Intangible Assets

9 Months Ended

Oct. 31, 2011

NOTE 8 — INTANGIBLE ASSETS

The Company’s intangible assets consisted of the following amounts at October 31, 2011 and January 31, 2011:


								January 31,
		October 31, 2011						2011
	Estimated	Gross		Accumulated
	Useful	Carrying		Amortization/		Net		Net
	Life	Amount		Impairment		Amount		Amount

Intangible assets being amortized:
Non-compete agreements — GPS	5 years	$	534,000	$	523,000	$	11,000	$	91,000
Trade name — GPS	15 years		3,643,000		1,189,000		2,454,000		2,636,000

Intangible asset not being amortized:
Trade name — SMC	Indefinite		224,000		43,000		181,000		181,000

Total intangible assets		$	4,401,000	$	1,755,000	$	2,646,000	$	2,908,000


Goodwill — GPS	Indefinite	$	18,476,000	$	—	$	18,476,000	$	18,476,000

Amortization expense was $87,000 and $88,000 for the three months ended October 31, 2011 and 2010, respectively, and was $262,000 for both the nine month periods ended October 31, 2011 and 2010.

In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which is intended to simplify the two-step goodwill impairment test required by current guidance. The amendment will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity no longer will be required to calculate the fair value of a reporting entity unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The guidance includes discussions of the types of factors which should be considered in conducting the qualitative assessment including macroeconomic, industry, market and entity-specific factors. As early adoption is permitted, a qualitative evaluation of GPS as of November 1, 2011 may support the position that impairment of the goodwill of GPS has not occurred and that its fair value continues to exceed its carrying value. Accordingly, the Company may not be required to perform the two-step quantitative goodwill impairment test for GPS for 2011.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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