SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 8-K

                Current Report Pursuant to Section 13 or 15(d) of
                       The Securities Exchange Act of 1934

          Date of Report (Date of earliest event reported) June 1, 2001

                                ITEX CORPORATION
             (Exact name of registrant as specified in its charter)


            Nevada                        0-18275              93-0922994
            ------                      -----------           ------------
(State or other jurisdiction            (Commission         (I.R.S. Employer
of incorporation or organization)        File No.)          Identification No.)



                                3400 Cottage Way
                          Sacramento, California 95825
                                 (916) 679-1111
          (Address and telephone number of principal executive offices)


ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS

Acquisition of Assets in Canada

On June 1, 2001, ITEX Corporation (the "Company"), pursuant to an Asset Purchase
Agreement (the "Purchase  Agreement"),  acquired substantially all of the assets
of  Ubarter.com  USA, a wholly owned  subsidiary of Network  Commerce,  Inc. The
assets  included a customer base  exceeding  8,000  registered  trade and barter
exchange  members,  inventories  throughout  the United  States,  along with the
physical  assets of the online trading  system.  ITEX plans to manage the client
base from their  existing  Seattle  location and host the online  trading system
from their  corporate  offices in Sacramento.  The all cash  transaction,  which
closed today, does not involve any exchange of shares or ITEX trade dollars.

The assets were acquired pursuant to an Asset Purchase Agreement in exchange for
cash  payment  made at the  time of the  closing.  The  essential  terms  of the
transaction  include payment by the Company at the closing and the assumption of
certain  liabilities  and  obligations  in  connection  with the Seatle  office,
including the lease of that facility. The seller further agreed to indemnify the
Company in the event of any nondisclosed and nonassumed liabilities.

The foregoing summary is intended to highlight certain essential elements of the
transaction and is not intended to be a complete description of all of the terms
of the  acquisition.  The Asset Purchase  Agreement is attached as an exhibit to
this Current  Report and the  foregoing is qualified in its entirety by the more
detailed provisions and disclosure contained in the actual agreement.


<PAGE> 2

Forward Looking Statements

This Current Report on Form 8-K contains  forward-looking  statements  which are
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform  Act  of  1995.  These  statements   involve  known  and  unknown  risks,
uncertainties  and  other  factors  that may  cause the  actual  results  of the
operations of ITEX to be materially different from those expressed or implied in
such statements.  These factors  include,  but are not limited to the continuing
development of successful marketing  strategies for the company's concepts;  the
effect of international, national, and regional economic conditions; the ability
of the company to satisfy its debt  obligations;  the  availability  of adequate
working  capital;  competitive  barter  exchanges and;  changes in  legislation;
demographic  changes,  the  ability to attract and retain  qualified  personnel;
changes in business strategy or development plans; business disruptions; changes
in the demand for goods and services  offered by members of its trade  exchange.
These risk factors and others are discussed in the periodic  reports and filings
of ITEX Corporation with the Securities and Exchange  Commission,  including but
not  limited  to its Form  10-K's  and Form  10-Qs.  All  statements  other than
statements of historical fact included in this Current Report, including without
limitations,   company's   business   strategy,   plans  and   objectives,   are
forward-looking statements

ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

     (a) Financial Statements of Business Acquired

          (1)  Financial  statements  representing  the assets  and  liabilities
               acquired from Ubarter.com, Inc. will be filed by amendment within
               60 days from this report.

     (b) Pro Forma Financial Information

          (1)  Pro forma financial information will be filed by amendment within
               60 days from this report.

     (c) Exhibits

         Exhibit No.       Exhibit Description
         -----------       -------------------
             10.1          Copy of the Asset Purchase Agreement


<PAGE> 3

                                    SIGNATURE

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


Dated: June 15, 2001                      ITEX CORPORATION
                                          a Nevada Corporation


                                          /S/ COLLINS M. CHRISTENSEN
                                          -------------------------------------
                                          Collins M. Christensen
                                          President and Chief Executive Officer
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{"company-data": {"conformed-name": "ITEX CORPORATION", "cik": "0000860518", "assigned-sic": "7389", "irs-number": "930922994", "state-of-incorporation": "NV", "fiscal-year-end": "0731"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-18275", "film-number": "1661915"}, "business-address": {"street1": "3400 COTTAGE WAY", "city": "SACRAMENTO", "state": "CA", "zip": "95825", "phone": "5032444673"}, "mail-address": {"street1": "10300 S W GREENBURG ROAD", "street2": "SUITE 370", "city": "PORTLAND", "state": "OR", "zip": "97223"}, "former-company": {"former-conformed-name": "ITEX BARTER SYSTEMS INC", "date-changed": "19600201"}}
SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 8-K

