Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Apr. 30, 2014 | Jun. 12, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'LAKELAND INDUSTRIES INC | ' |
Entity Central Index Key | '0000798081 | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'LAKE | ' |
Entity Common Stock, Shares Outstanding | ' | 5,358,509 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Apr-14 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2015 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Net sales | $23,507,228 | $21,736,990 |
Cost of goods sold | 16,407,236 | 15,657,374 |
Gross profit | 7,099,992 | 6,079,616 |
Operating expenses | 6,517,542 | 6,316,247 |
Operating profit (loss) | 582,450 | -236,631 |
Foreign Exchange gain (loss) Brazil | 38,636 | -27,142 |
Other income (loss), net | 42,210 | -128,579 |
Interest expense | -639,958 | -273,435 |
Income (loss) before taxes | 23,338 | -665,787 |
Income tax expense | 23,402 | 178,693 |
Net loss | ($64) | ($844,480) |
Net loss per common share: | ' | ' |
Basic (in dollars per share) | $0 | ($0.16) |
Diluted (in dollars per share) | $0 | ($0.16) |
Weighted average common shares outstanding: | ' | ' |
Basic (in shares) | 5,923,224 | 5,337,205 |
Diluted (in shares) | 5,923,224 | 5,337,205 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Net loss | ($64) | ($844,480) |
Other comprehensive income (loss): | ' | ' |
Cash flow hedge in China | -81,488 | 50,572 |
Other comprehensive income | 179,932 | 95,552 |
Comprehensive income (loss) | 179,868 | -748,928 |
Lakeland Brazil, S.A. [Member] | ' | ' |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments: | 368,942 | 93,868 |
Canada [Member] | ' | ' |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments: | -18,105 | -8,060 |
United Kingdom [Member] | ' | ' |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments: | -3,064 | -38,339 |
China [Member] | ' | ' |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments: | 38,665 | 21,306 |
Russia/Kazakhstan [Member] | ' | ' |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments: | ($125,018) | ($23,795) |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Apr. 30, 2014 | Jan. 31, 2014 | ||
Current assets | ' | ' | ||
Cash and cash equivalents | $7,010,514 | $4,555,097 | ||
Accounts receivable, net of allowance for doubtful accounts of $598,100 and $588,800 at April 30, 2014 and January 31, 2014, respectively | 14,635,538 | 13,795,301 | ||
Inventories | 40,370,498 | 39,844,309 | ||
Deferred income taxes | 4,835,980 | 4,707,278 | ||
Prepaid income tax | 908,635 | 470,843 | ||
Other current assets | 2,185,703 | 2,108,177 | ||
Total current assets | 69,946,868 | 65,481,005 | ||
Property and equipment, net | 12,092,322 | 12,069,107 | ||
Prepaid VAT and other taxes, noncurrent | 2,451,929 | 2,379,395 | ||
Security deposits | 1,461,411 | 1,415,372 | ||
Intangibles, prepaid bank fees and other assets, net | 1,384,272 | 1,533,349 | ||
Goodwill | 871,297 | [1] | 871,297 | [1] |
Total assets | 88,208,099 | [1] | 83,749,525 | [1] |
Current liabilities | ' | ' | ||
Accounts payable | 9,978,630 | 8,181,026 | ||
Accrued compensation and benefits | 1,532,979 | 1,189,324 | ||
Other accrued expenses | 2,368,064 | 1,554,231 | ||
Current maturity of long-term debt | 50,000 | 50,000 | ||
Current maturity of arbitration settlement | 1,000,000 | 1,000,000 | ||
Short-term borrowing | 2,522,509 | 2,558,545 | ||
Borrowings under revolving credit facility | 13,497,974 | 12,415,424 | ||
Total current liabilities | 30,950,156 | 26,948,550 | ||
Accrued arbitration award in Brazil (net of current maturities) | 3,566,904 | 3,758,691 | ||
Long-term portion of Canada and Brazil loans | 1,069,888 | 1,110,634 | ||
Subordinated debt, net of OID, including PIK interest | 2,005,917 | 1,525,392 | ||
Other liabilities - accrued legal fees in Brazil | 77,285 | 71,223 | ||
VAT taxes payable long term | 3,327,956 | 3,329,275 | ||
Total liabilities | 40,998,106 | 36,743,765 | ||
Stockholders’ equity | ' | ' | ||
Preferred stock, $.01 par; authorized 1,500,000 shares (none issued) | 0 | 0 | ||
Common stock, $.01 par; authorized 10,000,000 shares, issued 5,714,950 and 5,713,180; outstanding 5,358,509 and 5,356,739 at April 30, 2014 and January 31, 2014, respectively | 57,150 | 57,132 | ||
Treasury stock, at cost; 356,441 shares at April 30, 2014 and January 31, 2014. | -3,352,291 | -3,352,291 | ||
Additional paid-in capital | 53,389,633 | 53,365,286 | ||
Accumulated deficit | -592,009 | -591,945 | ||
Accumulated other comprehensive loss | -2,292,490 | -2,472,422 | ||
Total stockholders' equity | 47,209,993 | 47,005,760 | ||
Total liabilities and stockholders' equity | $88,208,099 | $83,749,525 | ||
[1] | Negative assets reflect intersegment accounts eliminated in consolidation |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Apr. 30, 2014 | Jan. 31, 2014 |
Allowance for doubtful accounts (in dollars) | $598,100 | $588,800 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,500,000 | 1,500,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,714,950 | 5,713,180 |
Common stock, shares outstanding | 5,358,509 | 5,356,739 |
Treasury stock, shares | 356,441 | 356,441 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Jan. 31, 2014 | $47,005,760 | $57,132 | ($3,352,291) | $53,365,286 | ($591,945) | ($2,472,422) |
Balance (in shares) at Jan. 31, 2014 | ' | 5,713,180 | -356,441 | ' | ' | ' |
Net loss | -64 | 0 | 0 | 0 | -64 | 0 |
Other comprehensive income | 179,932 | 0 | 0 | 0 | 0 | 179,932 |
Stock-based compensation: | ' | ' | ' | ' | ' | ' |
Restricted stock issued at par | 0 | 18 | 0 | -18 | 0 | 0 |
Restricted stock issued at par (in shares) | ' | 1,770 | 0 | ' | ' | ' |
Restricted stock plan | 24,365 | 0 | 0 | 24,365 | 0 | 0 |
Balance at Apr. 30, 2014 | $47,209,993 | $57,150 | ($3,352,291) | $53,389,633 | ($592,009) | ($2,292,490) |
Balance (in shares) at Apr. 30, 2014 | ' | 5,714,950 | -356,441 | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($64) | ($844,480) |
Adjustments to reconcile net loss to net cash provided by operating activities | ' | ' |
Provision for inventory obsolescence | -84,473 | 21,610 |
Provision for doubtful accounts | 9,327 | 29,927 |
Deferred income taxes current | -128,702 | 0 |
Deferred taxes long-term | -1,319 | 0 |
Depreciation and amortization | 374,596 | 434,436 |
Interest expense resulting from amortization of warrant OID and reclassification of PIK interest | 480,525 | 0 |
Stock based and restricted stock compensation | 24,365 | 74,831 |
(Increase) decrease in operating assets | ' | ' |
Accounts receivable | -774,023 | -440,714 |
Inventories | -132,438 | 48,947 |
Prepaid income taxes and other current assets | -437,792 | -413,024 |
Other assets-mainly prepaid fees from financing transaction | -22,137 | 422,865 |
Assets of discontinued operations | 0 | 68,662 |
Increase (decrease) in operating liabilities | ' | ' |
Accounts payable | 1,543,375 | 991,094 |
Accrued expenses and other liabilities | 982,154 | 578,971 |
Arbitration award in Brazil | -250,000 | -250,000 |
Interest expense resulting from Arbitration Award | 58,213 | 0 |
Liabilities of discontinued operations | 0 | -25,041 |
Net cash provided by operating activities | 1,641,607 | 698,084 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -89,820 | -353,214 |
Net cash used in investing activities | -89,820 | -353,214 |
Cash flows from financing activities: | ' | ' |
Net borrowings under credit agreement (revolver) | 1,082,550 | 0 |
Repayments of term loans | 0 | -265,000 |
Canada loan repayments | -10,462 | -39,027 |
Borrowings in Brazil | 705,254 | 253,551 |
Repayments in Brazil | -821,539 | -282,052 |
UK repayments, net | -30,252 | 280,567 |
China repayments, net | -14,397 | 0 |
Other liabilities | 6,060 | 0 |
Shares returned in lieu of taxes under restricted stock program | 0 | -18,009 |
Deferred taxes long term | 0 | -529 |
Net cash provided by used in financing activities | 917,214 | -70,499 |
Effect of exchange rate changes on cash | -13,583 | -7,592 |
Net increase in cash and cash equivalents | 2,455,418 | 266,779 |
Cash and cash equivalents at beginning of year | 4,555,097 | 6,736,962 |
Cash and cash equivalents at end of year | $7,010,514 | $7,003,741 |
Business
Business | 3 Months Ended | ||
Apr. 30, 2014 | |||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' | ||
Nature of Operations [Text Block] | ' | ||
1 | Business | ||
Lakeland Industries, Inc. and Subsidiaries (the "Company"), a Delaware corporation organized in April 1982, manufactures and sells a comprehensive line of safety garments and accessories for the industrial protective clothing and homeland security markets. The principal market for our products is the United States. No customer accounted for more than 10% of net sales during the three-month periods ended April 30, 2014 and 2013. | |||
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Apr. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' | |
2 | Basis of Presentation | |
The condensed consolidated financial statements included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments (consisting of only normal and recurring adjustments) which are, in the opinion of management, necessary to present fairly the condensed consolidated financial information required therein. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations. While we believe that the disclosures are adequate to make the information presented not misleading, it is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K and Form 10-K/A filed with the Securities and Exchange Commission for the fiscal year ended January 31, 2014. | ||
Our consolidated financial statements have been prepared using the accrual method of accounting in accordance with US GAAP. | ||
Certain reclassifications of prior period data have been made to conform to current period classification. | ||
The results of operations for the three-month period ended April 30, 2014, are not necessarily indicative of the results to be expected for the full year. | ||
In this Form 10-Q, (a) “FY” means fiscal year; thus, for example, FY15 refers to the fiscal year ending January 31, 2015 and (b) “Q” refers to quarter; thus, for example, Q1 FY15 refers to the first quarter of the fiscal year ending January 31, 2015 (c) “Balance Sheet” refers to the condensed consolidated balance sheet. | ||
Principles_of_Consolidation
Principles of Consolidation | 3 Months Ended | |
Apr. 30, 2014 | ||
Business Combinations [Abstract] | ' | |
Business Combination Disclosure [Text Block] | ' | |
3 | Principles of Consolidation | |
The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | ||
Inventories
Inventories | 3 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
4 | Inventories | |||||||
Inventories consist of the following: | ||||||||
April 30, 2014 | January 31, 2014 | |||||||
Raw materials | $ | 16,849,408 | $ | 16,348,861 | ||||
Work-in-process | 1,417,790 | 1,292,740 | ||||||
Finished goods | 22,103,300 | 22,202,708 | ||||||
$ | 40,370,498 | $ | 39,844,309 | |||||
Inventories include freight-in, materials, labor and overhead costs and are stated at the lower of cost (on a first-in, first-out basis) or market. | ||||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share [Text Block] | ' | |||||||
5 | Earnings Per Share | |||||||
Basic earnings per share are based on the weighted average number of common shares outstanding without consideration of common stock equivalents. Diluted earnings per share are based on the weighted average number of common and common stock equivalents. The diluted earnings per share calculation take into account the shares that may be issued upon exercise of stock options, reduced by the shares that may be repurchased with the funds received from their exercise, based on the average price during the period. | ||||||||
The following table sets forth the computation of basic and diluted loss per share at April 30, 2014 and 2013. | ||||||||
Three Months Ended | ||||||||
April 30, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net loss | $ | -64 | $ | -844,480 | ||||
Denominator | ||||||||
Denominator for basic loss per share | ||||||||
Weighted-average shares outstanding before common share equivalents | 5,357,209 | 5,337,205 | ||||||
Weighted average common equivalent shares resulting from the warrant issued June 28, 2013 to the subordinated debt lender LKL Investments LLC | 566,015 | — | ||||||
Total weighted average, including common equivalent shares | 5,923,224 | 5,337,205 | ||||||
Denominator for diluted loss per share (adjusted weighted average shares) | 5,923,224 | 5,337,205 | ||||||
Basic (loss) per share | $ | 0 | $ | -0.16 | ||||
Diluted (loss) per share | $ | 0 | $ | -0.16 | ||||
Not included in the above are the potential shares issuable for interest on the subordinated debt. As of April 30, 2014, there was accrued $368,755 of PIK interest. At the closing stock price on April 30. 2014 of $7.09 this would represent approximately 52,011 shares. Such shares would be antidilutive and as such are not included. | ||||||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term Debt [Text Block] | ' | ||||||||
6. Long-Term Debt | |||||||||
