FINANCING ARRANGEMENTS

12 Months Ended

Jan. 31, 2016

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS

NOTE 12 — FINANCING ARRANGEMENTS

The Company maintains financing arrangements with the Bank that are described in a Replacement Credit Agreement, effective August 10, 2015 (the “Credit Agreement”). The Credit Agreement, which superseded the Company’s prior arrangements with the Bank, provides a revolving loan with a maximum borrowing amount of $10,000,000 that is available until May 31, 2018 with interest at the 30-day LIBOR plus 2.00%. The Company may also use the borrowing ability to cover standby letters of credit issued by the Bank for the Company’s use in the ordinary course of business. There were no actual borrowings outstanding under the Bank financing arrangements as of January 31, 2016 and 2015. Borrowing availability in the total amount of $1,350,000 has been designated to cover several letters of credit issued by the Bank, with expiration dates ranging from September 23, 2016 to November 5, 2016, in support of the project development activities of a potential power plant owner.

The Company has pledged the majority of its assets to secure the financing arrangements. The Bank’s consent is not required for acquisitions, divestitures, cash dividends or significant investments as long as certain conditions are met. The Bank requires that the Company comply with certain financial covenants at its fiscal year-end and at each of its fiscal quarter-ends. As of January 31, 2016, the Company was in compliance with the financial covenants of the Credit Agreement..

The commercial bank that supports the activities of Roberts has issued two outstanding irrevocable letters of credit on its behalf in the amounts of $451,000 and $439,000 with current expiration dates of June 30, 2016 and August 31, 2016, respectively, which are secured by a lien on the owned facility of Roberts.