                                                                                 |   |                                              |          |   |   |   |   |
| Trademarks,                patents and infomercial                                                                                                       |   |                                              | **—**   |   |   | (41,296 | ) |
| Net                cash used in investing activities                                                                                                     |   |                                              | **—**   |   |   | (41,296 | ) |
| **Financing                activities:**                                                                                                                 |   |                                              |          |   |   |   |   |
| Payments                on notes payable to related party                                                                                                |   |                                              | **—**   |   |   | (100,000 | ) |
| Payments                on patent license financed                                                                                                       |   |                                              | **(7,086**    | **)** |   | — |   |
| Proceeds                from exercise of stock options and warrants                                                                                      |   |                                              | **—**   |   |   | 147,152 |   |
| Net                cash provided by (used in) financing activities                                                                                       |   |                                              | **(7,086**    | **)** |   | 47,152 |   |
| **Net                increase (decrease) in cash**                                                                                                       |   |                                              | **(728,079**  | **)** |   | (521,862 | ) |
| **Cash**,                beginning of period                                                                                                             |   |                                              | **1,808,016** |   |   | 2,031,486 |   |
| **Cash,**                end of period                                                                                                                   |   | **$**                                             | **1,079,937** |   | $ | 1,509,624 |   |
|                                                                                                                                                     |   |                                              |          |   |   |   |   |
| **Supplemental                Disclosure of Cash Flow Information:**                                                                                     |   |                                              |          |   |   |   |   |
| Cash                paid during the period for:                                                                                                          |   |                                              |          |   |   |   |   |
| Interest                                                                                                                                                 |   | **$**                                             | **1,915**     |   | $ | 12,981 |   |
| Income                taxes                                                                                                                              |   | **$**                                             | **885**       |   | $ | 495,908 |   |
| **Non                Cash Investing and Financing Activities:**                                                                                          |   |                                              |          |   |   |   |   |
| Non-cash                dividend issued to certain warrant holders                                                                                       |   | **$**                                             | **2,346**     |   | $ | — |   |
|                                                                                                                                                     |   |                                              |          |   |   |   |   |
| *See                accompanying summary of accounting policies and notes to unaudited                consolidated financial                statements.* |

----

**IMAGENETIX,      INC.**

**Notes      to the Unaudited Consolidated Financial Statements **

**1.  **
**BASIS      OF PRESENTATION**

**Earnings      Per Share**

**Stock      Options**

----

**IMAGENETIX,      INC.**

**Notes      to the Unaudited Consolidated Financial Statements      (Continued)**

**2.  **
**RECENT      ACCOUNTING PRONOUNCEMENTS**

**3.**
**ACCOUNTS      RECEIVABLE**

|                                             |   | June                  30, |    |  March                  31, |   |
|--------------------------------------------------|--------|---------------------------|---------|----------------------------------|--------|
|                                             |   | 2006                      |    | 2006                        |   |
|                                             |   |                      |    |                        |   |
| Accounts                  receivable - trade     |   | $                         | 779,884 |                             | $      | 861,198 |   |
| Allowance                  for doubtful accounts |   |                      | (50,000 | )                                |   | (50,000 | ) |
|                                             |   |                      |    |                             |   |   |   |
| Accounts                  receivable, net        |   | $                         | 729,884 |                             | $      | 811,198 |   |

**4.      **
**INVENTORY**

----

**IMAGENETIX,      INC.**

**Notes      to the Unaudited Consolidated Financial Statements      (Continued)**

|                                                |   |  June                  30, |      |  March                  31, |   |
|-----------------------------------------------------|--------|---------------------------------|-----------|----------------------------------|--------|
|                                                |   |  2006                      |      |  2006                       |   |
|                                                |   |                       |      |                        |   |
| Raw                  materials                      |   | $                               | 1,905,285 |                             | $      | 1,554,417 |   |
| Finished                  products                  |   |                            | 168,228   |                             |   | 168,228 |   |
| Boxes,                  labels, tubes & bottles |   |                            | 215,291   |                             |   | 215,291 |   |
|                                                |   |                            | 2,288,804 |                             |   | 1,937,936 |   |
| Reserve                  for obsolescence           |   |                            | (228,880  | )                                |   | (196,468 | ) |
|                                                |   | $                               | 2,059,924 |                             | $      | 1,741,468 |   |

