Prepaid Expenses and Other Current Assets

12 Months Ended

Jan. 31, 2012

Prepaid Expenses and Other Current Assets [Abstract]

Prepaid Expenses and Other Current Assets [Text Block]

3. Prepaid Expenses and Other Current Assets

Included in, and making up the majority of, prepaid expenses and other current assets was $1,332,000 and $2,287,000 of deferred charges related to several current engineering contracts as of January 31, 2012 and January 31, 2011, respectively. The Company has been retained for the development of customer specific engineering projects. All the contracts are short-term in nature and not expected to extend beyond twelve months. As of January 31, 2012, the deferred charges consist of $1,332,000 of internal engineering labor, including overhead, and $0 of external engineering contract labor. As of January 31, 2011, the deferred charges consist of $1,951,000 of internal engineering labor, including overhead, and $336,000 of external engineering contract labor. The deferred charges are offset by interim payments from customers of $0 and $223,000 as of January 31, 2012 and January 31, 2011, respectively. Related to the deferred charges are accrued contract losses of $1,086,000 and $1,500,000 as of January 31, 2012 and January 31, 2011, respectively, which are included in accrued expenses and other liabilities.

Prepaid expenses and other current assets, net consisted of the following:

	2012		2011
Deferred charges on engineering contracts, net	$	1,332,000	$	2,064,000
Prepaid insurance expenses		266,000		232,000
Other prepaid expenses		204,000		106,000
Prepaid expenses and other current assets, net	$	1,802,000	$	2,402,000