On June 28, 2013, the Company and its wholly-owned subsidiary, Lakeland Protective Wear Inc. (collectively with the Company, the “Borrowers”), entered into a Loan and Security Agreement (the “Senior Loan Agreement”) with AloStar Business Credit, a division of AloStar Bank of Commerce (the “Senior Lender”). The Senior Loan Agreement provides the Borrowers with a three-year $15 million revolving line of credit, at a variable interest rate based on LIBOR, with a first priority lien on substantially all of the United States and Canada assets of the Company, except for the Canadian warehouse and the Mexican plant. | |||||||||
On June 28, 2013, the Borrowers also entered into a Loan and Security Agreement (the “Subordinated Loan Agreement”) with LKL Investments, LLC, an affiliate of Arenal Capital, a private equity fund (the “Junior Lender”). The Subordinated Loan Agreement provides for a $3.5 million term loan to be made to the Borrowers and a second priority lien on substantially all of the assets of the Company in the United States and Canada, except for the Canadian warehouse and except for a first lien on the Company’s Mexican facility. Pursuant to the Subordinated Loan Agreement, among other things, Borrowers issued to the Junior Lender a five-year term loan promissory note (the “Note”). At the election of the Junior Lender, interest under the Note may be paid in cash, by payment in kind (“PIK”) in additional notes or payable in shares of common stock (“Common Stock”), of the Company (the “Interest Shares”). If shares of Common Stock are used to make interest payments on the Note, the number of Interest Shares will be based upon 100% of an average of the then current market value of the Common Stock, subject to the limitations set forth in the Subordinated Loan Agreement. The Junior Lender also, in connection with this transaction, received a common stock purchase warrant (the “Warrant”) to purchase up to 566,015 shares of Common Stock (subject to adjustment), representing beneficial ownership of approximately 9.58% of the outstanding Common Stock of the Company, as of the closing of the transactions contemplated by the Subordinated Loan Agreement. The Company’s receipt of gross proceeds of $3.5 million (before original issue discount of $2.2 million related to the associated warrant) in subordinated debt financing was a condition precedent set by Senior Lender, of which this transaction satisfied. | |||||||||
The proceeds from such financings have been used to fully repay the Company’s former financing facility with TD Bank, N.A. in the amount of approximately US $13.7 million. Also repaid upon closing of the financings was the warehouse loan in Canada with a balance of CDN $1,362,000 Canadian dollars (approximately US $1,320,000), payable to Business Development Bank of Canada (“BDC”). | |||||||||
The following is a summary of the material terms of the financings: | |||||||||
$15 million Senior Credit Facility | |||||||||
⋅ | Borrowers are both Lakeland Industries, Inc. and its Canadian operating subsidiary Lakeland Protective Wear Inc. | ||||||||
⋅ | Borrowing pursuant to a revolving credit facility subject to a borrowing base calculated as the sum of: | ||||||||
o | 85% of eligible accounts receivable as defined | ||||||||
o | The lesser of 60% of eligible inventory as defined or 85% of net orderly liquidation value of inventory | ||||||||
o | In transit inventory in bound to the US up to a cap of $1,000,000 | ||||||||
o | Receivables and inventory held by the Canadian operating subsidiary to be included, up to a cap of $2 million of availability | ||||||||
o | On April 30, 2014, there was $1.5 million available under the senior credit facility | ||||||||
⋅ | Collateral | ||||||||
o | A perfected first security lien on all of the Borrowers United States and Canadian assets, other than its Mexican plant and the Canadian warehouse | ||||||||
o | Pledge of 65% of Lakeland US stock in all foreign subsidiaries other than 100% pledge of stock of its Canadian subsidiaries | ||||||||
⋅ | Collection | ||||||||
o | All customers of Borrowers must remit to a lockbox controlled by Senior Lender or into a blocked account with all collection proceeds applied against the outstanding loan balance | ||||||||
⋅ | Maturity | ||||||||
o | An initial term of three years from June 28, 2013 (the “Closing Date”) | ||||||||
o | Prepayment penalties of 3%, if prepaid prior to the first anniversary of Closing Date; 2% if prior to the second anniversary and 1% if prior to the third anniversary of the Closing Date | ||||||||
⋅ | Interest Rate | ||||||||
o | Rate equal to LIBOR rate plus 525 basis points | ||||||||
o | Initial rate and rate at April 30, 2014 of 6.25% | ||||||||
o | Floor rate of 6.25% | ||||||||
⋅ | Fees: Borrowers shall pay to the Lender the following fees: | ||||||||
o | Origination fee of $225,000, paid on the Closing Date and being amortized over the term of loan and is included in “intangibles, prepaid bank fees and other assets, net” in the accompanying balance sheet | ||||||||
o | 0.50% per annum on unused portion of commitment | ||||||||
o | A non-refundable collateral monitoring fee in the amount of $3,000 per month | ||||||||
o | All legal and other out of pocket costs | ||||||||
⋅ | Financial Covenants | ||||||||
o | Borrowers covenanted that, from the Closing Date until the commitment termination date and full payment of the obligations to Senior Lender, Lakeland Industries, Inc. (the parent company), together with its subsidiaries on a consolidated basis, excluding its Brazilian subsidiary, shall comply with the following additional covenants: | ||||||||
⋅ | Fixed Charge Coverage Ratio. At the end of each fiscal quarter of Borrowers, commencing with the fiscal quarter ending July 31, 2013, Borrowers shall maintain a Fixed Charge Coverage Ratio of not less than 1.1 to 1.0 for the four quarter period then ending. | ||||||||
⋅ | Minimum Quarterly Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”). Borrowers shall achieve, on a rolling basis excluding the operations of the Borrower’s Brazilian subsidiary, EBITDA of not less than the following as of the end of each quarter as follows: | ||||||||
o | July 31, 2013 for the two quarters then ended, $2.1 million; | ||||||||
o | October 31, 2013 for the three quarters then ended, $3.15 million, | ||||||||
o | January 31, 2014 for the four quarters then ended, and thereafter, $4.1 million | ||||||||
⋅ | Capital Expenditures. Borrowers shall not during any fiscal year make capital expenditures in an amount exceeding $1 million in the aggregate | ||||||||
⋅ | The Company is in compliance with all loan covenants of the Senior Debt at April 30, 2014. | ||||||||
⋅ | Other Covenants | ||||||||
o | Standard financial reporting requirements as defined | ||||||||
o | Limitation on amounts that can be advanced to or on behalf of Brazilian operations, limited to one aggregate total of $200,000 for the term of the loan | ||||||||
o | Limitation on total net investment in foreign subsidiaries of a maximum of $1.0 million per annum | ||||||||
$3.5 million Subordinated Debt Financing | |||||||||
⋅ | Subordinated Loan Agreement | ||||||||
o | Maturity date: June 28, 2018 | ||||||||
o | Interest at 12.0% per annum through and including December 27, 2016, increased to 16% per annum on December 28, 2016 and 20% per annum on December 28, 2017. Until the first anniversary of the Closing Date, all interest shall either be paid in kind (PIK) or paid in shares of common stock of Lakeland, valued at 100% of the then market value, at the election of the Junior Lender. Such accrued PIK interest in the amount of $368,755 is included in “Subordinated debt, net of OID” in the accompanying balance sheet. | ||||||||
o | All loan costs associated with the Subordinated Debt are included with the deferred debt costs from the Senior Loan and are being amortized over the life of the Senior Loan and are included with “intangibles, bank fees and other assets, net” on the balance sheet | ||||||||
o | Warrant to purchase 566,015 shares of Common Stock (subject to adjustment), exercisable at $0.01 per share | ||||||||
o | Warrant is subject to customary anti-dilution adjustment provisions, including for issuances of Common Stock or Common Stock equivalents at a price less than $5.00 per share, computed on a weighted average basis, subject to a hard cap limitation of 1,068,506 shares on total number of shares to be issued from a combination of warrants, interest shares and price-protection anti-dilution adjustments. The Company is allowed to issue up to 500,000 shares without triggering this provision, to allow for restricted shares and other new compensatory issuances. | ||||||||
o | Warrant exercise period is five years from the Closing Date | ||||||||
o | Registration Rights: the Company has filed with the Securities and Exchange Commission a registration statement covering the shares issuable in connection with the subordinated loan transaction. The Company filed a Post-Effective Amendment on June 2, 2014. | ||||||||
o | Investor Rights: Junior Lender will have the right to designate one board member or a board observer, subject to certain conditions. As of June 12, 2014, the Junior Lender has not exercised this right | ||||||||
o | Subject to Senior Lender Subordination Agreement, the subordinated loan may be repaid in increments of $500,000 with Senior Lender approval on or after June 28, 2014 | ||||||||
o | Early Termination Fees; Applicable Termination Percentage: | ||||||||
⋅ | (a) Upon early repayment of the Term Loan, Borrowers shall be obligated to pay, in addition to all of the other Obligations then outstanding, an amount equal to the product obtained by multiplying $3,500,000 or the amount of principal repaid by the applicable percentage set forth below: | ||||||||
⋅ | 5.00% if the effective date of termination occurs on or before June 28, 2014; | ||||||||
⋅ | 3.00% if the effective date of termination occurs after June 28, 2014, but on or before June 28, 2015; or | ||||||||
⋅ | 1.00% if the effective date of termination occurs after June 28, 2015, but on or before June 28, 2016 | ||||||||
⋅ | Upon acceleration of the loan following a Change of Control, Borrowers shall be obligated to pay an additional fee equal to $35,000 | ||||||||
o | Financial covenant amounts are 10% less restrictive than those in the Senior Loan Agreement | ||||||||
o | Second priority lien on substantially all of the assets of the Company in the United States and Canada, except for the Canadian warehouse and except for the Company’s Mexican facility. | ||||||||
o | The Company is in compliance with all covenants of the Subordinated Debt at April 30, 2014. | ||||||||
Management has valued the Warrant at $2.2 million. This has been treated as Original Issue Discount (OID) and is being amortized as additional interest over the five-year term of the related subordinated debt. The effective rate of return to the Junior Lender is computed by deducting the warrant valuation OID from the $3.5 million principal leaving a valuation for the debt at closing of $1.3 million. Including the 12% coupon and the amortization of the OID gives an effective per annum rate on just the debt of approximately 47%, assuming the warrant is broken out separately. However, management views this to be one blended loan or transaction along with the Senior Debt of up to $15 million at 6.25%, since the subordinated debt was a required condition of closing made by the Senior Lender. | |||||||||
Amounts outstanding as of April 30, 2014, under the Senior Lender Facility were $13.5 million and under the Junior Lender Facility, $3.5 million net of un-amortized original issue discount of $1.9 million plus PIK interest of $0.4 million, for a net value of $2.0 million included in the subordinated debt on the balance sheet. | |||||||||
Borrowings in UK | |||||||||
On December 19, 2013 the Company and its UK subsidiary entered into a one-year extension of its existing financing facility with HSBC Invoice Finance (UK) Ltd., pursuant to the same terms as disclosed in the Company's Form 8-K filed with the SEC on February 25, 2013, except for: the facility limit was increased from £1,000,000 (approximately USD $1.6 million) to £1,250,000 (approximately US $2.0 million at current exchange rates), and the prepayment percentage (advance rate) was increased from 80% to 85% of eligible receivables; more fully described in the Company’s Form 8-K which was filed on December 23, 2013. The balance outstanding under this facility at April 30, 2014 was the equivalent of US $0.8 million and is included in short-term borrowings on the balance sheet. The per annum interest rate repayment rate is 3.44% and the term is for a minimum period of one year renewable on December 19, 2014. | |||||||||
China Loan | |||||||||
On August 12, 2013, the Company’s China subsidiary borrowed approximately US $0.8 million at an interest rate of 5.395% for a term of one year as more fully described in the Company’s Form 8-K which was filed on August 16, 2013. The balance under this loan outstanding at April 30, 2014 was $0.8 million. Such amounts mature August 2014 and is included in short-term borrowings on the balance sheet. | |||||||||