**5.      **
**PROPERTY      AND EQUIPMENT**

|                                           |   |  June                  30, |    |  March                  31, |   |
|------------------------------------------------|--------|---------------------------------|---------|----------------------------------|--------|
|                                           |   |  2006                      |    |  2006                       |   |
|                                           |   |                       |    |                        |   |
| Office                  equipment              |   | $                               | 40,922  |                             | $      | 40,922 |   |
| Lease-hold                  improvements       |   |                            | 87,708  |                             |   | 87,708 |   |
| Leased                  equipment              |   |                            | 12,341  |                             |   | 12,341 |   |
|                                           |   |                            | 140,971 |                             |   | 140,971 |   |
|                                           |   |                            |    |                             |   |   |   |
| Less                  accumulated depreciation |   |                            | 48,105  |                             |   | 43,397 |   |
|                                           |   |                            |    |                             |   |   |   |
|                                           |   | $                               | 92,866  |                             | $      | 97,574 |   |

**6.      **
**OTHER      ASSETS**

----

**IMAGENETIX,      INC.**

**Notes      to the Unaudited Consolidated Financial Statements      (Continued)**

|                                           |   |  June                  30, |    |  March                  31, |   |
|------------------------------------------------|--------|---------------------------------|---------|----------------------------------|--------|
|                                           |   |  2006                      |    |  2006                       |   |
|                                           |   |                       |    |                        |   |
| Trademarks                                     |   | $                               | 13,032  |                             | $      | 13,032 |   |
| Promotional                                    |   |                            | 12,500  |                             |   | 18,750 |   |
| Patent                                         |   |                            | 161,353 |                             |   | 161,353 |   |
| Deferred                  tax asset            |   |                            | 335,600 |                             |   | 330,200 |   |
|                                           |   |                            | 522,485 |                             |   | 523,335 |   |
|                                           |   |                            |    |                             |   |   |   |
| Less                  accumulated amortization |   |                            | 24,397  |                             |   | 20,034 |   |
|                                           |   |                            |    |                             |   |   |   |
|                                           |   | $                               | 498,088 |                             | $      | 503,301 |   |

**7.  **
**LICENSES      PAYABLE**

|                                                |   | June                  30, |   |  March                  31, |   |
|-----------------------------------------------------|--------|---------------------------|--------|----------------------------------|--------|
|                                                |   | 2006                      |   |  2006                       |   |
|                                                |   |                      |   |                        |   |
| Patent                  License and Royalty Payable |   | $                         | 90,996 |                             | $      | 98,082 |   |
|                                                |   |                      |   |                             |   |   |   |
| Less                  current portion               |   |                      | 29,797 |                             |   | 29,209 |   |
|                                                |   |                      |   |                             |   |   |   |
| Long                  term license payable          |   | $                         | 61,199 |                             | $      | 68,873 |   |

**8.      **
**COMMITMENTS      AND CONTINGENCIES**

----

**IMAGENETIX,      INC.**

**Notes      to the Unaudited Consolidated Financial Statements      (Continued)**

**9.**
**CAPITAL      STOCK **

----

**IMAGENETIX,      INC.**

**Notes      to the Unaudited Consolidated Financial Statements      (Continued)**

**10.**
**      INCOME TAXES**

|                                                     |   |  June                  30, |    |  March                  31, |   |
|----------------------------------------------------------|--------|---------------------------------|---------|----------------------------------|--------|
|                                                     |   |  2006                      |    |  2006                       |   |
|                                                     |   |                       |    |                        |   |
| Excess                  of financial accounting          |   |                            |    |                             |   |   |   |
| over                  tax depreciation                   |   | $                               | 600     |                             | $      | 6,000 |   |
| State                  income tax benefits               |   |                            | 33,959  |                             |   | (11,300 | ) |
| Allowance                  for obsolete inventory        |   |                            | 91,100  |                             |   | 78,300 |   |
| Allowance                  for bad debts                 |   |                            | 19,900  |                             |   | 19,900 |   |
| Valuation                  of stock options and warrants |   |                            | 335,000 |                             |   | 324,200 |   |
| Vacation                  accrual                        |   |                            | 6,400   |                             |   | 7,300 |   |
| Net                  deferred tax asset                  |   | $                               | 486,959 |                             | $      | 424,400 |   |

