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      IPIX Corporation 8-K 07/26/06
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
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      AND EXCHANGE COMMISSION</strong></font></div>
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      DC 20549</strong></font></div>
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      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT PURSUANT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TO
      SECTION 13 OR 15(d) OF THE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      EXCHANGE ACT OF 1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of earliest event reported): </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>July
      20, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>IPIX
      CORPORATION</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of registrant as specified in its charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DELAWARE</strong></font></div>
            </td>
            <td valign="top" width="16%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>000-26363</strong></font></div>
            </td>
            <td valign="top" width="19%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>52-2213841</strong></font></div>
            </td>
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            <td valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or other</font></div>
            </td>
            <td valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission</font></div>
            </td>
            <td valign="top" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jurisdiction
                of incorporation)</font></div>
            </td>
            <td valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">File
                Number)</font></div>
            </td>
            <td valign="top" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                Number)</font></div>
            </td>
          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>12120
      SUNSET HILLS ROAD, SUITE 410 RESTON, VIRGINIA 20910</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
      of principal executive offices)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 288pt">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
      Code)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant's
      telephone number, including area code:&#160;&#160; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>(</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>703)
      674-4100</u></strong></font></div>
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      name or former address, if changed since last report)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      ]
      Written communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
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      ]
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
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      ]
      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))</font></div>
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      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      3.02.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTICE
      OF DELISTING OR FAILURE TO SATISFY A CONTINUED LISTING RULE OR STANDARD;
      TRANSFER OF LISTING.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      July
      21, 2006, Michael Easterly resigned as a director and a member of the audit
      committee of our board of directors. Mr. Easterly&#8217;s resignation caused IPIX to
      become non-compliant with Nasdaq Rule 4350(c) regarding board of directors&#8217;
composition and independence. On July 24, 2006, the Company notified Nasdaq
      of
      its non-compliance with Rules 4350(d)(2)(A) and 4350(c) and its plans to fill
      Mr. Easterly&#8217;s vacancy on the board of directors and audit committee within the
      applicable cure period provided by the Nasdaq Rules. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CHANGES
      IN REGISTRANT&#8217;S CERTIFYING ACCOUNTANT</strong></font>.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      July
      21, 2006, IPIX received a notice of resignation dated July 20, 2006 from the
      Company&#8217;s independent registered public accounting firm, Armanino McKenna, LLP
      (&#8220;Armanino McKenna&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Armanino
      McKenna performed the audit of the Company's financial statements for the years
      ended December 31, 2004 and December 31, 2005. During this period and through
      the date of resignation of Armanino McKenna, there were no disagreements with
      Armanino McKenna on any matter of accounting principles or practices, financial
      statement disclosure or auditing scope or procedure, which disagreements if
      not
      resolved to Armanino McKenna&#8217;s satisfaction would have caused Armanino McKenna
      to make reference to the subject matter of the disagreements in connection
      with
      Armanino McKenna&#8217;s report, nor were there any "reportable events" (as outlined
      in Item 304(a)(1)(v) of Regulation S-K, other than as follows. In Item 9A of
      its
      Annual Report on Form 10-K/A for the year ended December 31, 2004 (the &#8220;2004
      Annual Report&#8221;), the Company previously reported that it did not maintain
      effective internal control over financial reporting because of material
      weaknesses identified therein. The following descriptions are qualified in
      their
      entirety by the complete description of these matters set forth in Item 9A
      of
      the 2004 Annual Report, all of which is incorporated herein by reference as
      if
      set forth in full herein. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      December 31, 2004, the Company did not maintain effective internal control
      over
      its period-end close process. The material weaknesses identified by management
      were primarily due to inadequate resources and expertise in accounting necessary
      to complete an orderly and accurate year-end close process as a result of the
      substantial reorganization of the Company being effected at year-end and the
      resignation of the chief financial officer on January 21, 2005. Specific control
      deficiencies related to the preparation of the Company's financial statements
      were identified and individually or in combination result in more that a remote
      likelihood that a material misstatement of the annual or interim financial
      statements will not be prevented or detected. The identified control
      deficiencies resulted in certain audit adjustments to, and additional
      disclosures made in, the Company's 2004 financial statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      December 31, 2004, the Company did not maintain effective internal control
      over
      its purchases and payables. Specific control deficiencies related to purchases
      and accounts payable were identified and individually or in combination result
      in more that a remote likelihood that a material misstatement of the annual
      or
      interim financial statements will not be prevented or detected. The identified
      control deficiencies did not result in audit adjustments to the 2004 financial
      statements or restatements of previously issued financial statements. However,
      these control deficiencies could result in unauthorized or erroneous cash
      disbursements that are not prevented or detected. Additionally, the control
      deficiencies could result in the Company not completely and accurately recording
      expenses in the proper period.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      December 31, 2004, the Company did not maintain effective internal control
      over
      inventory. The Company remediated identified inventory related control
