ITEX (ITEX) 10-K 20 Oct 16 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Jul. 31, 2016	Sep. 30, 2016	Jan. 31, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jul. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Entity Registrant Name	ITEX CORP
Entity Central Index Key	860,518
Current Fiscal Year End Date	--07-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 3,525,232
Trading Symbol	ITEX
Entity Common Stock, Shares Outstanding		2,081,083

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Current assets:
Cash and cash equivalents	$ 3,235	$ 2,047
Accounts receivable, net of allowance of $408 and $439	429	398
Prepaid expenses	183	174
Loans and advances	4	8
Deferred tax asset, net of allowance of $136 and $15	414	554
Notes receivable	283	291
Other current assets	4	11
Total current assets	4,552	3,483
Property and equipment, net of accumulated depreciation of $353 and $397	16	38
Goodwill	1,441	3,191
Deferred tax asset, net of allowance of $730 and $84 and net of current portion	2,220	3,124
Intangible assets, net of accumulated amortization of $3,380 and $3,325	48	102
Notes receivable - net of current portion	592	792
Other long-term assets	25	10
Total assets	8,894	10,740
Current liabilities:
Accounts and other expenses payable	37	50
Commissions payable to brokers	233	259
Accrued commissions to brokers	654	659
Accrued expenses	254	261
Deferred revenue	25	27
Advance payments	114	112
Total current liabilities	1,317	1,368
Total liabilities	1,317	1,368
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 9,000 shares authorized; 1,948 shares and 1,890 shares issued and outstanding, respectively	20	19
Additional paid-in capital	22,497	22,361
Stockholder notes receivable	(3)	(6)
Accumulated deficit	(14,937)	(13,002)
Total stockholders' equity	7,577	9,372
Total liabilities and stockholders’ equity	$ 8,894	$ 10,740

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Allowance for doubtful accounts receivable	$ 408	$ 439
Deferred tax assets, valuation allowance, current	136	15
Accumulated depreciation of property and equipment	353	397
Allowance for deferred tax asset, noncurrent	730	84
Accumulated amortization of intangible assets	$ 3,380	$ 3,325
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	9,000	9,000
Common stock, shares issued (in shares)	1,948	1,890
Common stock, shares outstanding (in shares)	1,948	1,890

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Revenue:
Marketplace and other revenue	$ 11,110	$ 12,017
Costs and expenses:
Cost of Marketplace revenue	6,883	7,394
Corporate salaries, wages and employee benefits	1,782	1,864
Selling, general and administrative	1,135	1,711
Depreciation and amortization	82	91
Goodwill impairment	1,750	0
Costs and Expenses, Total	11,632	11,060
(Loss)/income from operations	(522)	957
Other income	61	90
Other income
(Loss)/income before income taxes	(461)	1,047
Income tax expense	1,058	357
Net (loss)/income	$ (1,519)	$ 690
Net (loss)/income per common share:
Basic (in dollars per share)	$ (0.79)	$ 0.29
Diluted (in dollars per share)	$ (0.79)	$ 0.28
Weighted average shares outstanding:
Basic (in shares)	1,930	2,414
Diluted (in shares)	1,930	2,423

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Stockholder Notes Receivable [Member]	Accumulated Deficit [Member]
Balance at Jul. 31, 2014	$ 11,929	$ 26	$ 25,222	$ (161)	$ (13,158)
Balance (in shares) at Jul. 31, 2014		2,602
Stock based compensation expense	325	$ 1	324	0	0
Stock based compensation expense (in shares)		90
Common Stock repurchased and retired	(76)	$ 0	(76)	0	0
Common Stock repurchased and retired (in shares)		(23)
Tender Offer, partial	(3,000)	$ (8)	(2,992)	0	0
Tender Offer, partial (in shares)		(750)
Payments on Broker notes receivables	38	$ 0	0	38	0
Cancellation of Broker stock purchase	0	$ 0	(117)	117	0
Cancellation of Broker stock purchase (in shares)		(29)
Dividend payment	(534)	$ 0	0	0	(534)
Net Income Loss	690	0	0	0	690
Balance at Jul. 31, 2015	9,372	$ 19	22,361	(6)	(13,002)
Balance (in shares) at Jul. 31, 2015		1,890
Stock based compensation expense	250	$ 1	249	0	0
Stock based compensation expense (in shares)		88
Common Stock repurchased and retired	(113)	$ 0	(113)	0	0
Common Stock repurchased and retired (in shares)		(30)
Payments on Broker notes receivables	3	$ 0	0	3	0
Dividend payment	(417)	0	0	0	(417)
Net Income Loss	(1,519)	0	0	0	(1,519)
Balance at Jul. 31, 2016	$ 7,577	$ 20	$ 22,497	$ (3)	$ (14,937)
Balance (in shares) at Jul. 31, 2016		1,948

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)/income	$ (1,519)	$ 690
Items to reconcile to net cash provided by operating activities:
Depreciation and amortization	82	91
Goodwill imparment	1,750	0
Stock-based compensation	250	325
Bad debt expense	192	294
Decrease in deferred income taxes	1,044	356
Changes in operating assets and liabilities:
Accounts receivable	(223)	(34)
Prepaid expenses	(9)	(70)
Loans and advances	4	7
Other assets	(8)	20
Accounts and other expenses payable	(13)	(2)
Commissions payable to brokers	(26)	(8)
Accrued commissions to brokers	(5)	(69)
Accrued expenses	(6)	7
Deferred revenue	(2)	(5)
Advance payments	2	6
Net cash provided by operating activities	1,513	1,608
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments received from notes receivable - corporate office sales	288	371
Payments of note payable	0	(3)
Notes receivable - advances	(80)	(30)
Purchase of property and equipment	(6)	0
Net cash provided by investing activities	202	338
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes receivable from broker stock purchase	3	38
Repurchase of Common stock	(113)	(76)
Tender offer, partial	0	(3,000)
Cash dividend paid to Common Stockholders	(417)	(534)
Net cash used in financing activities	(527)	(3,572)
Net increase (decrease) in cash and cash equivalents	1,188	(1,626)
Cash and cash equivalents at beginning of period	2,047	3,673
Cash and cash equivalents at end of period	3,235	2,047
Supplemental cash flow information:
Cash paid (refund) for taxes	27	(7)
Non-cash activities:
Cancellation of portion of private placement notes and equity	$ 0	$ 117