On March 27, 2014, the Company’s China subsidiary, Weifang Lakeland Safety Products Co., Ltd (“WF”), and Weifang Rural Credit Cooperative Bank (“WRCCB”) completed an agreement to obtain a line of credit for financing in the amount RMB 8,000,000 (approximately USD $1,287,000). The term is through September 27, 2014, with interest at 120% of the benchmark rate supplied by WRCCB (which is currently 5.6%). The effective per annum interest rate is currently 6.72%. The loan will be collateralized by inventory owned by WF. WRCCB has hired a professional firm to supervise WF’s inventory flow, which WF will pay yearly at a rate of RMB 40,000 (approximately US $6,450). As of April 30, 2014 the Company has not yet drawn down on this line of credit, but intends to do so shortly. There are no covenant requirements in this loan. | |||||||||
Canada Loan | |||||||||
In September 2013 the Company refinanced its loan with the Development Bank of Canada (BDC) for a principal amount of approximately Canadian and US $1.1 million. Such loan is for a term of 240 months at a per annum interest rate of 6.45% with fixed monthly payments of approximately US $7,780 (C$8,169) including principal and interest. It is collateralized by a mortgage on the Company's warehouse in Brantford, Ontario. The amount outstanding at April 30, 2014 is US $0.9 million which is included in long-term portion of Canada and Brazil loan on the balance sheet, net of current maturities of $50,000. | |||||||||
Brazil Loans | |||||||||
Brazil Loan Schedule Quarter Ended April 30, 2014 | |||||||||
USD | BRL | ||||||||
Balance Beginning | 1,148,114 | 2,785,644 | |||||||
New Borrowings | 705,254 | 1,632,434 | |||||||
Principal Payments | -821,539 | -1,919,957 | |||||||
Foreign Exchange Difference | 85,399 | N/A | |||||||
Balance Ending | 1,117,228 | 2,498,122 | |||||||
Less Accrued Interest Included | -20,321 | -47,037 | |||||||
TOTAL | 1,096,907 | 2,451,085 | |||||||
Collateral | Receivables, Officer | Receivables, Officer | |||||||
Guarantee, Customer | Guarantee, Customer | ||||||||
Contract | Contract | ||||||||
Monthly Interest Rate Range | 1.09% – 2.11 | % | 1.09% – 2.11 | % | |||||
The above is comprised of numerous amounts with several lenders and factors. | |||||||||
Major_Supplier
Major Supplier | 3 Months Ended | |
Apr. 30, 2014 | ||
Major Supplier Disclosure [Abstract] | ' | |
Major Supplier [Text Block] | ' | |
7 | Major Supplier | |
No supplier accounted for more than 10% of cost of sales during the three-month period ended April 30, 2014. | ||
Employee_Stock_Compensation
Employee Stock Compensation | 3 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Share-Based Arrangements With Employees and Nonemployees [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
8 | Employee Stock Compensation | ||||||||||||||||
The Company has three main share-based payment plans: The Nonemployee Directors Option Plan (the “Directors Plan”) and two Restricted Stock Plans (the “2009 Equity Plan” and the “2012 Equity Plan”). Both the 2009 and 2012 Equity Plans have an identical structure. The below table summarizes the main provisions of each of these plans: | |||||||||||||||||
Nature and terms | |||||||||||||||||
Nonemployee Director Stock Option Plan | The plan provides for an automatic one-time grant of options to purchase 5,000 shares of common stock to each nonemployee director newly elected or appointed. Options are granted at not less than fair market value, become exercisable commencing six months from the date of grant and expire six years from the date of grant. In addition, all nonemployee directors re-elected to the Company’s Board of Directors at any annual meeting of the stockholders will automatically be granted additional options to purchase 1,000 shares of common stock on that date. Such plan expired at December 31, 2012, as to any new awards. Existing options will expire based on individual award dates. | ||||||||||||||||
Restricted Stock Plan – employees | Long-term incentive compensation three-year plan. Employees are granted potential share awards at the beginning of the three-year cycle at baseline and maximum amounts. The level of award and final vesting is based on the Board of Director’s opinion as to the performance of the Company and management in the entire three-year cycle. All vesting is three-year “cliff” vesting - there is no partial vesting. The valuation is based on the stock price at the grant date and amortized to expense over the three-year period. | ||||||||||||||||
Restricted Stock Plan – directors | Long-term incentive compensation three-year plan. Directors are granted potential share awards at the beginning of the three-year cycle at baseline and maximum amounts. The level of award and final vesting is based on the Board of Director’s opinion as to the performance of the Company and management in the entire three-year cycle. All vesting is three-year “cliff” vesting - there is no partial vesting. The valuation is based on the stock price at the grant date and amortized to expense over the three-year period. | ||||||||||||||||
Matching award program | All participating employees are eligible to receive one share of restricted stock awarded for each two shares of Lakeland stock purchased on the open market. Such restricted shares are subject to three-year time vesting. The valuation is based on the stock price at the grant date and amortized to expense over the three-year period. | ||||||||||||||||
Bonus in stock program - employees | All participating employees are eligible to elect to receive any cash bonus in shares of restricted stock. Such restricted shares are subject to two-year time vesting. The valuation is based on the stock price at the grant date and amortized to expense over the two-year period. Since the employee is giving up cash for unvested shares, the amount of shares awarded is 133% of the cash amount based on the grant date stock price. The Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of the Company all elected to take 30% of their cash compensation in restricted stock pursuant to this program, commencing in October 2012 and ended in June 2013. | ||||||||||||||||
Director fee in stock program | All directors are eligible to elect to receive any director fees in shares of restricted stock. Such restricted shares are subject to two-year time vesting. The valuation is based on the stock price at the grant date and amortized to expense over the two-year period. Since the director is giving up cash for unvested shares, the amount of shares awarded is 133% of the cash amount based on the grant date stock price. | ||||||||||||||||
The following table represents our stock options granted, exercised and forfeited during the three-months ended April 30, 2014. | |||||||||||||||||
Stock Options | Number | Weighted | Weighted | Aggregate | |||||||||||||
of Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price per | Contractual | ||||||||||||||||
Share | Term | ||||||||||||||||
Outstanding at January 31, 2014 | 24,000 | $ | 7.47 | 2.95 years | $ | — | |||||||||||
Granted during the three-months ended April 30, 2014 | — | — | |||||||||||||||
Outstanding at April 30, 2014 | 24,000 | $ | 7.47 | 2.70 years | $ | 4,600 | |||||||||||
Exercisable at April 30, 2014 | 24,000 | $ | 7.47 | 2.70 years | $ | 4,600 | |||||||||||
Reserved for future issuance: | — | ||||||||||||||||
Directors’ Plan (expired on December 31, 2012) | |||||||||||||||||
There were no exercises or forfeitures during the three-months ended April 30, 2014. | |||||||||||||||||
Restricted Stock Plan and Performance Equity Plan | |||||||||||||||||
On June 17, 2009, the stockholders of the Company approved the 2009 Equity Plan. A total of 253,000 shares of restricted stock were authorized under this plan. On June 20, 2012, the stockholders of the Company authorized 310,000 shares under the 2012 Equity Plan. Under these restricted stock plans, eligible employees and directors are awarded performance-based restricted shares of the Company common stock. The amount recorded as expense for the performance-based grants of restricted stock are based upon an estimate made at the end of each reporting period as to the most probable outcome of this plan at the end of the three-year performance period (e.g., baseline, maximum or zero). In addition to the grants with vesting based solely on performance, certain awards pursuant to the plan have a time-based vesting requirement, under which awards vest from two to three years after grant issuance, subject to continuous employment and certain other conditions. Restricted stock has voting rights, and the underlying shares are not considered to be issued and outstanding until vested. | |||||||||||||||||
Under the 2009 Equity Incentive Plan, the Company has issued 180,859 fully vested shares as of April 30, 2014. The Company has granted up to a maximum of 2,000 restricted stock awards remaining unvested as of April 30, 2014 and have a weighted average grant date fair value of $7.85. The Company recognizes expense related to performance-based awards over the requisite service period using the straight-line attribution method based on the outcome that is probable. | |||||||||||||||||
Under the 2012 Equity Plan, the Company has granted 273,227 restricted stock awards as of April 30, 2014, assuming all maximum awards are achieved. All of these restricted stock awards are nonvested at April 30, 2014 (215,727 shares at “baseline”), and have a weighted average grant date fair value of $6.00. The Company recognizes expense related to performance-based awards over the requisite service period using the straight-line attribution method based on the outcome that is probable. | |||||||||||||||||
As of April 30, 2014, unrecognized stock-based compensation expense related to restricted stock awards totaled $1,811 pursuant to the 2009 Equity Incentive Plan and $1,330,093 pursuant to the 2012 Equity Incentive Plan, before income taxes, based on the maximum performance award level, less what has been charged to expense on a cumulative basis through April 30, 2014, which was set to zero. Such unrecognized stock-based compensation expense related to restricted stock awards totaled $1,811 for the 2009 Equity Incentive Plan and $959,793 for the 2012 Equity Incentive Plan at the baseline performance level. The cost of these nonvested awards is expected to be recognized over a weighted-average period of three years. The Board has estimated its current performance level to be at zero, and expenses have been recorded accordingly. The performance-based awards are not considered stock equivalents for earnings per share (“EPS”) calculation purposes. | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The Company recognized total stock-based compensation costs of $24,364 and $74,831 for the three-months ended April 30, 2014 and 2013, respectively, of which $18,896 and $0 result from the 2009 Equity Plan and $5,468 and $74,831 result from the 2012 Equity Plan for the years April 30, 2014 and 2013, respectively, and $0 and $0, respectively, from the Director Option Plan. These amounts are reflected in selling, general and administrative expenses. The total income tax benefit recognized for stock-based compensation arrangements was $8,771 and $26,939 for the years ended April 30, 2014 and 2013, respectively. | |||||||||||||||||
Shares under | Outstanding | Granted | Vested during | Forfeited | Outstanding | ||||||||||||
2012 Equity Plan | unvested | during FY15 | FY15 through | during FY15 | unvested | ||||||||||||
grants at | through | April 30, | through April | grants at | |||||||||||||
maximum(a) | April 30, | 2014 | 30, 2014 | maximum(a) | |||||||||||||
at beginning | 2014 | at April 30, | |||||||||||||||
of FY15 | 2014 | ||||||||||||||||
Restricted stock grants – employees | 150,500 | — | — | — | 150,500 | ||||||||||||
Restricted stock grants – directors | 49,500 | — | — | — | 49,500 | ||||||||||||
Matching award program | 3,000 | — | — | — | 3,000 | ||||||||||||
Bonus in stock - employees | 55,189 | — | — | — | 55,189 | ||||||||||||
Retainer in stock - directors | 14,101 | 937 | — | — | 15,038 | ||||||||||||
Total restricted stock plan | 272,290 | 937 | — | — | 273,227 | ||||||||||||
Weighted average grant date fair value | |||||||||||||||||
Shares under | Outstanding | Granted | Vested during | Forfeited | Outstanding | ||||||||||||
2009 Equity Plan | unvested | during FY15 | FY15 through | during FY15 | unvested | ||||||||||||
grants at | through April | April 30, | through April | grants at | |||||||||||||
maximum(a) | 30, 2014 | 2014 | 30, 2014 | maximum(a) | |||||||||||||
at beginning | at April 30, | ||||||||||||||||
of FY15 | 2014 | ||||||||||||||||
Restricted stock grants -employees | — | — | — | — | — | ||||||||||||
Restricted stock grants - directors | — | — | — | — | — | ||||||||||||
Matching award program | 3,000 | — | 1,000 | — | 2,000 | ||||||||||||
Bonus in stock - employees | — | — | — | — | — | ||||||||||||
Retainer in stock - directors | 1,116 | — | 1,116 | — | — | ||||||||||||
Total restricted stock plan | 4,116 | — | 2,116 | — | 2,000 | ||||||||||||
Weighted average grant date fair value | |||||||||||||||||
(a) | The Board has estimated the current performance level at zero and expenses have been recorded accordingly. | ||||||||||||||||
Segment_Data
Segment Data | 3 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||
9. Segment Data | |||||||||||||
Domestic and international sales are as follows in millions of dollars: | |||||||||||||
Three Months Ended | |||||||||||||
April 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Domestic | $ | 12.2 | 51.89 | % | $ | 11.86 | 56.56 | % | |||||
