DISCONTINUED OPERATIONS IN INDIA

12 Months Ended

Jan. 31, 2013

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 was attempting to sell the operations as an ongoing operation but shut down its operations in December 2011.

In conjunction with the discontinuance of operations, the Company, in the year ended January 31, 2012, recognized a pretax loss on shutdown and sale of assets of $1.7 million, primarily consisting of $1.0 million in fixed asset write-downs and $0.1 million in inventory write-downs. In the year ended January 31, 2013, the Company took a further write-down of fixed assets in the amount of $0.8 million. 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, 2013 and January 31, 2012, and consist of the following:

	January 31, 2013		January 31, 2012
Cash	$	—	$	230,502
Accounts receivable		—		6,772
Inventory		85,170		200,000
Other current asset		10,024		27,262
Property/equipment		717,988		1,534,034
Total assets of discontinued operations		813,182		1,998,570
Liabilities of discontinued operations:
Accounts payable		2,759		5,715
Other liabilities		22,282		59,065
Total liabilities of discontinued operations		25,041		64,780
Net assets of discontinued operations	$	788,141	$	1,933,790

The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the years ended January 31, 2013 and 2012:

	Years Ended January 31,
	2013		2012
Net sales	$	—	$	912
Cost of goods sold		—		1,236
Gross loss		—		(324)
Operating expense		—		257
Operating loss		—		(581)
Loss on shutdown and sale assets		(800)		(1,734)
Loss from discontinued operations before income taxes		(800)		(2,315)
Benefit from income taxes from discontinued operations		(278)		(845)
Net loss from discontinued operations	$	(522)	$	(1,470)