DESCRIPTION OF OUR COMPANY AND

DESCRIPTION OF OUR COMPANY AND SUMMARY OF OUR SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jul. 31, 2016
Accounting Policies [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	Description of our Company ITEX Corporation (“ITEX”, “Company”, “we” or “us”) was incorporated in October 1985 in the State of Nevada. Through our independent licensed broker and franchise network (individually, “broker,” and together the “Broker Network”) in the United States and Canada, we operate a “Marketplace” in which products and services are exchanged by Marketplace members utilizing ITEX dollars “ITEX dollars”. ITEX dollars are only usable in the Marketplace and allows thousands of member businesses (our “members”) to acquire products and services without exchanging cash. We administer the Marketplace and provide record-keeping and payment transaction processing services for our members. A summary of significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows: The consolidated financial statements include the accounts of ITEX Corporation and its wholly owned subsidiary BXI Exchange, Inc. All inter-company accounts and transactions have been eliminated in consolidation. The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions affecting the amounts reported in the consolidated financial statements and accompanying notes. Changes in these estimates and assumptions may have a material impact on the Company’s financial statements and notes. Examples of estimates and assumptions include estimating: · certain provisions such as allowances for accounts receivable and notes receivable · any impairment of long-lived assets including goodwill · useful lives of property and equipment · the value and expected useful life of intangible assets · the value of assets and liabilities acquired through business combinations · tax provisions and valuation allowances · accrued commissions and other accrual expenses · litigation matters described herein · stock based payments Actual results may vary from estimates and assumptions that were used in preparing the financial statements. For each calendar year, we divide our operations into 13 four-week billing and commission cycles always ending on a Thursday (“operating cycle”). For financial statement purposes, our fiscal year is from August 1 to July 31 (“year”, “2016” for August 1, 2015 to July 31, 2016, “2015” for August 1, 2014 to July 31, 2015). We report our results as of the last day of each calendar month (“accounting cycle”). The Company accounts for business combinations using the acquisition method of accounting. The total consideration paid in an acquisition is allocated to the fair value of the acquired company’s identifiable assets and liabilities. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. The consolidated financial statements reflect the results of operations of an acquired business from the completion date of an acquisition. The costs to acquire a business, including transaction costs, are expensed as incurred. The Company identifies and records separately the intangible assets acquired apart from goodwill based on the specific criteria for separate recognition established per the accounting standards codification, namely: ⋅ the asset arises from contractual or other legal rights; or ⋅ the asset is capable of being separated from the acquired entity and sold, transferred, licensed, rented or exchanged. Concentrations of Credit Risk At July 31, 2016, we maintained our cash balances at a Washington Trust Bank branch in Seattle, Washington, an investment bank, a Royal Bank of Canada branch in Vancouver, Canada, and a Bank of Montreal branch in Toronto, Canada. The balances are insured by the Federal Deposit Insurance Corporation up to $ 250 100 We assess the collectability of accounts receivable monthly based on past collection history and current events and circumstances. Accordingly, we adjust the allowance on accounts receivable to reflect net receivables that we ultimately expect to collect. We review all notes receivable for possible impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying value has been impaired and may not be recoverable. Factors considered important that could trigger an impairment review include significant underperformance relative to expected historical or projected future operating results and a change in management of the franchisee or independent licensed broker responsible for the note. Loans and Advances and Notes Receivable At our discretion, we occasionally 4 13 1 From time to time we finance the operational and expansion activities of our brokers. We loan brokers funds for general operational purposes, to acquire the management rights to select member accounts, and for other reasons. These loans are repaid from regular deductions from broker commissions. The amount of loans to brokers as of July 31, 2016 was $ 875 6 8 Payoff dates for the loans are from the year 2017 to 2022. We report property and equipment at cost less accumulated depreciation recorded on a straight-line basis over useful lives ranging from three to seven years. Included in property and equipment are additions and improvements that add to productive capacity or extend useful life of the assets. Property and equipment may also include internally developed software (refer to “Software for Internal Use” below). When we sell or retire property or equipment, we remove the cost and related accumulated depreciation from the balance sheet and record the resulting gain or loss in the income statement. We record an expense for the costs of repair and maintenance as incurred. We have developed extensive software to manage and track the ITEX dollar activity in the Marketplace to calculate USD and ITEX dollar fees accordingly. We have expensed costs incurred in the development of software for internal use in the period incurred as such costs were not significant during the related application development phase. Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired, including domains and other definite-lived intangible assets, and liabilities assumed in business combinations accounted for under the purchase method. Goodwill acquired in a purchase business combination is determined to have an indefinite useful life and is not amortized, but instead tested for impairment at least annually. In testing goodwill for impairment, we first assess qualitative factors before calculating the fair value of our reporting unit in step 1 of the goodwill impairment test. If we determine that the fair value of the reporting unit is more likely than not less than its carrying value, then we will perform the two-phase approach. The first phase is a screen for potential impairment, while the second phase (if necessary) measures the amount of impairment, if any. Goodwill is written down and charged to operating results in any period in which the recorded value of goodwill exceeds its estimated fair value. We analyzed goodwill as of July 31, 2016 using a discounted cash flow methodology with a risk-adjusted weighted average cost of cost of capital (WACC). We believe the use of a discounted cash flow approach is the most reliable indicator for the Company to use when determining its fair market value. In order to determine the future cash flows, we prepared a cash flow forecast for the next 15 years based on past experience and our anticipated capital expenditures, revenue and expense forecast. In connection with our assessment of goodwill impairment, management determined that a Step 1 impairment assessment should be performed. Our evaluation determined after performance of Step 1, that goodwill was impaired at July 31, 2016. We determined a $ 1,750 The goodwill impairment loss resulted primarily from a sustained decline in the Company’s projected revenue growth rates and profitability levels. The lower projected operating results reflect changes in assumptions related to revenue initiatives, organic revenue growth rates, market trends, cost structure, and other expectations about the anticipated short-term and long-term operating results. Intangible assets acquired in business combinations are estimated to have definite lives and are comprised of membership lists, noncompetition agreements and trade names. The Company amortizes costs of acquired intangible assets using the straight-line method over the contractual life of one to three years for noncompetition agreements, the estimated life of six to ten years for membership lists and the estimated life of ten years for trade names. The carrying value of intangible assets with definite lives is reviewed on a regular basis for the existence of facts that may indicate that the assets are impaired. An asset is considered impaired when the estimated undiscounted future cash flows expected to result from its use and disposition are less than the amount of its carrying value. If the carrying value of an asset is deemed not recoverable, it is adjusted downward to the estimated fair value. We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. We look primarily at the market values of the assets when available, or, alternatively, the estimated undiscounted future cash flows in our assessment of whether or not they have been impaired. If impairment is deemed to have occurred, we then measure the impairment by looking to the excess of the carrying value over the discounted future cash flows or market value, as appropriate. We compute commissions to brokers as a percentage of cash collections of revenues from association fees, transactions fees, and other fees. We pay most commissions in two tranches with approximately 50% paid one week after the end of the operating cycle and the remainder paid two weeks later. Commissions payable to brokers on our balance sheet as of July 31, 2016 represents commissions payable from the operating cycle ending July 21, 2016. In 2015, the closest operating cycle ended July 23, 2015. Accrued commissions to brokers on our balance sheets are the estimated commissions on the net accounts receivable balance and unpaid commissions on cash already collected as of the financial statement date. We bill annual dues to certain members acquired as part of legacy fee plans related to acquisitions. We defer this revenue and recognize it over the annual period to which it applies. As of July 31, 2016 and 2015 we have $ 25 27 In some cases, members pre-pay transaction and/or association fees or receive USD credits on their accounts for previously paid fees associated with transactions that are subsequently reversed. We defer these payments and recognize revenue when these fees are earned. All of our financial instruments are recognized in our balance sheet. The carrying amount of our financial instruments including cash, accounts receivable, loans and advances, accounts payable, commissions payable and accrued commissions and other accruals approximate their fair values at July 31, 2016 due to the short-term nature of these instruments. All of these instruments have terms of less than one year. For notes receivable, the Company has determined that the rates are commensurate with current rates for similar transactions, and therefore, net book value approximates fair value. We generate our revenue by charging members percentage-based transaction fees, association fees, and other fees assessed in United States dollars and Canadian dollars where applicable (collectively and as reported on our financial statements “USD” or “Cash”). We recognize revenue when persuasive evidence of an arrangement exists, the transaction has occurred or a cycle period has ended, the charges are fixed and determinable and no major uncertainty exists with respect to collectability. Our largest sources of revenue are transaction fees and association fees. We charge members of the Marketplace an association fee every operating cycle in accordance with our members’ individual agreements. We also charge both the buyer and the seller a transaction fee based on the ITEX dollar value of that Marketplace transaction. Additionally, we may charge various auxiliary fees to members, such as annual membership dues, late fees, and insufficient fund fees. The total fees we charge to members are in USD and partially in ITEX dollars (see below, “Accounting for ITEX Dollar Activities”). We bill members for all fees at the end of each operating cycle. We track all financial activity in our internally developed database. Members have the option of paying USD fees automatically by credit card, by electronic funds transfer or by check. In each of the years ended July 31, 2016 and 2015, member payments of approximately 95 6 7.5 In each accounting cycle, we recognize as revenue all USD transaction fees, association fees and applicable other fees that occurred during that month regardless of which operating cycle the fees occurred. Annual dues, billed in advance of the applicable service periods, are deferred and recognized into revenue on a straight-line basis over the term of one year. For transaction and association fees charged to members, we share a portion of our revenue with the brokers in the Broker Network in the form of commissions based on a percentage of cash collections from members. For those fees, revenues are recorded on a gross basis. Commissions to brokers are recorded as cost of revenue in the period corresponding to the revenue stream on which these commissions are based. We record an allowance for uncollectible accounts based upon its assessment of various factors. We consider historical experience, the age of the accounts receivable balances, the credit quality of its customers, current economic conditions and other factors that may affect customers’ ability to pay to determine the level of allowance required. In the normal course of our core business, we act as administrator to execute transactions between Marketplace members. We pay commissions to our brokers after the close of each operating cycle based on member transaction and association fees collected in USD. We report revenue based on the gross amount billed to our ultimate customer, the Marketplace member. When revenues are recorded on a gross basis, any commissions or other payments to brokers are recorded as costs or expenses so that the net amount (gross revenues less expenses) is reflected in operating income. Primarily, we receive ITEX dollars from members’ transaction and association fees, but we also receive ITEX dollars, to a much lesser extent, from other member fees. We expend ITEX dollars for revenue sharing transaction fees and association fees with our Broker Network, and for general Marketplace costs. Our policy is to record transactions at the fair value of products or services received when those values are readily determinable. Our accounting policy follows the accounting standards codification which indicates that transactions in which non-monetary assets are exchanged for barter credits should be recorded at fair value of the assets (or services) involved. The fair value of the assets received (in this case ITEX dollars) should be used to measure the cost if it is more clearly evident than the fair value of the asset surrendered or service provided. Our position is that the fair value of the non-monetary asset exchanged is more clearly evident than the fair value of the ITEX dollar received. In addition, there is no cost basis to us for ITEX dollars. Our conclusion may change if we could convert ITEX dollars into USD in the near term, as evidenced by a historical practice of converting ITEX dollars into USD shortly after receipt, or if quoted market prices in USD existed for the ITEX dollar. We expend ITEX dollars primarily on the following items: · Co-op advertising with Marketplace members and brokers; · Revenue sharing with brokers for transaction fees and association fees; · Incentives to brokers for registering new members in the Marketplace. We believe that fair value should not be regarded as determinable within reasonable limits if major uncertainties exist about the realizability of the value that would be assigned to the asset received in a non-monetary transaction at fair value. If neither the fair value of the non-monetary asset (or service) transferred or received in the exchange is determinable within reasonable limits, the recorded amount of the non-monetary asset transferred from the enterprise may be the only measure of the transaction. When our ITEX dollar transactions during the periods presented in the accompanying financial statements lacked readily determinable fair values they were recorded at the cost basis of the trade dollars surrendered, which was zero. However, we have reflected in our financial statements those items that meet non-monetary recognition by having readily determinable fair values. Our consolidated statements of income include ITEX dollar expenses for corporate expenses for certain products or services we purchased at prices comparable to what we would have expended had we paid in USD. While the accounting policies described above are used for financial reporting purposes, the Internal Revenue Service requires, for purposes of taxation, that we recognize revenues, expenses, assets, and liabilities for all transactions in which we either receive or spend ITEX dollars using the ratio of one USD per ITEX dollar. For this reason, we track our ITEX dollar activity in statements to members and brokers and in other ways necessary for the operation of the Marketplace and our overall business. We expense all advertising costs as incurred. Advertising expense was $ 1 5 We account for share-based compensation to our employees, contractors and directors and measure the amount of compensation expense for all stock-based awards at fair value on the date of grant and recognition of compensation expense over the service period for awards expected to vest. Restricted stock awards issued to employees, contractors and directors are measured based on the fair market values of the underlying stock on the dates of grant. Share based expense was $ 250 325 We account for our executive office lease and other property leases in accordance with related guidance. Accordingly, because our executive office lease has scheduled rent escalation clauses, we record minimum rental payments on a straight-line basis over the term of the lease. We record the appropriate deferred rent liability or asset and amortize that deferred rent over the term of the lease as an adjustment to rent expense. We account for income taxes using an asset and liability approach as required. Such approach results in the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities and net operating loss carryforwards. We assess a valuation allowance on our deferred tax assets if it is more likely than not that a portion of our available deferred tax assets will not be realized. We record our deferred tax assets net of valuation allowances. We also account for uncertainty in income taxes in that we recognize the tax benefits of tax positions only if it is more likely than not that the tax positions will be sustained, upon examination by the applicable taxing authorities, based on the technical merits of the positions. As required, we record potential interest and penalties associated with our tax positions. We have opted to record interest and penalties, if any, as a component of income tax expense. In the normal course of our business we are periodically involved in litigation or claims. We record litigation or claim-related expenses upon evaluation of among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. We accrue for settlements when the outcome is probable and the amount or range of the settlement can be reasonably estimated. In addition to our judgments and use of estimates, there are inherent uncertainties surrounding litigation and claims that could result in actual settlement amounts that differ materially from estimates. We expense our legal costs associated with these matters when incurred. Net Income (Loss) per Share We present in our financial statements on the face of the income statement both basic and diluted earnings per share. Basic earnings per share excludes potential dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. As of July 31, 2016, we had no contracts to issue common stock. The Company had 133

