Equity Awards and Private Placement Investment (Tables)

9 Months Ended

Oct. 31, 2012

Equity Awards [Abstract]

Investment was allocated among the instruments

The proceeds were allocated among the instruments as follows.

	Balance at August 16, 2012
Instruments:
Series A Preferred Stock	$	6,546,146
Convertible subordinated notes payable		3,765,738
Warrants		1,688,116
Total investment	$	12,000,000

Weighted average assumptions used for estimating fair value of options granted

The fair value of each option grant during the nine months ended October 31, 2012 and October 31, 2011 was estimated at the date of the grants using a Black-Scholes option pricing model with the following weighted average assumptions:

At the October 31, 2012 special meeting of shareholders, 500,000 additional shares were approved for the 2005 Incentive Compensation Plan.

	For the nine months ended, October 31, 2012			For the nine months ended, October 31, 2011
Risk-free interest rate		0.33	%		1.26	%
Dividend yield		—			—
Current weighted-average volatility factor of the expected market price of Common Stock		0.58			0.53
Weighted-average expected life of stock options		5 years			5 years
Forfeiture rate		0	%		0	%