Disposition of Discontinued Operations

12 Months Ended

Jan. 31, 2013

Disposition of Discontinued Operations [Abstract]

DISPOSITION OF DISCONTINUED OPERATIONS

NOTE 18 – DISPOSITION OF DISCONTINUED OPERATIONS

Vitarich Laboratories, Inc. (“VLI”), a wholly owned subsidiary that represented the Company’s nutritional products business segment, completed the sale of substantially all of its assets (the “Asset Sale”) to NBTY Florida, Inc. (“NBTY”) in March 2011. The Asset Sale was consummated for an aggregate cash purchase price of up to $3,100,000 including $800,000 that was paid at closing. The remaining $2,300,000 was placed into escrow. VLI was paid from the escrow amount the cost of all pre-closing inventory sold, used or consumed by December 11, 2011 and it was paid the amounts of all pre-closing accounts receivable of VLI that were collected by September 30, 2011. In December 2011, the funds remaining in the escrow account after the payments to VLI were returned to NBTY. During the year ended January 31, 2012, VLI received cash proceeds from the escrow account in the aggregate amount of $1,728,000. Amounts received from the escrow account were recorded as proceeds of the Asset Sale upon receipt.

The financial results of this business through April 30, 2012 have been presented as discontinued operations in the accompanying consolidated financial statements, including legal costs associated with this business. Such costs incurred subsequent to April 30, 2012 have been reflected in the operating results of continuing operations; costs were not material for the year ended January 31, 2013. Net revenues of the discontinued operations for the year ended January 31, 2012 were $1,460,000.