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	12 Months Ended
	Jul. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09) In November 2015, the FASB issued Accounting Standards Update (ASU) 2015-17, Balance Sheet Classification of Deferred Taxes In February, 2016, the FASB issued ASU 2016-02, which amends the FASB Accounting Standards Codification and creates Topic 842, “ Leases Leases In March 2016, the FASB amended the existing accounting standards for stock-based compensation, with Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13) There were other various accounting standards and interpretations issued recently, none of which are expected to have a material impact on the Company’s consolidated financial position, operations or cash flows.

CASH AND CASH EQUIVALENTS, ACCO

CASH AND CASH EQUIVALENTS, ACCOUNTS RECEIVABLE, COMMISSIONS PAYABLE TO BROKERS AND ACCRUED COMMISSIONS TO BROKERS	12 Months Ended
	Jul. 31, 2016
Cash And Cash Equivalents Accounts Receivable Commissions Payable To Brokers And Accrued Commissions To Brokers [Abstract]
Cash And Cash Equivalents Accounts Receivable Commissions Payable To Brokers And Accrued Commissions To Brokers [Text Block]	NOTE 3 – CASH AND CASH EQUIVALENTS, ACCOUNTS RECEIVABLE, COMMISSIONS PAYABLE TO BROKERS AND ACCRUED COMMISSIONS TO BROKERS The timing differences between our operating cycles and our accounting cycles cause fluctuations in the comparative balances of cash and cash equivalents, accounts receivable, commissions payable to brokers and accrued commissions to brokers presented on the consolidated balance sheets. Depending on the length of time between the end of the operating cycle and the end of the accounting cycle, members’ payments on accounts receivable balances may vary. The longer the time, the greater amount of USD collections causes an increase in the reported cash and cash equivalents balance and a decrease in the net accounts receivable balance. The difference between our operating cycle ending date and the reporting date for July 31, 2016 was six business days as our cycle end date was on July 21, 2016. In 2015, our operating cycle ending date was July 23, 2015 or six business days different than the accounting cycle end date of July 31, 2015. We compute commissions to brokers as a percentage of USD collections of our revenues from association fees, transactions fees, and other fees. Commissions payable to brokers include amounts owed for the most recently ended operating cycle. We pay commissions in two tranches with approximately 50% paid approximately one week after the end of the operating cycle and the remainder paid approximately two weeks later. Commissions accrued are the estimated commissions on the net accounts receivable balance and USD collections on accounts receivable since the most recently ended operating cycle. Our payments for salaries and wages to our employees occur on the same bi-weekly schedule as our commission payments to brokers.

NOTES RECEIVABLE

NOTES RECEIVABLE	12 Months Ended
	Jul. 31, 2016
Receivables [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	NOTE 4 – NOTES RECEIVABLE Notes receivables have been originated primarily by the sales of corporate-owned offices to brokers and loans for general operating purposes. In 2016, we originated loans to brokers as new notes receivables in the amount of $80. Original Principal Principal Additions Balance Receivable Current Portion Long-Term $ 2,338 $ 80 $ 875 $ 283 $ 592 Balance at July 31, 2014 $ 1,424 Principal additions 30 Interest income at stated rates 90 Payments received (461) Balance at July 31, 2015 $ 1,083 Principal additions 80 Interest income at stated rates 61 Payments received (349) Balance at July 31, 2016 $ 875

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Jul. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	NOTE 5 - PROPERTY AND EQUIPMENT July 31, 2016 Fixed Asset Type Estimated Cost Accumulated Net Book Computers 3 years $ 225 $ (218) $ 7 Software 3 years 42 (36) 6 Equipment 7 years 37 (34) 3 Furniture 7 years 13 (13) - Leasehold Improvements 3.3 years 52 (52) - $ 369 $ (353) $ 16 July 31, 2015 Fixed Asset Type Estimated Cost Accumulated Net Book Computers 3 years $ 240 $ (216) $ 24 Software 3 years 92 (79) 13 Equipment 7 years 38 (37) 1 Furniture 7 years 13 (13) - Leasehold Improvements 3.3 years 52 (52) - $ 435 $ (397) $ 38 We depreciate property and equipment using the straight-line method over the assets’ estimated useful lives. Depreciation expense for property and equipment was $ 26 36 We amortize leasehold improvements using the straight-line method over the term of the lease. There was no amortization expense for leasehold improvements for the years ended July 31, 2016 or 2015.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Jul. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	NOTE 6 – INTANGIBLE ASSETS Membership Non-Compete Trade Name Total Balance as of July 31, 2014 $ 149 $ - $ 8 $ 157 Amortization (53) - (2) (55) Balance as of July 31, 2015 $ 96 $ - $ 6 $ 102 Amortization (52) - (2) (54) Balance as of July 31, 2016 $ 44 $ - $ 4 $ 48 The Company recorded goodwill in connection with business combinations completed in fiscal years from 2005 to 2009. In September 2012, ITEX sold assets originally acquired in the 2011 Oregon acquisition. As part of the sales, ITEX allocated a pro rata portion of the membership list to the sale in the amount of $ 42 The expected lives of the membership list and noncompetition agreement purchased as part of previous acquisitions are six years three years Year ending July 31, Membership List Trade Name Total Amortization 2017 36 2 38 2018 8 2 10 Total $ 44 $ 4 $ 48

GOODWILL

GOODWILL	12 Months Ended
	Jul. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill Disclosure [Text Block]	NOTE 7 - GOODWILL Balance at July 31, 2015 $ 3,191 Goodwill impairment (1,750) Balance at July 31, 2016 $ 1,441 We analyzed goodwill as of July 31, 2016 using a discounted cash flow methodology with a risk-adjusted weighted average cost of cost of capital (WACC). We believe the use of a discounted cash flow approach is the most reliable indicator for the Company to use when determining its estimated fair market value. In order to determine the future cash flows, we prepared a cash flow forecast for the next 15 years based on past experience and our anticipated capital expenditures, revenue and expense forecast. In connection with our assessment of goodwill impairment, management determined that a Step 1 impairment assessment should be performed. Our evaluation determined after performance of Step 1, that goodwill was impaired at July 31, 2016. We determined 1,750 in goodwill should be recorded in the fourth quarter of 2016. The goodwill impairment loss resulted primarily from a sustained decline in the Company’s projected revenue growth rates and profitability levels. The lower projected operating results reflect changes in assumptions related to revenue initiatives, organic revenue growth rates, market trends, cost structure, and other expectations about the anticipated short-term and long-term operating

COMMITMENTS

COMMITMENTS	12 Months Ended
	Jul. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments Disclosure [Text Block]	NOTE 8 - COMMITMENTS The Company leases office space for its corporate headquarters in Bellevue, Washington. In the year ended July 31, 2016, we leased our property on a month-to-month basis. As of July 31, 2016, there were no future minimum commitments under our current operating lease, which was terminated on September 30, 2016. In July 2016, we signed a 5 March 31, 2022 Lease commitments 2017 $ 30 2018 81 2019 84 2020 88 2021 91 Thereafter 54 Total $ 428 The lease expense for our executive office space for the years ended July 31, 2016 and 2015 was $ 89 149

