Subsequent Events

6 Months Ended

Jul. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

Note 10 - Subsequent Events

On September 3, 2014, the Company entered into a Loan and Security Agreement (“Loan and Security Agreement”) with Entrepreneur Growth Capital, LLC (“EGC”). The total facility is for an aggregate $3,100,000. The facility consists of the following:

●	Accounts Revolving Line of Credit:	$	2,150,000
●	Inventory Revolving Line of Credit:	$	350,000
●	Term Loan Line of Credit:	$	600,000

The revolving interest rates is equal to the highest prime rate in effect during each month as generally reported by Citibank, N.A. plus (a) 2.5% on loans and advances made against eligible accounts and (b) 4.0% on loans made against eligible inventory. The term loan bears interest at a rate of the highest prime rate in effect during each month as generally reported by Citibank, N.A. plus 4.0%. The Company is required to pay a one time facility fee equal to 2.25% of the total $3,100,000 facility. In the event of default, the Company shall pay 10% above the stated rates of interest pursuant to the Loan and Security Agreement. The drawdowns are secured by specific assets of the Company.

In addition, on September 3, 2014, the Company entered into a 5 year $600,000 Secured Promissory Note (“EGC Note”) with EGC. The EGC Note is payable in 60 monthly installments of $10,000. The EGC Note bears interest at highest prime rate in effect during each month as generally reported by Citibank, N.A. plus 4.0% and is payable monthly, in arrears. In the event of default, the Company shall pay 10% above the stated rates of interest per the Loan and Security Agreement. The Note is secured by all assets of the Company.