Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Jan. 31, 2013	Apr. 23, 2013	Jul. 31, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	STREAMLINE HEALTH SOLUTIONS INC.
Entity Central Index Key	0001008586
Document Type	10-K
Document Period End Date	Jan. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--01-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 41,012,275
Entity Common Stock, Shares Outstanding		12,680,615

Consolidated Balance Sheets (USD $)	Jan. 31, 2013	Jan. 31, 2012
Current assets:
Cash and cash equivalents	$ 7,500,256	$ 2,243,054
Accounts receivable, net of allowance for doubtful accounts of $134,000 and $100,000, respectively	8,685,017	4,484,605
Contract receivables	1,481,819	430,370
Prepaid hardware and third party software for future delivery	22,777	38,193
Prepaid client maintenance contracts	1,080,330	788,917
Other prepaid assets	997,024	256,104
Deferred income taxes	0	167,000
Other current assets	110,555	0
Total current assets	19,877,778	8,408,243
Property and equipment:
Computer equipment	3,420,452	2,892,885
Computer software	2,196,236	2,131,730
Office furniture, fixtures and equipment	843,274	756,375
Leasehold improvements	697,570	667,000
Property and equipment, gross	7,157,532	6,447,990
Accumulated depreciation and amortization	(5,958,727)	(5,232,321)
Property and equipment, net	1,198,805	1,215,669
Contract receivables, less current portion	126,626	221,596
Capitalized software development costs, net of accumulated amortization of $17,464,601 and $14,805,236, respectively	12,816,486	9,830,175
Intangible assets, net	8,188,131	417,666
Deferred financing cost, net	541,740	145,857
Goodwill	12,133,304	4,060,504
Other, including deferred taxes of $0 and $711,000, respectively	383,708	841,348
Total non-current assets	35,388,800	16,732,815
Total assets	55,266,578	25,141,058
Current liabilities:
Accounts payable	1,495,913	879,027
Accrued compensation	2,088,850	887,130
Accrued other expenses	1,325,039	479,526
Current portion of long-term debt	1,250,000	0
Deferred revenues	9,810,442	6,496,938
Contingent consideration for earn-out	1,319,559	0
Current portion of deferred tax liability	35,619	0
Total current liabilities	17,325,422	8,742,621
Non-current liabilities:
Term loans	12,437,501	4,120,000
Convertible note	0	3,000,000
Warrants liability	3,649,349	0
Contingent consideration for earn-out, less current portion	0	1,232,720
Lease incentive liability, less current portion	99,579	47,193
Deferred income tax liability, less current portion	529,709	0
Total non-current liabilities	16,716,138	8,399,913
Total liabilities	34,041,560	17,142,534
Series A 0% Convertible Redeemable Preferred Stock, $.01 par value per share, $11,999,985 redemption value, 4,000,000 shares authorized, 3,999,995 issued and outstanding, net of unamortized preferred stock discount of $4,234,269	7,765,716	0
Stockholders' equity:
Common stock, $.01 par value per share, 25,000,000 shares authorized; 12,643,620 and 10,433,716 shares issued and outstanding, respectively	126,436	104,338
Additional paid in capital	49,178,389	38,360,980
Accumulated deficit	(35,845,523)	(30,466,794)
Total stockholders’ equity	13,459,302	7,998,524
Total liability and stockholders' equity	55,266,578	25,141,058
Convertible Redeemable Preferred Stock \| Series A
Stockholders' equity:
Convertible redeemable preferred stock, $.01 par value per share, 1,000,000 shares authorized, no shares issued	$ 0	$ 0

Consolidated Balance Sheets (Parenthetical) (USD $)			12 Months Ended
Consolidated Balance Sheets (Parenthetical) (USD $)	Jan. 31, 2013	Jan. 31, 2012	Jan. 31, 2013 Series A Preferred Stock	Jan. 31, 2013 Convertible Redeemable Preferred Stock Series A	Jan. 31, 2012 Convertible Redeemable Preferred Stock Series A
Allowance for doubtful accounts	$ 134,000	$ 100,000
Accumulated amortization of capitalized software development costs	17,464,601	14,805,236
Deferred taxes	0	711,000
Preferred stock dividend rate			0.00%
Convertible redeemable preferred stock, par value (USD per share)	$ 0.01
Convertible redeemable preferred stock, redemption value	11,999,985
Convertible redeemable preferred stock, shares authorized	4,000,000
Convertible redeemable preferred stock, shares issued	3,999,995
Convertible redeemable preferred stock, shares outstanding	3,999,995
Unamortized preferred stock discount	$ 4,234,269
Preferred stock, par value (USD per share)				$ 0.01	$ 0.01
Preferred stock, shares authorized				1,000,000	1,000,000
New issuance of series A convertible preferred stock				0	0
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	12,643,620	10,433,716
Common stock, shares outstanding	10,433,716	9,856,517

Consolidated Statements of Operations (USD $)

12 Months Ended

Jan. 31, 2013

Jan. 31, 2012

Revenues:

Systems sales

$ 1,463,225

$ 722,195

Professional services

3,792,569

3,369,875

Maintenance and support

11,211,197

8,867,697

Software as a service

7,299,812

4,156,441

Total revenues

23,766,803

17,116,208

Operating expenses:

Cost of systems sales

2,747,230

2,237,899

Cost of services, maintenance and support

6,333,566

4,830,117

Cost of software as a service

2,512,156

1,815,986

Selling, general and administrative

10,060,469

6,577,101

Research and development

2,948,313

1,408,749

Total operating expenses

24,601,734

16,869,852

Operating income (loss)

(834,931)

246,356

Other income (expense):

Interest expense

(1,957,010)

(178,524)

Loss on conversion of convertible notes

(5,970,002)

Miscellaneous income (expenses)

494,677

(30,943)

Earnings (loss) before income taxes

(8,267,266)

36,889

Income tax benefit (expense)

2,888,537

(24,315)

Net earnings (loss)

(5,378,729)

12,574

Deemed dividends on Series A Preferred Stock

(176,048)

Less: deemed dividends on Series A Preferred Shares

(176,048)

Net earnings (loss) attributable to common shareholders

$ (5,554,777)

$ 12,574

Basic net earnings (loss) per common share (in dollars per share)

$ (0.48)

^[1]

$ 0.00

^[1]

Number of shares used in basic per common share computation

11,634,540

9,887,841

Diluted net earnings (loss) per common share (in dollars per share)

$ (0.48)

^[1]

$ 0.00

^[1]

Number of shares used in diluted per common share computation

11,634,540

9,899,073

[1]	Quarterly amounts may not be additive

Consolidated Statements of Changes in Stockholders' Equity (USD $)	Total	Common stock	Additional paid in capital	Accumulated (deficit)
Stockholders' equity, beginning balance at Jan. 31, 2011	$ 6,594,439	$ 98,565	$ 36,975,242	$ (30,479,368)
Shares, beginning balance at Jan. 31, 2011		9,856,517
Statement of Changes in stockholders' equity
Stock issued to Employee Stock Purchase Plan and exercise of stock options, shares		62,050
Stock issued to Employee Stock Purchase Plan and exercise of stock options	92,473	621	91,852
Restricted stock issued, shares		270,304
Restricted stock issued	250	2,704	(2,454)
Share subscription sale, shares		244,845
Share subscription sale	403,988	2,448	401,540
Share-based compensation expense	894,800		894,800
Net earnings (loss)	12,574			12,574
Reclassification of common stock warrants to liability	0
Stockholders' equity, ending balance at Jan. 31, 2012	7,998,524	104,338	38,360,980	(30,466,794)
Shares, ending balance at Jan. 31, 2012		10,433,716
Statement of Changes in stockholders' equity
Stock issued to Employee Stock Purchase Plan and exercise of stock options, shares		149,764
Stock issued to Employee Stock Purchase Plan and exercise of stock options	282,628	1,497	281,131
Restricted stock issued, shares		137,325
Restricted stock issued		1,373	(1,373)
Share-based compensation expense	956,144		956,144
Net earnings (loss)	(5,378,729)			(5,378,729)
Conversion of note payable, Interpoint, shares		1,529,729
Conversion of note payable, Interpoint	3,116,182	15,297	3,100,885
Stock consideration for acquisition, shares		393,086
Stock consideration for acquisition	1,501,609	3,931	1,497,678
Issuance of common stock warrants	2,441,852		2,441,852
Issuance costs	(263,072)		(263,072)
Reclassification of common stock warrants to liability	(4,138,783)		(4,138,783)
Beneficial conversion feature of Series A Preferred Stock	2,685,973		2,685,973
Deemed dividends on Series A Preferred Stock	(176,048)		(176,048)
Issuance of Series A Preferred Stock at fair value	9,182,652		9,182,652
Reclassification of preferred stock to temporary equity at redemption value	(4,749,630)		(4,749,630)
Stockholders' equity, ending balance at Jan. 31, 2013	$ 13,459,302	$ 126,436	$ 49,178,389	$ (35,845,523)
Shares, ending balance at Jan. 31, 2013		12,643,620

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
Consolidated Statements of Cash Flows (USD $)	Jan. 31, 2013	Jan. 31, 2012
Operating activities:
Net earnings (loss)	$ (5,378,729)	$ 12,574
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities, net of effect of acquisitions:
Depreciation	726,406	727,794
Amortization of capitalized software development costs	2,659,365	1,972,889
Amortization of intangible assets	583,535	2,334
Amortization of other deferred costs	241,478	11,643
Amortization of debt discount	111,583	0
Valuation adjustment for warrants liability	(489,434)	0
Deferred tax benefit	2,935,522	0
Valuation adjustment for contingent earn-out	86,839	0
Net loss from conversion of convertible notes	5,970,002	0
Loss on disposal of fixed assets	0	26,667
Share-based compensation expense	956,144	894,800
Provision for accounts receivable	67,464	159,000
Change in assets and liabilities:
Accounts and contract receivables	(2,923,242)	(1,485,634)
Other assets	(1,129,255)	(47,081)
Accounts payable	526,149	202,395
Accrued expenses	992,285	(311,449)
Deferred revenues	(180,200)	730,143
Net cash provided by operating activities	(115,132)	2,896,075
Investing activities:
Purchases of property and equipment	(576,736)	(408,064)
Capitalization of software development costs	(1,999,676)	(2,600,000)
Payment for acquisition	(12,161,614)	(2,124,479)
Net cash used in investing activities	(14,738,026)	(5,132,543)
Financing activities:
Proceeds from term loan	9,880,000	4,120,000
Principal repayments on term loans	(312,500)	0
Proceeds from private placement	12,000,000	0
Payment of deferred financing costs	(1,271,862)	(157,500)
Net change under revolving credit facility	0	(1,200,000)
Proceeds from exercise of stock options and stock purchase plan	282,628	92,722
Proceeds from stock sale	0	403,988
Payment of success fee	(467,906)	0
Payments on capital lease	0	(183,637)
Net cash provided by financing activities	20,110,360	3,075,573
Increase in cash and cash equivalents	5,257,202	839,105
Cash and cash equivalents at beginning of year	2,243,054	1,403,949
Cash and cash equivalents at end of year	7,500,256	2,243,054
Supplemental cash flow disclosures:
Interest paid	1,626,750	92,431
Income taxes paid	84,990	20,136
Convertible note payable issued in conjunction with acquisition	0	3,000,000
Conversion of $3,000,000 note payable, Interpoint to common shares	3,116,182	0
Issuance of 393,086 shares of common stock, as part of Meta purchase price	1,501,609	0
Deemed dividends on Series A Preferred Stock	176,048	0
Issuance of warrants to placement agents	753,737	0
Reclassification of warrants from equity to warrants liability	4,138,783	0
Conversion of notes issued in conjunction with the private placement to Series A Preferred Stock, at fair value	$ 9,182,652	$ 0

Organization and Description of Business	12 Months Ended
Organization and Description of Business	Jan. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	ORGANIZATION AND DESCRIPTION OF BUSINESS Streamline Health Solutions, Inc. (the “Company”) operates in one segment as a provider of healthcare information technology through the licensing of its Electronic Health Information Management, Patient Financial Services, Coding and Clinicial Documentation Improvement and other Workflow software applications and the use of such applications by software as a service. The Company also provides implementation and consulting services to complement its software solutions. The Company’s software and services enable hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve, and process vast amounts of patient clinical, financial and other healthcare provider information. Fiscal Year All references to a fiscal year refer to the fiscal year commencing February 1 in that calendar year and ending on January 31 of the following year.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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+ Details

Significant Accounting Policies

12 Months Ended

Jan. 31, 2013

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiaries, Streamline Health, Inc., IPP Acquisition, LLC and Meta Health Technology, Inc. All significant intercompany transactions are eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash demand deposits. Cash deposits are placed in Federal Deposit Insurance Corporation (“FDIC”) insured financial institutions. Cash deposits may exceed FDIC insured levels from time to time. For purposes of the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Receivables

Accounts and contract receivables are comprised of amounts owed to the Company for licensed software, professional services, including maintenance services and software as a service and are presented net of the allowance for doubtful accounts. The timing of revenue recognition may not coincide with the billing terms of the client contract, resulting in unbilled receivables or deferred revenues; therefore certain contract receivables represent revenues recognized prior to client billings. Individual contract terms with clients or resellers determine when receivables are due. For billings where the criteria for revenue recognition have not been met, deferred revenue is recorded until all revenue recognition criteria have been met.

Allowance for Doubtful Accounts

In determining the allowance for doubtful accounts, aged receivables are analyzed monthly by management. Each identified receivable is reviewed based upon the most recent information available, including client comments, if any, and the status of any open or unresolved issues with the client preventing the payment thereof. Corrective action, if necessary, is taken by the Company to resolve open issues related to unpaid receivables. During these monthly reviews, the Company determines the required allowances for doubtful accounts for estimated losses resulting from the unwillingness or inability of its clients or resellers to make required payments. The allowance for doubtful accounts was approximately $134,000 and $100,000 at January 31, 2013 and 2012, respectively. The Company believes that its reserve is adequate, however results may differ in future periods.

Bad debt expense for fiscal years 2012 and 2011 are as follows:

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method, over the estimated useful lives of the related assets. Estimated useful lives are as follows:



Computer equipment and software	3-4 years
Office equipment	5 years
Office furniture and fixtures	7 years
Leasehold improvements	Term of lease

Depreciation expense for property and equipment in fiscal 2012 and 2011 was $726,000 and $728,000, respectively.

Normal repair and maintenance is expensed as incurred. Replacements are capitalized and the property and equipment accounts are relieved of the items being replaced or disposed of, if no longer of value. The related cost and accumulated depreciation of the disposed assets are eliminated and any gain or loss on disposition is included in the results of operations in the year of disposal.

Leases

In fiscal 2010, the Company entered into a Second Amendment to the Lease Agreement signed in fiscal 2005 for the Cincinnati office location. The lease term expires July 31, 2015. In connection with the amendment, the property owner provided certain lease inducements to the Company, including a three month rent allowance equivalent to $42,000. The rent allowance is granted in three equal allotments on the first, second, and third anniversaries of the amendment execution date. The Company has accounted for the value of these inducements by recognizing the total allowance benefit over the term of the lease, and recording rent expense on a straight line basis.

As part of the Interpoint acquisition on December 7, 2011, the Company assumed a lease agreement for office space in Atlanta, Georgia. The lease term expires on June 21, 2014.