      deficiencies through December 2004. These deficiencies were considered to be
      material weaknesses. The remediated controls, however, had not been in operation
      for a sufficient period of time to enable management to obtain sufficient
      evidence about their operating effectiveness. Specific control deficiencies
      related to inventory were identified and individually or in combination result
      in more that a remote likelihood that a material misstatement of the annual
      or
      interim financial statements will not be prevented or detected. The identified
      control deficiencies did not result in audit adjustments to the 2004 financial
      statements or restatements of previously issued financial statements. However,
      these control deficiencies could result in the failure to adequately identify,
      document and analyze the conditions that should have been considered relative
      to
      the existence and expected recoverability of inventory. </font></div>
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      of
      December 31, 2004, the Company did not maintain effective internal control
      over
      receivables and revenue. The Company remediated identified receivables and
      revenue related control deficiencies through December 2004. These deficiencies
      were considered to be material weaknesses. The remediated controls, however,
      had
      not been in operation for a sufficient period of time to enable management
      to
      obtain sufficient evidence about their operating effectiveness. Specific control
      deficiencies related to receivables and revenue were identified and individually
      or in combination result in more that a remote likelihood that a material
      misstatement of the annual or interim financial statements will not be prevented
      or detected. The identified control deficiencies did not result in audit
      adjustments to the 2004 financial statements or restatements of previously
      issued financial statements. However, these control deficiencies could result
      in
      the failure to accurately record revenue in the proper period. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      December 31, 2004, the Company did not maintain effective control related to
      its
      computer data backup and restore practices. The Company did not perform data
      backups onto removable media (e.g., tape or portable disk) which are then stored
      offsite. The Company did not perform and retain month-end or year-end data
      backups of any of its computer systems including the accounting and financial
      systems. This deficiency could result in the Company not being able to
      successfully restore critical databases to a recent point in time, thereby
      causing serious delays or even incorrect data in the financial reporting system.
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      of
      December 31, 2004, the Company did not maintain effective controls relating
      to
      security of its accounting and financial systems. The Company's practices did
      not meet the control objective of a comprehensive assessment of security.
      Regular monitoring of security devices, logging of security activity and
      reporting of security incidents or breaches to management are not performed.
      Additionally, the Company does not require regular password changes for the
      key
      financial reporting systems. Unauthorized access could lead to compromised
      data
      and business functionality or loss of information assets. Additionally,
      unauthorized activity could impact data integrity and financial reporting.
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      McKenna&#8217;s report on internal control over financial reporting included in
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      contained an adverse opinion on the effectiveness of internal control as of
      December&#160;31, 2004. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      2005, the Company remediated the foregoing material weaknesses and in Item
      9A of
      its Annual Report on Form 10-K for the year ended December 31, 2005, the Company
      reported that it maintained effective internal control over financial
      reporting.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, the audit reports of Armanino McKenna for the years ended December
      31,
      2004 and December 31, 2005 did not contain an adverse opinion, or a disclaimer
      of opinion and were not qualified or modified in audit scope or accounting
      principles, except that the reports on the consolidated financial statements
      for
      each of the years ended December 31, 2004 and 2005 expressed substantial doubt
      regarding IPIX Corporation&#8217;s ability to continue as a going
      concern.</font></div>
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      Company requested Armanino McKenna to furnish it with a letter addressed to
      the
      Securities and Exchange Commission stating whether it agrees with the statements
      made above by the Company. A copy of such letter is filed as exhibit 16.1 to
      this Form 8-K.</font></div>
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      OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF
      PRINCIPAL.</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      July </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21,
      2006,
      Michael Easterly resigned as director of IPIX Corporation.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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    <div>
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          <tr>
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            <td valign="top" width="67%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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                Commission</font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
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      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font></font></font>IPIX
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{"company-data": {"conformed-name": "IPIX CORP", "cik": "0001088022", "assigned-sic": "7389", "irs-number": "522213841", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26363", "film-number": "06982137"}, "business-address": {"street1": "1009 COMMERCE PARK DR", "street2": "SUITE 400", "city": "OAK RIDGE", "state": "TN", "zip": "37830", "phone": "8654823000"}, "mail-address": {"street1": "1009 COMMERCE PARK DR", "street2": "SUITE 400", "city": "OAK RIDGE", "state": "TN", "zip": "37830"}, "former-company": [{"former-conformed-name": "INTERNET PICTURES CORP", "date-changed": "20000210"}, {"former-conformed-name": "BAMBOO COM INC", "date-changed": "19990604"}]}
IPIX Corporation 8-K 07/26/06
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      DC 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):
July
      20, 2006
IPIX
      CORPORATION
(Exact
      name of registrant as specified in its charter)
DELAWARE
000-26363
52-2213841
(State
                or other
(Commission
(IRS
                Employer
Jurisdiction
                of incorporation)
File
                Number)
Identification
                Number)
12120
      SUNSET HILLS ROAD, SUITE 410 RESTON, VIRGINIA 20910
(Address
      of principal executive offices)
(Zip
      Code)
Registrant's
      telephone number, including area code:
(
703)
      674-4100
N/A
(Former
      name or former address, if changed since last report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
[
      ]
      Written communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
[
      ]
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
[
      ]
      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))
[
      ]
      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))
ITEM
      3.02.