ITEX DOLLAR ACTIVITY

ITEX DOLLAR ACTIVITY	12 Months Ended
	Jul. 31, 2016
Business Activity Disclosure [Abstract]
Business Activity Disclosure [Text Block]	NOTE 9 – ITEX DOLLAR ACTIVITY Primarily, we receive ITEX dollars from members’ transaction and association fees. ITEX dollars earned from members are later used by the Company as a method of payment in revenue sharing and incentive arrangements with its Broker Network, co-op advertising with Marketplace members, as well as for certain general corporate expenses. We record transactions at the fair value of products or services received when those values are readily determinable. Most of our ITEX dollar transactions during the periods presented in these financial statements lacked readily determinable fair values and were recorded at the cost basis of the trade dollars surrendered, which we have determined to be zero. As discussed in Note 1 to our consolidated financial statements, we record ITEX dollar revenue in the amounts ultimately equal to expenses we incurred and paid for in ITEX dollars, resulting in an overall net effect of $ 0 161 217

LEGAL PROCEEDINGS AND LITIGATIO

LEGAL PROCEEDINGS AND LITIGATION CONTINGENCIES	12 Months Ended
	Jul. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Legal Matters and Contingencies [Text Block]	NOTE 10 — LEGAL PROCEEDINGS AND LITIGATION CONTINGENCIES From time to time we are subject to a variety of claims and litigation incurred in the ordinary course of business. In our opinion, the outcome of our pending legal proceedings, individually or in the aggregate, will not have a material adverse effect on our business operations, results of operations, cash flows or financial condition. Management has regular litigation reviews, including updates from outside counsel, to assess the need for accounting recognition or disclosure of contingencies relating to pending lawsuits. The Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable, and the amount can be reasonably estimated. The Company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Company discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our litigation contingency disclosures, “significant” includes material matters as well as other items which management believes should be disclosed. Management judgment is required related to contingent liabilities and the outcome of litigation because both are difficult to predict. Litigation is subject to inherent uncertainties and unfavorable rulings could occur. Although management currently does not believe resolving any pending proceeding will have a material adverse impact on our financial statements, management’s view of these matters may change in the future. A material adverse impact on our financial statements could occur in the future if the effect of an unfavorable final outcome becomes probable and reasonably estimable.

STOCK-BASED PAYMENTS

STOCK-BASED PAYMENTS	12 Months Ended
	Jul. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 11 – STOCK-BASED PAYMENTS In March 2004 the Company adopted and stockholders approved the ITEX Corporation 2004 Equity Incentive Plan (the “2004 Plan”), which authorized 400 400 In December 2013, stockholders approved the adoption of the ITEX Corporation 2014 Equity Incentive Plan (the “2014 Plan”), pursuant to which 400 293 During the year ended July 31, 2016, the Company issued 25 80 At July 31, 2016, 133 433 Year ended July 31, 2016 2015 Employee Compensation $ 231 $ 273 Board Compensation 19 52 Totals $ 250 $ 325 Number of Shares/Options Expired Restricted Stock Options Balance, July 31, 2014 - 400 - Granted - - - Forfeited - (10) - Balance, July 31, 2015 - 390 - Granted - - - Forfeited - - - Balance, July 31, 2016 - 390 - Vesting as of July 31, 2016: Shares Vested 257 - Shares Unvested 133 - Balance at July 31, 2016 390 - Number of Shares/Options Available Restricted Stock Options Balance, July 31, 2014 360 40 - Granted (44) 44 - Forfeited 2 (2) - Balance, July 31, 2015 318 82 - Granted (25) 25 - Forfeited - - - Balance, July 31, 2016 293 107 - Vesting as of July 31, 2016: Shares Vested 107 - Shares Unvested - - Balance at July 31, 2016 107 - Year ended July 31, 2016 2015 Stock-based compensation expense included in: Corporate salaries, wages and employee benefits $ 231 $ 273 Selling, general and administrative 19 52 Total stock-based compensation expense $ 250 $ 325

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Jul. 31, 2016
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 12 - STOCKHOLDERS’ EQUITY On March 16, 2015 750 4.00 750 3,000 26 On March 11, 2011, the Board of Directors of the Company declared a dividend, payable to stockholders of record on March 25, 2011 of one right (a “Right”) per each share of outstanding Common Stock of the Company, par value $ 0.01 0.01 15.00 The Rights will be exercisable upon the earlier of (i) such date the Company learns that a person or group, without Board approval, acquires or obtains the right to acquire beneficial ownership of 15% or more of ITEX’s outstanding common stock or a person or group that already beneficially owns 15% or more of the Company’s outstanding common stock at the time the Rights Agreement was entered into, without Board approval, acquires any additional shares (other than pursuant to the Company’s compensation or benefit plans) (any person or group specified in this sentence, an “Acquiring Person”) and (ii) such date a person or group announces an intention to commence or following the commencement of (as designated by the Board) a tender or exchange offer which could result in the beneficial ownership of 15% or more of ITEX’s outstanding common stock. If a person or group becomes an Acquiring Person, each Rights holder (other than the Acquiring Person) will be entitled to receive, upon exercise of the Right and payment of the Purchase Price, that number of 1/1000ths of a share of Preferred Stock equal to the number of shares of Common Stock which at the time of the applicable triggering transaction would have a market value of twice the Purchase Price. In the event the Company is acquired in a merger or other business combination by an Acquiring Person, or 50% or more of the Company’s assets are sold to an Acquiring Person, each Right will entitle its holder (other than an Acquiring Person) to purchase common shares in the surviving entity at 50% of the market price. On March 9, 2010, the Company announced a $ 2,000 30 23 113 76 The Company has 5,000 0.01

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jul. 31, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	NOTE 13 - INCOME TAXES Deferred tax assets on our balance sheet primarily include Federal and State net operating loss carry forwards (collectively “NOLs”) which are expected to result in future tax benefits. Realization of these NOLs assumes that we will be able to generate sufficient future taxable income to realize these assets. Deferred tax assets also include temporary differences between the financial reporting basis and the income tax basis of its assets and liabilities at enacted tax rates expected to be in effect when such assets or liabilities are realized or settled. In assessing the recoverability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are expected to be deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and projections for future taxable income over the periods in which the deferred tax assets are expected to be deductible. On July 31, 2016, we had NOLs of approximately $ 7,997 6,092 1,905 we will not be able to utilize all of NOLs as of July 31, 2016. As of July 31, 2016 and 2015, we have an $ 866 0 0 99 Year Ended July 31, 2016 2015 Pre-tax financial income $ (461) $ 1,047 Federal tax (benefit)/expense computed at the statutory rate of 34% (157) 356 State tax expense 84 17 State ASC 740 adjustment (12) (16) Change in valuation allowance 769 (10) Permanent and other differences 374 10 Net tax expense $ 1,058 $ 357 Year Ended July 31, 2016 2015 Current federal tax expense $ 14 $ 8 Current state tax expense 11 9 25 17 Deferred federal tax expense 1,065 355 Deferred state tax (benefit) (32) (15) 1,033 340 1,058 357 As of July 31, 2016 2015 Deferred Tax Assets Net operating loss carryforwards $ 2,719 $ 3,100 Goodwill and other intangible assets 227 21 Non-compete covenants 47 55 Reserve for uncollectible receivables 145 151 Federal tax credits 219 205 Other temporary differences 143 245 3,500 3,777 Less: Valuation allowance (866) (99) Net deferred tax asset $ 2,634 $ 3,678 The following components are included in the net deferred tax assets in the accompanying balance sheets: Current Deferred Tax Assets Current deferred tax asset 550 569 Valuation allowance (136) (15) Net Current deferred tax asset 414 554 Non-Current Deferred Tax Assets Non-current deferred tax asset 2,950 3,208 Valuation allowance (730) (84) Net non-current deferred tax asset 2,220 3,124 ITEX Federal NOLs of approximately $6,092 expire, if unused, from calendar years 2019 to 2024 BXI Federal NOLs of approximately $1,905 expire, if unused, from 2020 to 2026 ITEX has no state NOLs for California as they expired in calendar year 2015 The Company has AMT credits of $ 214 5 Year Ended July 31, 2016 Balance at July 31, 2015 $ 37 Increases as a result of tax positions taken in the current year 6 Increases as a result of tax positions taken in the prior year 2 Decreases resulting from settlements, payments and changes in estimates of probability tax positions will be sustained (20) Balance at July 31, 2016 $ 25 We file income tax returns in the United States as well as various United States state jurisdictions. We also have available NOLs dating from 1999 which, when used, could be subject to examination by taxing authorities. We do not believe there will be any material changes in our unrecognized tax positions over the next twelve months. As of July 31, 2016, accrued expenses are included on our consolidated balance sheet for uncertain tax positions related primarily to state jurisdictions in the amount of $25 which includes $ 5

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Jul. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 14 – RELATED PARTY TRANSACTIONS ITEX and its subsidiaries had no transactions during our last fiscal year, nor are there any currently proposed transactions, in which ITEX or its subsidiaries was or is to be a participant, where the amount involved exceeded $ 120,000

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Jul. 31, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 15 – SUBSEQUENT EVENTS On August 16, 2016, the Board of Directors of ITEX Corporation declared a semi-annual cash dividend in the amount of $ 0.10 December 12, 2016 December 1, 2016