International | 11.31 | 48.11 | % | 9.88 | 45.44 | % | |||||||
Total | $ | 23.51 | 100 | % | $ | 21.74 | 100 | % | |||||
We manage our operations by evaluating each of our geographic locations. Our North American operations include our facilities in Alabama (primarily the distribution to customers of the bulk of our products and manufacturing of our chemical suit and fire protective products), Mexico (primarily disposable, glove, chemical suit and woven production) and Pennsylvania (primarily production of high visibility products). We also maintain two manufacturing companies in China (primarily disposable, chemical and woven suit production), a wovens manufacturing facility in Brazil and a small manufacturing facility in Argentina. We evaluate the performance of these entities based on operating profit, which is defined as income before income taxes, interest expense and other income and expenses. We have sales forces in Canada, Europe, Latin America, India, Russia, Kazakhstan and China, which sell and distribute products shipped from the United States, Mexico, Brazil or China. The table below represents information about reported segments for the years noted therein: | |||||||||||||
Three Months Ended | |||||||||||||
April 30 | |||||||||||||
(in millions of dollars) | |||||||||||||
2014 | 2013 | ||||||||||||
Net Sales: | |||||||||||||
USA | $ | 13.11 | $ | 12.3 | |||||||||
Other foreign | 6.46 | 5.86 | |||||||||||
Mexico | 0.92 | 0.62 | |||||||||||
China | 10.7 | 8.93 | |||||||||||
Brazil | 1.75 | 1.78 | |||||||||||
Corporate | 0.98 | 0.53 | |||||||||||
Less intersegment sales | -10.41 | -8.28 | |||||||||||
Consolidated sales | $ | 23.51 | $ | 21.74 | |||||||||
External Sales: | |||||||||||||
USA | $ | 12.2 | $ | 11.86 | |||||||||
Other foreign | 6.24 | 5.31 | |||||||||||
Mexico | 0.42 | 0.18 | |||||||||||
China | 2.9 | 2.61 | |||||||||||
Brazil | 1.75 | 1.78 | |||||||||||
Consolidated external sales | $ | 23.51 | $ | 21.74 | |||||||||
Intersegment Sales: | |||||||||||||
USA | $ | 0.91 | $ | 0.44 | |||||||||
Other foreign | 0.22 | 0.55 | |||||||||||
Mexico | 0.5 | 0.44 | |||||||||||
China | 7.8 | 6.32 | |||||||||||
Corporate | 0.98 | 0.53 | |||||||||||
Consolidated intersegment sales | $ | 10.41 | $ | 8.28 | |||||||||
Operating Profit (Loss): | |||||||||||||
USA | $ | 0.91 | $ | 1.42 | |||||||||
Other foreign | 0.38 | 0.18 | |||||||||||
Mexico | -0.02 | -0.1 | |||||||||||
China | 0.96 | 0.39 | |||||||||||
Brazil | -0.28 | -0.93 | |||||||||||
Corporate | -1.33 | -1.13 | |||||||||||
Less intersegment profit | -0.04 | -0.07 | |||||||||||
Consolidated operating profit | $ | 0.58 | $ | -0.24 | |||||||||
Three Months Ended | |||||||||||||
April 30 | |||||||||||||
(in millions of dollars) | |||||||||||||
2014 | 2013 | ||||||||||||
Depreciation and Amortization Expense: | |||||||||||||
USA | $ | 0.04 | $ | 0.06 | |||||||||
Other foreign | 0.03 | 0.05 | |||||||||||
Mexico | 0.01 | 0.01 | |||||||||||
China | 0.06 | 0.07 | |||||||||||
Brazil | 0.08 | 0.11 | |||||||||||
Corporate | 0.15 | 0.13 | |||||||||||
Consolidated depreciation and amortization expense | $ | 0.37 | $ | 0.43 | |||||||||
Interest Expense: | |||||||||||||
USA (shown in Corporate) | $ | — | $ | — | |||||||||
Other foreign | 0.05 | 0.03 | |||||||||||
Mexico | 0.02 | 0.01 | |||||||||||
China | -0.02 | — | |||||||||||
Brazil | 0.15 | 0.25 | |||||||||||
Corporate | 0.49 | 0.13 | |||||||||||
Less intersegment | -0.05 | -0.15 | |||||||||||
Consolidated interest expense | $ | 0.64 | $ | 0.27 | |||||||||
Income Tax Expense (Benefits): | |||||||||||||
USA (shown in Corporate) | $ | — | $ | — | |||||||||
Other foreign | 0.08 | 0.07 | |||||||||||
Mexico | -0.04 | — | |||||||||||
China | 0.25 | 0.15 | |||||||||||
Corporate | -0.25 | 0.06 | |||||||||||
Less intersegment | -0.02 | -0.1 | |||||||||||
Consolidated income tax expense | $ | 0.02 | $ | 0.18 | |||||||||
30-Apr-14 | 31-Jan-14 | ||||||||||||
Total Assets:* | |||||||||||||
USA | $ | 30.26 | $ | 28.88 | |||||||||
Other foreign | 21.3 | 19.93 | |||||||||||
Mexico | 3.73 | 3.73 | |||||||||||
China | 29.52 | 30.11 | |||||||||||
India | -1.16 | -1.19 | |||||||||||
Brazil | 8.52 | 6.92 | |||||||||||
Corporate | -3.96 | -4.63 | |||||||||||
Consolidated assets | $ | 88.21 | $ | 83.75 | |||||||||
Property and Equipment: | |||||||||||||
USA | $ | 2.37 | $ | 2.42 | |||||||||
Other foreign | 2.1 | 2.14 | |||||||||||
Mexico | 2.08 | 2.09 | |||||||||||
China | 2.59 | 2.64 | |||||||||||
India | 0.02 | 0.01 | |||||||||||
Brazil | 1.97 | 1.86 | |||||||||||
Corporate | 0.96 | 0.91 | |||||||||||
Consolidated property and equipment | $ | 12.09 | $ | 12.07 | |||||||||
Capital Expenditures: | |||||||||||||
USA | $ | — | $ | 0.08 | |||||||||
Other foreign | — | 0.08 | |||||||||||
Mexico | — | 0.01 | |||||||||||
China | 0.01 | 0.44 | |||||||||||
India | 0.01 | — | |||||||||||
Brazil | — | 0.09 | |||||||||||
Corporate | 0.07 | 0.13 | |||||||||||
Consolidated capital expenditures | $ | 0.09 | $ | 0.83 | |||||||||
Goodwill: | |||||||||||||
USA | $ | 0.87 | $ | 0.87 | |||||||||
Consolidated goodwill | $ | 0.87 | $ | 0.87 | |||||||||
* Negative assets reflect intersegment accounts eliminated in consolidation | |||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
10. Income Taxes | |
Income Tax Audits | |
The Company is subject to US federal income tax, as well as income tax in multiple US state and local jurisdictions and a number of foreign jurisdictions. The Company’s federal income tax returns for the fiscal years ended January 31, 2003, 2004, 2005 and 2007, have been audited by the Internal Revenue Service (“IRS”). The Company has received a final “No Change Letter” from the IRS for FY07 dated August 20, 2009. The Company has received notice from the IRS on March 21, 2011, that it will shortly commence an audit for the FY09 tax return. There have been no further communications from the IRS since. | |
Our three major foreign tax jurisdictions are China, Canada and Brazil. China tax authorities have performed limited reviews on all China subsidiaries as of tax years 2008, 2009, 2010, 2011 and 2012 with no significant issues noted. We believe our tax positions are reasonably stated as of April 30, 2014. On May 9, 2013, Weifang Lakeland Safety Products Co., Ltd., one of our China operations, was notified by local tax authority that they would conduct an audit on transfer pricing. After preliminary communication with the tax authority, we believe the additional tax liability will be no more than US $16,000 or RMB100,000. At the same time, the China tax authority also had questions about why the retained earnings amount was not being repatriated to corporate and why the payments in trade payables from corporate to the sister companies were delayed, especially from US parent to our Chinese subsidiary. Additionally, the China tax authority questioned if there is any tax avoidance motive in the investment by Weifang Lakeland Safety Products Co., Ltd. of US $500,000 to our Argentina subsidiary. We do not believe there will be any material tax consequences from the latter two inquiries. | |
Lakeland Protective Wear, Inc., our Canadian subsidiary, follows Canada tax regulatory framework recording its tax expense and tax deferred assets or liabilities. As of this statement filing date, we believe the Company’s tax situation is reasonably stated, and we do not anticipate future tax liability. | |
The Company’s Brazilian subsidiary is currently under a tax audit, which raised some issues regarding the tax impact related to the merger held in 2008 and the resulting goodwill resulting from the structure which was set up at the Company's Brazilian counsel's suggestion. This structure is relatively common in acquisitions of Brazilian operations made by non-Brazilian companies. In general, acquisitions with this structure have survived challenge by the taxing authorities in Brazil. The cumulative amount of tax benefits recognized on the Company’s books through April 30, 2014, resulting from the tax deduction of the goodwill amortization is now zero, net of the deferred tax valuation reserve. This results from the goodwill on the Brazilian books which, for Brazilian tax purposes, is eligible for tax write-off over a five-year period dating from November 2008. | |
The Company’s Brazilian subsidiary has received notice from the Brazilian tax authorities of a claim totaling approx. US $1.0 million (R2,265,728) consisting of tax of approx. US $127,000 (R280,416) and the remainder in interest and penalty. Management believes it is probable it will ultimately prevail in this claim and as such no provision has been recorded. | |
Except in Canada, it is our practice and intention to reinvest the earnings of our non-US subsidiaries in their operations. As of April 30, 2014, the Company had not made a provision for US or additional foreign withholding taxes on approximately $18.9 million of the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. Generally, such amounts become subject to US taxation upon remittance of dividends and under certain other circumstances. If theses earnings were repatriated to the US, the deferred tax liability associated with these temporary differences would be approximately $3.3 million at April 30, 2014. | |
Change in Accounting Estimate/Valuation Allowance | |
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we considered all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. The valuation allowance was zero at April 30, 2014 and January 31, 2014. | |
Derivative_Instruments_and_For
Derivative Instruments and Foreign Currency Exposure | 3 Months Ended |
Apr. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' |
11. Derivative Instruments and Foreign Currency Exposure | |
The Company is exposed to foreign currency risk. In the third quarter of FY14, the Company established a foreign exchange facility with Wells Fargo Bank, N.A. Such contracts are largely timed to expire with the last day of the fiscal quarter, with a new contract purchased on the first day of the following quarter, to match the operating cycle of the Company. The Company has continued its currency hedging in China. We designated the forward contracts as derivatives but not as hedging instruments, with loss and gain recognized in current earnings. In the three-months ended April 30, 2014, the Company sustained a loss on foreign exchange in China of $18,110 included in operating expenses on the accompanying statement of operations. | |
The Company accounts for its foreign exchange derivative instruments by recognizing all derivatives as either assets or liabilities at fair value, which may result in additional volatility in both current period earnings and other comprehensive income as a result of recording recognized and unrecognized gains and losses from changes in the fair value of derivative instruments. | |
We have two types of derivatives to manage the risk of foreign currency fluctuations. We enter into forward contracts with financial institutions to manage our currency exposure related to net assets and liabilities denominated in foreign currencies. Those forward contract derivatives, not designated as hedging instruments, are generally settled quarterly. Gain and loss on those forward contracts are included in current earnings. There were no outstanding forward contracts at April 30, 2014 or 2013. | |
We enter cash flow hedge contracts with financial institutions to manage our currency exposure on future cash payments denominated in foreign currencies. The effective portion of gain or loss on cash flow hedge is reported as a component of accumulated other comprehensive income. The notional amount of these contracts was $2.5 million and $3.5 million at April 30, 2014 and 2013, respectively. The corresponding asset and income recorded in other comprehensive income is immaterial to the consolidated financial statements at April 30, 2014 and 2013. | |
VAT_Tax_Issue_in_Brazil
VAT Tax Issue in Brazil | 3 Months Ended | |||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||
Vat Tax Issues Disclosure [Abstract] | ' | |||||||||||||||||||
VAT Tax Issue [Text Block] | ' | |||||||||||||||||||
12. VAT Tax Issue in Brazil | ||||||||||||||||||||
Please see footnote 10 of the Company’s Annual Report on Form 10-K for the year ended January 31, 2014 for a more detailed discussion. | ||||||||||||||||||||
The Bahia state tax auditors filed several claims for VAT taxes. The claims assert that the state VAT taxes are owed to the state of domicile of the ultimate importer/user and disregarded the fact that the VAT taxes had already been paid to the neighboring state. | ||||||||||||||||||||
In FY14, the Company changed its strategy regarding the large VAT tax claim as a result of the current cash flow needs in Brazil. At such time when a switch to a formal judicial proceeding is required, the Company intends to negotiate a guarantee with the court whereby the Company would either pledge its inventory as collateral for the judicial deposit or alternately would agree to deposit into an escrow account with the court system a monthly judicial deposit of a negotiated percentage of its future sales in Brazil. The Company believes it is probable it would be able to negotiate such an arrangement. The Company would then be able to avail itself of a later amnesty. Any amounts paid into the escrow would be available at such time to be applied to the amnesty payment. The Company believes it is more likely than not that it will have the cash from operations or the borrowing capacity at such time to fund such amnesty payment but no assurances can be given. | ||||||||||||||||||||