NOTICE
      OF DELISTING OR FAILURE TO SATISFY A CONTINUED LISTING RULE OR STANDARD;
      TRANSFER OF LISTING.
On
      July
      21, 2006, Michael Easterly resigned as a director and a member of the audit
      committee of our board of directors. Mr. Easterly's resignation caused IPIX to
      become non-compliant with Nasdaq Rule 4350(c) regarding board of directors'
composition and independence. On July 24, 2006, the Company notified Nasdaq
      of
      its non-compliance with Rules 4350(d)(2)(A) and 4350(c) and its plans to fill
      Mr. Easterly's vacancy on the board of directors and audit committee within the
      applicable cure period provided by the Nasdaq Rules.
ITEM
4.01.
CHANGES
      IN REGISTRANT'S CERTIFYING ACCOUNTANT
.
On
      July
      21, 2006, IPIX received a notice of resignation dated July 20, 2006 from the
      Company's independent registered public accounting firm, Armanino McKenna, LLP
      ("Armanino McKenna").
Armanino
      McKenna performed the audit of the Company's financial statements for the years
      ended December 31, 2004 and December 31, 2005. During this period and through
      the date of resignation of Armanino McKenna, there were no disagreements with
      Armanino McKenna on any matter of accounting principles or practices, financial
      statement disclosure or auditing scope or procedure, which disagreements if
      not
      resolved to Armanino McKenna's satisfaction would have caused Armanino McKenna
      to make reference to the subject matter of the disagreements in connection
      with
      Armanino McKenna's report, nor were there any "reportable events" (as outlined
      in Item 304(a)(1)(v) of Regulation S-K, other than as follows. In Item 9A of
      its
      Annual Report on Form 10-K/A for the year ended December 31, 2004 (the "2004
      Annual Report"), the Company previously reported that it did not maintain
      effective internal control over financial reporting because of material
      weaknesses identified therein. The following descriptions are qualified in
      their
      entirety by the complete description of these matters set forth in Item 9A
      of
      the 2004 Annual Report, all of which is incorporated herein by reference as
      if
      set forth in full herein.
As
      of
      December 31, 2004, the Company did not maintain effective internal control
      over
      its period-end close process. The material weaknesses identified by management
      were primarily due to inadequate resources and expertise in accounting necessary
      to complete an orderly and accurate year-end close process as a result of the
      substantial reorganization of the Company being effected at year-end and the
      resignation of the chief financial officer on January 21, 2005. Specific control
      deficiencies related to the preparation of the Company's financial statements
      were identified and individually or in combination result in more that a remote
      likelihood that a material misstatement of the annual or interim financial
      statements will not be prevented or detected. The identified control
      deficiencies resulted in certain audit adjustments to, and additional
      disclosures made in, the Company's 2004 financial statements.
As
      of
      December 31, 2004, the Company did not maintain effective internal control
      over
      its purchases and payables. Specific control deficiencies related to purchases
      and accounts payable were identified and individually or in combination result
      in more that a remote likelihood that a material misstatement of the annual
      or
      interim financial statements will not be prevented or detected. The identified
      control deficiencies did not result in audit adjustments to the 2004 financial
      statements or restatements of previously issued financial statements. However,
      these control deficiencies could result in unauthorized or erroneous cash
      disbursements that are not prevented or detected. Additionally, the control
      deficiencies could result in the Company not completely and accurately recording
      expenses in the proper period.