----

**IMAGENETIX,      INC.**

**Notes      to the Unaudited Consolidated Financial Statements      (Continued)**

|                                                                               |   | June                  30,    |     |
|------------------------------------------------------------------------------------|--------|----------------------------------------|----------|
|                                                                               |   | 2006                                   |     |  2005 |   |
|                                                                               |   |                                   |     |    |   |
| Federal                  income tax expense computed at the Federal statutory rate |   | $                                      | (145,000 | ) | $ | 183,000 |   |
| State                  income tax expense net of Federal benefit                   |   |                                   | (24,900  | ) |   | 34,300 |   |
| Other                                                                              |   |                                   | 121,179  |   |   | 17,000 |   |
|                                                                               |   |                                   |     |   |   |   |   |
| Income                  tax expense                                                |   | $                                      | (48,721  | ) | $ | 234,300 |   |

|                                                           |   |  Three                  Months Ended June 30,    |    |
|----------------------------------------------------------------|--------|-----------------------------------------------------------------|---------|
|                                                           |   |  2006                                                      |    |  2005 |   |
|                                                           |   |                                                       |    |    |   |
| Current                  income tax expense:                   |   |                                                            |    |   |   |   |   |
| Federal                                                        |   | $                                                               | (43,359 | ) | $ | 205,200 |   |
| State                                                          |   |                                                            | 438     |   |   | 58,500 |   |
|                                                           |   |                                                            |    |   |   |   |   |
| Net                  current tax expense                       |   | $                                                               | (42,921 | ) | $ | 263,700 |   |
|                                                           |   |                                                            |    |   |   |   |   |
| Deferred                  tax expense (benefit) resulted from: |   |                                                            |    |   |   |   |   |
| Excess                  of financial accounting over           |   |                                                            |    |   |   |   |   |
| tax                  depreciation                              |   | $                                                               | 5,400   |   | $ | (900 | ) |
| State                  income tax benefits                     |   |                                                            | 11,500  |   |   | — |   |
| Other                                                          |   |                                                            | 900     |   |   | 400 |   |
| Valuation                  of stock options and warrants       |   |                                                            | (10,700 | ) |   | — |   |
| Allowance                  for obsolete inventory              |   |                                                            | (12,900 | ) |   | (39,700 | ) |
| Allowance                  for bad debts                       |   |                                                            | — |   |   | 10,800 |   |
|                                                           |   |                                                            |    |   |   |   |   |
| Net                  deferred tax benefit                      |   | $                                                               | (5,800  | ) | $ | (29,400 | ) |
|                                                           |   |                                                            |    |   |   |   |   |
| Net                                                            |   | $                                                               | (48,721 | ) | $ | 234,300 |   |

**11.**
**EARNINGS      PER SHARE**

----

**IMAGENETIX,      INC.**

**Notes      to the Unaudited Consolidated Financial Statements      (Continued)**

|                                                       |   |  For                  the Three Months Ended    |       |
|------------------------------------------------------------|--------|----------------------------------------------------------------|------------|
|                                                       |   |  June                  30,                      |       |
|                                                       |   |  2006                                                     |       |  2005 |   |
|                                                       |   |                                                      |       |    |   |
| Income                  (loss) available to common         |   |                                                           |       |   |   |   |   |
| shareholders                  (Numerator)                  |   | $                                                              | (377,837   | ) | $ | 304,011 |   |
|                                                       |   |                                                           |       |   |   |   |   |
| Weighted                  average number of common         |   |                                                           |       |   |   |   |   |
| shares                  outstanding used in basic income   |   |                                                           |       |   |   |   |   |
| per                  share during the period               |   |                                                           |       |   |   |   |   |
| (Denominator)                                              |   |                                                           | 10,721,400 |   |   | 10,459,800 |   |
|                                                       |   |                                                           |       |   |   |   |   |
| Weighted                  average number of common         |   |                                                           |       |   |   |   |   |
| shares                  outstanding used in diluted income |   |                                                           |       |   |   |   |   |
| per                  share during the period               |   |                                                           |       |   |   |   |   |
| (Denominator)                                              |   |                                                           | 10,721,400 |   |   | 12,333,978 |   |