On April 10, 2012, the Company entered into an amended lease obligation to lease 8,582 square feet of office space in the same building as the assumed Interpoint lease, at 1230 Peachtree St. NE in Atlanta, GA. The lease commenced upon taking possession of the space and ends 72 months thereafter. The Company took possession of the space during the third quarter of fiscal 2012. Upon relocation, the Company completely vacated the previously leased premises within the building. The provisions of the lease provide for rent abatement for the first four months of the lease term, and a moving allowance of approximately $17,000. Upon taking possession of the premises, the rent abatement and allowance were aggregated with the total expected rental payments, and are being amortized on a straight line basis over the term of the lease.

On August 16, 2012, as part of the acquisition of Meta Health Technology, the Company assumed a lease agreement for office space of approximately 10,000 square feet in size, at 330 Seventh Ave., 14th floor, New York, NY. This lease term expires on August 31, 2014.

Debt Issuance Costs

Costs related to the issuance of debt are capitalized and amortized to interest expense using the effective interest rate method over the term of the related debt.

Impairment of Long-Lived Assets

The Company reviews the carrying value of the long-lived assets whenever facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. Among the factors the Company considers in making the evaluation are changes in market position and profitability. If facts and circumstances are present which may indicate impairment is probable, the Company will prepare a projection of the undiscounted cash flows of the specific asset and determine if the long-lived assets are recoverable based on these undiscounted cash flows. If impairment is indicated, an adjustment will be made to reduce the carrying amount of these assets to their fair value.

Capitalized Software Development Costs

Software development costs associated with the planning and designing phase of software development, including coding and testing activities necessary to establish technological feasibility, are classified as research and development and are expensed as incurred. Once technological feasibility has been determined, a portion of the costs incurred in development, including coding, testing, and quality assurance, are capitalized and subsequently reported at the lower of unamortized cost or net realizable value. The Company capitalized approximately $2,000,000 and $2,600,000 in fiscal 2012 and 2011, respectively. The Company acquired $3,646,000 and $1,628,000 of internally developed software in 2012 and 2011, respectively through the acquisitions described in Note C - Acquisitions.

Amortization for the Company's legacy software systems is provided on a solution-by-solution basis over the estimated economic life of the software, using the straight-line method. Amortization commences when a solution is available for general release to clients. Acquired internally developed software from the Interpoint and Meta acquisitions is amortized on the basis of undiscounted future cash flows.

Amortization expense on all internally developed software was approximately $2,659,000 and $1,973,000 in fiscal 2012 and 2011, respectively.

Research and development expense, net of capitalized amounts, was approximately $2,948,000 and $1,409,000 in fiscal 2012 and 2011, respectively.

Fair Value of Financial Instruments

The FASB’s authoritative guidance on fair value measurements establishes a framework for measuring fair value, and expands disclosure about fair value measurements. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. Under this guidance, assets and liabilities carried at fair value must be classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value based on the short-term maturity of these instruments. Cash and cash equivalents are classified as Level 1. The carrying amount of the Company’s long-term debt approximates fair value since the interest rates being paid on the amounts approximate the market interest rate. Long-term debt is classified as Level 2. The fair value of contingent consideration for earn-out and warrants liability is determined by management with the assistance of an independent third party valuation specialist. The Company used a binomial model to estimate the fair value of the contingent consideration for earn-out and warrants liability. The contingent consideration for earn-out and warrants liability are classified as Level 3.

Revenue Recognition

The Company derives revenue from the sale of internally developed software either by licensing or by software as a service, through the direct sales force or through third-party resellers. Licensed, locally-installed, clients utilize the Company’s support and maintenance services for a separate fee, whereas SaaS fees include support and maintenance. The Company also derives revenue from professional services that support the implementation, configuration, training, and optimization of the applications. Additional revenues are also derived from reselling third-party software and hardware components.

The Company recognizes revenue in accordance with ASC 985-605, Software-Revenue Recognition and ASC 605-25 Revenue Recognition — Multiple-element arrangements. The Company commences revenue recognition when the following criteria all have been met:


•	Persuasive evidence of an arrangement exists,


•	Delivery has occurred or services have been rendered,


•	The arrangement fees are fixed or determinable, and


•	Collection is considered probable

If the Company determines that any of the above criteria have not been met, the Company will defer recognition of the revenue until all the criteria have been met. Maintenance and support and SaaS agreements entered into are generally non-cancelable, or contain significant penalties for early cancellation, although clients typically have the right to terminate their contracts for cause if the Company fails to perform material obligations. However, if non-standard acceptance periods or non-standard performance criteria, cancellation or right of refund terms are required, revenue is recognized upon the satisfaction of such criteria, as applicable.

Revenues from resellers are recognized gross of royalty payments to resellers.

Multiple Element Arrangements

On February 1, 2011, the Company adopted Accounting Standards Update No. 2009-13, Revenue Recognition (Topic 605), “Multiple-Deliverable Revenue Arrangements — a consensus of the FASB Emerging Issues Task Force” (“ASU 2009-13”) on a prospective basis. ASU 2009-13 amended the accounting standards for revenue recognition for multiple deliverable revenue arrangements to:


•	Provide updated guidance on how deliverables of an arrangement are separated, and how consideration is allocated;


•	Eliminate the residual method and require entities to allocate revenue using the relative selling price method and;


•	Require entities to allocate revenue to an arrangement using the estimated selling price (“ESP”) of deliverables if it does not have vendor specific objective evidence (“VSOE”) or third party evidence (“TPE”) of selling price.

Terms used in evaluation are as follows:


•	VSOE — the price at which an element is sold as a separate stand-alone transaction


•	TPE — the price of an element, charged by another company that is largely interchangeable in any particular transaction


•	ESP — the Company’s best estimate of the selling price of an element of the transaction

The Company follows accounting guidance for revenue recognition of multiple-element arrangements to determine whether such arrangements contain more than one unit of accounting. Multiple-element arrangements require the delivery or performance of multiple solutions, services and/or rights to use assets. To qualify as a separate unit of accounting, the delivered item must have value to the client on a stand-alone basis. Stand-alone value to a client is defined in the guidance as those that can be sold separately by any vendor or the client could resell the item on a stand-alone basis. Additionally, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item or items must be considered probable and substantially in the control of the vendor.

The Company has a defined pricing methodology for all elements of the arrangement and proper review of pricing to ensure adherence to Company policies. Pricing decisions include cross-functional teams of senior management, which uses market conditions, expected contribution margin, size of the client’s organization, and pricing history for similar solutions when establishing the selling price.

Software as a service

The Company uses ESP to determine the value for a software as a service arrangement as the Company cannot establish VSOE and TPE is not a practical alternative due to differences in functionality from the Company's competitors. Similar to proprietary license sales, pricing decisions rely on the relative size of the client purchasing the solution, and include calculating the equivalent value of maintenance and support on a present value basis over the term of the initial agreement period. Typically revenue recognition commences upon client go-live on the system, and is recognized ratably over the contract term. The software portion of SaaS for Health Information Management ("HIM") products does not need material modification to achieve its contracted function. The software portion of SaaS for the Company's Patient Financial Services ("PFS") products require material customization and setup processes to achieve their contracted function.

System Sales

The Company uses the residual method to determine fair value for proprietary software license sold in a multi-element arrangement as the Company cannot establish fair value for all of the undelivered elements. Typically pricing decisions for proprietary software rely on the relative size and complexity of the client purchasing the solution. Third party components are resold at prices based on a cost plus margin analysis. The proprietary software and third party components do not need any significant modification to achieve its intended use. When these revenues meet the all criteria for revenue recognition, and are determined to be separate units of accounting revenue is recognized. Typically this is upon shipment of components or electronic download of software. Proprietary licenses are perpetual in nature, and license fees do not include rights to version upgrades, fixes or service packs.

Maintenance and Support Services

The maintenance and support components are not essential to the functionality of the software and clients renew maintenance contracts separately from software purchases at renewal rates materially similar to the initial rate charged for maintenance on the initial purchase of software. The Company uses VSOE of fair value to determine fair value of maintenance and support services. Rates are set based on market rates for these types of services, and the Company’s rates are comparable to rates charged by its competitors, which is based on the knowledge of the marketplace by senior management. Generally, maintenance and support is calculated as a percentage of the list price of the proprietary license being purchased by a client. Clients have the option of purchasing additional annual maintenance service renewals each year for which rates are not materially different from the initial rate, but typically include a nominal rate increase based on the consumer price index. Annual maintenance and support agreements entitle clients to technology support, upgrades, bug fixes and service packs.

Term Licenses

The Company cannot establish VSOE fair value of the undelivered element in term license arrangements. However, as the only undelivered element is post-contract customer support, the entire fee is recognized ratably over the contract term. Typically revenue recognition commences once the client goes live on the system. Similar to proprietary license sales, pricing decisions rely on the relative size of the client purchasing the solution. The software portion of the Company's CAC (“Computer Assisted Coding”) products generally do not require material modification to achieve their contracted function.

Professional Services

Professional services components that are not essential to the functionality of the software, from time to time, are sold separately by the Company. Similar services are sold by other vendors, and clients can elect to perform similar services in-house. When professional services revenues are a separate unit of accounting, revenues are recognized as the services are performed.

Professional services components that are essential to the functionality of the software, and are not considered a separate unit of accounting, are recognized in revenue ratably over the life of the client, which approximates the duration of the initial contract term. The Company defers the associated direct costs for salaries and benefits expense for PFS contracts. As of January 31, 2013 and 2012 the Company had deferred costs of approximately $201,000 and zero, respectively. These deferred costs will be amortized over the identical term as the associated SaaS revenues. Amortization expense of these costs was approximately $35,000 and zero in fiscal 2012 and 2011, respectively.

The Company uses VSOE of fair value based on the hourly rate charged when services are sold separately, to determine fair value of professional services. The Company typically sells professional services on a fixed fee basis. The Company monitors projects to assure that the expected and historical rate earned remains within a reasonable range to the established selling price.

Concentrations

Financial instruments, which potentially expose the Company to concentrations of credit risk, consist primarily of accounts receivable. The Company’s accounts receivable are concentrated in the healthcare industry. However, the Company’s clients typically are well-established hospitals, medical facilities, or major health information systems companies that resell the Company’s solutions that have good credit histories. Payments from clients have been received within normal time frames for the industry. However, some hospitals and medical facilities have experienced significant operating losses as a result of limits on third-party reimbursements from insurance companies and governmental entities and extended payment of receivables from these entities is not uncommon.

To date, the Company has relied on a limited number of clients and remarketing partners for a substantial portion of its total revenues. The Company expects that a significant portion of its future revenues will continue to be generated by a limited number of clients and its remarketing partners.

The Company currently buys all of its hardware and some major software components of its healthcare information systems from third-party vendors. Although there are a limited number of vendors capable of supplying these components, management believes that other suppliers could provide similar components on comparable terms.

Business Combinations

The assets acquired, liabilities assumed, and contingent consideration are recorded at their fair value on the acquisition date with subsequent changes recognized in earnings. These estimates are inherently uncertain and are subject to refinement. Management develops estimates based on assumptions as a part of the purchase price allocation process to value the assets acquired and liabilities assumed as of the business combination date. As a result, during the preliminary purchase price measurement period, which may be up to one year from the business combination date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. After the preliminary purchase price measurement period, the Company will record adjustments to assets acquired or liabilities assumed subsequent to the purchase price measurement period in operating expenses in the period in which the adjustments were determined.

The Company records acquisition and transaction related expenses in the period in which they are incurred. Acquisition and transaction related expenses primarily consist of legal, banking, accounting and other advisory fees of third parties related to potential acquisitions.

Goodwill and Intangible Assets

Goodwill and other intangible assets were recognized in conjunction with the Interpoint and Meta acquisitions. Identifiable intangible assets include purchased intangible assets with finite lives, which primarily consist of internally developed software, client relationships, supplier agreements, non-compete agreements, and customer contracts. Finite-lived purchased intangible assets are amortized over their expected period of benefit, which generally ranges from one to ten years, using the straight-line and undiscounted expected future cash flows methods. The indefinite-lived intangible asset relates to the Meta trade name; the indefinite-lived intangible asset is not amortized and is tested for impairment on at least an annual basis.

The Company assesses the useful lives and possible impairment of existing recognized goodwill and intangible assets when an event occurs that may trigger such a review. Factors considered important which could trigger a review include:


•	significant under performance relative to historical or projected future operating results;


•	significant changes in the manner of use of the acquired assets or the strategy for the overall business;


•	identification of other impaired assets within a reporting unit;


•	disposition of a significant portion of an operating segment;


•	Significant negative industry or economic trends;


•	Significant decline in the Company's stock price for a sustained period; and


•	a decline in the market capitalization relative to the net book value.

Determining whether a triggering event has occurred involves significant judgment by the Company.

The Company assesses goodwill annually (during the fourth quarter), or more frequently when events and circumstances, such as the ones mentioned above, occur indicating that the recorded goodwill may be impaired. The Company did not note any of the above qualitative factors which would be considered a triggering event for impairment. In assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company assesses relevant events and circumstances that may impact the fair value and the carrying amount of a reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit's fair value or carrying amount involve significant judgments by management. These judgments include the consideration of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, events which are specific to the Company, and trends in the market price of the Company's common stock. Each factor is assessed to determine whether it impacts the impairment test positively or negatively, and the magnitude of any such impact.

The two-step goodwill impairment test requires the Company to identify its reporting units and to determine estimates of the fair values of those reporting units as of the impairment testing date. Reporting units are determined based on the organizational structure the entity has in place at the date of the impairment test. A reporting unit is an operating segment or component business unit with the following characteristics: (a) it has discrete financial information, (b) segment management regularly reviews its operating results (generally am operating segment has a segment manager who is directly accountable to and maintains regular contact with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans for the segment), and (c) its economic characteristics are dissimilar from other units (this contemplates the nature of the products and services, the nature of the production process, the type or class of customer for the products and services, and the methods used to distribute the products and services).

The Company determined that it has one operating segment and one reporting unit.

To conduct a quantitative two-step goodwill impairment test, the fair value of the reporting unit is first compared to its carrying value. If the reporting unit's carrying value exceeds its fair value, the Company performs the second step and records an impairment loss to the extent that the carrying value of goodwill exceeds its implied fair value. The Company estimates the fair value of its reporting unit using a blend of market and income approaches. The market approach consists of two separate methods, including reference to the Company's market capitalization, as well as the guideline publicly traded company method. The market capitalization valuation method is based on an analysis of the Company's stock price on and around the testing date, plus a control premium. The guideline public company method was made by reference to a list of publicly traded software companies providing services to healthcare organizations, as determined by management. The market value of common equity for each comparable company was derived by multiplying the price per share on the testing date by the total common shares outstanding, plus a control premium. Selected valuation multiples are then determined and applied to appropriate financial statistics based on the Company's historical and forecasted results. The Company estimates the fair value of its reporting unit using the income approach, via discounted cash flow valuation models which include, but are not limited to, assumptions such as a “risk-free” rate of return on an investment, the weighted average cost of capital of a market participant, and future revenue, operating margin, working capital and capital expenditure trends. Determining the fair values of reporting units and goodwill includes significant judgment by management, and different judgments could yield different results.

The Company performed its annual assessment of goodwill during the fourth quarter of fiscal 2012, using the two-step approach described above. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. Based on the analysis performed for step one, the fair value of the reporting unit exceeded the carrying amount of the reporting unit, including goodwill, and therefore an impairment loss was not recognized. As the Company passed step one of the analysis, step two was not required.

