Accrued Expenses and Other Liabilities

12 Months Ended

Jan. 31, 2013

Accounts Payable and Accrued Liabilities [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

8. Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities at January 31, 2013 and 2012 consisted of the following:

	2013		2012
Environmental liability (see Note 13)	$	404,000	$	788,000
Contract costs provision		278,000		-
Contract loss provision		71,000		1,086,000
Warranty liability		167,000		226,000
Other		411,000		398,000
Accrued expenses and other liabilities	$	1,331,000	$	2,498,000

Contract Costs Provision

As of January 31, 2013, the Company accrued costs of $278,000 associated with two customer funded fixed price development contracts accounted for using the milestone method. As of January 31, 2013, neither contract required a provision for contract loss.

Contract Loss Provision

As of January 31, 2013, the Company recognized a contract loss provision of $71,000 associated with one customer funded fixed price development contract. As of January 31, 2012, the Company recognized a contract loss provision of $1,086,000 associated with one customer funded fixed price development contract. As of January 31, 2013, remaining revenues associated to one uncompleted project amounted to $40,000. As of January 31, 2012, remaining revenues associated to one uncompleted project amounted to $308,000.

Warranty Liability

The Company has established a liability for warranty claims based on historical experience, which has not been significant. The Company’s warranty activity for the years ended January 31, 2013 and 2012 was as follows:

	2013			2012
Beginning balance	$	226,000		$	144,000
Cost incurred		(146,000	)		(162,000	)
Provision for warranty cost		87,000			244,000
Ending balance	$	167,000		$	226,000