As
      of
      December 31, 2004, the Company did not maintain effective internal control
      over
      inventory. The Company remediated identified inventory related control
      deficiencies through December 2004. These deficiencies were considered to be
      material weaknesses. The remediated controls, however, had not been in operation
      for a sufficient period of time to enable management to obtain sufficient
      evidence about their operating effectiveness. Specific control deficiencies
      related to inventory were identified and individually or in combination result
      in more that a remote likelihood that a material misstatement of the annual
      or
      interim financial statements will not be prevented or detected. The identified
      control deficiencies did not result in audit adjustments to the 2004 financial
      statements or restatements of previously issued financial statements. However,
      these control deficiencies could result in the failure to adequately identify,
      document and analyze the conditions that should have been considered relative
      to
      the existence and expected recoverability of inventory.
As
      of
      December 31, 2004, the Company did not maintain effective internal control
      over
      receivables and revenue. The Company remediated identified receivables and
      revenue related control deficiencies through December 2004. These deficiencies
      were considered to be material weaknesses. The remediated controls, however,
      had
      not been in operation for a sufficient period of time to enable management
      to
      obtain sufficient evidence about their operating effectiveness. Specific control
      deficiencies related to receivables and revenue were identified and individually
      or in combination result in more that a remote likelihood that a material
      misstatement of the annual or interim financial statements will not be prevented
      or detected. The identified control deficiencies did not result in audit
      adjustments to the 2004 financial statements or restatements of previously
      issued financial statements. However, these control deficiencies could result
      in
      the failure to accurately record revenue in the proper period.
As
      of
      December 31, 2004, the Company did not maintain effective control related to
      its
      computer data backup and restore practices. The Company did not perform data
      backups onto removable media (e.g., tape or portable disk) which are then stored
      offsite. The Company did not perform and retain month-end or year-end data
      backups of any of its computer systems including the accounting and financial
      systems. This deficiency could result in the Company not being able to
      successfully restore critical databases to a recent point in time, thereby
      causing serious delays or even incorrect data in the financial reporting system.
As
      of
      December 31, 2004, the Company did not maintain effective controls relating
      to
      security of its accounting and financial systems. The Company's practices did
      not meet the control objective of a comprehensive assessment of security.
      Regular monitoring of security devices, logging of security activity and
      reporting of security incidents or breaches to management are not performed.
      Additionally, the Company does not require regular password changes for the
      key
      financial reporting systems. Unauthorized access could lead to compromised
      data
      and business functionality or loss of information assets. Additionally,
      unauthorized activity could impact data integrity and financial reporting.
Armanino
      McKenna's report on internal control over financial reporting included in
      Item 9A of the Form 10-K/A for the year ended December 31, 2004
      contained an adverse opinion on the effectiveness of internal control as of
      December 31, 2004.
During
      2005, the Company remediated the foregoing material weaknesses and in Item
      9A of
      its Annual Report on Form 10-K for the year ended December 31, 2005, the Company
      reported that it maintained effective internal control over financial
      reporting.
In
      addition, the audit reports of Armanino McKenna for the years ended December
      31,
      2004 and December 31, 2005 did not contain an adverse opinion, or a disclaimer
      of opinion and were not qualified or modified in audit scope or accounting
      principles, except that the reports on the consolidated financial statements
      for
      each of the years ended December 31, 2004 and 2005 expressed substantial doubt
      regarding IPIX Corporation's ability to continue as a going
      concern.
The
      Company requested Armanino McKenna to furnish it with a letter addressed to
      the
      Securities and Exchange Commission stating whether it agrees with the statements
      made above by the Company. A copy of such letter is filed as exhibit 16.1 to
      this Form 8-K.
ITEM
5.02.
DEPARTURE
      OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF
      PRINCIPAL.
Effective
      July
21,
      2006,
      Michael Easterly resigned as director of IPIX Corporation.
Item
      9.01.
FINANCIAL
      STATEMENTS AND EXHIBITS
.
(d)
      Exhibits.
Exhibit
Number
Description
16
Letter
                from Armanino McKenna, LLP to the Securities and Exchange
                Commission
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
IPIX
      CORPORATION
Dated:
      July 26, 2006
/s/
      Clara M. Conti
Clara
      M. Conti
Chief
      Executive Officer and
      President