Such arrangement would result in a judicial tax claim filed against the Company for 20% greater than the total claim, or approximately US $6.7 million (R15.0 million). | ||||||||||||||||||||
Once this arrangement is completed, the formal judicial process could take from 5 to 10 years. The Company believes there is a strong likelihood that another amnesty would be offered by the state prior to such completion. | ||||||||||||||||||||
The Company has accepted amnesty for a smaller claim which will result in 8 monthly payments of about US $19,000 (R42,000 ) which reflects abatement of 80% of penalty and interest. An accrual of US $153,000 has been charged to expense in Q4FY14 and included in Other Accrual Expenses on the Balance Sheet as of April 30, 2014. | ||||||||||||||||||||
In December 2013, the Company learned of a different VAT tax claimed by the State of Sao Paulo for a tax in the amount of approximately US $45,000 and total claim including interest and penalty totaling approximately US $200,000. | ||||||||||||||||||||
Management needs more time to evaluate this claim but intends to defend until the next amnesty if loss is probable and will defend totally if loss is remote. Given the lack of materiality management will make a more definite judgment when available. | ||||||||||||||||||||
A table summarizing all five different VAT claims and their status is listed below: | ||||||||||||||||||||
Principle | Interest & | Total | Approximate | Loss Possibility | Strategy | Collateral | ||||||||||||||
Penalty | for Totals | |||||||||||||||||||
R$ | R$ | R$ | US $ | |||||||||||||||||
305,897 | 491,272 | 797,168 | 362,000 | Remote | To wait Judicial Process | New Land | ||||||||||||||
573,457 | 1,098,475 | 1,671,932 | 760,000 | Remote | To wait Judicial Process | Plant | ||||||||||||||
6,209,836 | 6,653,586 | 12,863,422 | 5,847,000 | Probable | To wait Judicial Process and offer Judicial Deposit (approx. 3% net sales) | - | ||||||||||||||
402,071 | 770,133 | 1,172,204 | 533,000 | Remote | To wait Judicial Process | New Land | ||||||||||||||
285,009 | 249,140 | 534,149 | 243,000 | Loss Agreed | *Accept State Amnesty (8 installments, approx. BRL 42K) | - | ||||||||||||||
7,776,270 | 9,262,605 | 17,038,875 | 7,745,000 | *After State Amnesty Accepted | ||||||||||||||||
PRINCIPAL | INTEREST | TOTAL | ||||||||||||||||||
285,009 | 15,626 | 334,835 | State Requirements | |||||||||||||||||
Total | 285,009 | 15,626 | 334,835 | 152,000 | 8 Installments representing accepted amnesty per above | |||||||||||||||
Numbers may not add due to rounding | ||||||||||||||||||||
Brazil_Management_and_Share_Pu
Brazil Management and Share Purchase Agreement-Arbitration Award and Settlement Agreement | 3 Months Ended |
Apr. 30, 2014 | |
Brazil Management and Share Purchase Agreement [Abstract] | ' |
Brazil Management and Share Purchase Agreement [Text Block] | ' |
13. Brazil Management and Share Purchase Agreement-Arbitration Award and Settlement Agreement | |
Lakeland Industries, Inc. and its wholly-owned subsidiary, Lakeland Brasil S.A. (“Lakeland Brasil” and together with Lakeland Industries, Inc., the “Company”) were parties to an arbitration proceeding in Brazil involving the Company and two former officers (the “former officers”) of Lakeland Brasil. On May 8, 2012, the Company received notice of an arbitral award in favor of the former officers. | |
On September 11, 2012, the Company and the former officers entered into a settlement agreement (the “Settlement Agreement”) which fully and finally resolved all alleged outstanding claims against the Company arising from the arbitration proceeding. Pursuant to the Settlement Agreement, the Company agreed to a payment schedule to the former officers with a balance remaining as of April 30, 2014 of $4.75 million in US dollars consisting of 19 consecutive quarterly installments of US $250,000 ending on December 31, 2018. The Company is current with all obligations pursuant to this Settlement Agreement. There is no interest payable. This amount is shown on the accompanying Balance Sheet as $1,000,000 current maturity of arbitration settlement and $3,566,904 long-term portion (net of $183,096 of imputed interest). | |
In addition, pursuant to the Settlement Agreement, as additional security for payment of the Settlement Amount, Lakeland Brasil agreed to grant the former officers a second mortgage interest on certain of its property in Brazil, which mortgage is expressly behind the lien securing the payment of tax debts to a state within Brazil related to certain notices of tax assessment on such property. The Company also agreed to become a co-obligor, in lieu of a guarantor, for payment of the Settlement Amount. | |
Goodwill
Goodwill | 3 Months Ended |
Apr. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Goodwill Intangible and Other Assets Net and Goodwill Impairment [Text Block] | ' |
14. Goodwill | |
There was no change in the carrying amount of goodwill during Q1fiscal year 2015. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Apr. 30, 2014 | |
New Accounting Pronouncements and Changes In Accounting Principles [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
15. Recent Accounting Pronouncements | |
The Company considers the applicability and impact of all accounting standards updates (ASUs). No recent accounting pronouncement is expected to have a material impact on the consolidated financial statements. | |
Asset_Sales
Asset Sales | 3 Months Ended |
Apr. 30, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Asset Sales [Text Block] | ' |
16. Asset Sales | |
Sale of Real Estate in China | |
In April 2013, the Company executed a contract for the sale of real estate located in Qingdao, China, which was completed on June 30, 2013. The sale was structured as a sale of a subsidiary’s stock after transferring out substantially all non-real estate assets to other Lakeland entities. The net proceeds of the sale to the Company were approximately $0.7 million, received in June 2013. All production from this facility has been transferred to other Lakeland manufacturing facilities and all product lines are expected to continue. Accordingly, the operations of this plant are not being treated as a discontinued operation. This sale resulted in a loss of approximately $0.5 million for financial statement purposes included in the Q2FY14 financial statements. However, as a result of this sale there were dividends paid to the US parent company of approximately US $1.7 million, which results in taxable income in the US, generating a tax charge of $422,321 in Q2 2014 financial statements. However, as a result of its loss carry forwards for US tax purposes, no cash tax liability has been incurred. | |
Litigation
Litigation | 3 Months Ended | |
Apr. 30, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Legal Matters and Contingencies [Text Block] | ' | |
17 | Litigation | |
From time to time, we are a party to litigation arising in the ordinary course of our business. Other than the proceedings related to the VAT tax issue described in Note 12 to the financial statements, we are not currently a party to any litigation or other legal proceedings that we believe could reasonably be expected to have a material adverse effect on our results of operations, financial condition or cash flows. | ||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories consist of the following: | ||||||||
April 30, 2014 | January 31, 2014 | |||||||
Raw materials | $ | 16,849,408 | $ | 16,348,861 | ||||
Work-in-process | 1,417,790 | 1,292,740 | ||||||
Finished goods | 22,103,300 | 22,202,708 | ||||||
$ | 40,370,498 | $ | 39,844,309 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
The following table sets forth the computation of basic and diluted loss per share at April 30, 2014 and 2013. | ||||||||
Three Months Ended | ||||||||
April 30, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net loss | $ | -64 | $ | -844,480 | ||||
Denominator | ||||||||
Denominator for basic loss per share | ||||||||
Weighted-average shares outstanding before common share equivalents | 5,357,209 | 5,337,205 | ||||||
Weighted average common equivalent shares resulting from the warrant issued June 28, 2013 to the subordinated debt lender LKL Investments LLC | 566,015 | — | ||||||
Total weighted average, including common equivalent shares | 5,923,224 | 5,337,205 | ||||||
Denominator for diluted loss per share (adjusted weighted average shares) | 5,923,224 | 5,337,205 | ||||||
Basic (loss) per share | $ | 0 | $ | -0.16 | ||||
Diluted (loss) per share | $ | 0 | $ | -0.16 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | ||||||||
Brazil Loan Schedule Quarter Ended April 30, 2014 | |||||||||
USD | BRL | ||||||||
Balance Beginning | 1,148,114 | 2,785,644 | |||||||
New Borrowings | 705,254 | 1,632,434 | |||||||
Principal Payments | -821,539 | -1,919,957 | |||||||
Foreign Exchange Difference | 85,399 | N/A | |||||||
Balance Ending | 1,117,228 | 2,498,122 | |||||||
Less Accrued Interest Included | -20,321 | -47,037 | |||||||
TOTAL | 1,096,907 | 2,451,085 | |||||||
Collateral | Receivables, Officer | Receivables, Officer | |||||||
Guarantee, Customer | Guarantee, Customer | ||||||||
Contract | Contract | ||||||||
Monthly Interest Rate Range | 1.09% – 2.11 | % | 1.09% – 2.11 | % | |||||
The above is comprised of numerous amounts with several lenders and factors. | |||||||||
Employee_Stock_Compensation_Ta
Employee Stock Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Share-Based Arrangements With Employees and Nonemployees [Abstract] | ' | ||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | ' | ||||||||||||||||
The following table represents our stock options granted, exercised and forfeited during the three-months ended April 30, 2014. | |||||||||||||||||
Stock Options | Number | Weighted | Weighted | Aggregate | |||||||||||||
of Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price per | Contractual | ||||||||||||||||
Share | Term | ||||||||||||||||
Outstanding at January 31, 2014 | 24,000 | $ | 7.47 | 2.95 years | $ | — | |||||||||||
Granted during the three-months ended April 30, 2014 | — | — | |||||||||||||||
Outstanding at April 30, 2014 | 24,000 | $ | 7.47 | 2.70 years | $ | 4,600 | |||||||||||
Exercisable at April 30, 2014 | 24,000 | $ | 7.47 | 2.70 years | $ | 4,600 | |||||||||||
Reserved for future issuance: | — | ||||||||||||||||
Directors’ Plan (expired on December 31, 2012) | |||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||||||
Shares under | Outstanding | Granted | Vested during | Forfeited | Outstanding | ||||||||||||
2012 Equity Plan | unvested | during FY15 | FY15 through | during FY15 | unvested | ||||||||||||
grants at | through | April 30, | through April | grants at | |||||||||||||
maximum(a) | April 30, | 2014 | 30, 2014 | maximum(a) | |||||||||||||
at beginning | 2014 | at April 30, | |||||||||||||||
of FY15 | 2014 | ||||||||||||||||
Restricted stock grants – employees | 150,500 | — | — | — | 150,500 | ||||||||||||
Restricted stock grants – directors | 49,500 | — | — | — | 49,500 | ||||||||||||
Matching award program | 3,000 | — | — | — | 3,000 | ||||||||||||
Bonus in stock - employees | 55,189 | — | — | — | 55,189 | ||||||||||||
Retainer in stock - directors | 14,101 | 937 | — | — | 15,038 | ||||||||||||
Total restricted stock plan | 272,290 | 937 | — | — | 273,227 | ||||||||||||
Weighted average grant date fair value | |||||||||||||||||
Shares under | Outstanding | Granted | Vested during | Forfeited | Outstanding | ||||||||||||
2009 Equity Plan | unvested | during FY15 | FY15 through | during FY15 | unvested | ||||||||||||
grants at | through April | April 30, | through April | grants at | |||||||||||||
maximum(a) | 30, 2014 | 2014 | 30, 2014 | maximum(a) | |||||||||||||
at beginning | at April 30, | ||||||||||||||||
of FY15 | 2014 | ||||||||||||||||
Restricted stock grants -employees | — | — | — | — | — | ||||||||||||
Restricted stock grants - directors | — | — | — | — | — | ||||||||||||
Matching award program | 3,000 | — | 1,000 | — | 2,000 | ||||||||||||
Bonus in stock - employees | — | — | — | — | — | ||||||||||||
Retainer in stock - directors | 1,116 | — | 1,116 | — | — | ||||||||||||
Total restricted stock plan | 4,116 | — | 2,116 | — | 2,000 | ||||||||||||
Weighted average grant date fair value | |||||||||||||||||
(a) | The Board has estimated the current performance level at zero and expenses have been recorded accordingly. | ||||||||||||||||
Segment_Data_Tables
Segment Data (Tables) | 3 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule Of Revenue From External Customers Geographic Areas [Table Text Block] | ' | ||||||||||||
Domestic and international sales are as follows in millions of dollars: | |||||||||||||
Three Months Ended | |||||||||||||
April 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Domestic | $ | 12.2 | 51.89 | % | $ | 11.86 | 56.56 | % | |||||
International | 11.31 | 48.11 | % | 9.88 | 45.44 | % | |||||||
Total | $ | 23.51 | 100 | % | $ | 21.74 | 100 | % | |||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | ||||||||||||
