ITEX ITEX Corporation (PK)

ITEX CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands)

October 31, 2012

July 31, 2012

ASSETS

Current assets:

     Cash 

$      2,308

$    1,942

     Accounts receivable, net of allowance of $329 and $319

716

716

     Prepaid expenses

67

98

     Loans and advances

14

12

     Prepaid advertising credits

2

3

     Deferred tax asset, net of allowance of $23 and $23

603

603

     Notes receivable 

343

334

     Other current assets

60

47

Total current assets

4,113

3,755

Property and equipment, net of accumulated depreciation of $430 and $425

36

43

Goodwill

3,191

3,191

Deferred tax asset, net of allowance of $163 and $163 and net of current portion

4,167

4,293

Intangible assets, net of amortization of $3,004 and $2,945

423

525

Notes receivable - net of current portion

1,263

1,285

Other long-term assets

18

19

               Total assets

$    13,211

$    13,111

LIABILITIES AND STOCKHOLDERS' EQUITY 

Current liabilities:

Accounts and other expenses payable

$         80

$          85

Commissions payable to brokers

306

654

Accrued commissions to brokers

1,057

842

Accrued expenses

444

412

Deferred revenue

24

32

Advance payments

117

136

Notes payable

7

-

Total current liabilities

2,035

2,161

Long-term liabilities:

       Other long-term liabilities

9

10

       Notes Payable, net of current portion

8

-

           Total long-term liabilities

17

10

Total Liabilities

2,052

2,171

Stockholders' equity:

Common stock, $0.01 par value; 9,000 shares authorized;
2,617 and 2,614 shares issued and outstanding, respectively

26

26

Additional paid-in capital

25,247

25,183

Stockholder note receivable

(463)

(489)

Accumulated deficit

(13,651)

(13,780)

Total stockholders' equity 

11,159

10,940

                Total liabilities and stockholders' equity 

$   13,211

$   13,111

ITEX CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

2012

2011

Revenue

        Marketplace revenue and other revenue

$   3,711

$   3,971

Cost and expenses:

Costs of marketplace revenue

2,361

2,509

Corporate salaries, wages and employee benefits

485

469

Selling, general and administrative

467

664

Depreciation and amortization

66

88

3,379

3,730

Income from operations

332

241

Other income/(expense):

       Interest, net

30

20

       Other income, net

2

-

32

20

Income before income taxes

364

261

       Income tax expense

116

101

Net income

$    248

$   160

Net income per common share:

Basic

$    0.09

$   0.04

Diluted

$    0.09

$    0.04

Weighted average shares outstanding:

Basic

2,617

3,647

Diluted

2,617

3,648