DESCRIPTION OF OUR COMPANY AN22

DESCRIPTION OF OUR COMPANY AND SUMMARY OF OUR SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jul. 31, 2016
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The consolidated financial statements include the accounts of ITEX Corporation and its wholly owned subsidiary BXI Exchange, Inc. All inter-company accounts and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	Accounting Records and Use of Estimates The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions affecting the amounts reported in the consolidated financial statements and accompanying notes. Changes in these estimates and assumptions may have a material impact on the Company’s financial statements and notes. Examples of estimates and assumptions include estimating: · certain provisions such as allowances for accounts receivable and notes receivable · any impairment of long-lived assets including goodwill · useful lives of property and equipment · the value and expected useful life of intangible assets · the value of assets and liabilities acquired through business combinations · tax provisions and valuation allowances · accrued commissions and other accrual expenses · litigation matters described herein · stock based payments Actual results may vary from estimates and assumptions that were used in preparing the financial statements.
Basis of Accounting, Policy [Policy Text Block]	Operating and Accounting Cycles For each calendar year, we divide our operations into 13 four-week billing and commission cycles always ending on a Thursday (“operating cycle”). For financial statement purposes, our fiscal year is from August 1 to July 31 (“year”, “2016” for August 1, 2015 to July 31, 2016, “2015” for August 1, 2014 to July 31, 2015). We report our results as of the last day of each calendar month (“accounting cycle”).
Business Combinations Policy [Policy Text Block]	The Company accounts for business combinations using the acquisition method of accounting. The total consideration paid in an acquisition is allocated to the fair value of the acquired company’s identifiable assets and liabilities. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. The consolidated financial statements reflect the results of operations of an acquired business from the completion date of an acquisition. The costs to acquire a business, including transaction costs, are expensed as incurred. The Company identifies and records separately the intangible assets acquired apart from goodwill based on the specific criteria for separate recognition established per the accounting standards codification, namely: ⋅ the asset arises from contractual or other legal rights; or ⋅ the asset is capable of being separated from the acquired entity and sold, transferred, licensed, rented or exchanged. Concentrations of Credit Risk
Concentration Risk Credit Risk [Policy Text Block]	At July 31, 2016, we maintained our cash balances at a Washington Trust Bank branch in Seattle, Washington, an investment bank, a Royal Bank of Canada branch in Vancouver, Canada, and a Bank of Montreal branch in Toronto, Canada. The balances are insured by the Federal Deposit Insurance Corporation up to $ 250 100
Trade and Other Accounts Receivable, Policy [Policy Text Block]	Accounts and Notes Receivable We assess the collectability of accounts receivable monthly based on past collection history and current events and circumstances. Accordingly, we adjust the allowance on accounts receivable to reflect net receivables that we ultimately expect to collect. We review all notes receivable for possible impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying value has been impaired and may not be recoverable. Factors considered important that could trigger an impairment review include significant underperformance relative to expected historical or projected future operating results and a change in management of the franchisee or independent licensed broker responsible for the note.
Loans And Advances Policy [Policy Text Block]	Loans and Advances and Notes Receivable At our discretion, we occasionally 4 13 1 From time to time we finance the operational and expansion activities of our brokers. We loan brokers funds for general operational purposes, to acquire the management rights to select member accounts, and for other reasons. These loans are repaid from regular deductions from broker commissions. The amount of loans to brokers as of July 31, 2016 was $ 875 6 8 Payoff dates for the loans are from the year 2017 to 2022.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment We report property and equipment at cost less accumulated depreciation recorded on a straight-line basis over useful lives ranging from three to seven years. Included in property and equipment are additions and improvements that add to productive capacity or extend useful life of the assets. Property and equipment may also include internally developed software (refer to “Software for Internal Use” below). When we sell or retire property or equipment, we remove the cost and related accumulated depreciation from the balance sheet and record the resulting gain or loss in the income statement. We record an expense for the costs of repair and maintenance as incurred.
Internal Use Software, Policy [Policy Text Block]	Software for Internal Use We have developed extensive software to manage and track the ITEX dollar activity in the Marketplace to calculate USD and ITEX dollar fees accordingly. We have expensed costs incurred in the development of software for internal use in the period incurred as such costs were not significant during the related application development phase.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired, including domains and other definite-lived intangible assets, and liabilities assumed in business combinations accounted for under the purchase method. Goodwill acquired in a purchase business combination is determined to have an indefinite useful life and is not amortized, but instead tested for impairment at least annually. In testing goodwill for impairment, we first assess qualitative factors before calculating the fair value of our reporting unit in step 1 of the goodwill impairment test. If we determine that the fair value of the reporting unit is more likely than not less than its carrying value, then we will perform the two-phase approach. The first phase is a screen for potential impairment, while the second phase (if necessary) measures the amount of impairment, if any. Goodwill is written down and charged to operating results in any period in which the recorded value of goodwill exceeds its estimated fair value. We analyzed goodwill as of July 31, 2016 using a discounted cash flow methodology with a risk-adjusted weighted average cost of cost of capital (WACC). We believe the use of a discounted cash flow approach is the most reliable indicator for the Company to use when determining its fair market value. In order to determine the future cash flows, we prepared a cash flow forecast for the next 15 years based on past experience and our anticipated capital expenditures, revenue and expense forecast. In connection with our assessment of goodwill impairment, management determined that a Step 1 impairment assessment should be performed. Our evaluation determined after performance of Step 1, that goodwill was impaired at July 31, 2016. We determined a $ 1,750 The goodwill impairment loss resulted primarily from a sustained decline in the Company’s projected revenue growth rates and profitability levels. The lower projected operating results reflect changes in assumptions related to revenue initiatives, organic revenue growth rates, market trends, cost structure, and other expectations about the anticipated short-term and long-term operating results.
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	Intangible Assets with Definite Lives Intangible assets acquired in business combinations are estimated to have definite lives and are comprised of membership lists, noncompetition agreements and trade names. The Company amortizes costs of acquired intangible assets using the straight-line method over the contractual life of one to three years for noncompetition agreements, the estimated life of six to ten years for membership lists and the estimated life of ten years for trade names. The carrying value of intangible assets with definite lives is reviewed on a regular basis for the existence of facts that may indicate that the assets are impaired. An asset is considered impaired when the estimated undiscounted future cash flows expected to result from its use and disposition are less than the amount of its carrying value. If the carrying value of an asset is deemed not recoverable, it is adjusted downward to the estimated fair value.
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]	Long-Lived Assets We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. We look primarily at the market values of the assets when available, or, alternatively, the estimated undiscounted future cash flows in our assessment of whether or not they have been impaired. If impairment is deemed to have occurred, we then measure the impairment by looking to the excess of the carrying value over the discounted future cash flows or market value, as appropriate.
Commissions Expense, Policy [Policy Text Block]	Commissions Payable to Brokers and Accrued Commissions to Brokers We compute commissions to brokers as a percentage of cash collections of revenues from association fees, transactions fees, and other fees. We pay most commissions in two tranches with approximately 50% paid one week after the end of the operating cycle and the remainder paid two weeks later. Commissions payable to brokers on our balance sheet as of July 31, 2016 represents commissions payable from the operating cycle ending July 21, 2016. In 2015, the closest operating cycle ended July 23, 2015. Accrued commissions to brokers on our balance sheets are the estimated commissions on the net accounts receivable balance and unpaid commissions on cash already collected as of the financial statement date.
Revenue Recognition, Deferred Revenue [Policy Text Block]	Deferred Revenue We bill annual dues to certain members acquired as part of legacy fee plans related to acquisitions. We defer this revenue and recognize it over the annual period to which it applies. As of July 31, 2016 and 2015 we have $ 25 27
Advance Payments Policy [Policy Text Block]	Advance Payments In some cases, members pre-pay transaction and/or association fees or receive USD credits on their accounts for previously paid fees associated with transactions that are subsequently reversed. We defer these payments and recognize revenue when these fees are earned.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments All of our financial instruments are recognized in our balance sheet. The carrying amount of our financial instruments including cash, accounts receivable, loans and advances, accounts payable, commissions payable and accrued commissions and other accruals approximate their fair values at July 31, 2016 due to the short-term nature of these instruments. All of these instruments have terms of less than one year. For notes receivable, the Company has determined that the rates are commensurate with current rates for similar transactions, and therefore, net book value approximates fair value.
Revenue Recognition, Sales of Services [Policy Text Block]	Revenue Recognition We generate our revenue by charging members percentage-based transaction fees, association fees, and other fees assessed in United States dollars and Canadian dollars where applicable (collectively and as reported on our financial statements “USD” or “Cash”). We recognize revenue when persuasive evidence of an arrangement exists, the transaction has occurred or a cycle period has ended, the charges are fixed and determinable and no major uncertainty exists with respect to collectability. Our largest sources of revenue are transaction fees and association fees. We charge members of the Marketplace an association fee every operating cycle in accordance with our members’ individual agreements. We also charge both the buyer and the seller a transaction fee based on the ITEX dollar value of that Marketplace transaction. Additionally, we may charge various auxiliary fees to members, such as annual membership dues, late fees, and insufficient fund fees. The total fees we charge to members are in USD and partially in ITEX dollars (see below, “Accounting for ITEX Dollar Activities”). We bill members for all fees at the end of each operating cycle. We track all financial activity in our internally developed database. Members have the option of paying USD fees automatically by credit card, by electronic funds transfer or by check. In each of the years ended July 31, 2016 and 2015, member payments of approximately 95 6 7.5 In each accounting cycle, we recognize as revenue all USD transaction fees, association fees and applicable other fees that occurred during that month regardless of which operating cycle the fees occurred. Annual dues, billed in advance of the applicable service periods, are deferred and recognized into revenue on a straight-line basis over the term of one year. For transaction and association fees charged to members, we share a portion of our revenue with the brokers in the Broker Network in the form of commissions based on a percentage of cash collections from members. For those fees, revenues are recorded on a gross basis. Commissions to brokers are recorded as cost of revenue in the period corresponding to the revenue stream on which these commissions are based. We record an allowance for uncollectible accounts based upon its assessment of various factors. We consider historical experience, the age of the accounts receivable balances, the credit quality of its customers, current economic conditions and other factors that may affect customers’ ability to pay to determine the level of allowance required.
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block]	Gross versus Net Revenue Recognition In the normal course of our core business, we act as administrator to execute transactions between Marketplace members. We pay commissions to our brokers after the close of each operating cycle based on member transaction and association fees collected in USD. We report revenue based on the gross amount billed to our ultimate customer, the Marketplace member. When revenues are recorded on a gross basis, any commissions or other payments to brokers are recorded as costs or expenses so that the net amount (gross revenues less expenses) is reflected in operating income.
Accounting For ITEX Dollar Activities Policy [Policy Text Block]	Accounting for ITEX Dollar Activities Primarily, we receive ITEX dollars from members’ transaction and association fees, but we also receive ITEX dollars, to a much lesser extent, from other member fees. We expend ITEX dollars for revenue sharing transaction fees and association fees with our Broker Network, and for general Marketplace costs. Our policy is to record transactions at the fair value of products or services received when those values are readily determinable. Our accounting policy follows the accounting standards codification which indicates that transactions in which non-monetary assets are exchanged for barter credits should be recorded at fair value of the assets (or services) involved. The fair value of the assets received (in this case ITEX dollars) should be used to measure the cost if it is more clearly evident than the fair value of the asset surrendered or service provided. Our position is that the fair value of the non-monetary asset exchanged is more clearly evident than the fair value of the ITEX dollar received. In addition, there is no cost basis to us for ITEX dollars. Our conclusion may change if we could convert ITEX dollars into USD in the near term, as evidenced by a historical practice of converting ITEX dollars into USD shortly after receipt, or if quoted market prices in USD existed for the ITEX dollar. We expend ITEX dollars primarily on the following items: · Co-op advertising with Marketplace members and brokers; · Revenue sharing with brokers for transaction fees and association fees; · Incentives to brokers for registering new members in the Marketplace. We believe that fair value should not be regarded as determinable within reasonable limits if major uncertainties exist about the realizability of the value that would be assigned to the asset received in a non-monetary transaction at fair value. If neither the fair value of the non-monetary asset (or service) transferred or received in the exchange is determinable within reasonable limits, the recorded amount of the non-monetary asset transferred from the enterprise may be the only measure of the transaction. When our ITEX dollar transactions during the periods presented in the accompanying financial statements lacked readily determinable fair values they were recorded at the cost basis of the trade dollars surrendered, which was zero. However, we have reflected in our financial statements those items that meet non-monetary recognition by having readily determinable fair values. Our consolidated statements of income include ITEX dollar expenses for corporate expenses for certain products or services we purchased at prices comparable to what we would have expended had we paid in USD. While the accounting policies described above are used for financial reporting purposes, the Internal Revenue Service requires, for purposes of taxation, that we recognize revenues, expenses, assets, and liabilities for all transactions in which we either receive or spend ITEX dollars using the ratio of one USD per ITEX dollar. For this reason, we track our ITEX dollar activity in statements to members and brokers and in other ways necessary for the operation of the Marketplace and our overall business.
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block]	Advertising Expenses We expense all advertising costs as incurred. Advertising expense was $ 1 5
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Share-based Payments We account for share-based compensation to our employees, contractors and directors and measure the amount of compensation expense for all stock-based awards at fair value on the date of grant and recognition of compensation expense over the service period for awards expected to vest. Restricted stock awards issued to employees, contractors and directors are measured based on the fair market values of the underlying stock on the dates of grant. Share based expense was $ 250 325
Loans and Leases Receivable, Lease Financing, Policy [Policy Text Block]	Operating Leases We account for our executive office lease and other property leases in accordance with related guidance. Accordingly, because our executive office lease has scheduled rent escalation clauses, we record minimum rental payments on a straight-line basis over the term of the lease. We record the appropriate deferred rent liability or asset and amortize that deferred rent over the term of the lease as an adjustment to rent expense.
Income Tax, Policy [Policy Text Block]	Accounting for Income Taxes We account for income taxes using an asset and liability approach as required. Such approach results in the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities and net operating loss carryforwards. We assess a valuation allowance on our deferred tax assets if it is more likely than not that a portion of our available deferred tax assets will not be realized. We record our deferred tax assets net of valuation allowances. We also account for uncertainty in income taxes in that we recognize the tax benefits of tax positions only if it is more likely than not that the tax positions will be sustained, upon examination by the applicable taxing authorities, based on the technical merits of the positions. As required, we record potential interest and penalties associated with our tax positions. We have opted to record interest and penalties, if any, as a component of income tax expense.
Commitments and Contingencies, Policy [Policy Text Block]	Contingencies In the normal course of our business we are periodically involved in litigation or claims. We record litigation or claim-related expenses upon evaluation of among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. We accrue for settlements when the outcome is probable and the amount or range of the settlement can be reasonably estimated. In addition to our judgments and use of estimates, there are inherent uncertainties surrounding litigation and claims that could result in actual settlement amounts that differ materially from estimates. We expense our legal costs associated with these matters when incurred.
Earnings Per Share, Policy [Policy Text Block]	Net Income (Loss) per Share We present in our financial statements on the face of the income statement both basic and diluted earnings per share. Basic earnings per share excludes potential dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. As of July 31, 2016, we had no contracts to issue common stock. The Company had 133