Severances

From time to time the Company will enter into termination agreements with associates that may include supplemental cash payments, as well as contributions to health and other benefits for a specific time period subsequent to termination. In fiscal 2012 and 2011 , we incurred approximately $866,000 and $307,000 in severance expenses. At January 31, 2012 and 2011 we had accrued for $548,000 and zero in severances, respectively. The Company anticipates these severances accrued at January 31, 2013 to be paid out in full by August 31, 2013.

Equity Awards

The Company accounts for share-based payments based on the grant-date fair value of the awards with compensation cost recognized as expense over the requisite vesting period. The Company incurred total annual compensation expense related to stock-based awards of $956,000 and $895,000 in fiscal 2012 and 2011, respectively.

The fair value of the stock options granted in 2012 and 2011 was estimated at the date of grant using a Black-Scholes option pricing model. Option pricing model input assumptions such as expected term, expected volatility, and risk-free interest rate impact the fair value estimate. Further, the forfeiture rate impacts the amount of aggregate compensation. These assumptions are subjective and are generally derived from external (such as, risk free rate of interest) and historical data (such as, volatility factor, expected term, and forfeiture rates). Future grants of equity awards accounted for as stock-based compensation could have a material impact on reported expenses depending upon the number, value and vesting period of future awards.

The Company issues restricted stock awards in the form of Company common stock. The fair value of these awards is based on the market close price per share on the day of grant. The Company expenses the compensation cost of these awards as the restriction period lapses, which is typically a one year service period to the Company.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax credit and loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing net deferred tax assets, the Company considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The Company establishes a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized. See Note H for further details.

The Company provides for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether certain tax positions are more likely than not to be sustained upon examination by tax authorities. At January 31, 2013, the Company believes it has appropriately accounted for any uncertain tax positions. As part of the Meta acquisition the Company assumed a current liability for an uncertain tax position, and expects to settle this amount in fiscal 2013. The Company has recorded $152,000 and zero of reserves for uncertain tax positions and corresponding interest and penalties as of January 31, 2013 and January 31, 2012, respectively.

Net Earnings (Loss) Per Common Share

The Company presents basic and diluted earnings per share (“EPS”) data for its common stock. Basic EPS is calculated by dividing the net income attributable to shareholders of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to shareholders and the weighted average number of shares of common stock outstanding adjusted for the effects of all dilutive potential common shares comprised of options granted, unvested restricted stocks, warrants and convertible preferred stock. Potential common stock equivalents that have been issued by the Company related to outstanding stock options, unvested restricted stock and warrants are determined using the treasury stock method, while potential common shares related to Series A Convertible Preferred Stock are determined using the “if converted” method.

The Company's unvested restricted stock awards and Series A Convertible Preferred stock are considered participating securities under ASC 260, “Earnings Per Share” which means the security may participate in undistributed earnings with common stock. The Company's unvested restricted stock awards are considered participating securities because they entitle holders to non-forfeitable rights to dividends or dividend equivalents during the vesting term. The holders of the Series A Preferred Stock would be entitled to share in dividends, on an as-converted basis, if the holders of common stock were to receive dividends, other than dividends in the form of common stock. In accordance with ASC 260, a company is required to use the two-class method when computing EPS when a company has a security that qualifies as a “participating security.” The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. In determining the amount of net earnings to allocate to common stock holders, earnings are allocated to both common and participating securities based on their respective weighted-average shares outstanding for the period. Diluted EPS for the Company's common stock is computed using the more dilutive of the two-class method or the if-converted method.

In accordance with ASC 260, securities are deemed to not be participating in losses if there is no obligation to fund such losses. For the year ended January 31, 2013, the unvested restricted stock awards and the Series A Preferred Stock were not deemed to be participating since there was a net loss from operations for the year ended January 31, 2013. For the year ended January 31, 2012, the effect of unvested restricted stock to the earnings per share calculation was immaterial. As of January 31, 2013 there were 3,999,995 shares of preferred stock outstanding, each share is convertible into one share of the Company's common stock. There were no issued and outstanding preferred stocks as of January 31, 2012. For the year ended January 31, 2013, the Series A Convertible Preferred Stock would have an anti-dilutive effect if included in Diluted EPS and therefore, was not included in the calculation. As of January 31, 2013 and 2012, there were 137,327 and 126,457 unvested restricted shares of common stock outstanding. The unvested restricted shares at January 31, 2013 were excluded from the calculation as their effect would have been antidilutive.

The following is the calculation of the basic and diluted net earnings (loss) per share of common stock:



	Fiscal Year
	2012			2011
Net earnings (loss)	$	(5,378,729	)	$	12,574
Less: deemed dividends on Series A Preferred Stock	(176,048		)	—
Net earnings (loss) attributable to common shareholders	$	(5,554,777	)	$	12,574
Weighted average shares outstanding used in basic per common share computations	11,634,540			9,887,841
Stock options and restricted stock	—			11,232
Number of average shares used in diluted per common share computation	11,634,540			9,899,073
Basic net earnings (loss) per share of common stock	$	(0.48	)	$	—
Diluted net earnings (loss) per share of common stock	$	(0.48	)	$	—

Diluted (loss) earnings per share exclude the effect of 2,685,237 and 131,500 outstanding stock options in fiscal 2012 and 2011, respectively. The inclusion of these shares would be anti-dilutive. For the year ended January 31, 2013, the outstanding common stock warrants of 1,400,000 would have an anti-dilutive effect if included in Diluted EPS and therefore, were not included in the calculation. There were no outstanding warrants as of January 31, 2012.

Recent Accounting Pronouncements

The Company does not believe any recently issued, but not yet effective, accounting standards will have a material effect on the Company's consolidated financial position, results of operations, or cash flows.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

Acquisitions

12 Months Ended

Jan. 31, 2013

Business Combinations [Abstract]

ACQUISITIONS

On December 7, 2011, the Company completed the acquisition of substantially all of the assets of Interpoint Partners, LLC (“Interpoint”). This acquisition expanded the Company’s product offering into business intelligence and revenue cycle performance management. The initial purchase price for the assets was $5,124,000, consisting of $2,124,000 in cash and the issuance of a convertible subordinated note for $3,000,000. The convertible subordinated note was converted on June 15, 2012, please see Note F - Debt for further details. The purchase agreement also includes a contingent earn-out provision, which had an estimated value of approximately $1,320,000 and $1,233,000 at January 31, 2013 and January 31, 2012, respectively. The contingent earn-out is to be paid in cash or an additional convertible subordinated note based on the acquired Interpoint operations financial performance for the 12 month period beginning June 30, 2012 and ending June 30, 2013. The Company also assumed certain current operating liabilities of Interpoint. The Company granted Interpoint registration rights relating to common stock of the Company issued upon conversion of the convertible note. Under the acquisition method of accounting, the purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date as follows:



	Balance at December 7, 2011
Assets purchased:
Goodwill(1)	$	4,061,000
Internally developed software	1,628,000
Client relationships	413,000
Accounts receivable	268,000
Covenants not to compete	7,000
Fixed assets	36,000
Other assets	75,000
Total assets purchased	$	6,488,000
Liabilities assumed:
Accounts payable	131,000
Net assets acquired	$	6,357,000
Consideration:
Convertible debt	3,000,000
Contingent consideration liability for earn-out(2)	1,233,000
Cash paid	2,124,000
Total consideration	$	6,357,000

_______________


(1)	Goodwill represents the excess of purchase price over the fair value of net assets acquired, and is deductible for tax purposes.


(2)	Contingent consideration for earn-out was based on the estimated value of the payment obligation at the acquisition date; this amount has been revised, with adjustments recognized in the consolidated statement of earnings.

The acquired operations of Interpoint are consolidated with the results of the Company from December 7, 2011.

In connection with the acquisition, the Company incurred costs for the fiscal year ending January 31, 2012 amounting to approximately $195,000, primarily related to legal, financial, and accounting professional advisors. These costs were expensed as incurred and are included in the selling, general, and administrative expenses in the consolidated statement of operations.

On August 16, 2012 the Company acquired substantially all of the outstanding stock of Meta Health Technology, Inc., a New York corporation (“Meta”). The Company paid a total purchase price of approximately $14,790,000, consisting of cash payment of $13,288,000 and the issuance of 393,086 shares of the Company's common stock at an agreed upon price price of $4.07 per share. The fair value of the common stock at the date of issuance was $3.82. For the year ended January 31, 2013 the Company incurred approximately $1,306,000 of acquisition costs related to the Meta transaction, which were recorded in selling, general and administrative expense. These costs were primarily related to services provided by legal, financial, and accounting professional advisors and severances. As of October 31, 2012 the Company had acquired 100% of Meta’s outstanding shares.

The acquisition of Meta represents the Company's on-going growth strategy, and is reflective of the solutions development process, which is led by the needs and requirements clients and the marketplace in general. The Meta suite of solutions, when bundled with the Company's existing solutions, will help current and prospective clients better prepare for compliance with the ICD-10 transition. The Company believes that the integration of business analytics solutions with the coding solutions acquired in this transaction will position the Company to address the complicated issues of clinical analytics as clients prepare for the proposed changes in commercial and governmental payment models.

The purchase price is subject to certain adjustments related principally to the delivered working capital level, which will be settled in the third quarter of fiscal 2013, and/or indemnification provisions. Under the acquisition method of accounting, the purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date as follows:



	Balance at August 16, 2012
Assets purchased:
Cash	$	1,126,000
Accounts receivable	2,300,000
Fixed assets	133,000
Other assets	513,000
Client relationships	4,464,000
Internally developed software	3,646,000
Trade name	1,588,000
Supplier agreements	1,582,000
Covenants not to compete	720,000
Goodwill(1)	8,073,000
Total assets purchased	$	24,145,000
Liabilities assumed:
Accounts payable and Accrued liabilities	1,259,000
Deferred revenue obligation, net	3,494,000
Deferred tax liability	4,602,000
Net assets acquired	$	14,790,000
Consideration:
Company common stock	1,502,000
Cash paid	13,288,000
Total consideration	$	14,790,000

_______________


(1)	Goodwill represents the excess of purchase price over the estimated fair value of net tangible and intangible assets acquired, which is not deductible for tax purposes.

The acquired operations of Meta are consolidated with the results of the Company from August 16, 2012. Due to the new deferred tax liabilities recorded as a result of the above purchase price allocation, the Company was able to reduce its valuation allowance by approximately $3,000,000 representing the significant deferred tax benefit recorded for the year ended January 31, 2013.

Pro Forma Results

The GAAP results of Interpoint for the period December 7, 2011 through January 31, 2012, which include sales of $287,000 and net loss of approximately $111,000, have been included in the Company's fiscal 2011 consolidated financial statements.The GAAP results of Meta for the period August 16, 2012 through January 31, 2013, which include sales of approximately $3,395,000 and net earnings of approximately $780,000 have been included in the Company's fiscal 2012 consolidated financial statements.

The following unaudited pro forma information assumes the Meta and Interpoint acquisitions occurred as of the beginning of the earliest period presented. The unaudited pro forma financial information for all periods presented also includes the business combination accounting effects resulting from the acquisition including, historical interest expense, adjustments to interest expense for certain provisions in the asset purchase agreement, adjustments for transaction-related expenses, adjustments for salary and benefits for certain employees, amortization charges from acquired intangible assets and the related income tax effects for these adjustments (including the partial release of valuation allowance of approximately $3,000,000) were combined at the beginning of the earliest period presented. The unaudited pro forma supplemental results have been prepared based on estimates and assumptions, which the Company believes are reasonable and are not necessarily indicative of the consolidated financial position or results of operations had the acquisition occurred at the beginning of the earliest period presented, nor of future results of operations. For purposes of the pro forma presentation, the financial results of Interpoint for the year ended January 31, 2012 are based on the twelve months ended December 31, 2011. For purposes of the proforma presentation, the financial results of Meta for the twelve months ended December 31, 2011 have been combined with the results of the Company for the year ended January 31, 2012. The Meta results for the years ended January 31, 2012 and 2013 are based on the years ended December 31, 2011 and 2012. Subsequent to the acquisitions, the Interpoint and Meta results are recorded based on the Company’s fiscal year-end. The unaudited pro forma results are as follows (in thousands):



	For the year ended January 31,
	2013			2012
Revenue	$	29,471		$	25,666
Net loss	(9,939		)	(4,187		)
Less: deemed dividends on Series A Preferred Shares	(450		)	(719		)
Net loss attributable to common shareholders	$	(10,389	)	$	(4,906	)
Loss per share:
Basic	$	(0.88	)	$	(0.48	)
Diluted	$	(0.88	)	$	(0.48	)

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 30

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 17: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 30

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 18: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 19: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1500-128463

+ Details

Derivative Liabilities	12 Months Ended
Derivative Liabilities	Jan. 31, 2013
Other Liabilities Disclosure [Abstract]
OTHER LIABILITIES	DERIVATIVE LIABILITIES As discussed further in Note O - Private Placement Investment, in conjunction with the private placement investment, the Company issued common stock warrants exercisable for up to 1,200,000 of common stock at an exercise price of $3.99 per share. The warrants were initially classified in stockholders' equity as additional paid in capital at the allocated amount, net of allocated transaction costs, of approximately $1,425,000. Effective October 31, 2012, upon shareholder approval of anti-dilution provisions that reset the warrants' exercise price if a dilutive issuance occurs, the warrants were reclassified as non-current derivative liabilities. The fair value of the warrants was approximately $4,139,000 at October 31, 2012, with the difference between the fair value and carrying value recorded to additional paid in capital. Effective as of the reclassification as derivative liabilities, the warrants are re-valued at each reporting date, with changes in fair value recognized in earnings each reporting period as a credit or charge to miscellaneous income (expense). The fair value of the warrants at January 31, 2013 was approximately $3,649,000, with the decrease in fair value since October 31, 2012 of approximately $489,000 recognized as miscellaneous income in the consolidated statements of operations. The estimated fair value of the warrant liabilities as of January 31, 2013 was computed using Monte-Carlo simulations based on the following assumptions: annual volatility of 70%; risk-free rate of 0.9%, dividend yield of 0.0% and expected life of approximately five years. The model also included assumptions to account for anti-dilutive provisions within the warrant agreement.

Leases

12 Months Ended

Jan. 31, 2013

Leases [Abstract]

LEASES

The Company rents office and data center space and equipment under non-cancelable operating leases that expire at various times through fiscal year 2018. Future minimum lease payments under non-cancelable operating leases for the next five fiscal years and thereafter are as follows:



	Facilities		Equipment		Fiscal Year Totals
2013	$	906,000	$	116,000	$	1,022,000
2014	750,000		158,000		908,000
2015	322,000		52,000		374,000
2016	162,000		2,000		164,000
2017	167,000		1,000		168,000
Thereafter	85,000		—		85,000
Total	$	2,392,000	$	329,000	$	2,721,000

Rent and leasing expense for facilities and equipment was approximately $965,000 and $506,000 for fiscal years 2012 and 2011, respectively.

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References+ Details

Debt

12 Months Ended

Jan. 31, 2013

Debt Disclosure [Abstract]

DEBT

Term Loan and Line of Credit

On December 7, 2011, in conjunction with the Interpoint acquisition, the Company entered into a subordinated credit agreement with Fifth Third Bank in which the bank provided the Company with a $4,120,000 term loan, maturing on December 7, 2013, and a revolving line of credit, maturing on October 1, 2013.

