FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Oct. 31, 2011

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 2 - FAIR VALUE OF FINANCIAL INSTRUMENTS

Cash and cash equivalents:

Cash and cash equivalents at October 31, 2011 and January 31, 2011 amounted to $32,674,159 and $32,400,814, respectively. The cash and cash equivalents balance at October 31, 2011 was comprised of the following: (i) cash amounting to $7,957,437 and (ii) cash equivalents consisting of money market funds amounting to $24,716,722.  The Company evaluates the creditworthiness of the financial institutions and financial instruments in which it invests and places its cash deposits and temporary cash investments with financial institutions, that at times, may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limit.  At October 31, 2011, the Company's cash and cash equivalents were held at 20 financial institutions.

Short-term investments:

Short-term investments at October 31, 2011 and January 31, 2011 amounted to $764,061 and $497,155, respectively, and were comprised of certificates of deposit with twelve month maturity dates. The Company evaluates the creditworthiness of the financial institutions and the financial instruments in which it invests.

Long-term investments:

Long-term investments at October 31, 2011 and January 31, 2011 amounted to $494,537 and $248,063, respectively, which are reported in other assets on the consolidated balance sheets.  The long-term investments at October 31, 2011 were comprised of two certificates of deposit with fourteen and fifteen month maturity dates. The Company evaluates the creditworthiness of the financial institutions and the financial instruments in which it invests.

Debt:

The estimated fair value and carrying amount of debt were as follows:

	October 31,	January 31,
	2011		2011
Estimated fair value	$3,840,838		$3,858,888
Carrying amount	3,413,563		3,544,528

Valuations for debt are determined based on borrowing rates currently available to the Company for loans with similar terms and maturities.

The Company uses an interest rate swap (see Note 8) to minimize its exposure to fluctuations in interest rates.  The interest rate differential to be paid or received under these agreements is recognized over the term of the loan and is included in interest expense.

The Company's financial instruments are not held for trading purposes.

Fair value measurements:

ASC Topic 820, "Fair Value Measurements and Disclosures", defines fair value, provides guidance for measuring fair value and requires certain disclosures.  This standard discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost).  The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.

The following table summarizes the basis used to measure the Company's financial assets (liabilities) at fair value on a recurring basis in the consolidated balance sheets at October 31, 2011 and January 31, 2011:

			Quoted Prices
			in Active
			Markets for	Significant		Significant
			Identical	Observable		Unobservable
	Balance at		Assets	Inputs		Inputs
	October 31, 2011		(Level 1)	(Level 2)		(Level 3)
Cash and cash equivalents	$32,674,159		$32,674,159	$-		$-
Short-term investments	764,061		764,061	-		-
Long-term investments	494,537		494,537	-		-
Cash surrender value -  life insurance policies	1,062,571		-	1,062,571		-
Interest rate swap agreement	(335,540	)	-	(335,540	)	-
	$34,659,788		$33,932,757	$727,031		$-

			Quoted Prices
			in Active
			Markets for	Significant		Significant
			Identical	Observable		Unobservable
	Balance at		Assets	Inputs		Inputs
	January 31, 2011		(Level 1)	(Level 2)		(Level 3)
Cash and cash equivalents	$32,400,814		$32,400,814	$-		$-
Short-term investments	497,155		497,155	-		-
Long-term investments	248,063		248,063	-		-
Cash surrender value -  life insurance policies	912,417		-	912,417		-
Interest rate swap agreement	(274,308	)	-	(274,308	)	-
	$33,784,141		$33,146,032	$638,109		$-

There were no transfers of assets or liabilities between Level 1 and Level 2 in the nine-month period ended October 31, 2011 or the fiscal year ended January 31, 2011.

The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.  The Company's cash surrender value of life insurance policies (which are reported in other assets on the consolidated balance sheets) and the interest rate swap agreement are valued using Level 2 measurements.