SUBSEQUENT EVENTS	3 Months Ended
Aug. 31, 2013
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	H. Subsequent Events The Company has evaluated all events and transactions that occurred after the balance sheet and through the date that the financial statements were available to be issued. The sale of the CADRA product line is subject to stockholder approval by two-thirds of SofTech's shareholders. On September 30, 2013, SofTech filed a proxy statement with respect to a special meeting of the shareholders to seek that approval. The special meeting of stockholders was held on October 9, 2013. Approximately 674,000 shares were voted at the special meeting and approximately 671,000 or 77% shares of common stock voted to approve the sale of the CADRA product line to Mentor. In connection with the CADRA sale, the Company has reached an agreement in principal with the Lenders to deposit $1,350,000 of the proceeds from the CADRA sale in a restricted account for the benefit of the Lenders, pending the agreement by the Company and the Lenders to an amendment to the Loan Agreement within 30 days from the date of the closing of the CADRA sale. The Loan Agreement amendment may provide for the repayment of indebtedness and/or other terms that are less favorable to the Company than those contained in the existing Loan Agreement. Furthermore, if the Company and the Lenders are unable to agree to the amended terms of the Loan Agreement during the 30 day period following the closing of the CADRA sale, all of the indebtedness currently outstanding under the Loan Agreement ($2.7 million as of August 31, 2013) will become immediately due and payable.

SUBSEQUENT EVENTS

3 Months Ended

Aug. 31, 2013

Subsequent Events

The Company has evaluated all events and transactions that occurred after the balance sheet and through the date that the financial statements were available to be issued. The sale of the CADRA product line is subject to stockholder approval by two-thirds of SofTech's shareholders. On September 30, 2013, SofTech filed a proxy statement with respect to a special meeting of the shareholders to seek that approval. The special meeting of stockholders was held on October 9, 2013. Approximately 674,000 shares were voted at the special meeting and approximately 671,000 or 77% shares of common stock voted to approve the sale of the CADRA product line to Mentor.

In connection with the CADRA sale, the Company has reached an agreement in principal with the Lenders to deposit $1,350,000 of the proceeds from the CADRA sale in a restricted account for the benefit of the Lenders, pending the agreement by the Company and the Lenders to an amendment to the Loan Agreement within 30 days from the date of the closing of the CADRA sale. The Loan Agreement amendment may provide for the repayment of indebtedness and/or other terms that are less favorable to the Company than those contained in the existing Loan Agreement. Furthermore, if the Company and the Lenders are unable to agree to the amended terms of the Loan Agreement during the 30 day period following the closing of the CADRA sale, all of the indebtedness currently outstanding under the Loan Agreement ($2.7 million as of August 31, 2013) will become immediately due and payable.