Property and Equipment

3 Months Ended

Apr. 30, 2012

Property and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 7—PROPERTY AND EQUIPMENT

Property and equipment at April 30, 2012 and January 31, 2012 consisted of the following:

	April 30, 2012			January 31, 2012
Leasehold improvements	$	208,000		$	208,000
Machinery and equipment		2,997,000			2,700,000
Trucks and other vehicles		1,677,000			1,817,000
Construction project costs of variable interest entities		2,413,000			1,469,000
		7,295,000			6,194,000
Less – accumulated depreciation		(3,520,000	)		(3,433,000	)
Property and equipment, net	$	3,775,000		$	2,761,000

Depreciation expense related to continuing operations for property and equipment was approximately $117,000 for both the three months ended April 30, 2012 and 2011. The costs of maintenance and repairs for continuing operations totaled $92,000 and $53,000 for the three months ended April 30, 2012 and 2011, respectively.

The Company also uses equipment and occupies facilities under non-cancelable operating leases and other rental agreements. It incurred total rent expense for continuing operations in the amounts of $3,405,000 and $537,000 for the three months ended April 30, 2012 and 2011, respectively, including $3,293,000 and $411,000 included in cost of revenues for the respective periods.