The proceeds from the term loan were used to finance the cash portion of the Interpoint acquisition purchase price, as well as pay down the outstanding balance of the Company's existing revolving line of credit with Fifth Third Bank. The term loan and revolving line of credit were secured by substantially all of the assets of the Company and its subsidiaries. Borrowing under the term loan bore interest at a rate of 12% and borrowing on the line of credit bore interest at a floating rate based on LIBOR plus an applicable margin, and was payable monthly. The interest rate on the line of credit at January 31, 2012 approximated 3.25%. The Company paid a commitment fee in connection with the term loan of $120,000, which was included in deferred financing costs. The term loan contained a provision for a success fee payable on the maturity date of the loan. The Company had no outstanding borrowings under the line of credit as of January 31, 2012.

The significant covenants as set forth in the term loan and line of credit were as follows: (i) maintain adjusted EBITDA as of the end of any fiscal quarter greater than $3,500,000, on a trailing four fiscal quarter basis beginning January 31, 2012; (ii) maintain a fixed charge coverage ratio for the fiscal quarter ending January 31, 2012 and each April 30, July 31, October 31, and January 31 of less than 1.50:1 calculated quarterly for the period from October 31, 2011 to the date of measurement for the quarters ending January 31, 2012, April 30, 2012 and July 31, 2012 and on a trailing four quarter basis thereafter. (iii) on a consolidated basis, maintain ratio of funded debt to adjusted EBITDA as of the end of any fiscal quarter greater than 1.75:1, calculated quarterly on a trailing four fiscal quarter basis beginning January 31, 2012. The Company was in compliance with all loan covenants at January 31, 2012.

In conjunction with the Meta acquisition, on August 16, 2012, the Company amended the subordinated term loan and line of credit agreements with Fifth Third Bank, whereby Fifth Third Bank provided the Company with a $5,000,000 revolving line of credit, a $5,000,000 senior term loan and a $9,000,000 subordinated term loan, a portion of which was used to refinance the previously outstanding $4,120,000 subordinated term loan. Additionally, as part of the refinancing in August 2012, the Company mutually agreed to settle the success fee included in the previous subordinated term loan for $700,000. The difference between the success fee accrued $233,000 through the date of the amendment and the amount paid was recorded to deferred financing costs and is being amortized over the term of the amended loan. The Company paid a commitment fee in connection with the senior term loan of $75,000, which is included in deferred financing costs.

The Company will be required to pay a success fee in accordance with the amended subordinated term loan, which is recorded in interest expense as accrued over the term of the loan. The success fee is due on the date the entire principal balance of the loan becomes due. The success fee is accrued in accordance with the terms of the loan in an amount necessary to provide the lender a 17% internal rate of return through the date the success fee becomes due.

These new term loans and revolving line of credit mature on August 16, 2014. The loans are secured by substantially all of the Company's assets. The senior term loan principal balance is payable in monthly installments of approximately $104,000 starting in November 2012, and continuing through the maturity date, with the full remaining unpaid principal balance due at maturity. The entire unpaid principal balance of the subordinated term loan is due at maturity. Borrowings under the senior term loan bear interest at a rate of LIBOR (0.21% at January 31, 2013) plus 5.50%, and borrowings under the subordinated term loan bear interest at 10% from August 16, 2012 and thereafter. Accrued and unpaid interest on the senior and subordinated term loans is due monthly through maturity. Borrowings under the revolving loan bear interest at a rate equal to LIBOR plus 3.00%. A commitment fee of 0.40% will be incurred on the unused revolving line of credit balance, and is payable quarterly. At January 31, 2013, the Company had no outstanding borrowings under the line of credit, and had accrued approximately $2,000 in unused balance commitment fees. The proceeds of these loans were used to finance the cash portion of the acquisition purchase price and to cover any additional operating costs as a result of the Meta acquisition.

The Company evaluated the subordinated term loan for modification accounting, as it represents a single debtor-creditor relationship. The previously outstanding term loan bore interest at a rate of 12%, and was to mature on December 7, 2013. The amended subordinated term loan bears interest at a rate of 10%. FASB ASC 470-50-40 establishes criteria for evaluating the accounting for a debt restructuring as either a modification or extinguishment. The Company performed the gross method in assessing the 10% test, ascribed by ASC 470-50-40, relative to change in present value of cash flows. The gross method provides for a straightforward comparison of the old and new cash flows. As the changes occurred within a single debtor-creditor relationship and the present value of cash flows under the terms of the new debt instrument was less than 10% different from the present value of cash flows under the terms of the original instrument, the Company is accounting for the debt restructuring as a debt modification. As such, fees paid to or received from the creditor were capitalized and are being amortized to interest expense over the remaining term of the restructured debt using the effective interest method.

The Company also evaluated the revolving line of credit as part of a debt restructuring for modification accounting. Under ASC 470-50-40 borrowing capacity is analyzed when a debtor amends its line of credit with the same creditor by (1) calculating the borrowing capacity of the old arrangement by multiplying the remaining term by the maximum available credit of the line of credit; and (2) calculating the borrowing capacity of the new arrangement by multiplying the term by the maximum available credit of the new line of credit. If the borrowing capacity of the new line of credit is greater than or equal to that of the old line of credit, then the debtor should defer and amortize over the life of the new line of credit, any debt issue costs (fees paid to third parties) and unamortized discount or premium (fees paid to/received from the creditor) associated with the old arrangement in addition to the debt issue cost and discount or premium associated with the new arrangement. The Company determined the borrowing capacity of the new arrangement (change in borrowing capacity divided by original borrowing capacity) was greater than that of the borrowing capacity under the old arrangement. As such, fees paid to third parties under the previous and new arrangements are recorded as deferred financing costs and amortized over the term of the new line of credit.

The significant covenants as set forth in the term loans and line of credit are as follows: (i) maintain adjusted EBITDA as of the end of any fiscal quarter greater than $5,000,000, (after consideration of certain acquisition and transaction costs) on a trailing four fiscal quarter basis beginning October 31, 2012; (ii) maintain a fixed charge coverage ratio for the fiscal quarter ending January 31, 2013 and each April 30, July 31, October 31, and January 31 of not less than 1.50:1 calculated quarterly for the period from October 31, 2012 to the date of measurement for the quarters ending January 31, 2013 April 30, 2013 and July 31, 2013 and on a trailing four quarter basis thereafter; (iii) on a consolidated basis, maintain ratio of funded debt to adjusted EBITDA as of the end of any fiscal quarter less than 3:1, calculated quarterly on a trailing four fiscal quarter basis beginning October 31, 2012. The Company was in compliance with all loan covenants at January 31, 2013.

Outstanding principal balances on long-term debt consisted of the following at:



	Balance at January 31, 2013		Balance at January 31, 2012
Senior term loan	$	4,688,000	$	—
Subordinated term loan	9,000,000		4,120,000
Line of credit	—		—
Total	$	13,688,000	$	4,120,000
Less: Current portion	1,250,000		—
Non-current portion of long-term debt	$	12,438,000	$	4,120,000

Future principal repayments of long-term debt consisted of the following at January 31, 2013



	Payments Due by Period
	2013		2014
Senior term loan	$	1,250,000	$	3,438,000
Subordinated term loan	—		9,000,000
Line of credit	—		—
Total principal repayments	$	1,250,000	$	12,438,000

Convertible Note, Interpoint

On December 7, 2011, as part of the purchase of the assets of Interpoint, the Company issued a convertible promissory note for $3,000,000. The note accrued interest at a per annum rate of 8% from the date of the note until the the note was converted. All outstanding accrued interest was capitalized as additional principal through the conversion of the note. Under the terms of the note, the principal balance was to be paid in three equal installments on December 1, 2014, December 1, 2015 and December 1, 2016, respectively.

Under the conversion provisions in the note, Interpoint had the right, but not the obligation to exercise the conversion provision at any time after December 31, 2012 upon written notice to the Company. The conversion provision allowed for Interpoint to convert the outstanding principal balance and accrued interest into shares of the Company’s common stock at a conversion price of $2.00 per share. The conversion option for this note only allowed for settlement in stock.The conversion price of $2.00 per the agreement was greater than the market price of $1.65 on the date of the agreement, therefore it was determined the financial instrument did not have a beneficial conversion feature.

On June 15, 2012, Interpoint and the Company modified the conversion feature of the note to allow for early conversion of the balance of principal and interest on the note outstanding, net of working capital adjustments and related accrued interest owed to the Company, for 1,529,729 shares of common stock at $2.00 per share. The modification resulted in a change in fair value of the conversion option of $57,000 which is reflected as a loss in the consolidated statements of operations for the year ended January 31, 2013.

Contingent Earn-Out Provision

As part of the asset purchase, Interpoint is entitled to receive additional consideration contingent upon certain financial performance measurements during a one year earn-out period commencing June 30, 2012 and ending on June 30, 2013. The earn-out consideration is calculated as twice the recurring revenue for the earn-out period recognized by the acquired Interpoint operations from specific contracts defined in the asset purchase agreement, plus one times Interpoint revenue derived from the Company's customers, less $3,500,000. The earn-out consideration, if any, will be paid no later than July 31, 2013 in cash or through the issuance of a note with terms identical to the terms of the Convertible Note, except with respect to issue date, conversion date and prepayment date. The earn-out note restricts conversion or prepayment at any time prior to the one year anniversary of the issue date.

As of January 31, 2013, the Company estimates the payment obligation in connection with the earn-out will be $1,320,000, an increase of approximately $87,000, which was recorded as additional expense in fiscal 2012. As of January 31, 2012, the Company estimated the payment obligation to be $1,233,000. No change in value of the estimated earn-out was recorded in fiscal 2011.

Convertible subordinated notes payable, private placement investment

On August 16, 2012, in connection with the 12,000,000 private placement investment (“private placement investment”) with affiliated funds and accounts of Great Point Partners, LLC, and Noro-Moseley Partners VI, L.P., and another investor. The Company issued convertible subordinated notes payable in the aggregate principal amount of $5,699,577, which upon shareholder approval, convert into up to 1,583,220 shares of Series A Preferred Stock. The allocation of the proceeds to the subordinated convertible notes resulted in a debt discount of approximately $1,934,000, which will be amortized over the period from issue date to maturity date using the effective interest rate method. The Company has recorded approximately $112,000 of debt discount amortization in fiscal 2012. On November 1, 2012, upon shareholder approval, the convertible subordinated notes were converted into shares of Series A Preferred Stock. The convertible subordinated notes had an aggregate principal amount of $5,699,577 and converted into an aggregate of 1,583,210 shares of Preferred Stock. The Company incurred a loss upon conversion of $5,913,000 on November 1, 2012. For further detail on this transaction see also Note O - Private Placement Investment.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Goodwill and Intangibles

12 Months Ended

Jan. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLES

The goodwill activity is summarized as follows:



(in thousands)	Goodwill
Balance February 1, 2011	$	—
Goodwill acquired during the year	4,061
Balance January 31, 2012	4,061
Goodwill acquired during the year	8,073
Balance January 31, 2013	$	12,133

Goodwill and intangibles consist of the following:



(in thousands)	January 31, 2013
(in thousands)	Estimated Useful Life	Gross Assets		Accumulated Amortization	Net Assets
Indefinite-lived assets:
Goodwill	N/A	$	12,133	—	$	12,133
Trade names	N/A	1,588		—	$	1,588
Definite-lived assets:
Client relationships	10 years	$	4,879	271	$	4,608
Covenants not to compete	5.5 years	727		172	555
Supplier agreements	5 years	1,582		145	$	1,437
Total		$	20,909	588	$	20,321



(in thousands)	January 31, 2012
(in thousands)	Estimated Useful Life	Gross Assets		Accumulated Amortization	Net Assets
Indefinite-lived assets:
Goodwill	N/A	$	4,061	—	$	4,061
Trade names	N/A	—		—	$	—
Definite-lived assets:
Client relationships	10 years	$	413	—	$	413
Covenants not to compete	6 months	7		2	5
Total		$	4,481	2	$	4,479

Amortization over the next five fiscal years for intangible assets is estimated as follows:



(in thousands)	Annual Amortization Expense
2013	$	1,259
2014	974
2015	949
2016	902
2017	692
Thereafter	1,824
Total	$	6,600

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details

Income Taxes

12 Months Ended

Jan. 31, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

Income taxes consist of the following:



	Fiscal Year
	2012			2011
Current tax expense:
Federal	$	(9,391	)	$	(4,315	)
State	(37,594		)	(20,000		)
	(46,985		)	(24,315		)
Deferred tax benefit (expense):
Federal	2,642,580			—
State	292,942			—
	2,935,522			—
Current and deferred income tax benefit (expense)	$	2,888,537		$	(24,315	)

The income tax benefit (expense) for income taxes differs from the amount computed using the federal statutory income tax rate as follows:



	Fiscal Year
	2012			2011
Federal tax benefit (expense) at statutory rate	$	2,810,870		$	(12,574	)
State and local taxes, net of federal benefit (expense)	255,348			(20,000		)
Change in valuation allowance	2,000,295			194,602
Permanent items:
Loss from conversion of notes payable	(1,937,411		)	—
Transaction costs	(339,320		)	—
Change in fair value of warrants liability	166,408			—
Other	(45,540		)	(22,389		)
Deferred tax provision true-ups	—			(159,651		)
Reserve for uncertain tax position	—			—
Alternative minimum tax expense	—			(2,721		)
Other	(22,113		)	(1,582		)
Income tax benefit (expense)	$	2,888,537		$	(24,315	)

The Company provides deferred income taxes for temporary differences between assets and liabilities recognized for financial reporting and income tax purposes. The income tax effects of these temporary differences and credits are as follows:



	Fiscal Year
	2012			2011
Net Current Deferred Tax Assets:
Net operating loss carryforwards	$	—		$	167,000
Allowance for doubtful accounts	49,130			35,600
Deferred revenue	87,338			—
Accruals	209,428			88,513
Other	110,383			18,977
Other accruals	(4,083		)	(2,890		)
Valuation allowance	(487,815		)	(140,200		)
Current deferred tax (liabilities) assets	(35,619		)	167,000
Net Noncurrent Deferred Tax Assets:
Net operating loss carryforwards	9,857,529			9,872,202
Stock compensation expense	715,818			398,643
Property and equipment	184,605			135,240
AMT credit	97,200			—
Definite-lived intangible assets	(3,456,605		)	—
Trade name	(565,328		)	—
Goodwill	(15,753		)	—
Valuation allowance	(7,347,175		)	(9,695,085		)
Net noncurrent deferred tax (liabilities) assets	$	(529,709	)	$	711,000
Net deferred tax (liabilities) assets	$	(565,328	)	$	878,000

At January 31, 2013, the Company had U.S. federal net operating loss carry forwards of approximately $28,000,000 which expire at various dates through 2032. The Company also has an Alternative Minimum Tax net operating loss carry forward of approximately $27,875,000, which has an unlimited carry forward period. Approximately $10,037,000 of net operating losses will expire in fiscal 2013.

The Company recorded approximately $4,602,000 of additional deferred tax liabilities related to the Meta acquisition in fiscal 2012. These additional deferred tax liabilities create a new source of taxable income, thereby requiring the Company to release a portion of its deferred tax asset valuation allowance with a related reduction in income tax expense of approximately $3,000,000. As of January 31, 2013, the Company has a valuation allowance of approximately $7,800,000 on its total net deferred tax assets with the exception of the deferred tax liability created from trade name. The trade name-related deferred tax liability resulted in a “naked tax credit” liability of approximately $565,000 due to its indefinite life and because it cannot be used as a source of taxable income.

