IPix Software - IPix Virtual Tours, IPix Bankruptcy News

IPIX Software - August 4, 2006

IPix Corp. filed for bankruptcy on Monday, July 31, 2006, effectively ending a 20 year run for the company founded in Oak Ridge, Tennessee which will have an unknown effect on current clients and web users. A trustee will soon be appointed to pay creditors and liquidate IPix's assets.

The Virtual Tour company reported debts totaling $7.87 million and assets totaling $7.67 million in its petition filed in the US Bankruptcy Court in Virginia. The company had moved operations to Virginia in recent years and as of late last year had about 35 employees. As recently as 2000 the company employed 750 people. The filing also noted that the company's board of directors made the decision to file for bankruptcy at a meeting held one week earlier, on July 24. Net losses of $22.4 million were reported for last year, as well as $3.8 million in the first quarter of 2006.

Creditors will be paid according to class, and each class of creditor is paid out completely before moving on to the next class. A total of 89 creditors are owed $2,865,559 in unsecured debt.

Recently four of IPix's five directors resigned. In addition, the company's stock was in danger of being removed from the Nasdaq exchange ADD after trading for less than $1 for more than a month. Its last sale of stock was .50 per share on Friday, July 28.

Twenty four patents and 13 pending patent applications are among IPix's listed assets. The patents are related to IPix's 360 Virtual Tour technology, marketed towards companies during the late 1990's "Internet Boom." Recently the company tried to make a move into the federal government's security and surveillance market as funding there increased due to homeland security. In fact in January 2005, the company's technology was used during President George Bush's inauguration. Still, the switch was largely unsuccessful.