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Liquidity
6 Months Ended
Aug. 31, 2011
Liquidity [Abstract] 
Liquidity
B. Liquidity
     At August 31, 2011 and 2010, the Company had cash and cash equivalents of $2.6 million and $2.9 million, respectively, as compared to $5.1 million at February 28, 2011 and 2010.
     The Company typically experiences increases in accounts receivable and inventories beginning with the end of its first fiscal quarter and culminating with the end of its third fiscal quarter. Receivables and inventories then typically decrease at the end of the Company’s fiscal year.
     Net cash used in operating activities was approximately $2.4 million during the six months ended August 31, 2011 compared to $2.1 million during the six months ended August 31, 2010 — an increase of $0.3 million or 14% primarily due to the increase in accounts receivable of $1.2 million and an increase in inventories of $1.0 million, offset partially by the reduction of approximately $0.9 million or 65% in the Company’s net loss and an increase in accounts payable of approximately $0.4 million. The Company believes that the fluctuations in working capital were attributable to the timing of order fulfillment compared to the prior year.
     The Company currently has in place an undrawn $10.0 million secured credit facility with First Capital. Availability of funds under this facility is based on a percentage of eligible accounts receivable and inventory. Availability on this facility amounted to approximately $3.9 million as of August 31, 2011. While the Company’s credit facility does not contain explicit financial covenants, the Company’s lender has significant latitude in restricting, reducing or withdrawing the Company’s credit facility at its sole discretion with limited notice, as is customary with these types of arrangements.
     The initial term of the credit facility with First Capital ends in January 2012, after which sixty days prior notice shall be required for termination. In the event the Company requires more capital than is presently anticipated due to unforeseen factors, the Company may need to rely on its credit facility. In such an instance, if its lender restricts, reduces or eliminates the Company’s access to credit, or requires immediate repayment of the amounts outstanding under the agreement, the Company would be required to pursue additional or alternative sources of liquidity such as equity financings or a new debt agreement with other creditors. However, the Company cannot assure that such additional sources of capital would be available on reasonable terms, if at all.
     The Company currently anticipates that cash on hand and funds generated from operations, including cost saving measures the Company has taken and additional measures it could still take, will be sufficient to meet the Company’s anticipated cash requirements for at least the next twelve months.