SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: September 18, 1998
ITEX CORPORATION
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(Exact name of registrant as specified in its charter)
NEVADA 0-18275 93-02292994
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(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
10300 S.W. Greenburg Road, Portland, Oregon 97223
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (503) 244-4673
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(Former name or address, if changed since last report.)
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ITEM 4. Changes in Registrant's Certifying Accountant
(a) (1) The client-auditor relationship between the Registrant and
Andersen Andersen & Strong, L.C., the independent accounting firm previously
engaged as the Certifying Accountant to audit the Registrant's financial
statements ceased effective September 11, 1998.
(2) None of the reports of Andersen Andersen & Strong, L.C.
for the past two years contained any adverse opinion or disclaimer of opinion or
was qualified or modified as to uncertainty, audit scope, or accounting
principles.
(3) The decision to change accountants was recommended by the
audit committee of the board of directors and was approved by the board of
directors of the Registrant.
(4) During the Registrant's two most recent fiscal years and
subsequent interim period preceding the cessation of the relationship with
Andersen Andersen & Strong, L.C., there were no disagreements between the
Registrant and Andersen Andersen & Strong, L.C. on any issue of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure which, if not resolved to the satisfaction of Andersen Andersen &
Strong, L.C. would have caused Andersen Andersen & Strong, L.C. to make
reference to the subject matter of the disagreement or disagreements in its
report.
(b) Effective September 11, 1998, the registrant engaged Ehrhardt Keefe
Steiner & Hottman PC as its principal accountant to audit the Registrant's
financial statements. During the Registrant's two most recent fiscal years and
subsequent interim periods prior to the engagement of Ehrhardt Keefe Steiner &
Hottman PC, the Registrant did not, nor did anyone on the registrant's behalf,
consult Ehrhardt Keefe Steiner & Hottman PC regarding either (A) the application
of accounting principles to a specified completed or proposed transaction, or
the type of audit opinion that might be rendered on the Registrant's financial
statments as to which a written report or oral advice was provided to the
Registrant that was an important factor considered by the Registrant in reaching
a decision as to such accounting, auditing or financial reporting issue, or (B)
any matter that was the subject of a disagreement between the Registrant and
Andersen Andersen & Strong, L.C. or an event of the type described in paragraph
(a)(4) above.
(c) The Registrant has provided Andersen Andersen & Strong, L.C. with a
copy of the disclosures it is making in this Form 8-K. The Registrant requested
that Andersen Andersen & Strong, L.C. furnish the Registrant with a letter
addressed to the Securities and Exchange Commission stating whether Andersen
Andersen & Strong, L.C. agrees with the statements made by the Registrant herein
and, if not, stating the respects in which it does not agree. The letter
subsequently furnished by Andersen Andersen & Strong, L.C. is included as
Exhibit 16 to this report.
ITEM 7. Exhibits.
Exhibit 16 Letter of Andersen Andersen & Strong, L.C. regarding change in
certifying accountant
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Signatures
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 hereunto duly authorized.
Dated this 18th day of September, 1998.
ITEX Corporation
By: /s/ Graham H. Norris
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Graham H. Norris
Title: President & CEO
September 17, 1998
Securities and Exchange Commission 450 5th Street, N.W.
Washington, D.C. 20549
To Whom it May Concern:
We have been furnished with a copy of the response to Item 4 of Form 8-K for the
event that occurred on September 11, 1998, to be filed by our former client ITEX
Corporation. We agree with the statements made in response to that Item insofar
as they relate to our firm.
Very Truly Yours,
/s/ Andersen Andersen & Strong L.C.
Andersen Andersen & Strong L.C.