Due to the reporting requirements of ASC 718, $727,321, tax effected $262,951 of the net operating loss carryforward is not recorded on the Company’s balance sheet because the loss was created by the tax benefits of stock option exercises, which cannot be recognized for book purposes until the benefit has been realized by actually reducing taxes payable. When recognized the tax benefit of these losses will be accounted for as a credit to additional paid in capital rather than a reduction of the income tax provision.

The Company and its subsidiaries are subject to U.S. federal income tax as well as income taxes in multiple state and local jurisdictions. The Company has concluded all U.S. federal tax matters for years through January 31, 2009. All material state and local income tax matters have been concluded for years through January 31, 2004.

The Company has recorded a reserve, including interest and penalties, for uncertain tax positions of $152,000 and zero as of January 31, 2013 and January 31, 2012, respectively . In fiscal 2012 a reserve was recorded in purchase accounting as part of the Meta acquisition on August 16, 2012. The Company does not anticipate further adjustments to its reserve for uncertain tax positions that will result in a material change to its financial position during the next twelve months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 15

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(h))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph h

-Article 4

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 9

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Employee Retirement Plan	12 Months Ended
Employee Retirement Plan	Jan. 31, 2013
Employee Retirement Plan [Abstract]
EMPLOYEE RETIREMNET PLAN	EMPLOYEE RETIREMENT PLAN The Company has established a 401(k) retirement plan that covers all associates. Company contributions to the plan may be made at the discretion of the board of directors. The Company matches 100% up to the first 4% of compensation deferred by each associate in the 401(k) plan. The total compensation expense for this matching contribution was $289,000 and $249,000 in fiscal 2012 and 2011, respectively

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

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-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

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-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

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-Subparagraph q

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-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

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-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-URI http://asc.fasb.org/topic&trid=2235017

+ Details

Employee Stock Purchase Plan	12 Months Ended
Employee Stock Purchase Plan	Jan. 31, 2013
Employee Stock Purchase Plan [Abstract]
EMPLOYEE STOCK PURCHASE PLAN	EMPLOYEE STOCK PURCHASE PLAN The Company has an Employee Stock Purchase Plan under which associates may purchase up to 500,000 shares of common stock. Under the plan, eligible associates may elect to contribute, through payroll deductions, up to 10% of their base pay to a trust during any plan year, July 1 through June 30, of the following year. At June 30 of each year, the plan issues for the benefit of the employees shares of common stock at the lesser of (a) 85% of the fair market value of the common stock on July 1, of the prior year, or (b) 85% of the fair market value of the common stock on June 30, of the current year. At January 31, 2013, 143,258 shares remain that can be purchased under the plan. The Company recognized compensation expense of approximately $32,000 and $18,000 for fiscal years 2012 and 2011, respectively under this plan. During fiscal 2012, 44,743 shares were purchased at the price of $1.70 per share; during fiscal 2011, 29,452 shares were purchased at the price of $1.15 per share. The cash received for shares purchased from the plan was approximately $76,000 and $34,000 in fiscal 2012 and 2011, respectively. The purchase price at June 30, 2013, will be 85% of the lower of (a) the closing price on July 2, 2012 ($3.73) or (b) of the closing price on June 30, 2013.

Stock Based Compensation

12 Months Ended

Jan. 31, 2013

Share-based Compensation [Abstract]

STOCK BASED COMPENSATION

Stock Option Plans

The Company’s 1996 Employee Stock Option Plan authorized the grant of options to associates for the Company’s common stock. The options granted have terms of ten years or less and generally vest and become fully exercisable ratably over three years of continuous employment from the date of grant. At January 31, 2013 and 2012, options to purchase 5,000 and 7,500 shares, respectively, of the Company’s common stock have been granted and are outstanding under the plan. No more options can be granted under this plan.

The Company’s 1996 Non-Employee Directors Stock Option Plan authorized the grant of options for shares of the Company’s common stock. The options granted have terms of ten years or less, and vest and become fully exercisable ratably over three years of continuous service as a director from the date of grant. At January 31, 2013 and 2012, there are no outstanding options to purchase shares of the Company’s common stock under the plan. No more options can be granted under this plan.

The Company’s 2005 Incentive Compensation Plan which authorizes the Company to issue up to 2,500,000 equity awards (stock options, stock appreciation rights or “SAR’s”, and restricted stock) to directors and associates of the Company. The options granted have terms of ten years or less, and typically vest and become fully exercisable ratably over three years of continuous service to the Company from the date of grant. At January 31, 2013, options to purchase 1,556,910 shares of the Company’s common stock have been granted and are outstanding under the plan. There are no SAR’s outstanding under the plan. Please see "Restricted Stock" section for more information on restricted shares.

In fiscal 2011 and 2012, executive inducement grants were approved by the board pursuant to NASDAQ Marketplace Rule 5635(c)(4). The terms of the grant are nearly as practicable identical to the terms and conditions of the Company’s 2005 Incentive Compensation Plan. For the year ended January 31, 2012, 25,000 shares of restricted stock were granted; 515,000 stock options were issued and 200,000 options expired. At January 31, 2012 there were 715,000 options outstanding. For the year ended January 31, 2013, 675,000 stock options were issued, 177,783 options expired, and 88,889 were exercised. At January 31, 2013 there were 1,123,328 options outstanding. Please see “Restricted Stock” section for information on the restricted shares.

A summary of stock option activity is summarized as follows:



	Fiscal Year
	2012					2011
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding — beginning of year	1,920,550			$	2.22	942,064			$	2.42
Granted	1,295,000			3.96		1,388,500			1.57
Exercised	(105,021		)	1.97		(32,598		)	1.80
Expired	(425,292		)	2.07		(377,416		)	1.94
Forfeited	—			—		—			—
Outstanding — end of year	2,685,237			$	3.02	1,920,550			$	2.22
Exercisable — end of year	976,044			$	2.29	553,945			$	2.53
Aggregate intrinsic value of outstanding options at year end	$	13,950,962				$	3,168,909
Aggregate intrinsic value of exercisable options at year end	$	5,137,017				$	914,009
Weighted average grant date fair value of options granted during year	$	2.02				$	0.88
Total intrinsic value of options exercised during the year	$	570,264				$	53,788

The 2012 and 2011 stock-based compensation was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted average assumptions for each fiscal year:



	2012		2011
Expected life	5 years		5 years
Risk-free interest rate	0.35	%	0.39	%
Weighted average volatility factor	0.57		0.72
Dividend yield	—		—
Forfeiture rate	—		—



	Number of Options	Average Exercise Price			Remaining Life in Years
January 31, 2012
Outstanding	1,920,550	$	2.22		8.00
Exercisable	553,945	$	2.53		6.70
January 31, 2013
Outstanding	2,685,237	$	2.96	(1)	8.30
Exercisable	976,044	$	2.27	(2)	6.60

_______________


(1)	The exercise prices range from $1.46 to $6.03, of which 1,452,237 shares are between $1.46 and $2.00 per share, 420,000 shares are between $2.08 and $4.00 per share, and 813,000 shares are between $4.08 and $6.03 per share.


(2)	The exercise prices range from $1.46 to $6.03, of which 716,879 shares are between $1.46 and $2.00 per share, 184,165 shares are between $2.08 and $4.00 per share, and 75,000 shares are between $4.08 and $6.03 per share.

At January 31, 2013, there was approximately $2,777,000 of compensation cost that has not yet been recognized related to non-vested stock-option awards. That cost is expected to be recognized over a remaining weighted average period of three years. The expense associated with stock option awards was approximately $664,000 and $393,000, for fiscal 2012 and 2011, respectively. Cash received from exercise of options and the employee stock purchase plan was approximately $283,000 and $93,000, respectively, in fiscal 2012 and 2011.

The 1996 Employee Stock Option Plan and the 2005 Incentive Compensation Plan contain change in control provisions whereby any outstanding equity awards under the plans subject to vesting, which have not fully vested as of the date of the change in control, shall automatically vest and become immediately exercisable. One of the change in control provisions is deemed to occur if there is a change in beneficial ownership, or authority to vote, directly or indirectly, securities representing 20% or more of the total of all of the Company’s then outstanding voting securities, unless through a transaction arranged by, or consummated with the prior approval of the board of directors. Other change in control provisions relate to mergers and acquisitions or a determination of change in control by the Company’s board of directors.

Restricted Stock

The Company grants restricted stock awards under the 2005 Incentive Compensation Plan to associates and members of the board of directors. The Company has also issued restricted shares as inducement grants to executives. The restrictions on the shares granted generally lapse over a one year term of continuous employment from the date of grant. The grant date fair value per share of restricted stock, which is the stock price on the grant date, is expensed on a straight-line basis as the restriction period lapses. The shares represented by restricted stock awards are considered outstanding at the grant date, as the recipients are entitled to voting rights. A summary of restricted stock award activity for the period is presented below:



	Non-vested Number of Shares		Weighted Average Grant Date Fair Value
Non-vested balance at January 1, 2011	223,090		$	1.25
Granted	270,304		1.69
Vested	(366,937	)	1.79
Forfeited/expired	—		—
Non-vested balance at January 31, 2012	126,457		$	1.68
Granted	137,325		2.01
Vested	(126,457	)	1.79
Forfeited/expired	—		—
Non-vested balance at January 31, 2013	137,325		$	2.01

At January 31, 2013, there was approximately $91,000 of compensation cost that has not yet been recognized related to restricted stock awards. That cost is expected to be recognized over a remaining period of one year or less.

The expense associated with restricted stock awards was approximately $260,000 and $483,000 for fiscal 2012 and 2011, respectively.

Share Subscription Sale

On December 28, 2011, the Company entered into subscription agreements with members of the board of directors of the Company, and various members of Company management. Pursuant to these subscription agreements, an aggregate of 244,845 shares of the Company’s common stock was issued at a price per share of $1.65. The shares were issued pursuant to the Company’s “shelf” Registration Statement on Form S-3 (File No. 333-166843) that was declared effective on July 20, 2010. A prospectus supplement describing the terms of the offering was filed with the Securities and Exchange Commission on December 27, 2011. The offering closed on December 28, 2011. The net proceeds to the Company from the offering, after deducting estimated offering expenses, were approximately $404,000.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 718

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 2: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

-Topic 718

-SubTopic 10

-Section 50

-Paragraph 2

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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-Paragraph 1

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Financial Accounting Standard (FAS)

-Number 123R

-Paragraph 64, 65, A240

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-Name Accounting Standards Codification

-Topic 718

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-Name Accounting Standards Codification

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-Paragraph 4

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-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 14

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 93-6

-Paragraph 53

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+ Details

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Jan. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITTMENTS AND CONTINGENCIES Software as a Service The Company enters into long-term agreements to provide document imaging/management and workflow services to its healthcare clients as software as a service from a central data center. The Company guarantees specific “up-time” and “response time” performance standards, which, if not met may result in reduced revenues, as a penalty, for the month in which the standards are not met. There were no contingencies of this nature as of January 31, 2013. Employment Agreements The Company has entered into employment agreements with its officers and associates that generally provide annual salary, a minimum bonus, discretionary bonus, stock incentive provisions, fringe benefits, and severance arrangements. Reserved Common Stock As of January 31, 2013, the Company has reserved 3,069,024 shares of common stock authorized for issuance in connection with various equity award plans and the Employee Stock Purchase Plan. The Company has also reserved 3,999,995 common shares for issuance upon conversion of preferred shares into common stock, as well as 1,400,000 common shares for issuance upon exercise of outstanding warrants. Litigation The Company is, from time to time, a party to various legal proceedings and claims, which arise, in the ordinary course of business. The Company is not aware of any legal matters that will have a material adverse effect on the Company’s consolidated results of operations, or consolidated financial position, or consolidated cash flows.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 14

-Paragraph 3

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.25)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 460

-SubTopic 10

-Section 50

-Paragraph 8

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 450

-SubTopic 20

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 440

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 9, 10, 11, 12

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+ Details

Quarterly Results of Operations (Unaudited)

12 Months Ended

Jan. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following sets forth selected unaudited quarterly financial information for fiscal years 2012 and 2011. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the condensed consolidated financial information have been included.



Fiscal 2012 (In thousands, except per share data):	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			2012
Revenues	$	5,445		$	5,049		$	6,534		$	6,739		$	23,767
Gross profit	2,799			2,691			3,491			3,193			12,174
Operating profit (loss)	673			(24		)	(302		)	(1,181		)	(835		)
Net earnings (loss) (d)	491			(463		)	2,400			(7,807		)	(5,379		)
Less: deemed dividends on Series A Preferred Shares	—			—			(139		)	(37		)	(176		)
Net earnings (loss) attributable to common shareholders	491			(463		)	2,261			(7,844		)	(5,555		)
Basic net (loss) earnings per share (a)	0.05			(0.04		)	0.18			(0.63		)	(0.48		)
Diluted net (loss) earnings per share (a)	0.05			(0.04		)	0.15			(0.63		)	(0.48		)
Basic weighted average shares outstanding	10,307			11,316			12,393			12,493			11,635
Stock Price (b)
High	$	1.88		$	4.59		$	6.60		$	6.00		$	6.60
Low	$	1.61		$	1.70		$	3.50		$	4.75		$	1.61
Quarter and year-end close	$	1.79		$	4.34		$	5.72		$	5.43		$	5.43
Cash dividends declared (c)	$	—		$	—		$	—		$	—		$	—
Fiscal 2011 (In thousands, except per share data):	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			2011
Revenues	$	4,140		$	4,146		$	4,312		$	4,518		$	17,116
Gross profit	1,829			1,944			2,163			2,296			8,232
Operating profit (loss)	(253		)	20			364			116			246
Net earnings (loss)	(281		)	(7		)	296			5			13
Basic net (loss) earnings per share (a)	(0.03		)	(0.00)			0.03			0.00			0.00
Diluted net (loss) earnings per share (a)	(0.03		)	(0.00)			0.03			0.00			0.00
Basic weighted average shares outstanding	9,650			9,817			9,944			9,645			9,888
Stock Price (b)
High	$	2.05		$	2.19		$	2.06		$	1.86		$	2.19
Low	$	1.44		$	1.60		$	1.43		$	1.35		$	1.35
Quarter and year-end close	$	1.84		$	1.99		$	1.50		$	1.65		$	1.65
Cash dividends declared (c)	$	—		$	—		$	—		$	—		$	—

_______________


(a)	Quarterly amounts may not be additive


(b)	Based on data available through The NASDAQ Stock Market, Inc.