                Current Report Pursuant to Section 13 or 15(d) of
                       The Securities Exchange Act of 1934

          Date of Report (Date of earliest event reported) June 1, 2001

                                ITEX CORPORATION
             (Exact name of registrant as specified in its charter)

            Nevada                        0-18275              93-0922994
            ------                      -----------           ------------
(State or other jurisdiction            (Commission         (I.R.S. Employer
of incorporation or organization)        File No.)          Identification No.)

                                3400 Cottage Way
                          Sacramento, California 95825
                                 (916) 679-1111
          (Address and telephone number of principal executive offices)

ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS

Acquisition of Assets in Canada

On June 1, 2001, ITEX Corporation (the "Company"), pursuant to an Asset Purchase
Agreement (the "Purchase  Agreement"),  acquired substantially all of the assets
of  Ubarter.com  USA, a wholly owned  subsidiary of Network  Commerce,  Inc. The
assets  included a customer base  exceeding  8,000  registered  trade and barter
exchange  members,  inventories  throughout  the United  States,  along with the
physical  assets of the online trading  system.  ITEX plans to manage the client
base from their  existing  Seattle  location and host the online  trading system
from their  corporate  offices in Sacramento.  The all cash  transaction,  which
closed today, does not involve any exchange of shares or ITEX trade dollars.

The assets were acquired pursuant to an Asset Purchase Agreement in exchange for
cash  payment  made at the  time of the  closing.  The  essential  terms  of the
transaction  include payment by the Company at the closing and the assumption of
certain  liabilities  and  obligations  in  connection  with the Seatle  office,
including the lease of that facility. The seller further agreed to indemnify the
Company in the event of any nondisclosed and nonassumed liabilities.

The foregoing summary is intended to highlight certain essential elements of the
transaction and is not intended to be a complete description of all of the terms
of the  acquisition.  The Asset Purchase  Agreement is attached as an exhibit to
this Current  Report and the  foregoing is qualified in its entirety by the more
detailed provisions and disclosure contained in the actual agreement.
2

Forward Looking Statements

This Current Report on Form 8-K contains  forward-looking  statements  which are
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform  Act  of  1995.  These  statements   involve  known  and  unknown  risks,
uncertainties  and  other  factors  that may  cause the  actual  results  of the
operations of ITEX to be materially different from those expressed or implied in
such statements.  These factors  include,  but are not limited to the continuing
development of successful marketing  strategies for the company's concepts;  the
effect of international, national, and regional economic conditions; the ability
of the company to satisfy its debt  obligations;  the  availability  of adequate
working  capital;  competitive  barter  exchanges and;  changes in  legislation;
demographic  changes,  the  ability to attract and retain  qualified  personnel;
changes in business strategy or development plans; business disruptions; changes
in the demand for goods and services  offered by members of its trade  exchange.
These risk factors and others are discussed in the periodic  reports and filings
of ITEX Corporation with the Securities and Exchange  Commission,  including but
not  limited  to its Form  10-K's  and Form  10-Qs.  All  statements  other than
statements of historical fact included in this Current Report, including without
limitations,   company's   business   strategy,   plans  and   objectives,   are
forward-looking statements

ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

     (a) Financial Statements of Business Acquired

          (1)  Financial  statements  representing  the assets  and  liabilities
               acquired from Ubarter.com, Inc. will be filed by amendment within
               60 days from this report.

     (b) Pro Forma Financial Information

          (1)  Pro forma financial information will be filed by amendment within
               60 days from this report.

     (c) Exhibits

         Exhibit No.       Exhibit Description
         -----------       -------------------
             10.1          Copy of the Asset Purchase Agreement
3

                                    SIGNATURE

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

Dated: June 15, 2001                      ITEX CORPORATION
                                          a Nevada Corporation

                                          /S/ COLLINS M. CHRISTENSEN
                                          -------------------------------------
                                          Collins M. Christensen
                                          President and Chief Executive Officer