The table below represents information about reported segments for the years noted therein: | |||||||||||||
Three Months Ended | |||||||||||||
April 30 | |||||||||||||
(in millions of dollars) | |||||||||||||
2014 | 2013 | ||||||||||||
Net Sales: | |||||||||||||
USA | $ | 13.11 | $ | 12.3 | |||||||||
Other foreign | 6.46 | 5.86 | |||||||||||
Mexico | 0.92 | 0.62 | |||||||||||
China | 10.7 | 8.93 | |||||||||||
Brazil | 1.75 | 1.78 | |||||||||||
Corporate | 0.98 | 0.53 | |||||||||||
Less intersegment sales | -10.41 | -8.28 | |||||||||||
Consolidated sales | $ | 23.51 | $ | 21.74 | |||||||||
External Sales: | |||||||||||||
USA | $ | 12.2 | $ | 11.86 | |||||||||
Other foreign | 6.24 | 5.31 | |||||||||||
Mexico | 0.42 | 0.18 | |||||||||||
China | 2.9 | 2.61 | |||||||||||
Brazil | 1.75 | 1.78 | |||||||||||
Consolidated external sales | $ | 23.51 | $ | 21.74 | |||||||||
Intersegment Sales: | |||||||||||||
USA | $ | 0.91 | $ | 0.44 | |||||||||
Other foreign | 0.22 | 0.55 | |||||||||||
Mexico | 0.5 | 0.44 | |||||||||||
China | 7.8 | 6.32 | |||||||||||
Corporate | 0.98 | 0.53 | |||||||||||
Consolidated intersegment sales | $ | 10.41 | $ | 8.28 | |||||||||
Operating Profit (Loss): | |||||||||||||
USA | $ | 0.91 | $ | 1.42 | |||||||||
Other foreign | 0.38 | 0.18 | |||||||||||
Mexico | -0.02 | -0.1 | |||||||||||
China | 0.96 | 0.39 | |||||||||||
Brazil | -0.28 | -0.93 | |||||||||||
Corporate | -1.33 | -1.13 | |||||||||||
Less intersegment profit | -0.04 | -0.07 | |||||||||||
Consolidated operating profit | $ | 0.58 | $ | -0.24 | |||||||||
Three Months Ended | |||||||||||||
April 30 | |||||||||||||
(in millions of dollars) | |||||||||||||
2014 | 2013 | ||||||||||||
Depreciation and Amortization Expense: | |||||||||||||
USA | $ | 0.04 | $ | 0.06 | |||||||||
Other foreign | 0.03 | 0.05 | |||||||||||
Mexico | 0.01 | 0.01 | |||||||||||
China | 0.06 | 0.07 | |||||||||||
Brazil | 0.08 | 0.11 | |||||||||||
Corporate | 0.15 | 0.13 | |||||||||||
Consolidated depreciation and amortization expense | $ | 0.37 | $ | 0.43 | |||||||||
Interest Expense: | |||||||||||||
USA (shown in Corporate) | $ | — | $ | — | |||||||||
Other foreign | 0.05 | 0.03 | |||||||||||
Mexico | 0.02 | 0.01 | |||||||||||
China | -0.02 | — | |||||||||||
Brazil | 0.15 | 0.25 | |||||||||||
Corporate | 0.49 | 0.13 | |||||||||||
Less intersegment | -0.05 | -0.15 | |||||||||||
Consolidated interest expense | $ | 0.64 | $ | 0.27 | |||||||||
Income Tax Expense (Benefits): | |||||||||||||
USA (shown in Corporate) | $ | — | $ | — | |||||||||
Other foreign | 0.08 | 0.07 | |||||||||||
Mexico | -0.04 | — | |||||||||||
China | 0.25 | 0.15 | |||||||||||
Corporate | -0.25 | 0.06 | |||||||||||
Less intersegment | -0.02 | -0.1 | |||||||||||
Consolidated income tax expense | $ | 0.02 | $ | 0.18 | |||||||||
30-Apr-14 | 31-Jan-14 | ||||||||||||
Total Assets:* | |||||||||||||
USA | $ | 30.26 | $ | 28.88 | |||||||||
Other foreign | 21.3 | 19.93 | |||||||||||
Mexico | 3.73 | 3.73 | |||||||||||
China | 29.52 | 30.11 | |||||||||||
India | -1.16 | -1.19 | |||||||||||
Brazil | 8.52 | 6.92 | |||||||||||
Corporate | -3.96 | -4.63 | |||||||||||
Consolidated assets | $ | 88.21 | $ | 83.75 | |||||||||
Property and Equipment: | |||||||||||||
USA | $ | 2.37 | $ | 2.42 | |||||||||
Other foreign | 2.1 | 2.14 | |||||||||||
Mexico | 2.08 | 2.09 | |||||||||||
China | 2.59 | 2.64 | |||||||||||
India | 0.02 | 0.01 | |||||||||||
Brazil | 1.97 | 1.86 | |||||||||||
Corporate | 0.96 | 0.91 | |||||||||||
Consolidated property and equipment | $ | 12.09 | $ | 12.07 | |||||||||
Capital Expenditures: | |||||||||||||
USA | $ | — | $ | 0.08 | |||||||||
Other foreign | — | 0.08 | |||||||||||
Mexico | — | 0.01 | |||||||||||
China | 0.01 | 0.44 | |||||||||||
India | 0.01 | — | |||||||||||
Brazil | — | 0.09 | |||||||||||
Corporate | 0.07 | 0.13 | |||||||||||
Consolidated capital expenditures | $ | 0.09 | $ | 0.83 | |||||||||
Goodwill: | |||||||||||||
USA | $ | 0.87 | $ | 0.87 | |||||||||
Consolidated goodwill | $ | 0.87 | $ | 0.87 | |||||||||
* Negative assets reflect intersegment accounts eliminated in consolidation | |||||||||||||
VAT_Tax_Issue_in_Brazil_Tables
VAT Tax Issue in Brazil (Tables) | 3 Months Ended | |||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||
Vat Tax Issues Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule Of Value Added Tax Claims [Table Text Block] | ' | |||||||||||||||||||
A table summarizing all five different VAT claims and their status is listed below: | ||||||||||||||||||||
Principle | Interest & | Total | Approximate | Loss Possibility | Strategy | Collateral | ||||||||||||||
Penalty | for Totals | |||||||||||||||||||
R$ | R$ | R$ | US $ | |||||||||||||||||
305,897 | 491,272 | 797,168 | 362,000 | Remote | To wait Judicial Process | New Land | ||||||||||||||
573,457 | 1,098,475 | 1,671,932 | 760,000 | Remote | To wait Judicial Process | Plant | ||||||||||||||
6,209,836 | 6,653,586 | 12,863,422 | 5,847,000 | Probable | To wait Judicial Process and offer Judicial Deposit (approx. 3% net sales) | - | ||||||||||||||
402,071 | 770,133 | 1,172,204 | 533,000 | Remote | To wait Judicial Process | New Land | ||||||||||||||
285,009 | 249,140 | 534,149 | 243,000 | Loss Agreed | *Accept State Amnesty (8 installments, approx. BRL 42K) | - | ||||||||||||||
7,776,270 | 9,262,605 | 17,038,875 | 7,745,000 | *After State Amnesty Accepted | ||||||||||||||||
PRINCIPAL | INTEREST | TOTAL | ||||||||||||||||||
285,009 | 15,626 | 334,835 | State Requirements | |||||||||||||||||
Total | 285,009 | 15,626 | 334,835 | 152,000 | 8 Installments representing accepted amnesty per above | |||||||||||||||
Numbers may not add due to rounding | ||||||||||||||||||||
Business_Details_Textual
Business (Details Textual) | 3 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Business And Significant Accounting Policies [Line Items] | ' | ' |
Entity Wide Revenue Major Customer Description | 'No customer accounted for more than 10% of net sales | 'No customer accounted for more than 10% of net sales |
Inventories_Details
Inventories (Details) (USD $) | Apr. 30, 2014 | Jan. 31, 2014 |
Inventory [Line Items] | ' | ' |
Raw materials | $16,849,408 | $16,348,861 |
Work-in-process | 1,417,790 | 1,292,740 |
Finished goods | 22,103,300 | 22,202,708 |
Inventory, Net, Total | $40,370,498 | $39,844,309 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Numerator | ' | ' |
Net loss | ($64) | ($844,480) |
Denominator for basic loss per share | ' | ' |
Weighted-average shares outstanding before common share equivalents | 5,357,209 | 5,337,205 |
Weighted average common equivalent shares resulting from the warrant issued June 28, 2013 to the subordinated debt lender LKL Investments LLC | 566,015 | 0 |
Total weighted average, including common equivalent shares (in shares) | 5,923,224 | 5,337,205 |
Denominator for diluted loss per share (adjusted weighted average shares) (in shares) | 5,923,224 | 5,337,205 |
Basic (loss) per share (in dollars per share) | $0 | ($0.16) |
Diluted (loss) per share (in dollars per share) | $0 | ($0.16) |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) (USD $) | 3 Months Ended |
Apr. 30, 2014 | |
Common Stock, Closing Price Per Share | 7.09 |
Accounts Payable and Accrued Liabilities [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 52,011 |
Subordinated Loan Agreement [Member] | Payment in Kind (PIK) Note [Member] | ' |
Interest Payable | 368,755 |
LongTerm_Debt_Details
Long-Term Debt (Details) | 3 Months Ended | |||||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |
USD ($) | USD ($) | Brazil Loans [Member] | Brazil Loans [Member] | Brazil Loans [Member] | Brazil Loans [Member] | |
USD ($) | BRL | Maximum [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Balance Beginning | ' | ' | $1,148,114 | 2,785,644 | ' | ' |
New Borrowings | ' | ' | 705,254 | 1,632,434 | ' | ' |
Principal Payments | ' | ' | -821,539 | -1,919,957 | ' | ' |
Foreign Exchange Difference | 38,636 | -27,142 | 85,399 | 0 | ' | ' |
Balance Ending | ' | ' | 1,117,228 | 2,498,122 | ' | ' |
Less Accrued Interest Included | ' | ' | -20,321 | -47,037 | ' | ' |
TOTAL | ' | ' | $1,096,907 | 2,451,085 | ' | ' |
Collateral | ' | ' | 'Receivables, Officer Guarantee, Customer Contract | 'Receivables, Officer Guarantee, Customer Contract | ' | ' |
Monthly Interest Rate Range | ' | ' | ' | ' | 2.11% | 1.09% |
LongTerm_Debt_Details_Textual
Long-Term Debt (Details Textual) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||||||
Apr. 30, 2014 | Apr. 30, 2013 | Jan. 31, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Dec. 19, 2013 | Dec. 19, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Jun. 28, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Jun. 28, 2013 | |
USD ($) | USD ($) | USD ($) | China Subsidiary [Member] | China Subsidiary [Member] | Weifang Rural Credit Cooperative Bank [Member] | Weifang Rural Credit Cooperative Bank [Member] | Warrant [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Junior Lender [Member] | Senior Lender [Member] | Subordinated Loan Agreement [Member] | Subordinated Loan Agreement [Member] | Subordinated Loan Agreement [Member] | Subordinated Loan Agreement [Member] | Subordinated Loan Agreement [Member] | Subordinated Loan Agreement [Member] | Subordinated Loan Agreement [Member] | China Loan [Member] | T D Bank [Member] | Business Development Bank Of Canada [Member] | Business Development Bank Of Canada [Member] | Business Development Bank Of Canada [Member] | Business Development Bank Of Canada [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | GBP (£) | USD ($) | GBP (£) | Maximum [Member] | Minimum [Member] | USD ($) | USD ($) | USD ($) | Payment in Kind (PIK) Note [Member] | Termination Date On Or Before 28 June 2014 [Member] | Termination Date On Or Before 28 June 2015 [Member] | Termination Date On Or Before 28 June 2016 [Member] | Junior Lender [Member] | Junior Lender [Member] | USD ($) | USD ($) | USD ($) | CAD | Warehouse Loan [Member] | Warehouse Loan [Member] | USD ($) | USD ($) | ||||
USD ($) | USD ($) | USD ($) | USD ($) | CAD | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line Of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | ' | ' | ' | ' | ' | $3,500,000 | $13,500,000 | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 |
Subordinated Debt, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Current Market Price Of Shares Issued As Payments In Kind | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants To Purchase Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 566,015 | ' | ' | ' | ' | 566,015 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beneficial Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.58% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Subordinated Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Lines of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,700,000 | ' | ' | ' | ' | ' | ' |
Repayments of Debt | 14,397 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,320,000 | 1,362,000 | ' | ' |
Line Of Credit Facility, Borrowing Base Calculation, Percentage Of Accounts Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' |
Line Of Credit Facility, Borrowing Base Calculation, Percentage Of Eligible Inventory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' |
Line Of Credit Facility, Borrowing Base Calculation, Percentage Of Liquidation Value Of Inventory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' |
Line Of Credit Facility, Borrowing Base Calculation, Inbound Inventory In Transit Inventory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Line Of Credit Facility, Borrowing Base Calculation, Receivables And Inventory Held By Canadian Subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
Line Of Credit Facility, Borrowing Base Calculation, Amount Available At Closing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' |
Line Of Credit Facility, Collateral Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'A perfected first security lien on all of the Borrowers United States and Canadian assets, other than its Mexican plant and the Canadian warehouse. Pledge of 65% of Lakeland US stock in all foreign subsidiaries other than 100% pledge of stock of its Canadian subsidiaries. | ' |
Line Of Credit Facility, Maturity Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' |
Line Of Credit Facility, Prepayment Penalties Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Prepayment penalties of 3%, if prepaid prior to the first anniversary of Closing Date; 2% if prior to the second anniversary and 1% if prior to the third anniversary of the Closing Date | ' |
Line of Credit Facility, Interest Rate Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR rate plus 525 basis points | ' |
Line Of Credit Facility, Initial Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' |
Line Of Credit Facility, Floor Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' |
Line Of Credit Facility, Origination Fee Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225,000 | ' |
Line of Credit Facility, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' |
Line of Credit Facility, Collateral Fees, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 | ' |
Line Of Credit Facility, Financial Covenant Fixed Charge Coverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1.1 to 1.0 | ' |