----

**ITEM      2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION.  **

**Overview**

**Critical      Accounting Policies and Estimates**

*1.*
*      Accounts receivable.*

*2.      Inventory*

----

*3.      Revenue Recognition*

*4.      Income Taxes*

|                                                 |   | Three                  Months Ended    |     |     |   |             |   |
|------------------------------------------------------|--------|--------------------------------------------------|----------|---------------|--------|------------------|--------|
|                                                 |   |                                             |     |     |   |  Increase   |   |   |   |
|                                                 |   | 6/30/06                                          |     |  6/30/05 |   |  (Decrease) |   |  % |   |
|                                                 |   |                                             |     |     |   |        |   |   |   |
| Statements                  of Operations:           |   |                                             |     |          |   |             |   |   |   |   |   |   |   |
| Net                  sales                           |   | $                                                | 931,569  |          | $      | 2,869,745        |   | $ | (1,938,176 | ) |   | -67.5 | % |
| Cost                  of goods sold                  |   |                                             | 503,800  |          |   | 1,596,807        |   |   | (1,093,007 | ) |   | -68.4 | % |
| %                  of net sales                      |   |                                             | 54       | %             |   | 56               | %      |   | -2 | % |   | -2.8 | % |
| Gross                  profit                        |   |                                             | 427,769  |          |   | 1,272,938        |   |   | (845,169 | ) |   | -66.4 | % |
| %                  of net sales                      |   |                                             | 46       | %             |   | 44               | %      |   | 2 | % |   | 3.5 | % |
| Operating                  expenses                  |   |                                             |     |          |   |             |   |   |   |   |   |   |   |
| General                  and administrative          |   |                                             | 378,268  |          |   | 291,409          |   |   | 86,859 |   |   | 29.8 | % |
| Payroll                  expense                     |   |                                             | 160,483  |          |   | 177,732          |   |   | (17,249 | ) |   | -9.7 | % |
| Consulting                  expense                  |   |                                             | 323,550  |          |   | 261,417          |   |   | 62,133 |   |   | 23.8 | % |
| Total                  operating expenses            |   |                                             | 862,301  |          |   | 730,558          |   |   | 131,743 |   |   | 18.0 | % |
| Interest                  expense                    |   |                                             | (1,915   | )             |   | (12,981          | )      |   | (11,066 | ) |   | -85.2 | % |
| Other                  income                        |   |                                             | 9,889    |          |   | 8,912            |   |   | 977 |   |   | NM |   |
| Provision                  for (benefit from) taxes  |   |                                             | (48,721  | )             |   | 234,300          |   |   | 283,021 |   |   | -120.8 | % |
| Net                  income (loss)                   |   |                                             | (377,837 | )             |   | 304,011          |   |   | (681,848 | ) |   | -224.3 | % |
| Net                  income (loss) per share basic   |   |                                             | (0.04    | )             |   | 0.03             |   |   | (0.07 | ) |   | -233.3 | % |
| Net                  income (loss) per share diluted |   |                                             | (0.04    | )             |   | 0.02             |   |   | (0.06 | ) |   | -300.0 | % |

**Selected      Financial Information**

**Results      of Operations**

*Three      Months Ended June 30, 2006 Compared to Three Months Ended June 30,      2005*