(c)	The Company has not paid a dividend on its common stock since its inception and does not intend to pay any cash dividends in the foreseeable future


(d)	The fourth quarter of 2012 includes a loss of $5,913,000 incurred upon conversion of the private placement convertible subordinated notes (Note O), as well as a $565,000 naked tax credit related to intangible assets recorded as part of the Meta acquisition (Note H)

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details

Private Placement Investment

12 Months Ended

Jan. 31, 2013

Equity [Abstract]

PRIVATE PLACEMENT INVESTMENT

On August 16, 2012, the Company completed a $12,000,000 private placement investment (“private placement investment”) with affiliated funds and accounts of Great Point Partners, LLC, and Noro-Moseley Partners VI, L.P., and another investor. The investment consisted of the following instruments: issuance of 2,416,785 shares of a new Series A 0% Redeemable Convertible Preferred Stock (“Series A Preferred Stock”) at $3.00 per share, common stock warrants (“warrants”) exercisable for up to 1,200,000 shares of the Company's common stock at an exercise price of $3.99 per share, and convertible subordinated notes payable in the aggregate principal amount of $5,699,577, which upon shareholder approval, convert into up to 1,583,210 shares of Series A Preferred Stock. The proceeds were allocated among the instruments based on their relative fair values as follows:



	Fair Value at August 16, 2012		Proceeds Allocation at August 16, 2012
Instruments:
Series A Preferred Stock (1)	$	9,907,820	$	6,546,146
Convertible subordinated notes payable (2)	5,699,577		3,765,738
Warrants (3)	2,555,022		1,688,116
Total investment	$	18,162,419	$	12,000,000

(1)

The Series A Preferred Stock convert on a 1:1 basis into common stock, but differ in value from common stock due to the downside protection relative to common stock in the event the Company liquidates, and the downside protection, if, after four years, the holder has not converted and the stock is below $3.00. The fair value of Series A Preferred Stock was determined using a Monte-Carlo simulation following a Geometric Brownian Motion, using the following assumptions: annual volatility of 75%, risk-free rate of 0.9% and dividend yield of 0.0%. The model also utilized the following assumptions to account for the conditions within the agreement: after four years, if the simulated common stock price fell below a price of $3.00 per share, the convertible preferred stock would automatically convert to common stock on a 1:1 basis moving forward at a price of exactly $3.00 per share and a forced conversion if the simulated stock price exceeded $8.00 per share.

(2)

The fair value of convertible subordinated notes payable was determined based on its current yield as compared to that of those currently outstanding in the marketplace. Management reviewed the convertible note agreement and determined that the note's interest rate is a reasonable representative of a market rate; therefore the face or principal amount of the loan is a reasonable estimate of its fair value.

(3)

The fair value of the common stock warrants was determined using a Monte-Carlo simulation following a Geometric Brownian motion, using the following assumptions: annual volatility of 75%, risk-free rate of 0.9%, dividend yield of 0.0% and expected life of 5 years. Because the dilutive down-round financing was subject to approval by shareholder vote which had not happened at the time of the valuation, the model utilized the assumption that the down-round financing would not occur within the simulation.

The Company incurred legal, placement and other adviser fees of approximately $1,894,000, including $754,000 in costs for warrants issued to placement agents. The total transaction costs were allocated among the instruments of the private placement investment based on their relative fair values as follows: approximately $611,000 to subordinated convertible notes as deferred financing costs, approximately $1,020,000 to Series A Preferred Stock as discount on Series A Preferred Stock and approximately $263,000 to warrants as a charge to additional paid in capital.

Series A Convertible Preferred Stock

In connection with the private placement investment, the Company issued 2,416,785 shares of Series A Preferred Stock at $3.00 per share. Each share of the Series A Preferred Stock is convertible into one share of the Company's common stock. The price per share of Series A Preferred Stock and the conversion price for the common stock was less than the “market value” of the common stock of $3.82 (as defined in the rules of the Nasdaq Stock Market) on the date of execution of the definitive agreements. The Series A Preferred Stock does not pay a dividend, however the holders are entitled to receive dividends on shares of Preferred Stock equal (on an as-if-converted-to-common-stock basis) to and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock. The Series A Preferred Stock have voting rights on a modified as-if-converted-to-common-stock-basis. The Series A Preferred Stock has a non-participating liquidation right equal to the original issue price plus accrued unpaid dividends, which are senior to the Company’s common stock. The Series A Preferred Stock can be converted to common shares at any time by the holders, or at the option of the Company if the arithmetic average of the daily volume weighted average price of the common stock for the ten day period prior to the measurement date is greater than $8.00 per share, and the average daily trading volume for the sixty day period immediately prior to the measurement date exceeds 100,000 shares. The conversion price is $3.00 per share, subject to certain adjustments.

The allocation of the proceeds and transaction costs based on relative fair values of the instruments resulted in recognition of a discount on the Series A Preferred Stock of approximately $4,410,000, including discount from beneficial conversion feature of approximately $2,686,000, which will be amortized from the date of issuance to the earliest redemption date. For the year ended January 31, 2013, the Company recognized approximately $176,048 of amortization of the discount on Series A Preferred Stock as deemed dividends charged to additional paid in capital, computed under the effective interest rate method. The value of the beneficial conversion feature is calculated as the difference between the effective conversion price of the Series A Preferred Stock and the fair market value of the common stock into which the Series A Preferred Stock are convertible at the commitment date.

On November 1, 2012, upon shareholder approval, the convertible subordinated notes were converted into shares of Series A Convertible Preferred Stock. The convertible subordinated notes had an aggregate principal amount of $5,699,577 and converted into an aggregate of 1,583,210 shares of Preferred Stock. The Company recorded a loss upon conversion of approximately $5,913,000 which represented the difference between the aggregate fair value of the Preferred Stock issued of approximately $9,183,000, based on a $5.80 fair value per share, and the total of carrying value of the notes and unamortized deferred financing cost of approximately $3,300,000. The shares of Series A Preferred Stock issued for the conversion of notes payable are recorded at their aggregate redemption value of approximately $4,750,000 with the difference between the fair value and redemption value of approximately $4,433,000 recorded as additional paid in capital. The fair value of the Preferred Stock was determined using a Monte-Carlo simulation based on the following assumptions: annual volatility of 75%, risk-free rate of 0.8%, and dividend yield of 0.0%. The model also utilized the following assumptions to account for the conditions within the agreement: after four years, if the simulated common stock price fell below a price of $3.00 per share, the convertible preferred stock would automatically convert to common stock on a 1:1 basis moving forward at a price of exactly $3.00 per share and a forced conversion if the simulated stock price exceeded $8.00 per share.

The following table sets forth the activity of the Series A Preferred Stock, classified as temporary equity, during the periods presented:



	Number of Shares	Series A Preferred Stock
Series A Preferred Stock, February 1, 2012	—	$	—
Issuance from private placement, at redemption value	2,416,785	7,250,355
Discount related to warrants (1)	—	(704,209		)
Discount related to beneficial conversion feature	—	(2,685,973		)
Discount related to issuance cost	—	(1,020,135		)
Issuance of shares at redemption value for conversion of notes payable	1,583,210	4,749,630
Accretion of Preferred Stock discount	—	176,048
Series A Preferred Stock, January 31, 2013	3,999,995	$	7,765,716

(1) The discount related to warrants represents the difference between the redemption value of the Series A Preferred Stock, issued in conjunction with the private placement, and its allocated proceeds.

At any time following August 31, 2016, each share of Series A Preferred Stock is redeemable at the option of the holder for an amount equal to the initial issuance price of $3.00 (adjusted to reflect stock splits, stock dividends or like events) plus any accrued and unpaid dividends thereon. The Series A Preferred Stock are classified as temporary equity as the securities are redeemable solely at the option of the holder.

Common Stock Warrants

In conjunction with the private placement investment, the Company issued common stock warrants exercisable for up to 1,200,000 of the Company's common stock at an exercise price of $3.99 per share. The warrants can be exercised in whole or in part during the period beginning on February 17, 2013 until 5 years years from such initial exercise date. The warrants also include a cashless exercise option which allows the holder to receive a number of shares of common stock based on an agreed upon formula in exchange for the warrant rather than paying cash to exercise.The proceeds, net of transaction costs, allocated to the warrants of approximately $1,425,000 were classified as equity on August 16, 2012, the date of issuance.

Effective October 31, 2012, upon shareholder approval of anti-dilution provisions that reset the warrants’ exercise price if a dilutive issuance occurs, the warrants were reclassified as derivative liabilities. The provisions require the exercise price to reset to the lower price at which the dilutive issuance is consummated, if the dilutive issuance occurs prior to the second anniversary of the warrants’ issuance. If a dilutive issuance occurs after the second anniversary of the warrants’ issuance, then the exercise price will be reset in accordance with a weighted average formula that provides for a partial reset, based on the number of shares raised in the dilutive issuance relative to the number of common stock equivalents outstanding at the time of the dilutive issuance. The change in fair value of the warrants was accounted for as an adjustment to stockholders’ equity for the period between the date of the contract’s last classification as equity to the date of reclassification to liability. The fair value of the warrants was approximately $4,139,000 at October 31, 2012. These warrants are accounted for as derivative liabilities effective October 31, 2012, and as such, are re-valued at each reporting date, which changes in fair value recognized in earnings each reporting period as a charge or credit to other expenses. The fair value of the warrants was approximately $3,649,000 at January 31, 2013.

On October 19, 2012 the Company also issued 200,000 warrants to its placement agents as a portion of the fees for services rendered in the private placement investment. The warrants have an initial exercise date of May 1, 2013 and are exercisable for a five year term thereafter at a stated exercise price of $4.06 per share and could be exercised in whole or in part at any time. The warrants also included a cashless exercise option which allowed the holder to receive a number of shares of common stock based on an agreed upon formula in exchange for the warrants rather than paying cash to exercise. The warrants have no reset provisions. The warrants had a grant date fair value of $754,000, and are classified as equity on the balance sheet. The estimated fair value of the warrants was determined by using Monte-Carlo simulations based on the following assumptions: annual volatility of 75%; risk-free rate of $0.9%, dividend yield of 0.0% and expected life of five years. The following table sets forth the warrants issued and outstanding as of January 31, 2013:



	Number of shares issuable	Weighted Average Exercise Price
Warrants - private placement	1,200,000	$	3.99
Warrants - placement agent	200,000	4.06
Total	1,400,000	$	4.00

No warrants were exercised or canceled during the year ended January 31, 2013.

Convertible Subordinated Notes

Please see Note F - Debt

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 15

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-URI http://asc.fasb.org/extlink&oid=6521494

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Reference 15: http://www.xbrl.org/2003/role/presentationRef

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Reference 16: http://www.xbrl.org/2003/role/presentationRef

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+ Details

Valuation and Qualifying Accounts and Reserves

12 Months Ended

Jan. 31, 2013

Valuation and Qualifying Accounts [Abstract]

Schedule II, Valuation and Qualifying Accounts and Reserves

Schedule II

Valuation and Qualifying Accounts and Reserves

Streamline Health Solutions, Inc.

For the two years ended January 31, 2013



			Additions
Description	Balance at Beginning of Period		Charged to costs and Expenses		Charged to Other Accounts		Deductions			Balance at End of Period
	(in thousands)
Year ended January 31, 2013:
Allowance for doubtful accounts	$	100	$	67	$	34	$	(67	)	$	134
Year ended January 31, 2012:
Allowance for doubtful accounts	$	100	$	159	$	—	$	(159	)	$	100

Significant Accounting Policies (Policies)

12 Months Ended

Jan. 31, 2013

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Cash and Cash Equivalents

Receivables and Allowance for Doubtful Accounts

Receivables

Allowance for Doubtful Accounts

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method, over the estimated useful lives of the related assets. Estimated useful lives are as follows:



Computer equipment and software	3-4 years
Office equipment	5 years
Office furniture and fixtures	7 years
Leasehold improvements	Term of lease

Depreciation expense for property and equipment in fiscal 2012 and 2011 was $726,000 and $728,000, respectively.

Leases

As part of the Interpoint acquisition on December 7, 2011, the Company assumed a lease agreement for office space in Atlanta, Georgia. The lease term expires on June 21, 2014.

Debt Issuance Costs

Costs related to the issuance of debt are capitalized and amortized to interest expense using the effective interest rate method over the term of the related debt.

Impairment of Long-Lived Assets

Capitalized Software Development Costs

Fair Value of Financial Instruments

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

Revenue Recognition


•	Persuasive evidence of an arrangement exists,


•	Delivery has occurred or services have been rendered,


•	The arrangement fees are fixed or determinable, and


•	Collection is considered probable

Revenues from resellers are recognized gross of royalty payments to resellers.

Multiple Element Arrangements


•	Provide updated guidance on how deliverables of an arrangement are separated, and how consideration is allocated;


•	Eliminate the residual method and require entities to allocate revenue using the relative selling price method and;


•	Require entities to allocate revenue to an arrangement using the estimated selling price (“ESP”) of deliverables if it does not have vendor specific objective evidence (“VSOE”) or third party evidence (“TPE”) of selling price.

Terms used in evaluation are as follows:


•	VSOE — the price at which an element is sold as a separate stand-alone transaction


•	TPE — the price of an element, charged by another company that is largely interchangeable in any particular transaction


•	ESP — the Company’s best estimate of the selling price of an element of the transaction

Software as a service

System Sales

Maintenance and Support Services

Term Licenses

Professional Services

Concentrations

Business Combinations

Goodwill and Intangible Assets


•	significant under performance relative to historical or projected future operating results;


•	significant changes in the manner of use of the acquired assets or the strategy for the overall business;


•	identification of other impaired assets within a reporting unit;


•	disposition of a significant portion of an operating segment;


•	Significant negative industry or economic trends;


•	Significant decline in the Company's stock price for a sustained period; and


•	a decline in the market capitalization relative to the net book value.

Determining whether a triggering event has occurred involves significant judgment by the Company.

The Company determined that it has one operating segment and one reporting unit.

Equity Awards

Income Taxes

Net Earnings (Loss) Per Common Share

Recent Accounting Pronouncements

Significant Accounting Policies (Tables)

12 Months Ended

Jan. 31, 2013

Accounting Policies [Abstract]

Schedule of Bad Debt Expense

Bad debt expense for fiscal years 2012 and 2011 are as follows:

Property, Plant and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method, over the estimated useful lives of the related assets. Estimated useful lives are as follows:



Computer equipment and software	3-4 years
Office equipment	5 years
Office furniture and fixtures	7 years
Leasehold improvements	Term of lease

Schedule of Earnings Per Share, Basic and Diluted

The following is the calculation of the basic and diluted net earnings (loss) per share of common stock:



	Fiscal Year
	2012			2011
Net earnings (loss)	$	(5,378,729	)	$	12,574
Less: deemed dividends on Series A Preferred Stock	(176,048		)	—
Net earnings (loss) attributable to common shareholders	$	(5,554,777	)	$	12,574
Weighted average shares outstanding used in basic per common share computations	11,634,540			9,887,841
Stock options and restricted stock	—			11,232
Number of average shares used in diluted per common share computation	11,634,540			9,899,073
Basic net earnings (loss) per share of common stock	$	(0.48	)	$	—
Diluted net earnings (loss) per share of common stock	$	(0.48	)	$	—

- Definition

Tabular disclosure of the useful life and salvage value of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

+ References+ Details

Acquisitions (Tables)

12 Months Ended

Jan. 31, 2013

Business Combinations [Abstract]

Purchase price allocation of assets and liabilities

Under the acquisition method of accounting, the purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date as follows:



	Balance at August 16, 2012
Assets purchased:
Cash	$	1,126,000
Accounts receivable	2,300,000
Fixed assets	133,000
Other assets	513,000
Client relationships	4,464,000
Internally developed software	3,646,000
Trade name	1,588,000
Supplier agreements	1,582,000
Covenants not to compete	720,000
Goodwill(1)	8,073,000
Total assets purchased	$	24,145,000
Liabilities assumed:
Accounts payable and Accrued liabilities	1,259,000
Deferred revenue obligation, net	3,494,000
Deferred tax liability	4,602,000
Net assets acquired	$	14,790,000
Consideration:
Company common stock	1,502,000
Cash paid	13,288,000
Total consideration	$	14,790,000

_______________


(1)	Goodwill represents the excess of purchase price over the estimated fair value of net tangible and intangible assets acquired, which is not deductible for tax purposes.



