Imagenetix, Inc. filed a plan of reorganization with related disclosure statement in the US Bankruptcy Court on March 17, 2014. As per the plan filed, administrative claim and ordinary course administrative claims shall be paid in full in cash. Administrative tax claims shall be paid in full in cash.

United States trustee fees shall be paid in full in cash. Pre-effective date professional fee claims shall be paid in full satisfaction of claims by no later than 60th day after effective date. Priority non-tax claim shall receive in full satisfaction of the claims. Priority tax claim shall be paid in full in cash.

Allowed secured claim of Pacific Rainbow of $0.75 million shall receive in full satisfaction in cash plus accrued interest at the rate of 7.5% p.a. from April 1, 2014 through effective date and amount of attorney's fees. Allowed secured claim of TriPharma, for the amount of $3.50 million, shall receive $2.50 million in full satisfaction of the claims. Other secured claims shall receive debtor's collateral or proceeds from sale or cash from operations. General unsecured claim shall receive 20% of the allowed amount in cash.

General unsecured claim of TriPharma, for the amount of $4 million, shall receive 20% of the allowed amount in cash. Equity interests shall be retained under the plan. On the effective date, the reorganized debtor shall issue to Vanderlinden as consideration for the PerioDyne acquisition, 3.4 million shares of common stock and warrants.

On the effective date, the reorganized debtor shall issue to the equity investors the series A preferred stock. The plan shall also get funded through cash on hand and sale proceeds. As per the modification to the plan of reorganization filed on March 31, 2014, priority tax claim shall be paid in full in cash in quarterly installments through October 2017 plus interest thereon.

Pre-effective date professional fee claims of $0.42 million shall be paid by no later than 60th day after effective date. The debtor believes that there are no priority non-tax claims in the case. Priority tax claim of $1705 shall be paid in full in cash.

United States trustee fees of $5000 shall be paid in full in cash. General unsecured claim, for the allowed amount in the range from $0.50 million to $0.53 million, shall receive 20% of the allowed amount in cash. The plan shall get effective on July 2014.

The cash reserve will be in the amount of $0.67 million.