JURAK CORPORATION Review and Profile

Jurak World Wide is a family-owned health-products and network-marketing company built around formulas developed by Carl Jurak. The company states that Carl Jurak spent much of the 1920s and 1930s developing the herbal preparation later known as Jurak Classic Whole Body Tonic, or JC Tonic, and introduced it commercially in 1943. His son, Anthony Carl Jurak, founded Jurak Corporation World Wide in Minnesota on November 1, 1997, and reintroduced the tonic through a network-marketing organization. Anthony Jurak had previously helped establish Matol, another direct-selling company whose principal KM supplement was based on a variation of one of Carl Jurak's formulas.

JC Tonic remains the company's principal product. It is a liquid dietary supplement containing a proprietary blend of 18 herbs and six minerals, including chamomile, dandelion, licorice, passionflower, peppermint, saw palmetto and celery seed. The company markets the tonic for general wellness, energy, circulation and maintaining bodily balance, while its product disclaimer states that the supplement is not intended to diagnose, treat, cure or prevent disease. Jurak also sells Helena Whole Body Skin Rejuvenator, a topical skin-care product containing natural oils and components of the JC Tonic formula.

Products have historically been sold through independent distributors called Ambassadors of Health. Under the Jurak Career Plan described in the company's SEC filings, distributors received a 30% discount from retail prices and earned income from personal retail sales and sales generated by their downline organizations. Maintaining Qualified Distributor status required 160 points in monthly product volume. An earlier version of the program also awarded certificates redeemable for restricted company stock when a distributor maintained 160 points, sponsored three qualifying distributors and helped each of those distributors sponsor three additional qualifying participants. The current website continues to recruit Ambassadors of Health and operates a member-login and ordering system, but it does not publish a current compensation plan, income disclosure or detailed commission schedule.

Jurak Corporation World Wide reported sales of approximately $2.69 million for the fiscal year ended May 31, 2004, compared with $2.58 million the previous year. It recorded net losses of $409,950 and $558,916 during those respective years, and its auditors raised substantial doubt about the company's ability to continue as a going concern. By fiscal 2007, annual revenue had declined to approximately $1.05 million, and the auditors again cited recurring operating losses and a working-capital deficit. The public corporation changed its name to PhytoLabs in March 2007 and then to LifeQuest World Corporation on August 20, 2007. The Jurak-branded product and distributor business continued under the Jurak World Wide name rather than disappearing with the public-company name changes.