	Balance at December 7, 2011
Assets purchased:
Goodwill(1)	$	4,061,000
Internally developed software	1,628,000
Client relationships	413,000
Accounts receivable	268,000
Covenants not to compete	7,000
Fixed assets	36,000
Other assets	75,000
Total assets purchased	$	6,488,000
Liabilities assumed:
Accounts payable	131,000
Net assets acquired	$	6,357,000
Consideration:
Convertible debt	3,000,000
Contingent consideration liability for earn-out(2)	1,233,000
Cash paid	2,124,000
Total consideration	$	6,357,000

_______________


(1)	Goodwill represents the excess of purchase price over the fair value of net assets acquired, and is deductible for tax purposes.


(2)	Contingent consideration for earn-out was based on the estimated value of the payment obligation at the acquisition date; this amount has been revised, with adjustments recognized in the consolidated statement of earnings.

Pro forma results of operations

The unaudited pro forma results are as follows (in thousands):



	For the year ended January 31,
	2013			2012
Revenue	$	29,471		$	25,666
Net loss	(9,939		)	(4,187		)
Less: deemed dividends on Series A Preferred Shares	(450		)	(719		)
Net loss attributable to common shareholders	$	(10,389	)	$	(4,906	)
Loss per share:
Basic	$	(0.88	)	$	(0.48	)
Diluted	$	(0.88	)	$	(0.48	)

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References+ Details

Debt (Tables)

12 Months Ended

Jan. 31, 2013

Debt Disclosure [Abstract]

Summary of Term Loan and Line of Credit

Outstanding principal balances on long-term debt consisted of the following at:



	Balance at January 31, 2013		Balance at January 31, 2012
Senior term loan	$	4,688,000	$	—
Subordinated term loan	9,000,000		4,120,000
Line of credit	—		—
Total	$	13,688,000	$	4,120,000
Less: Current portion	1,250,000		—
Non-current portion of long-term debt	$	12,438,000	$	4,120,000

Schedule of Future Principal Repayments of Long-Term Debt

Future principal repayments of long-term debt consisted of the following at January 31, 2013



	Payments Due by Period
	2013		2014
Senior term loan	$	1,250,000	$	3,438,000
Subordinated term loan	—		9,000,000
Line of credit	—		—
Total principal repayments	$	1,250,000	$	12,438,000

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(e),(f))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

+ Details

Goodwill and Intangibles (Tables)

12 Months Ended

Jan. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill Activity

The goodwill activity is summarized as follows:



(in thousands)	Goodwill
Balance February 1, 2011	$	—
Goodwill acquired during the year	4,061
Balance January 31, 2012	4,061
Goodwill acquired during the year	8,073
Balance January 31, 2013	$	12,133

Schedule of Goodwill and Intangibles Components

Goodwill and intangibles consist of the following:



(in thousands)	January 31, 2013
(in thousands)	Estimated Useful Life	Gross Assets		Accumulated Amortization	Net Assets
Indefinite-lived assets:
Goodwill	N/A	$	12,133	—	$	12,133
Trade names	N/A	1,588		—	$	1,588
Definite-lived assets:
Client relationships	10 years	$	4,879	271	$	4,608
Covenants not to compete	5.5 years	727		172	555
Supplier agreements	5 years	1,582		145	$	1,437
Total		$	20,909	588	$	20,321



(in thousands)	January 31, 2012
(in thousands)	Estimated Useful Life	Gross Assets		Accumulated Amortization	Net Assets
Indefinite-lived assets:
Goodwill	N/A	$	4,061	—	$	4,061
Trade names	N/A	—		—	$	—
Definite-lived assets:
Client relationships	10 years	$	413	—	$	413
Covenants not to compete	6 months	7		2	5
Total		$	4,481	2	$	4,479

Amortization Schedule of Intangible Assets

Amortization over the next five fiscal years for intangible assets is estimated as follows:



(in thousands)	Annual Amortization Expense
2013	$	1,259
2014	974
2015	949
2016	902
2017	692
Thereafter	1,824
Total	$	6,600

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References+ Details

Income Taxes (Tables)

12 Months Ended

Jan. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income taxes consist of the following:



	Fiscal Year
	2012			2011
Current tax expense:
Federal	$	(9,391	)	$	(4,315	)
State	(37,594		)	(20,000		)
	(46,985		)	(24,315		)
Deferred tax benefit (expense):
Federal	2,642,580			—
State	292,942			—
	2,935,522			—
Current and deferred income tax benefit (expense)	$	2,888,537		$	(24,315	)

Schedule of Effective Income Tax Rate Reconciliation

The income tax benefit (expense) for income taxes differs from the amount computed using the federal statutory income tax rate as follows:



	Fiscal Year
	2012			2011
Federal tax benefit (expense) at statutory rate	$	2,810,870		$	(12,574	)
State and local taxes, net of federal benefit (expense)	255,348			(20,000		)
Change in valuation allowance	2,000,295			194,602
Permanent items:
Loss from conversion of notes payable	(1,937,411		)	—
Transaction costs	(339,320		)	—
Change in fair value of warrants liability	166,408			—
Other	(45,540		)	(22,389		)
Deferred tax provision true-ups	—			(159,651		)
Reserve for uncertain tax position	—			—
Alternative minimum tax expense	—			(2,721		)
Other	(22,113		)	(1,582		)
Income tax benefit (expense)	$	2,888,537		$	(24,315	)

Schedule of Deferred Tax Assets and Liabilities

The income tax effects of these temporary differences and credits are as follows:



	Fiscal Year
	2012			2011
Net Current Deferred Tax Assets:
Net operating loss carryforwards	$	—		$	167,000
Allowance for doubtful accounts	49,130			35,600
Deferred revenue	87,338			—
Accruals	209,428			88,513
Other	110,383			18,977
Other accruals	(4,083		)	(2,890		)
Valuation allowance	(487,815		)	(140,200		)
Current deferred tax (liabilities) assets	(35,619		)	167,000
Net Noncurrent Deferred Tax Assets:
Net operating loss carryforwards	9,857,529			9,872,202
Stock compensation expense	715,818			398,643
Property and equipment	184,605			135,240
AMT credit	97,200			—
Definite-lived intangible assets	(3,456,605		)	—
Trade name	(565,328		)	—
Goodwill	(15,753		)	—
Valuation allowance	(7,347,175		)	(9,695,085		)
Net noncurrent deferred tax (liabilities) assets	$	(529,709	)	$	711,000
Net deferred tax (liabilities) assets	$	(565,328	)	$	878,000

Stock Based Compensation (Tables)

12 Months Ended

Jan. 31, 2013

Share-based Compensation [Abstract]

Schedule of Stock Option Activity

A summary of stock option activity is summarized as follows:



	Fiscal Year
	2012					2011
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding — beginning of year	1,920,550			$	2.22	942,064			$	2.42
Granted	1,295,000			3.96		1,388,500			1.57
Exercised	(105,021		)	1.97		(32,598		)	1.80
Expired	(425,292		)	2.07		(377,416		)	1.94
Forfeited	—			—		—			—
Outstanding — end of year	2,685,237			$	3.02	1,920,550			$	2.22
Exercisable — end of year	976,044			$	2.29	553,945			$	2.53
Aggregate intrinsic value of outstanding options at year end	$	13,950,962				$	3,168,909
Aggregate intrinsic value of exercisable options at year end	$	5,137,017				$	914,009
Weighted average grant date fair value of options granted during year	$	2.02				$	0.88
Total intrinsic value of options exercised during the year	$	570,264				$	53,788

Schedule of Weighted-Average Assumptions

The 2012 and 2011 stock-based compensation was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted average assumptions for each fiscal year:



	2012		2011
Expected life	5 years		5 years
Risk-free interest rate	0.35	%	0.39	%
Weighted average volatility factor	0.57		0.72
Dividend yield	—		—
Forfeiture rate	—		—



	Number of Options	Average Exercise Price			Remaining Life in Years
January 31, 2012
Outstanding	1,920,550	$	2.22		8.00
Exercisable	553,945	$	2.53		6.70
January 31, 2013
Outstanding	2,685,237	$	2.96	(1)	8.30
Exercisable	976,044	$	2.27	(2)	6.60

_______________


(1)	The exercise prices range from $1.46 to $6.03, of which 1,452,237 shares are between $1.46 and $2.00 per share, 420,000 shares are between $2.08 and $4.00 per share, and 813,000 shares are between $4.08 and $6.03 per share.


(2)	The exercise prices range from $1.46 to $6.03, of which 716,879 shares are between $1.46 and $2.00 per share, 184,165 shares are between $2.08 and $4.00 per share, and 75,000 shares are between $4.08 and $6.03 per share.

Schedule of Restricted Stock Award Activity

A summary of restricted stock award activity for the period is presented below:



	Non-vested Number of Shares		Weighted Average Grant Date Fair Value
Non-vested balance at January 1, 2011	223,090		$	1.25
Granted	270,304		1.69
Vested	(366,937	)	1.79
Forfeited/expired	—		—
Non-vested balance at January 31, 2012	126,457		$	1.68
Granted	137,325		2.01
Vested	(126,457	)	1.79
Forfeited/expired	—		—
Non-vested balance at January 31, 2013	137,325		$	2.01

Quarterly Results of Operations (Tables)

12 Months Ended

Jan. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Selected Financial Information



Fiscal 2012 (In thousands, except per share data):	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			2012
Revenues	$	5,445		$	5,049		$	6,534		$	6,739		$	23,767
Gross profit	2,799			2,691			3,491			3,193			12,174
Operating profit (loss)	673			(24		)	(302		)	(1,181		)	(835		)
Net earnings (loss) (d)	491			(463		)	2,400			(7,807		)	(5,379		)
Less: deemed dividends on Series A Preferred Shares	—			—			(139		)	(37		)	(176		)
Net earnings (loss) attributable to common shareholders	491			(463		)	2,261			(7,844		)	(5,555		)
Basic net (loss) earnings per share (a)	0.05			(0.04		)	0.18			(0.63		)	(0.48		)
Diluted net (loss) earnings per share (a)	0.05			(0.04		)	0.15			(0.63		)	(0.48		)
Basic weighted average shares outstanding	10,307			11,316			12,393			12,493			11,635
Stock Price (b)
High	$	1.88		$	4.59		$	6.60		$	6.00		$	6.60
Low	$	1.61		$	1.70		$	3.50		$	4.75		$	1.61
Quarter and year-end close	$	1.79		$	4.34		$	5.72		$	5.43		$	5.43
Cash dividends declared (c)	$	—		$	—		$	—		$	—		$	—
Fiscal 2011 (In thousands, except per share data):	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			2011
Revenues	$	4,140		$	4,146		$	4,312		$	4,518		$	17,116
Gross profit	1,829			1,944			2,163			2,296			8,232
Operating profit (loss)	(253		)	20			364			116			246
Net earnings (loss)	(281		)	(7		)	296			5			13
Basic net (loss) earnings per share (a)	(0.03		)	(0.00)			0.03			0.00			0.00
Diluted net (loss) earnings per share (a)	(0.03		)	(0.00)			0.03			0.00			0.00
Basic weighted average shares outstanding	9,650			9,817			9,944			9,645			9,888
Stock Price (b)
High	$	2.05		$	2.19		$	2.06		$	1.86		$	2.19
Low	$	1.44		$	1.60		$	1.43		$	1.35		$	1.35
Quarter and year-end close	$	1.84		$	1.99		$	1.50		$	1.65		$	1.65
Cash dividends declared (c)	$	—		$	—		$	—		$	—		$	—

_______________


(a)	Quarterly amounts may not be additive


(b)	Based on data available through The NASDAQ Stock Market, Inc.


(c)	The Company has not paid a dividend on its common stock since its inception and does not intend to pay any cash dividends in the foreseeable future


(d)	The fourth quarter of 2012 includes a loss of $5,913,000 incurred upon conversion of the private placement convertible subordinated notes (Note O), as well as a $565,000 naked tax credit related to intangible assets recorded as part of the Meta acquisition (Note H)

Private Placement Investment (Tables)

12 Months Ended

Jan. 31, 2013

Equity [Abstract]

Schedule of Investment Allocation

The proceeds were allocated among the instruments based on their relative fair values as follows:



	Fair Value at August 16, 2012		Proceeds Allocation at August 16, 2012
Instruments:
Series A Preferred Stock (1)	$	9,907,820	$	6,546,146
Convertible subordinated notes payable (2)	5,699,577		3,765,738
Warrants (3)	2,555,022		1,688,116
Total investment	$	18,162,419	$	12,000,000

Series A Preferred Stock Activity

The following table sets forth the activity of the Series A Preferred Stock, classified as temporary equity, during the periods presented:



	Number of Shares	Series A Preferred Stock
Series A Preferred Stock, February 1, 2012	—	$	—
Issuance from private placement, at redemption value	2,416,785	7,250,355
Discount related to warrants (1)	—	(704,209		)
Discount related to beneficial conversion feature	—	(2,685,973		)
Discount related to issuance cost	—	(1,020,135		)
Issuance of shares at redemption value for conversion of notes payable	1,583,210	4,749,630
Accretion of Preferred Stock discount	—	176,048
Series A Preferred Stock, January 31, 2013	3,999,995	$	7,765,716

Schedule of Warrants Issued and Outstanding

The following table sets forth the warrants issued and outstanding as of January 31, 2013:



	Number of shares issuable	Weighted Average Exercise Price
Warrants - private placement	1,200,000	$	3.99
Warrants - placement agent	200,000	4.06
Total	1,400,000	$	4.00

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References+ Details

- Definition

Tabular disclosure of temporary equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. If convertible, the issuer does not control the actions or events necessary to issue the maximum number of shares that could be required to be delivered under the conversion option if the holder exercises the option to convert the stock to another class of equity. If the security is a warrant or a rights issue, the warrant or rights issue is considered to be temporary equity if the issuer cannot demonstrate that it would be able to deliver upon the exercise of the option by the holder in all cases. Includes stock with put option held by ESOP and stock redeemable by holder only in the event of a change in control of the issuer.

+ References+ Details

Significant Accounting Policies - Additional Information (Details) (USD $)

12 Months Ended

36 Months Ended

10 Months Ended

12 Months Ended

Jan. 31, 2013

Jan. 31, 2012

Jan. 31, 2013

Aug. 16, 2012

Dec. 07, 2011

Jan. 31, 2013

Interpoint Partners, LLC

Apr. 10, 2012

Interpoint Partners, LLC

sqft

Dec. 07, 2011

Interpoint Partners, LLC

Aug. 16, 2012

Meta

sqft

Jan. 31, 2013

Employee Severance

Jan. 31, 2012

Employee Severance

Jan. 31, 2013

Convertible Preferred Stock

Jan. 31, 2013

Restricted Stock

Jan. 31, 2012

Restricted Stock

Jan. 31, 2013

Stock Options

Jan. 31, 2012

Stock Options

Jan. 31, 2013

Warrant

Summary Of Significant Accounting Policies

Allowance for doubtful accounts

$ 134,000

$ 100,000

$ 134,000

Provision for doubtful accounts

67,464

159,000

Duration of rent allowance

3 months

4 months

Rental allowance equivalent

42,000

Allotments over which rental allowance is granted

Area under Lease

8,582

10,000

Lease duration

72 months

Moving allowance

17,000

Capitalized computer software, additions

2,000,000

2,600,000

Internally developed software

3,646,000

1,628,000

^[1]

1,628,000

^[1]

3,646,000

Capitalized computer software, amortization

2,659,365

1,972,889

Research and development expense

2,948,313

1,408,749

Deferred professional costs

201,000

Amortization of professional expenses

35,000

Severance expenses

866,000

307,000

Accrued severances

548,000

Allocated share-based compensation expense

956,000

895,000

Reserves for uncertain tax positions and corresponding interest and penalties

$ 152,000

$ 0

$ 152,000

Antidilutive securities

3,999,995

137,327

126,457

2,685,237

131,500

1,400,000

[1]	Goodwill represents the excess of purchase price over the fair value of net assets acquired, and is deductible for tax purposes.

