FAIR VALUE DISCLOSURES

3 Months Ended

Apr. 30, 2013

FAIR VALUE DISCLOSURES [Abstract]

FAIR VALUE DISCLOSURES

NOTE 2 – FAIR VALUE DISCLOSURES

Cash and cash equivalents:

Cash and cash equivalents at April 30, 2013 and January 31, 2013 amounted to $39,398,603 and $33,305,908 respectively. The cash and cash equivalents balance at April 30, 2013 was comprised of the following: (i) cash amounting to $17,258,237 and (ii) cash equivalents consisting of money market funds amounting to $22,140,366.  The Company 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 April 30, 2013, the Company's cash and cash equivalents were held at 19 financial institutions.

Short-term investments:

Short-term investments at April 30, 2013 and January 31, 2013 amounted to $512,325 and $1,022,266, respectively.  The short-term investment balance at April 30, 2013 was comprised of two certificates of deposit with twelve month maturity dates. The short-term investment balance at January 31, 2013 was comprised of four certificates of deposit with twelve month maturity dates.

Long-term investments:

There were no long-term investments at April 30, 2013 and January 31, 2013.

The Company evaluates the creditworthiness of the financial institutions and financial instruments in which it invests.

Debt:

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

	April 30,		January 31,
	2013		2013
Fair value	$	2,863,430	$	2,853,342
Carrying amount		2,535,880		2,639,507

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 7) 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 tables summarize the basis used to measure the Company's financial assets (liabilities) at fair value on a recurring basis in the consolidated balance sheets at April 30, 2013 and January 31, 2013.

				Quoted Prices
				in Active
				Markets for		Significant			Significant
				Identical		Observable			Unobservable
	Balance at			Assets		Inputs			Inputs
	April 30, 2013			(Level 1)		(Level 2)			(Level 3)
Cash and cash equivalents	$	39,398,603		$	39,398,603	$	-		$	-
Short-term investments		512,325			512,325		-			-
Cash surrender value -  life insurance policies		1,422,796			-		1,422,796			-
Interest rate swap agreement		(303,026	)		-		(303,026	)		-
	$	41,030,698		$	39,910,928	$	1,119,770		$	-

				Quoted Prices
				in Active
				Markets for		Significant			Significant
				Identical		Observable			Unobservable
	Balance at			Assets		Inputs			Inputs
	January 31, 2013			(Level 1)		(Level 2)			(Level 3)
Cash and cash equivalents	$	33,305,908		$	33,305,908	$	-		$	-
Short-term investments		1,022,266			1,022,266		-			-
Cash surrender value -  life insurance policies		1,389,781			-		1,389,781			-
Interest rate swap agreement		(302,972	)		-		(302,972	)		-
	$	35,414,983		$	34,328,174	$	1,086,809		$	-

There were no transfers of assets or liabilities between Level 1 and Level 2 in the three-month period ended April 30, 2013 or the fiscal year ended January 31, 2013.

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 based on quotes for like instruments with similar credit ratings and terms, as provided by the applicable financial institutions.