Line Of Credit Facility Financial Covenant Minimum Amount Of Ebitda Quarter One | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' |
Line Of Credit Facility Financial Covenant Minimum Amount Of Ebitda Quarter Two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,150,000 | ' |
Line Of Credit Facility Financial Covenant Minimum Amount Of Ebitda Quarter Three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' |
Line Of Credit Facility, Financial Covenant, Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
line Of Credit, Facility Other Covenants, Limitation On Advances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' |
Line Of Credit, Facility Other Covenants, Limitation On Investments In Foreign Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Debt Instrument, Maturity Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28-Jun-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Interest at 12.0% per annum through and including December 27, 2016, increased to 16% per annum on December 28, 2016 and 20% per annum on December 28, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price Of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Number Of Shares To Be Issued From Combination Of Warrants, Interest Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,068,506 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Warrants Issuable Without Triggering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Exercise Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments Of Debt, Increment Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Early Termination Fees, Base Amount Of Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Early Termination Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 3.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Fee Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Financial Covenant Setback Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured Debt, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | 5.40% | ' | ' | ' | ' | ' | ' | ' |
Short-term Debt, Percentage Bearing Fixed Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | 3.44% | 3.44% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants To Purchase Common Stock, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Issuance Discount, Amortization Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective All-In Rate Of Return Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The effective rate of return to the Junior Lender is computed by deducting the warrant valuation OID from the $3.5 million principal leaving a valuation for the debt at closing of $1.3 million. Including the 12% coupon and the amortization of the OID gives an effective per annum rate on just the debt of approximately 47%, assuming the warrant is broken out separately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective All-In Rate Of Return Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinated Debt Net | 2,005,917 | ' | 1,525,392 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term Debt, Refinanced, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '240 months | '240 months | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.45% | 6.45% | ' | ' | ' | ' |
Debt Instrument, Periodic Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,780 | 8,169 | ' | ' | ' | ' |
Long-term Debt, Current Maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' |
Long-term Debt, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | 1,900,000 | ' | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | 1,287,000 | 8,000,000 | ' | ' | ' | 2,000,000 | 1,250,000 | 1,600,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line Of Credit Facility Advance Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Expiration Date | ' | ' | ' | ' | ' | 27-Sep-14 | 27-Sep-14 | ' | 19-Dec-14 | 19-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Frequency of Payments | ' | ' | ' | ' | ' | ' | ' | ' | 'one-year renewable | 'one-year renewable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line Of Credit Facility Bench mark Interest Rate At Period End | ' | ' | ' | ' | ' | 120.00% | 120.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | 6.72% | 6.72% | 5.60% | 5.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Professional Fees | ' | ' | ' | ' | ' | 6,450 | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $368,755 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Major_Supplier_Details_Textual
Major Supplier (Details Textual) | 3 Months Ended |
Apr. 30, 2014 | |
Major Supplier [Line Items] | ' |
Entity Wide Purchases Major Supplier Percentage | 10.00% |
Employee_Stock_Compensation_De
Employee Stock Compensation (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2014 | Jan. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of Shares, Outstanding at January 31, 2014 | 24,000 | ' |
Number of Shares, Granted during the three months ended April 30, 2014 | 0 | ' |
Number of Shares, Outstanding at April 30, 2014 | 24,000 | 24,000 |
Number of Shares, Exercisable at April 30, 2014 | 24,000 | ' |
Number of Shares, Reserved for future issuance, Directors' Plan (expired on December 31, 2012) | 0 | ' |
Number of Shares, Directors Plan (Expired on December 31, 2012) | ' | ' |
Weighted Average Exercise Price per Share, Outstanding at January 31, 2014 | $7.47 | ' |
Weighted Average Exercise Price per Share, Granted during the three months ended April 30, 2014 | $0 | ' |
Weighted Average Exercise Price per Share, Outstanding at April 30, 2014 | $7.47 | $7.47 |
Weighted Average Exercise Price per Share, Exercisable at April 30, 2014 | $7.47 | ' |
Weighted Average Remaining Contractual Term, Outstanding | '2 years 8 months 12 days | '2 years 11 months 12 days |
Weighted Average Remaining Contractual Term, Exercisable at April 30, 2014 | '2 years 8 months 12 days | ' |
Aggregate Intrinsic Value, Outstanding at January 31, 2014 | $0 | ' |
Aggregate Intrinsic Value, Outstanding at April 30, 2014 | 4,600 | 0 |
Aggregate Intrinsic Value, Exercisable at April 30, 2014 | $4,600 | ' |
Employee_Stock_Compensation_De1
Employee Stock Compensation (Details 1) | 3 Months Ended | |
Apr. 30, 2014 | ||
Shares Under 2012 Equity Plan [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 272,290 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 937 | |
Vested during FY15 through April 30, 2014, restricted stock | 0 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 273,227 | [1] |
Shares Under 2012 Equity Plan [Member] | Restricted Stock Grants - Employees [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 150,500 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 0 | |
Vested during FY15 through April 30, 2014, restricted stock | 0 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 150,500 | [1] |
Shares Under 2012 Equity Plan [Member] | Restricted Stock Grants - Directors [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 49,500 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 0 | |
Vested during FY15 through April 30, 2014, restricted stock | 0 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 49,500 | [1] |
Shares Under 2012 Equity Plan [Member] | Matching Award Program [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 3,000 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 0 | |
Vested during FY15 through April 30, 2014, restricted stock | 0 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 3,000 | [1] |
Shares Under 2012 Equity Plan [Member] | Bonus in stock - employees [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 55,189 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 0 | |
Vested during FY15 through April 30, 2014, restricted stock | 0 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 55,189 | [1] |
Shares Under 2012 Equity Plan [Member] | Retainer In Stock - Directors [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 14,101 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 937 | |
Vested during FY15 through April 30, 2014, restricted stock | 0 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 15,038 | [1] |
Shares Under 2009 Equity Plan [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 4,116 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 0 | |
Vested during FY15 through April 30, 2014, restricted stock | 2,116 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 2,000 | [1] |
Shares Under 2009 Equity Plan [Member] | Restricted Stock Grants - Employees [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 0 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 0 | |
Vested during FY15 through April 30, 2014, restricted stock | 0 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 0 | [1] |
Shares Under 2009 Equity Plan [Member] | Restricted Stock Grants - Directors [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 0 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 0 | |
Vested during FY15 through April 30, 2014, restricted stock | 0 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 0 | [1] |
Shares Under 2009 Equity Plan [Member] | Matching Award Program [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 3,000 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 0 | |
Vested during FY15 through April 30, 2014, restricted stock | 1,000 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 2,000 | [1] |
Shares Under 2009 Equity Plan [Member] | Bonus in stock - employees [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 0 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 0 | |
Vested during FY15 through April 30, 2014, restricted stock | 0 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 0 | [1] |
Shares Under 2009 Equity Plan [Member] | Retainer In Stock - Directors [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Outstanding unvested grants at maximum at beginning of FY15, restricted stock | 1,116 | [1] |
Granted during FY15 through April 30, 2014, restricted stock | 0 | |
Vested during FY15 through April 30, 2014, restricted stock | 1,116 | |
Forfeited during FY15 through April 30, 2014, restricted stock | 0 | |
Outstanding unvested grants at maximum at April 30, 2014, restricted stock | 0 | [1] |
[1] | The Board has estimated the current performance level at zero and expenses have been recorded accordingly. |
Employee_Stock_Compensation_De2
Employee Stock Compensation (Details Textual) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Jun. 20, 2012 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Jun. 17, 2009 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |
Equity Incentive 2012 Plan [Member] | Equity Incentive 2012 Plan [Member] | Equity Incentive 2012 Plan [Member] | Equity Incentive 2009 Plan [Member] | Equity Incentive 2009 Plan [Member] | Director Option Plan [Member] | Director Option Plan [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Non Employee Director Stock Option Plan [Member] | Employees Bonus In Stock Program [Member] | Director Fee In Stock Program [Member] | |||
Equity Incentive 2012 Plan [Member] | Equity Incentive 2009 Plan [Member] | Equity Incentive 2009 Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Purchase Price Of Common Stock, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133.00% | 133.00% |
Share Based Compensation Arrangement By Share Based Payment Award Percent Age Of Cash Compensation Taken In Restricted Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | 310,000 | ' | ' | ' | ' | ' | ' | 253,000 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 180,859 | ' | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 273,227 | 2,000 | ' | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6 | $7.85 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | ' | ' | 215,727 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Stock Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,330,093 | $1,811 | ' | ' | ' | ' |
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Stock Options At Base Line Performance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 959,793 | 1,811 | ' | ' | ' | ' |
Share-based Compensation | 24,365 | 74,831 | 5,468 | 74,831 | ' | 18,896 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $8,771 | $26,939 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Data_Details
Segment Data (Details) (USD $) | 3 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | $23,507,228 | $21,736,990 |
Sales Revenue, Percentage | 100.00% | 100.00% |
Domestic [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 12,200,000 | 11,860,000 |
Sales Revenue, Percentage | 51.89% | 56.56% |
International [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | $11,310,000 | $9,880,000 |
Sales Revenue, Percentage | 48.11% | 45.44% |
Segment_Data_Details_1
Segment Data (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2014 | Apr. 30, 2013 | Jan. 31, 2014 | |||
Net Sales: | ' | ' | ' | ||
Net sales | $23,507,228 | $21,736,990 | ' | ||
External Sales: | ' | ' | ' | ||
Revenue from External Customers | 23,510,000 | 21,740,000 | ' | ||
Intersegment Sales: | ' | ' | ' | ||
Intersegment Revenue | 10,410,000 | 8,280,000 | ' | ||
Operating Profit (Loss): | ' | ' | ' | ||
Operating Profit (Loss) | 582,450 | -236,631 | ' | ||
Depreciation and Amortization Expense: | ' | ' | ' | ||
Depreciation and Amortization Expense | 374,596 | 434,436 | ' | ||
Interest Expense: | ' | ' | ' | ||