NOTES RECEIVABLE (Tables)

NOTES RECEIVABLE (Tables)	12 Months Ended
	Jul. 31, 2016
Debt Disclosure [Abstract]
Schedule Of Notes Receivable [Table Text Block]	The aggregate total owed to us on July 31, 2016 is $875. Payoff dates for the loans are scheduled between 2017 and 2022. Original Principal Principal Additions Balance Receivable Current Portion Long-Term $ 2,338 $ 80 $ 875 $ 283 $ 592
Schedule Of Account Notes Loans And Financing Receivable [Table Text Block]	The activity for Notes receivables was as follows: Balance at July 31, 2014 $ 1,424 Principal additions 30 Interest income at stated rates 90 Payments received (461) Balance at July 31, 2015 $ 1,083 Principal additions 80 Interest income at stated rates 61 Payments received (349) Balance at July 31, 2016 $ 875

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Jul. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	The following table summarizes property and equipment: July 31, 2016 Fixed Asset Type Estimated Cost Accumulated Net Book Computers 3 years $ 225 $ (218) $ 7 Software 3 years 42 (36) 6 Equipment 7 years 37 (34) 3 Furniture 7 years 13 (13) - Leasehold Improvements 3.3 years 52 (52) - $ 369 $ (353) $ 16 July 31, 2015 Fixed Asset Type Estimated Cost Accumulated Net Book Computers 3 years $ 240 $ (216) $ 24 Software 3 years 92 (79) 13 Equipment 7 years 38 (37) 1 Furniture 7 years 13 (13) - Leasehold Improvements 3.3 years 52 (52) - $ 435 $ (397) $ 38

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Jul. 31, 2016
Finite-Lived Intangible Assets, Net [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Changes in the carrying amount of the intangible assets are summarized as follows: Membership Non-Compete Trade Name Total Balance as of July 31, 2014 $ 149 $ - $ 8 $ 157 Amortization (53) - (2) (55) Balance as of July 31, 2015 $ 96 $ - $ 6 $ 102 Amortization (52) - (2) (54) Balance as of July 31, 2016 $ 44 $ - $ 4 $ 48
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	The following schedule outlines the expected intangible related amortization expense over the respective lives: Year ending July 31, Membership List Trade Name Total Amortization 2017 36 2 38 2018 8 2 10 Total $ 44 $ 4 $ 48

GOODWILL (Tables)

GOODWILL (Tables)	12 Months Ended
	Jul. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill [Table Text Block]	Changes in the carrying amount of goodwill for the year ended July 31, 2016 are as follows: Balance at July 31, 2015 $ 3,191 Goodwill impairment (1,750) Balance at July 31, 2016 $ 1,441

COMMITMENTS (Tables)

COMMITMENTS (Tables)	12 Months Ended
	Jul. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Lease commitments 2017 $ 30 2018 81 2019 84 2020 88 2021 91 Thereafter 54 Total $ 428

STOCK-BASED PAYMENTS (Tables)