----

----

**Capital      Resources**

| Working                  Capital                             |   |    |                                |     |   |        |   |
|--------------------------------------------------------------|--------|---------|-------------------------------------|---------------|--------|------------------|--------|
|                                                         |   |    |                                |     |   |  Increase   |   |
|                                                         |   | 6/30/06 |                                |  3/31/06 |   |  (Decrease) |   |
|                                                         |   |    |                                |     |   |        |   |
| Current                  assets                              |   | $       | 4,802,579                           |          | $      | 5,293,199        |   | $ | (490,620 | ) |
| Current                  liabilities                         |   |    | 755,074                             |          |   | 870,104          |   |   | (115,030 | ) |
| Working                  capital                             |   | $       | 4,047,505                           |          | $      | 4,423,095        |   | $ | (375,590 | ) |
|                                                         |   |    |                                |          |   |             |   |   |   |   |
| Long-term                  debt                              |   | $       | 61,199                              |          | $      | 68,873           |   | $ | (7,674 | ) |
|                                                         |   |    |                                |          |   |             |   |   |   |   |
| Stockholders'                  equity                        |   | $       | 4,577,260                           |          | $      | 4,955,097        |   | $ | (377,837 | ) |
|                                                         |   |    |                                |          |   |             |   |   |   |   |
| Statements                  of Cash Flows Select Information |   |    |                                |          |   |             |   |   |   |   |
|                                                         |   |    |                                |          |   |             |   |   |   |   |
|                                                         |   |    | Three                  Months Ended |          |   | Increase         |   |
|                                                         |   |    | 6/30/06                        |          |   | 6/30/05          |   |   | (Decrease) |   |
| Net                  cash provided by (used in):             |   |    |                                |          |   |             |   |   |   |   |
| Operating                  activities                        |   | $       | (720,993                            | )             | $      | (527,718         | )      | $ | (193,275 | ) |
| Investing                  activities                        |   | $       | —                             |          | $      | (41,296          | )      | $ | 41,296 |   |
| Financing                  activities                        |   | $       | (7,086                              | )             | $      | 47,152           |   | $ | (54,238 | ) |
|                                                         |   |    |                                |          |   |             |   |   |   |   |
| Balance                  Sheet Select Information            |   |    |                                |          |   |             |   |   |   |   |
|                                                         |   |    |                                |          |   |             |   |   | Increase  |   |
|                                                         |   |    | 6/30/06                             |          |   | 3/31/06          |   |   | (Decrease) |   |
|                                                         |   |    |                                |          |   |             |   |   |   |   |
| Cash                  and cash equivalients                  |   | $       | 1,079,937                           |          | $      | 1,808,016        |   | $ | (728,079 | ) |
|                                                         |   |    |                                |          |   |             |   |   |   |   |
| Accounts                  receivable                         |   | $       | 729,884                             |          | $      | 811,198          |   | $ | (81,314 | ) |
|                                                         |   |    |                                |          |   |             |   |   |   |   |
| Inventory                                                    |   | $       | 2,059,924                           |          | $      | 1,741,468        |   | $ | 318,456 |   |
|                                                         |   |    |                                |          |   |             |   |   |   |   |
| Accounts                  payable and accrued expenses       |   | $       | 653,978                             |          | $      | 792,410          |   | $ | (138,432 | ) |

**Liquidity**

**New      Accounting Pronouncements**

----

**Risk      Factors**

**There      Is Only One Supplier for Celadrin®. If We Are Unable to Purchase Celadrin® from      This Supplier, Our Business Would Be Harmed. **

**We      Rely upon a Limited Number of Customers the Loss of Which Would Reduce Our      Revenue and Any Earnings. **

**We      Rely upon Other Outside Suppliers to Produce Our Products Which Could Delay      Our      Product Deliveries. **

**Product      Liability Claims Against Us Could Be Costly. **

----

**We      Are Subject to Intense Competition from Other Nutritional Supplement Marketers      Which Could Reduce Our Revenue and Profit Margins. **

**We      Are Highly Regulated, Which Increases Our Costs of Doing Business.**

|  | • | the                formulation, manufacturing, packaging, labeling, distribution,                importation, sale and storage of our                products; |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | the                health and safety of food and drugs; |
|--|---------|---------------------------------------------------------|

|  | • | trade                practice and direct selling laws; and |
|--|---------|------------------------------------------------------------|

|  | • | product                claims and advertising by us; or for which we may be held                responsible.  |
|--|---------|--------------------------------------------------------------------------------------------------------------------|

