DISCONTINUED OPERATIONS IN INDIA

12 Months Ended

Jan. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

11. DISCONTINUED OPERATIONS IN INDIA

The Company decided to discontinue operations in its India glove manufacturing facility and put the assets and business up for sale. The Company decided to sell this division primarily because it has incurred significant operating losses since inception, and the Company has been unsuccessful in developing sufficient sales to reach at least break even. The Company is attempting to sell the operations as an ongoing operation but shut down its operations in December 2011.

Prior year financial statements as of and for the year ended January 31, 2012, have been restated to present the operations of the India glove manufacturing subsidiary as a discontinued operation.

In conjunction with the discontinuance of operations, the Company recognized a pretax loss on disposal of $1.7 million, primarily consisting of $0.9 million in fixed asset write-downs, $0.4 million in inventory write-downs and $0.1 million in professional fees relating to the sale and $0.3 million in shutdown expenses. The assets and liabilities of the discontinued operations are presented separately under the captions “Assets of discontinued operations in India” and “Liabilities of discontinued operations in India,” respectively, in the accompanying Balance Sheets at January 31, 2012 and January 31, 2011, and consist of the following:

	January 31, 2012		January 31, 2011
Cash	$	230,502	$	121,436
Accounts receivable		6,772		100,254
Inventory		200,000		622,480
Other current asset		27,262		20,371
Property/equipment		1,534,034		2,805,060
Total assets of discontinued operations		1,998,570		3,669,601
Liabilities of discontinued operations:
Accounts payable		5,715		29,467
Other liabilities		59,065		4,473
Total liabilities of discontinued operations		64,780		33,940
Net assets of discontinued operations	$	1,933,790	$	3,635,661

The following table illustrates the reporting of the discontinued operations reclassified on the face of the Statements of Operations for the years ended January 31, 2012 and 2011 ($000):

	Years Ended January 31,
	2012			2011
Net sales	$	912		$	1,718
Cost of goods sold		1,236			2,039
Gross loss		(324	)		(321	)
Operating expense		257			341
Operating loss		(581	)		(662	)
Loss on shutdown		(1,734	)		—
Loss from discontinued operations before income taxes		(2,315	)		(662	)
Benefit from income taxes from discontinued operations		(845	)		(238	)
Net loss from discontinued operations	$	(1,470	)	$	(424	)