STOCK-BASED PAYMENTS (Tables)	12 Months Ended
	Jul. 31, 2016
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	The following table summarizes the components of stock based compensation: Year ended July 31, 2016 2015 Employee Compensation $ 231 $ 273 Board Compensation 19 52 Totals $ 250 $ 325
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	The stock-based compensation expense charged against the results of operations was as follows: Year ended July 31, 2016 2015 Stock-based compensation expense included in: Corporate salaries, wages and employee benefits $ 231 $ 273 Selling, general and administrative 19 52 Total stock-based compensation expense $ 250 $ 325
Plan 2004 [Member]
Schedule of Share Based Compensation Stock Options and Other Equity Based Instruments Activity [Table Text Block]	The following table summarizes the granted, forfeited and vested shares of the 2004 Plan: Number of Shares/Options Expired Restricted Stock Options Balance, July 31, 2014 - 400 - Granted - - - Forfeited - (10) - Balance, July 31, 2015 - 390 - Granted - - - Forfeited - - - Balance, July 31, 2016 - 390 - Vesting as of July 31, 2016: Shares Vested 257 - Shares Unvested 133 - Balance at July 31, 2016 390 -
Plan 2014 [Member]
Schedule of Share Based Compensation Stock Options and Other Equity Based Instruments Activity [Table Text Block]	The following table summarizes the granted, forfeited and vested shares of the 2014 Plan: Number of Shares/Options Available Restricted Stock Options Balance, July 31, 2014 360 40 - Granted (44) 44 - Forfeited 2 (2) - Balance, July 31, 2015 318 82 - Granted (25) 25 - Forfeited - - - Balance, July 31, 2016 293 107 - Vesting as of July 31, 2016: Shares Vested 107 - Shares Unvested - - Balance at July 31, 2016 107 -

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jul. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Year Ended July 31, 2016 2015 Pre-tax financial income $ (461) $ 1,047 Federal tax (benefit)/expense computed at the statutory rate of 34% (157) 356 State tax expense 84 17 State ASC 740 adjustment (12) (16) Change in valuation allowance 769 (10) Permanent and other differences 374 10 Net tax expense $ 1,058 $ 357
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Our income tax expense is composed of the following: Year Ended July 31, 2016 2015 Current federal tax expense $ 14 $ 8 Current state tax expense 11 9 25 17 Deferred federal tax expense 1,065 355 Deferred state tax (benefit) (32) (15) 1,033 340 1,058 357
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at July 31, 2016 and 2015 are presented below: As of July 31, 2016 2015 Deferred Tax Assets Net operating loss carryforwards $ 2,719 $ 3,100 Goodwill and other intangible assets 227 21 Non-compete covenants 47 55 Reserve for uncollectible receivables 145 151 Federal tax credits 219 205 Other temporary differences 143 245 3,500 3,777 Less: Valuation allowance (866) (99) Net deferred tax asset $ 2,634 $ 3,678 The following components are included in the net deferred tax assets in the accompanying balance sheets: Current Deferred Tax Assets Current deferred tax asset 550 569 Valuation allowance (136) (15) Net Current deferred tax asset 414 554 Non-Current Deferred Tax Assets Non-current deferred tax asset 2,950 3,208 Valuation allowance (730) (84) Net non-current deferred tax asset 2,220 3,124
Summary of Income Tax Contingencies [Table Text Block]	In accordance with the accounting guidance surrounding the uncertainty in Income Taxes we have recorded unrecognized tax liabilities of $25 as follows: Year Ended July 31, 2016 Balance at July 31, 2015 $ 37 Increases as a result of tax positions taken in the current year 6 Increases as a result of tax positions taken in the prior year 2 Decreases resulting from settlements, payments and changes in estimates of probability tax positions will be sustained (20) Balance at July 31, 2016 $ 25

DESCRIPTION OF OUR COMPANY AN30

DESCRIPTION OF OUR COMPANY AND SUMMARY OF OUR SIGNIFICANT ACCOUNTING POLICIES (Details Textual) shares in Thousands, CAD in Thousands, $ in Thousands	12 Months Ended
	Jul. 31, 2016USD ($)shares	Jul. 31, 2015USD ($)	Jul. 31, 2016CADshares	Jul. 31, 2014USD ($)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Loans Receivable Minimum Rate Of Interest	13.00%		13.00%
Cash Cdic Insured Amount | CAD			CAD 100
Transaction And Association Fee Percentage In Total Revenue	95.00%	95.00%
Usd Transaction Fee Percent By Auto pay System	6.00%
Usd Transaction Fee Percent By Check Payment System	7.50%
Loans Receivable, Net, Total	$ 4
Maximum Individual Balance	1
Cash, FDIC Insured Amount	250
Accounts and Notes Receivable, Net, Total	875	$ 1,083		$ 1,424
Deferred Revenue, Current	25	27
Advertising Expense	1	5
Share-based Compensation, Total	$ 250	325
Association Fee Payment Terms	Additionally, regardless of a member’s transaction activity, each operating cycle we charge most members an association fee of $20 USD ($260 USD annually) and $10 ITEX dollars ($130 ITEX dollars annually). Transaction and association fees composed 96% of our total revenue in 2016 and 2015.
Brokers Commission Payable Terms	50% paid one week after the end of the operating cycle and the remainder paid two weeks later.
Antidilutive Securities Unvested Restricted Stock Units | shares	133		133
Goodwill, Impairment Loss	$ 1,750	$ 0
Broker [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Accounts and Notes Receivable, Net, Total	$ 875
Debt Instrument, Maturity Date, Description	Payoff dates for the loans are from the year 2017 to 2022.
Broker [Member] | Maximum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Broker [Member] | Minimum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.00%		6.00%

CASH AND CASH EQUIVALENTS, AC31

CASH AND CASH EQUIVALENTS, ACCOUNTS RECEIVABLE, COMMISSIONS PAYABLE TO BROKERS AND ACCRUED COMMISSIONS TO BROKERS (Details Textual)	12 Months Ended
	Jul. 31, 2016
Cash and Cash Equivalents [Line Items]
Brokers Commission Payable Terms	50% paid one week after the end of the operating cycle and the remainder paid two weeks later.

NOTES RECEIVABLE (Details)

NOTES RECEIVABLE (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original Principal Balance on Notes	$ 2,338
Principal Additions in 2016	80	$ 30
Balance Receivable at July 31, 2016	875	1,083	$ 1,424
Current Portion	283
Long-Term Portion	$ 592	$ 792

NOTES RECEIVABLE (Details 1)

NOTES RECEIVABLE (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at Beginning of the period	$ 1,083	$ 1,424
Principal additions	80	30
Interest income at stated rates	61	90
Payments received	(349)	(461)
Balance at End of the period	$ 875	$ 1,083

NOTES RECEIVABLE (Details Textu

NOTES RECEIVABLE (Details Textual)	12 Months Ended
	Jul. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note Receivable Payoff Dates Description	Payoff dates for the loans are scheduled between 2017 and 2022.

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Property, Plant and Equipment [Line Items]
Property and Equipment, Cost	$ 369	$ 435
Property and Equipment, Accumulated Depreciation	(353)	(397)
Property and Equipment, Net Book Value	$ 16	$ 38
Computers [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years	3 years
Property and Equipment, Cost	$ 225	$ 240
Property and Equipment, Accumulated Depreciation	(218)	(216)
Property and Equipment, Net Book Value	$ 7	$ 24
Software [member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years	3 years
Property and Equipment, Cost	$ 42	$ 92
Property and Equipment, Accumulated Depreciation	(36)	(79)
Property and Equipment, Net Book Value	$ 6	$ 13
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years	7 years
Property and Equipment, Cost	$ 37	$ 38
Property and Equipment, Accumulated Depreciation	(34)	(37)
Property and Equipment, Net Book Value	$ 3	$ 1
Furniture [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years	7 years
Property and Equipment, Cost	$ 13	$ 13
Property and Equipment, Accumulated Depreciation	(13)	(13)
Property and Equipment, Net Book Value	$ 0	$ 0
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years 3 months 18 days	3 years 3 months 18 days
Property and Equipment, Cost	$ 52	$ 52
Property and Equipment, Accumulated Depreciation	(52)	(52)
Property and Equipment, Net Book Value	$ 0	$ 0

PROPERTY AND EQUIPMENT (Detai36

PROPERTY AND EQUIPMENT (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Property, Plant and Equipment [Line Items]
Depreciation	$ 26	$ 36
Amortization of Leased Asset	$ 0	$ 0

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Balance	$ 102	$ 157
Amortization	(54)	(55)
Balance	48	102
Membership List [Member]
Finite-Lived Intangible Assets [Line Items]
Balance	96	149
Amortization	(52)	(53)
Balance	44	96
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Balance	0	0
Amortization	0	0
Balance	0	0
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Balance	6	8
Amortization	(2)	(2)
Balance	$ 4	$ 6

INTANGIBLE ASSETS (Details 1)

INTANGIBLE ASSETS (Details 1) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
2,017	$ 38
2,018	10
Total	48	$ 102	$ 157
Trade Names [Member]
2,017	2
2,018	2
Total	4	6	8
Membership List [Member]
2,017	36
2,018	8
Total	$ 44	$ 96	$ 149

INTANGIBLE ASSETS (Details Text

INTANGIBLE ASSETS (Details Textual) $ in Thousands	12 Months Ended
	Jul. 31, 2016USD ($)
Finite Lived Intangible Assets Written Off Related To Sale Of Business Unit	$ 42
Membership List [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years
Noncompetition Agreement [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years

GOODWILL (Details)

GOODWILL (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Goodwill [Line Items]
Begining Balance	$ 3,191
Goodwill impairment	1,750	$ 0
Ending Balance	$ 1,441	$ 3,191