Interest Expense | 639,958 | 273,435 | ' | ||
Income Tax Expense (Benefits): | ' | ' | ' | ||
Income tax expense | 23,402 | 178,693 | ' | ||
Total Assets: | ' | ' | ' | ||
Total assets | 88,208,099 | [1] | ' | 83,749,525 | [1] |
Property and Equipment: | ' | ' | ' | ||
Long-Lived Assets | 12,090,000 | [1] | ' | 12,070,000 | [1] |
Capital Expenditures: | ' | ' | ' | ||
Capital Expenditures | 90,000 | [1] | ' | 830,000 | [1] |
Goodwill | ' | ' | ' | ||
Goodwill | 871,297 | [1] | ' | 871,297 | [1] |
USA [Member] | ' | ' | ' | ||
Net Sales: | ' | ' | ' | ||
Net sales | 13,110,000 | 12,300,000 | ' | ||
External Sales: | ' | ' | ' | ||
Revenue from External Customers | 12,200,000 | 11,860,000 | ' | ||
Intersegment Sales: | ' | ' | ' | ||
Intersegment Revenue | 910,000 | 440,000 | ' | ||
Operating Profit (Loss): | ' | ' | ' | ||
Operating Profit (Loss) | 910,000 | 1,420,000 | ' | ||
Depreciation and Amortization Expense: | ' | ' | ' | ||
Depreciation and Amortization Expense | 40,000 | 60,000 | ' | ||
Interest Expense: | ' | ' | ' | ||
Interest Expense | 0 | 0 | ' | ||
Income Tax Expense (Benefits): | ' | ' | ' | ||
Income tax expense | 0 | 0 | ' | ||
Total Assets: | ' | ' | ' | ||
Total assets | 30,260,000 | [1] | ' | 28,880,000 | [1] |
Property and Equipment: | ' | ' | ' | ||
Long-Lived Assets | 2,370,000 | [1] | ' | 2,420,000 | [1] |
Capital Expenditures: | ' | ' | ' | ||
Capital Expenditures | 0 | [1] | ' | 80,000 | [1] |
Goodwill | ' | ' | ' | ||
Goodwill | 870,000 | [1] | ' | 870,000 | [1] |
Other foreign [Member] | ' | ' | ' | ||
Net Sales: | ' | ' | ' | ||
Net sales | 6,460,000 | 5,860,000 | ' | ||
External Sales: | ' | ' | ' | ||
Revenue from External Customers | 6,240,000 | 5,310,000 | ' | ||
Intersegment Sales: | ' | ' | ' | ||
Intersegment Revenue | 220,000 | 550,000 | ' | ||
Operating Profit (Loss): | ' | ' | ' | ||
Operating Profit (Loss) | 380,000 | 180,000 | ' | ||
Depreciation and Amortization Expense: | ' | ' | ' | ||
Depreciation and Amortization Expense | 30,000 | 50,000 | ' | ||
Interest Expense: | ' | ' | ' | ||
Interest Expense | 50,000 | 30,000 | ' | ||
Income Tax Expense (Benefits): | ' | ' | ' | ||
Income tax expense | 80,000 | 70,000 | ' | ||
Total Assets: | ' | ' | ' | ||
Total assets | 21,300,000 | [1] | ' | 19,930,000 | [1] |
Property and Equipment: | ' | ' | ' | ||
Long-Lived Assets | 2,100,000 | [1] | ' | 2,140,000 | [1] |
Capital Expenditures: | ' | ' | ' | ||
Capital Expenditures | 0 | [1] | ' | 80,000 | [1] |
Mexico [Member] | ' | ' | ' | ||
Net Sales: | ' | ' | ' | ||
Net sales | 920,000 | 620,000 | ' | ||
External Sales: | ' | ' | ' | ||
Revenue from External Customers | 420,000 | 180,000 | ' | ||
Intersegment Sales: | ' | ' | ' | ||
Intersegment Revenue | 500,000 | 440,000 | ' | ||
Operating Profit (Loss): | ' | ' | ' | ||
Operating Profit (Loss) | -20,000 | -100,000 | ' | ||
Depreciation and Amortization Expense: | ' | ' | ' | ||
Depreciation and Amortization Expense | 10,000 | 10,000 | ' | ||
Interest Expense: | ' | ' | ' | ||
Interest Expense | 20,000 | 10,000 | ' | ||
Income Tax Expense (Benefits): | ' | ' | ' | ||
Income tax expense | -40,000 | 0 | ' | ||
Total Assets: | ' | ' | ' | ||
Total assets | 3,730,000 | [1] | ' | 3,730,000 | [1] |
Property and Equipment: | ' | ' | ' | ||
Long-Lived Assets | 2,080,000 | [1] | ' | 2,090,000 | [1] |
Capital Expenditures: | ' | ' | ' | ||
Capital Expenditures | 0 | [1] | ' | 10,000 | [1] |
China [Member] | ' | ' | ' | ||
Net Sales: | ' | ' | ' | ||
Net sales | 10,700,000 | 8,930,000 | ' | ||
External Sales: | ' | ' | ' | ||
Revenue from External Customers | 2,900,000 | 2,610,000 | ' | ||
Intersegment Sales: | ' | ' | ' | ||
Intersegment Revenue | 7,800,000 | 6,320,000 | ' | ||
Operating Profit (Loss): | ' | ' | ' | ||
Operating Profit (Loss) | 960,000 | 390,000 | ' | ||
Depreciation and Amortization Expense: | ' | ' | ' | ||
Depreciation and Amortization Expense | 60,000 | 70,000 | ' | ||
Interest Expense: | ' | ' | ' | ||
Interest Expense | -20,000 | 0 | ' | ||
Income Tax Expense (Benefits): | ' | ' | ' | ||
Income tax expense | 250,000 | 150,000 | ' | ||
Total Assets: | ' | ' | ' | ||
Total assets | 29,520,000 | [1] | ' | 30,110,000 | [1] |
Property and Equipment: | ' | ' | ' | ||
Long-Lived Assets | 2,590,000 | [1] | ' | 2,640,000 | [1] |
Capital Expenditures: | ' | ' | ' | ||
Capital Expenditures | 10,000 | [1] | ' | 440,000 | [1] |
Brazil [Member] | ' | ' | ' | ||
Net Sales: | ' | ' | ' | ||
Net sales | 1,750,000 | 1,780,000 | ' | ||
External Sales: | ' | ' | ' | ||
Revenue from External Customers | 1,750,000 | 1,780,000 | ' | ||
Operating Profit (Loss): | ' | ' | ' | ||
Operating Profit (Loss) | -280,000 | -930,000 | ' | ||
Depreciation and Amortization Expense: | ' | ' | ' | ||
Depreciation and Amortization Expense | 80,000 | 110,000 | ' | ||
Interest Expense: | ' | ' | ' | ||
Interest Expense | 150,000 | 250,000 | ' | ||
Total Assets: | ' | ' | ' | ||
Total assets | 8,520,000 | [1] | ' | 6,920,000 | [1] |
Property and Equipment: | ' | ' | ' | ||
Long-Lived Assets | 1,970,000 | [1] | ' | 1,860,000 | [1] |
Capital Expenditures: | ' | ' | ' | ||
Capital Expenditures | 0 | [1] | ' | 90,000 | [1] |
Corporate [Member] | ' | ' | ' | ||
Net Sales: | ' | ' | ' | ||
Net sales | 980,000 | 530,000 | ' | ||
Intersegment Sales: | ' | ' | ' | ||
Intersegment Revenue | 980,000 | 530,000 | ' | ||
Operating Profit (Loss): | ' | ' | ' | ||
Operating Profit (Loss) | -1,330,000 | -1,130,000 | ' | ||
Depreciation and Amortization Expense: | ' | ' | ' | ||
Depreciation and Amortization Expense | 150,000 | 130,000 | ' | ||
Interest Expense: | ' | ' | ' | ||
Interest Expense | 490,000 | 130,000 | ' | ||
Income Tax Expense (Benefits): | ' | ' | ' | ||
Income tax expense | -250,000 | 60,000 | ' | ||
Total Assets: | ' | ' | ' | ||
Total assets | -3,960,000 | [1] | ' | -4,630,000 | [1] |
Property and Equipment: | ' | ' | ' | ||
Long-Lived Assets | 960,000 | [1] | ' | 910,000 | [1] |
Capital Expenditures: | ' | ' | ' | ||
Capital Expenditures | 70,000 | [1] | ' | 130,000 | [1] |
Intersegment Elimination [Member] | ' | ' | ' | ||
Net Sales: | ' | ' | ' | ||
Net sales | -10,410,000 | -8,280,000 | ' | ||
Operating Profit (Loss): | ' | ' | ' | ||
Operating Profit (Loss) | -40,000 | -70,000 | ' | ||
Interest Expense: | ' | ' | ' | ||
Interest Expense | -50,000 | -150,000 | ' | ||
Income Tax Expense (Benefits): | ' | ' | ' | ||
Income tax expense | -20,000 | -100,000 | ' | ||
India [Member] | ' | ' | ' | ||
Total Assets: | ' | ' | ' | ||
Total assets | -1,160,000 | [1] | ' | -1,190,000 | [1] |
Property and Equipment: | ' | ' | ' | ||
Long-Lived Assets | 20,000 | [1] | ' | 10,000 | [1] |
Capital Expenditures: | ' | ' | ' | ||
Capital Expenditures | $10,000 | [1] | ' | $0 | [1] |
[1] | Negative assets reflect intersegment accounts eliminated in consolidation |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) | Apr. 30, 2014 | Jan. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 |
USD ($) | USD ($) | China Tax Authority [Member] | China Tax Authority [Member] | Brazil [Member] | Brazil [Member] | Argentina Subsidiary [Member] | |
USD ($) | CNY | USD ($) | BRL | China Tax Authority [Member] | |||
USD ($) | |||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Liability Maximum Additional Tax Liability | ' | ' | $16,000 | 100,000 | ' | ' | ' |
Investment In Subsidiary For Tax Avoidance | ' | ' | ' | ' | ' | ' | 500,000 |
Deferred Tax Assets, Valuation Allowance | 0 | 0 | ' | ' | ' | ' | ' |
Income Tax Examination, Penalties and Interest Expense, Total | ' | ' | ' | ' | 1,000,000 | 2,265,728 | ' |
Income Tax Examination, Tax Expense | ' | ' | ' | ' | 127,000 | 280,416 | ' |
Undistributed Earnings of Foreign Subsidiaries | 18,900,000 | ' | ' | ' | ' | ' | ' |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | $3,300,000 | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_and_For1
Derivative Instruments and Foreign Currency Exposure (Details Textual) (USD $) | 3 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Derivative Instruments and Foreign Currency Exposure [Line Items] | ' | ' |
Foreign Currency Transaction Gain (Loss), Before Tax | $38,636 | ($27,142) |
Derivative Financial Instruments, Assets [Member] | ' | ' |
Derivative Instruments and Foreign Currency Exposure [Line Items] | ' | ' |
Foreign Currency Transaction Gain (Loss), Before Tax | 18,110 | ' |
Other Assets | $2,500,000 | $3,500,000 |
VAT_Tax_Issue_in_Brazil_Detail
VAT Tax Issue in Brazil (Details) | 3 Months Ended | |||||||||||||||||
Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |||||
USD ($) | BRL | VAT Claims, One [Member] | VAT Claims, One [Member] | VAT Claims, Two [Member] | VAT Claims, Two [Member] | VAT Claims, Three [Member] | VAT Claims, Three [Member] | VAT Claims, Four [Member] | VAT Claims, Four [Member] | VAT Claims, Five [Member] | VAT Claims, Five [Member] | VAT Claims, Five [Member] | VAT Claims, Five [Member] | |||||
USD ($) | BRL | USD ($) | BRL | USD ($) | BRL | USD ($) | BRL | USD ($) | BRL | After State Amnesty Accepted [Member] | After State Amnesty Accepted [Member] | |||||||
USD ($) | BRL | |||||||||||||||||
Vat Tax Issue In Brazil [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
VAT Claims, Principal | ' | 7,776,270 | ' | 305,897 | ' | 573,457 | ' | 6,209,836 | ' | 402,071 | ' | 285,009 | ' | 285,009 | ||||
VAT Claims, Interest And Penalty | ' | 9,262,605 | ' | 491,272 | ' | 1,098,475 | ' | 6,653,586 | ' | 770,133 | ' | 249,140 | ' | 15,626 | ||||
VAT Claims, Total | $7,745,000 | 17,038,875 | $362,000 | 797,168 | $760,000 | 1,671,932 | $5,847,000 | 12,863,422 | $533,000 | 1,172,204 | $243,000 | 534,149 | $152,000 | 334,835 | ||||
VAT Claims, Loss Possibility | ' | ' | 'Remote | 'Remote | 'Remote | 'Remote | 'Probable | 'Probable | 'Remote | 'Remote | 'Loss Agreed | 'Loss Agreed | ' | ' | ||||
VAT Claims, Strategy | 'After State Amnesty Accepted | [1] | 'After State Amnesty Accepted | [1] | 'To wait Judicial Process | 'To wait Judicial Process | 'To wait Judicial Process | 'To wait Judicial Process | 'To wait Judicial Process and offer Judicial Deposit (approx. 3% net sales) | 'To wait Judicial Process and offer Judicial Deposit (approx. 3% net sales) | 'To wait Judicial Process | 'To wait Judicial Process | 'Accept State Amnesty (8 installments, approx. BRL 42K) | [1] | 'Accept State Amnesty (8 installments, approx. BRL 42K) | [1] | '8 Installments representing accepted amnesty per above | '8 Installments representing accepted amnesty per above |
VAT Claims, Collateral | ' | ' | 'New Land | 'New Land | 'Plant | 'Plant | '- | '- | 'New Land | 'New Land | '- | '- | ' | ' | ||||
[1] | Numbers may not add due to rounding |
VAT_Tax_Issue_in_Brazil_Detail1
VAT Tax Issue in Brazil (Details Textual) | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2014 |
USD ($) | BRL | After State Amnesty Accepted [Member] | After State Amnesty Accepted [Member] | Claim December 2013 By State of Sao Paulo [Member] | Maximum [Member] | Minimum [Member] | |
USD ($) | BRL | USD ($) | |||||
Vat Tax Issue In Brazil [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Value Added Tax Examination Claims Incurred In Period | ' | ' | ' | ' | $45,000 | ' | ' |
Value Added Tax Examination Penalties and Interest Expense | ' | ' | ' | ' | 200,000 | ' | ' |
Value Added Tax, Judicial Tax Claim Percentage | 20.00% | 20.00% | ' | ' | ' | ' | ' |
Value Added Tax, Judicial Tax Claim Amount | 6,700,000 | 15,000,000 | ' | ' | ' | ' | ' |
Formal Judicial Process Period | ' | ' | ' | ' | ' | '10 years | '5 years |
Value Added Tax Claims, Accepted Amnesty for Smaller Claim, Frequency of Periodic Payment | ' | ' | 'monthly | 'monthly | ' | ' | ' |
Value Added Tax Claims, Accepted Amnesty for Smaller Claim, Number of Periodic Payment | ' | ' | '8 Installments | '8 Installments | ' | ' | ' |
Value Added Tax Claims, Accepted Amnesty for Smaller Claim, Periodic Payment | ' | ' | 19,000 | 42,000 | ' | ' | ' |
Value Added Tax Claims, Percentage of Abatement for Penalty and Interest | ' | ' | 80.00% | 80.00% | ' | ' | ' |
Value Added Tax Claims, Penalty and Interest, Accrued | ' | ' | $153,000 | ' | ' | ' | ' |
Brazil_Management_and_Share_Pu1
Brazil Management and Share Purchase Agreement-Arbitration Award and Settlement Agreement (Details Textual) (USD $) | Apr. 30, 2014 | Jan. 31, 2014 | Apr. 30, 2014 |
Former Officers [Member] | |||
Brazil Management and Share Purchase Agreement-Arbitration Award and Settlement Agreement [Line Items] | ' | ' | ' |
Long-term Debt, Gross | ' | ' | $4,750,000 |
Debt Instrument, Frequency of Periodic Payment | ' | ' | 'quarterly |
Debt Instrument, Number of Periodic Payments | ' | ' | '19 installments |
Debt Instrument, Periodic Payment | ' | ' | 250,000 |
Debt Instrument, Maturity Date | ' | ' | 31-Dec-18 |
Estimated Litigation Liability, Current | 1,000,000 | 1,000,000 | 1,000,000 |
Estimated Litigation Liability, Noncurrent | 3,566,904 | 3,758,691 | 3,566,904 |
Interest Expense, Long-term Debt, Total | ' | ' | $183,096 |
Asset_Sales_Details_Textual
Asset Sales (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2014 | Jan. 31, 2014 | |
Asset Sales [Line Items] | ' | ' |
Proceeds from Sale of Real Estate | ' | $700,000 |
Dividend Paid To Parent Entity | ' | 1,700,000 |
Dividend Paid To Parent Entity Tax | 422,321 | ' |
Gains (Losses) on Sales of Investment Real Estate | $500,000 | ' |