**There      Are Limitations on the Liability of Our Officers and Directors Which May      Restrict Our Stockholders from Bringing Claims. **

**Shares      of Our Common Stock Which Are Eligible for Sale by Our Stockholders May Decrease      the Price of Our Common Stock. **

**There      is a Limited but Potentially Volatile Trading Market in Our Common Stock, Which      May Adversely Affect Our Stock Price. **

|  | • | The                lack of readily available price quotations; |
|--|---------|----------------------------------------------------------------|

|  | • | The                absence of consistent administrative supervision of "bid" and "ask"                quotations; |
|--|---------|-------------------------------------------------------------------------------------------------------------------|

|  | • | Lower                trading volume; and |
|--|---------|------------------------------------------|

|  | • | Market                conditions. |
|--|---------|-----------------------------------|

----

**Because      Our Common Stock May Be Classified as "Penny Stock," Trading in it Could Be      Limited, and Our Stock Price Could Decline. **

|  | • | A                standardized risk disclosure document identifying the risks inherent                in                investment in penny stocks; |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | All                compensation received by the broker-dealer in connection with the                transaction; |
|--|---------|------------------------------------------------------------------------------------------------------------------|

|  | • | Current                quotation prices and other relevant market data; and |
|--|---------|-----------------------------------------------------------------------------|

|  | • | Monthly                account statements reflecting the fair market value of the securities.                In                addition, these rules                require that a broker-dealer obtain financial and other information                from a                customer, determine that                transactions in penny stocks are suitable for such customer and deliver                a                written statement to such                customer setting forth the basis for this determination. |
|--|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      3.     CONTROLS AND PROCEDURES.**

| (a) | Evaluation                of disclosure controls and procedures. Our Chief Executive Officer                and                Principal Financial Officer, after evaluating the effectiveness of                our                "disclosure controls and procedures" (as defined in the Securities                Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of the end                of the                period covered by this Quarterly Report on Form 10-QSB (the "Evaluation                Date"), have concluded that as of the Evaluation Date, our disclosure                controls and procedures are effective to provide reasonable assurance                that                information we are required to disclose in reports that we file or                submit                under the Exchange Act is recorded, processed, summarized and reported                within the time periods specified in the Securities and Exchange                Commission rules and forms, and that such information is accumulated                and                communicated to our management, including our Chief Executive Officer                and                Principal Financial Officer, as appropriate, to allow timely decisions                regarding required disclosure. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Changes                in internal control over financial reporting. There were no significant                changes in our internal control over financial reporting during our                most                recent fiscal quarter that materially affected, or were                reasonablylikely                to materially affect, our internal control over financial                reporting. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**PART      II.**
**OTHER      INFORMATION**

**ITEM      6.**     **EXHIBITS.**

| **Exhibit                No.** |   | **Title**                                                                                            |   |   |
|--------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|--------|
|  31.1                     |   |  302                Certification of William P. Spencer, Chief Executive                Officer |   |   |
|  31.2                     |   |  302                Certification of Lowell W. Giffhorn, Chief Financial                Officer |   |   |
|  32.1                     |   |  906                Certification of William P. Spencer, Chief Executive                Officer |   |   |
|  32.2                     |   |  906                Certification of Lowell W. Giffhorn, Chief Financial                Officer |   |   |

----

**SIGNATURES**

|                               |                                                                                                               |                                     |
|------------------------------------|--------------------------------------------------------------------------------------------------------------------|------------------------------------------|
|                               | **IMAGENETIX,                INC.**a                  Nevada corporation                                           |
|                          |                                                                                                          |                                |
| Date:              August 14, 2006 | By:                                                                                                      | /s/ WILLIAM              P. SPENCER |
|                               | William              P. Spencer Chief                Executive Officer                                             |
|                               |                                                                                                               |
|                               | (Principal                Executive Officer and duly authorizedto                sign on behalf of the Registrant) |

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