GOODWILL (Details Textual)

GOODWILL (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Goodwill [Line Items]
Goodwill, Impairment Loss	$ 1,750	$ 0

COMMITMENTS (Details)

COMMITMENTS (Details) $ in Thousands	Jul. 31, 2016USD ($)
2,017	$ 30
2,018	81
2,019	84
2,020	88
2,021	91
Thereafter	54
Total	$ 428

COMMITMENTS (Details Textual)

COMMITMENTS (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Other Commitments [Line Items]
Operating Leases, Rent Expense	$ 89	$ 149
Lessee Leasing Arrangements, Operating Leases, Term of Contract	5 years
Lease Expiration Date	Mar. 31, 2022

ITEX DOLLAR ACTIVITY (Details T

ITEX DOLLAR ACTIVITY (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Operating Income	$ (522)	$ 957
Assets [Member]
Cost of Services, Total	0
Itex Dollar [Member]
Other Revenue, Net	161	$ 217
Operating Income	$ 0

STOCK-BASED PAYMENTS (Details)

STOCK-BASED PAYMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	$ 250	$ 325
Employee Compensation [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	231	273
Board Compensation [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	$ 19	$ 52

STOCK-BASED PAYMENTS (Details 1

STOCK-BASED PAYMENTS (Details 1) - shares shares in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Plan 2014 [Member]
Available, Number of Shares/Options:
Balance at Beginning of Period	318	360
Granted	(25)	(44)
Forfeited	0	2
Balance at End of Period	293	318
Number of Shares/Options:
Granted	25	44
Forfeited	0	(2)
Plan 2014 [Member] | Restricted Stock [Member]
Available, Number of Shares/Options:
Granted	(25)	(44)
Forfeited	0	2
Number of Shares/Options:
Balance at Beginning of Period	82	40
Granted	25	44
Forfeited	0	(2)
Shares Vested		107
Shares Unvested		0
Balance at End of Period	107	82
Plan 2014 [Member] | Stock Compensation Plan [Member]
Available, Number of Shares/Options:
Granted	0	0
Forfeited	0	0
Number of Shares/Options:
Balance at Beginning of Period	0	0
Granted	0	0
Forfeited	0	0
Shares Vested		0
Shares Unvested		0
Balance at End of Period	0	0
Plan 2004 [Member]
Available, Number of Shares/Options:
Balance at Beginning of Period	0	0
Granted	0	0
Forfeited	0	0
Balance at End of Period	0	0
Number of Shares/Options:
Granted	0	0
Forfeited	0	0
Plan 2004 [Member] | Restricted Stock [Member]
Available, Number of Shares/Options:
Granted	0	0
Forfeited	0	10
Number of Shares/Options:
Balance at Beginning of Period	390	400
Granted	0	0
Forfeited	0	(10)
Shares Vested	257
Shares Unvested	133
Balance at End of Period	390	390
Plan 2004 [Member] | Stock Compensation Plan [Member]
Available, Number of Shares/Options:
Granted	0	0
Forfeited	0	0
Number of Shares/Options:
Balance at Beginning of Period	0	0
Granted	0	0
Forfeited	0	0
Shares Vested	0
Shares Unvested	0
Balance at End of Period	0	0

STOCK-BASED PAYMENTS (Details 2

STOCK-BASED PAYMENTS (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 250	$ 325
Corporate salaries, wages and employee benefits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	231	273
Selling, general and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 19	$ 52

STOCK-BASED PAYMENTS (Details T

STOCK-BASED PAYMENTS (Details Textual) shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 31, 2016USD ($)shares
Equity Incentive 2004 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	400
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	400
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period	133
Equity Incentive 2014 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $	$ 433
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	6 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	400
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	293
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $	$ 80
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	25

STOCKHOLDERS' EQUITY (Details T

STOCKHOLDERS' EQUITY (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Mar. 16, 2015	Mar. 31, 2011	Jul. 31, 2016	Jul. 31, 2015	Mar. 09, 2010
Preferred Stock, Par or Stated Value Per Share (in dollars per share)		$ 0.01	$ 0.01
Preferred Stock, Shares Authorized (in shares)			5,000
Stock Repurchase Program, Authorized Amount					$ 2,000
Stock Repurchased During Period, Shares			30	23
Stock Repurchased During Period, Value			$ 113	$ 76
Tender Offer To Purchase Common Stock Shares	750
Tender Offer To Purchase Common Stock Price Per Share	$ 4
Partial Tender Offer Commencement Date	Mar. 16, 2015
Outstanding Shares Purchase By Tender Offer Aggregate Percentage	26.00%
Tender Offer Aggregate Cost	$ 3,000
Accepted For Purchase Common Stock Including Odd Lots	750
Right Exercisable Description		The Rights will be exercisable upon the earlier of (i) such date the Company learns that a person or group, without Board approval, acquires or obtains the right to acquire beneficial ownership of 15% or more of ITEXs outstanding common stock or a person or group that already beneficially owns 15% or more of the Companys outstanding common stock at the time the Rights Agreement was entered into, without Board approval, acquires any additional shares (other than pursuant to the Companys compensation or benefit plans) (any person or group specified in this sentence, an Acquiring Person) and (ii) such date a person or group announces an intention to commence or following the commencement of (as designated by the Board) a tender or exchange offer which could result in the beneficial ownership of 15% or more of ITEXs outstanding common stock. If a person or group becomes an Acquiring Person, each Rights holder (other than the Acquiring Person) will be entitled to receive, upon exercise of the Right and payment of the Purchase Price, that number of 1/1000ths of a share of Preferred Stock equal to the number of shares of Common Stock which at the time of the applicable triggering transaction would have a market value of twice the Purchase Price. In the event the Company is acquired in a merger or other business combination by an Acquiring Person, or 50% or more of the Companys assets are sold to an Acquiring Person, each Right will entitle its holder (other than an Acquiring Person) to purchase common shares in the surviving entity at 50% of the market price.
Issue Price Of Preferred Stock		$ 15
Common Stock, Par or Stated Value Per Share		$ 0.01	$ 0.01	$ 0.01
Preferred Stock, Shares Issued (in shares)			0	0
Preferred Stock, Shares Outstanding (in shares)			0	0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Pre-tax financial income	$ (461)	$ 1,047
Federal tax (benefit)/expense computed at the statutory rate of 34%	(157)	356
State tax expense	84	17
State ASC 740 adjustment	(12)	(16)
Change in valuation allowance	769	(10)
Permanent and other differences	374	10
Net tax expense	$ 1,058	$ 357

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Current federal tax expense	$ 14	$ 8
Current state tax expense	11	9
Current Income Tax Expense (Benefit), Total	25	17
Deferred federal tax expense	1,065	355
Deferred state tax (benefit)	(32)	(15)
Deferred Income Tax Expense (Benefit)	1,033	340
Income Tax Expense (Benefit)	$ 1,058	$ 357

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Deferred Tax Assets
Net operating loss carryforwards	$ 2,719	$ 3,100
Goodwill and other intangible assets	227	21
Non-compete covenants	47	55
Reserve for uncollectible receivables	145	151
Federal tax credits	219	205
Other temporary differences	143	245
Deferred Tax Assets, Gross, Total	3,500	3,777
Less: Valuation allowance	(866)	(99)
Net deferred tax asset	2,634	3,678
Current Deferred Tax Assets
Current deferred tax asset	550	569
Valuation allowance	(136)	(15)
Net Current deferred tax asset	414	554
Non-Current Deferred Tax Assets
Non-current deferred tax asset	2,950	3,208
Valuation allowance	(730)	(84)
Net non-current deferred tax asset	$ 2,220	$ 3,124

INCOME TAXES (Details 3)

INCOME TAXES (Details 3) $ in Thousands	12 Months Ended
	Jul. 31, 2016USD ($)
Balance at July 31, 2015	$ 37
Increases as a result of tax positions taken in the current year	6
Increases as a result of tax positions taken in the prior year	2
Decreases resulting from settlements, payments and changes in estimates of probability tax positions will be sustained	(20)
Balance at July 31, 2016	$ 25

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Income Taxes [Line Items]
Operating Loss Carryforwards	$ 7,997
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	0	$ 99
Deferred Tax Assets, Tax Credit Carryforwards, Other	214
Deferred Tax Assets, Tax Credit Carryforwards, Research	$ 5
Operating Loss Carryforwards, Limitations on Use	ITEX has no state NOLs for California as they expired in calendar year 2015
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	$ 5
Domestic Tax Authority [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards, Valuation Allowance	866	$ 0
Parent Company [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards	$ 6,092
Operating Loss Carryforwards, Limitations on Use	ITEX Federal NOLs of approximately $6,092 expire, if unused, from calendar years 2019 to 2024
Subsidiaries [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards	$ 1,905
Operating Loss Carryforwards, Limitations on Use	BXI Federal NOLs of approximately $1,905 expire, if unused, from 2020 to 2026

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual)	12 Months Ended
	Jul. 31, 2016USD ($)
Related Party Transaction, Amounts of Transaction	$ 120,000

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member]	1 Months Ended
	Aug. 16, 2016$ / shares
Subsequent Event [Line Items]
Dividends Payable, Amount Per Share (in dollars per share)	$ 0.10
Dividends Payable, Date to be Paid	Dec. 12, 2016
Dividends Payable, Date of Record	Dec. 1, 2016