On June 10, 2016, ITEX Corporation (“ITEX”) reported to investors it was awarded damages of $5.23 million, plus costs, against Global Links Corporation and BXI Trade Exchange, Inc. (the “Global parties”). The arbitration decision and award was a result of the breach of certain terms of a September 2015 settlement agreement between ITEX and the Global parties.
The Arbitrator found that the Global parties continued to use statements and logos which misled customers into thinking they were a successor-in-interest to the original BXI business which was acquired by ITEX in 2005 – when in fact, the Global parties are unrelated to the original BXI business.
The Arbitrator concluded that the actions by the Global parties constituted “pervasive, deliberate, intentional and ongoing conduct” in breach of the settlement agreement, and was likely to cause customer confusion and harm ITEX’s reputation and goodwill.
ITEX intends to take all actions necessary or appropriate to enforce the award. The award will not be reflected in ITEX’s financial statements until any collection results are realized.
The information disclosed under this Item 7.01 is being furnished to, but not filed with, the Securities and Exchange Commission.
About ITEX Corporation
Founded in 1982, and headquartered in Bellevue, Washington, ITEX is one of the leading marketplaces for cashless businesses transactions across North America. ITEX processes more than $140 million a year in Gross Merchandise Value (GMV) between thousands of businesses and 90 franchisees and licensees. Member businesses increase sales and open new markets by utilizing ITEX dollars to exchange goods and services, through ITEX’s payment technology platform.