Prepaid Expenses and Other Current Assets

9 Months Ended

Oct. 28, 2011

Prepaid Expenses and Other Current Assets [Abstract]

Prepaid Expenses and Other Current Assets [Text Block]

4. Prepaid Expenses and Other Current Assets

Included in, and making up the majority of, prepaid expenses and other current assets was $2,313,000 and $2,287,000 of deferred charges related to several current engineering contracts as of October 28, 2011 and January 31, 2011, respectively. The Company has been retained for the development of customer specific engineering projects. All of the contracts are short-term in nature and not expected to extend beyond twelve months. As of October 28, 2011, the deferred charges consist of $1,982,000 of internal engineering labor, including overhead, and $331,000 of external engineering contract labor. As of January 31, 2011, the deferred charges consist of $1,951,000 of internal engineering labor, including overhead, and $336,000 of external engineering contract labor. The deferred charges are offset by interim payments from customers of $174,000 and $223,000 as of October 28, 2011 and January 31, 2011, respectively. Related to the deferred charges are accrued contract losses of $1,790,000 and $1,500,000 as of October 28, 2011 and January 31, 2011, respectively, which are included in accrued expenses and other liabilities.