CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

3 Months Ended

Apr. 30, 2019

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

NOTE 3 – CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

At April 30 and January 31, 2019, a significant amount of cash and cash equivalents was invested in a money market fund with net assets invested in high-quality money market instruments. Such investments include U.S. Treasury obligations; obligations of U.S. Government agencies, authorities, instrumentalities or sponsored enterprises; and repurchase agreements secured by U.S. Government obligations. The Company considers all liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.

Short-term investments as of April 30 and January 31, 2019 consisted solely of certificates of deposit purchased from Bank of America (the “Bank”) with weighted average initial maturities of 250 days (the “CDs”) at both dates. The Company has the intent and ability to hold the CDs until they mature, and they are carried at cost plus accrued interest which approximates fair value. The total carrying value amounts as of April 30 and January 31, 2019 included accrued interest of $1.4 million and $1.2 million, respectively. Interest income is recorded when earned and is included in other income. At April 30 and January 31, 2019, the weighted average annual interest rates of the CDs were 2.7% and 2.6%,  respectively. In addition, the Company has cash on deposit in excess of federally insured limits at the Bank. Management does not believe that maintaining substantially all such assets with the Bank represents a material risk.