Significant Accounting Policies - Property, Plant, and Equipment (Details) (USD $)	12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Property, Plant and Equipment
Depreciation	$ 726,406	$ 727,794
Computer Equipment and Software \| Minimum
Property, Plant and Equipment
Property, plant and equipment, useful life	3 years
Computer Equipment and Software \| Maximum
Property, Plant and Equipment
Property, plant and equipment, useful life	4 years
Office Equipment
Property, Plant and Equipment
Property, plant and equipment, useful life	5 years
Furniture and Fixtures
Property, Plant and Equipment
Property, plant and equipment, useful life	7 years

- Definition

The amount of expense recognized in the current period that reflects the allocation of the cost of tangible assets over the assets' useful lives. Includes production and non-production related depreciation.

+ References+ Details

Significant Accounting Policies - Earnings Per Share (Details) (USD $)

3 Months Ended

12 Months Ended

Jan. 31, 2013

Oct. 31, 2012

Jul. 31, 2012

Apr. 30, 2012

Jan. 31, 2012

Oct. 31, 2011

Jul. 31, 2011

Apr. 30, 2011

Jan. 31, 2013

Jan. 31, 2012

Accounting Policies [Abstract]

Net earnings (loss)

$ (7,807,000)

$ 2,400,000

$ (463,000)

$ 491,000

$ 5,000

$ 296,000

$ (7,000)

$ (281,000)

$ (5,378,729)

$ 12,574

Less: deemed dividends on Series A Preferred Shares

(37,000)

(139,000)

0.00

(176,048)

Net earnings (loss) attributable to common shareholders

$ (7,844,000)

$ 2,261,000

$ (463,000)

$ 491,000

$ (5,554,777)

$ 12,574

Number of shares used in basic per common share computation

12,493,000

12,393,000

11,316,000

10,307,000

9,645,000

9,944,000

9,817,000

9,650,000

11,634,540

9,887,841

Stock options and restricted stock

11,232

Number of shares used in diluted per common share computation

11,634,540

9,899,073

Basic net earnings (loss) per common share (in dollars per share)

$ (0.63)

^[1]

$ 0.18

^[1]

$ (0.04)

^[1]

$ 0.05

^[1]

$ 0.00

^[1]

$ 0.03

^[1]

$ 0.00

^[1]

$ (0.03)

^[1]

$ (0.48)

^[1]

$ 0.00

^[1]

Diluted net earnings (loss) per common share (in dollars per share)

$ (0.63)

^[1]

$ 0.15

^[1]

$ (0.04)

^[1]

$ 0.05

^[1]

$ 0.00

^[1]

$ 0.03

^[1]

$ 0.00

^[1]

$ (0.03)

^[1]

$ (0.48)

^[1]

$ 0.00

^[1]

[1]	Quarterly amounts may not be additive

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 36, 37, 38

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 07-4

-Paragraph 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 225

-SubTopic 10

-Section S99

-Paragraph 2

-Subparagraph (SX 210.5-03.21)

-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1252-109256

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Paragraph 18

-Article 7

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 03

-Paragraph 20

-Article 5

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Paragraph 21

-Article 9

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 55

-Paragraph 52

-URI http://asc.fasb.org/extlink&oid=16381557&loc=d3e4984-109258

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 225

-Section S99

-Paragraph 1

-Subparagraph (SX 210.7-04.19)

-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 225

-Section S99

-Paragraph 1

-Subparagraph (SX 210.9-04.23)

-URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 130

-Paragraph 10, 15

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 03

-Paragraph 19

-Article 5

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Paragraph 20

-Article 9

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 95

-Paragraph 28, 29, 30

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 225

-Section S99

-Paragraph 1

-Subparagraph (SX 210.7-04.22)

-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 6

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

-Topic 230

-SubTopic 10

-Section 45

-Paragraph 28

-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Other Comprehensive Income

-URI http://asc.fasb.org/extlink&oid=6519514

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Net Income

-URI http://asc.fasb.org/extlink&oid=6518256

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph A7

-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 225

-Section S99

-Paragraph 1

-Subparagraph (SX 210.7-04.19)

-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 15: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 87-21

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 225

-SubTopic 10

-Section S99

-Paragraph 2

-Subparagraph (SX 210.5-03.18)

-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

+ Details

- Definition

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References+ Details

- Definition

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 50

-Paragraph 1

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 07-4

-Paragraph 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 171

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 40

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 45

-Paragraph 10

-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1448-109256

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 8

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Weighted-Average Number of Common Shares Outstanding

-URI http://asc.fasb.org/extlink&oid=6528421

+ Details

Acquisitions - Additional Information (Details) (USD $)

9 Months Ended

2 Months Ended

12 Months Ended

2 Months Ended

6 Months Ended

12 Months Ended

Oct. 31, 2012

Jan. 31, 2013

Jan. 31, 2012

Dec. 07, 2011

Jan. 31, 2012

Interpoint Partners, LLC

Jan. 31, 2012

Interpoint Partners, LLC

Jan. 31, 2013

Interpoint Partners, LLC

Dec. 07, 2011

Interpoint Partners, LLC

Jan. 31, 2012

Meta

Jan. 31, 2013

Meta

Jan. 31, 2013

Meta

Oct. 31, 2012

Meta

Aug. 16, 2012

Meta

Acquisitions (Textual) [Abstract]

Initial purchase price of assets

$ 5,124,000

Purchase price

6,357,000

14,790,000

Cash paid

2,124,000

13,288,000

Convertible subordinated note issued

(3,000,000)

3,000,000

Current estimated value of contingent earn-out provision

1,320,000

1,233,000

^[1]

1,233,000

^[1]

1,320,000

^[1]

(1,233,000)

^[1]

Acquisition costs

195,000

1,306,000

Completion date of acquisition

Aug. 16, 2012

Issuance of common shares

393,086

Common stock price per share (USD per share)

$ 4.07

Fair value of common stock (USD per share)

$ 3.82

Acquisition of outstanding shares

100.00%

Valuation allowance for deferred tax benefit recorded

3,000,000

Sales of acquiree included in consolidated financial statements

287,000

3,395,000

Net earnings (loss) included in consolidated financial statements

$ (111,000)

$ 780,000

[1]	Contingent consideration for earn-out was based on the estimated value of the payment obligation at the acquisition date; this amount has been revised, with adjustments recognized in the consolidated statement of earnings.

Acquisitions - Interpoint Partners Purchase Price Allocation of Assets and Liabilities (Details) (USD $)

Jan. 31, 2013

Aug. 16, 2012

Jan. 31, 2012

Dec. 07, 2011

Assets purchased:

Internally developed software

$ 3,646,000

$ 1,628,000

^[1]

Consideration:

Convertible debt

(3,000,000)

Contingent consideration liability for earn-out

(1,320,000)

(1,233,000)

Interpoint Partners LLC [Member]

Assets purchased:

Goodwill

4,061,000

Internally developed software

1,628,000

^[1]

Client relationships

413,000

Accounts receivable

268,000

Covenants not to compete

7,000

Fixed assets

36,000

Other assets

75,000

Total assets purchased

6,488,000

Liabilities assumed:

Accounts payable

131,000

Net assets acquired

6,357,000

Consideration:

Convertible debt

3,000,000

Contingent consideration liability for earn-out

(1,320,000)

^[2]

(1,233,000)

^[2]

1,233,000

^[2]

Cash paid

2,124,000

Total consideration

$ 6,357,000

[1]	Goodwill represents the excess of purchase price over the fair value of net assets acquired, and is deductible for tax purposes.
[2]	Contingent consideration for earn-out was based on the estimated value of the payment obligation at the acquisition date; this amount has been revised, with adjustments recognized in the consolidated statement of earnings.

Acquisitions - Meta Health Technology Purchase Price Allocation of Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified

Aug. 16, 2012

Dec. 07, 2011

Assets purchased:

Internally developed software

$ 3,646

$ 1,628

^[1]

Meta [Member]

Assets purchased:

1,126

2,300

133

513

4,464

Internally developed software

3,646

Trade name

1,588

Supplier agreements

1,582

Covenants not to compete

720

Goodwill

8,073

^[2]

Total assets purchased

24,145

Liabilities assumed:

Accounts payable and accrued liabilities

1,259

Deferred revenue obligation, net

3,494

Deferred tax liability

4,602

Net assets acquired

14,790

Consideration:

Company common stock

1,502

Cash paid

13,288

Total consideration

$ 14,790

[1]	Goodwill represents the excess of purchase price over the fair value of net assets acquired, and is deductible for tax purposes.
[2]	Goodwill represents the excess of purchase price over the estimated fair value of net tangible and intangible assets acquired, which is not deductible for tax purposes.

Acquisitions - Pro Forma Results (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Subsequent to the acquisition
Revenue	$ 29,471	$ 25,666
Net loss	(9,939)	(4,187)
Less: deemed dividends on Series A Preferred Shares	(450)	(719)
Net income (loss) attributable to common shareholders	$ (10,389)	$ (4,906)
Income (loss) per share:
Basic (USD per share)	$ (0.88)	$ (0.48)
Diluted (USD per share)	$ (0.88)	$ (0.48)

- Definition

The pro forma basic net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

+ References+ Details

- Definition

The pro forma diluted net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

+ References+ Details

Derivative Liabilities (Details) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended	12 Months Ended
	Aug. 31, 2012	Jan. 31, 2013	Aug. 16, 2012	Jan. 31, 2013 Estimate of Fair Value	Oct. 31, 2012 Estimate of Fair Value	Jan. 31, 2013 Change During Period
Derivative Liabilities [Line Items]
Warrants exercisable (in shares)			1,200,000
Exercise price (USD per share)			3.99
Net of transaction costs, allocated to the warrants	$ 1,425
Warrant liability at fair value				$ (3,649)	$ (4,139)	$ 489
Annual volatility		70.00%
Risk-free rate		0.90%
Dividend yield		0.00%
Expected life		5 years

- Definition

Derivative instrument obligations meeting the definition of a liability which the Company is a party to as of the balance sheet date.

+ References+ Details

- Definition

The cash inflow from issuance of rights to purchase common shares at predetermined price (usually issued together with corporate debt).

+ References+ Details

Leases (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2013	$ 1,022
2014	908
2015	374
2016	164
2017	168
Thereafter	85
Total	2,721
Rent expense	965	506
Facilities
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2013	906
2014	750
2015	322
2016	162
2017	167
Thereafter	85
Total	2,392
Equipment
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2013	116
2014	158
2015	52
2016	2
2017	1
Thereafter	0
Total	$ 329

- Definition

Amount of required minimum rental payments for leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing in the next fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing in the fifth fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing in the forth fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing in the third fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing in the second fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing after the fifth fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

Debt - Additional Information (Details) (USD $)	1 Months Ended	12 Months Ended			3 Months Ended		1 Months Ended			1 Months Ended			1 Months Ended	12 Months Ended		1 Months Ended	12 Months Ended					3 Months Ended	12 Months Ended
Debt - Additional Information (Details) (USD $)	Aug. 31, 2012	Jan. 31, 2013	Jan. 31, 2012	Dec. 07, 2011	Jan. 31, 2013 Series A Preferred Stock Convertible Notes to Preferred Stock	Nov. 02, 2012 Series A Preferred Stock Convertible Notes to Preferred Stock	Aug. 31, 2012 Great Point Partners And Noro Moseley Partners	Aug. 16, 2012 Great Point Partners And Noro Moseley Partners	Aug. 16, 2012 Private Placement	Aug. 31, 2012 Term loan	Jan. 31, 2013 Term loan	Aug. 16, 2012 Term loan	Aug. 31, 2012 Revolving Credit Facility	Jan. 31, 2013 Revolving Credit Facility	Aug. 16, 2012 Revolving Credit Facility	Aug. 31, 2012 Subordinated Debt	Jan. 31, 2013 Subordinated Debt	Aug. 16, 2012 Subordinated Debt	Jan. 31, 2011 Subordinated Debt	Aug. 16, 2012 Subordinated Debt Great Point Partners And Noro Moseley Partners	Jan. 31, 2013 Subordinated Debt and Line of Credit	Jan. 31, 2013 Senior Notes	Jan. 31, 2013 Convertible note	Jun. 15, 2012 Convertible note	Dec. 07, 2011 Convertible note	Nov. 02, 2012 Private Placement Convertible Subordinated Notes Payable	Aug. 16, 2012 Private Placement Convertible Subordinated Notes Payable
Debt Instruments [Abstract]
Convertible promissory note				$ 4,120,000																					$ 3,000,000
Accrues interest per annum rate																		10.00%	12.00%						8.00%
Line of credit facility interest rate														3.25%
Term loan commitment fee																	120,000
Minimum EBITDA required																					3,500,000
Fixed charge coverage ratio																					1.50
Funded debt to adjusted debt ratio																					1.75
Revolving line of credit	5,000,000
Senior term loan	5,000,000															9,000,000
Subordinated credit agreement bank provided, term loan maturing												4,120,000
Success fee included in the previous subordinated term loan										700,000
Success fees accruals		233,000
Commitment fee in connection with the term loan										75,000
Internal rate of return required by lender																	17.00%
Installment payments due																						104,000
Borrowing under the revolving loan bears interest at a rate equal to LIBOR plus											0.21%	5.50%			3.00%
Commitment fee percentage													0.40%
Unused balance commitment fees														2,000
Maintain adjusted EBITDA fiscal quarter greater than		5,000,000
Maintain a fixed charge coverage ratio for fiscal quarter ending		1.50
Consolidated basis, maintain ratio of funded debt to adjusted EBITDA		3
Convertible notes converted, price per share																							$ 2.00	$ 2.00
Market value per share (USD per share)																							$ 1.65
Number of common stock owed to the company for net of working capital adjustments																								1,529,729
Loss from conversion																							57,000
Asset purchase agreement		3,500,000
Current estimated value of contingent earn-out provision		1,320,000	1,233,000
Increase in Payment Obligation earn-out		86,839	0
Private placement investment									12,000,000
Convertible subordinated notes aggregate principal amount																				5,700,000						5,699,577	5,699,577
Subordinated notes convert into preferred stock								1,583,220
Convertible promissory note Discount								1,934,000
Amortization of debt discount		111,583	0				112,000
New issuance of series A convertible preferred stock						1,583,210
Loss upon conversion		$ 5,970,002	$ 0		$ 5,913,000

Debt - Summary of Term Loan and Line of Credit (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Jan. 31, 2012
Debt Instrument
Total Debt	$ 13,688	$ 4,120
Less: Current portion	1,250	0
Non-current portion of long-term debt	12,438	4,120
Long-term Debt, Maturities, Repayments of Principal in Year Two	12,438
Senior Notes
Debt Instrument
Total Debt	4,688	0
Long-term Debt, Maturities, Repayments of Principal in Year Two	3,438
Senior Subordinated Notes [Member]
Debt Instrument
Total Debt	9,000	4,120
Long-term Debt, Maturities, Repayments of Principal in Year Two	9,000
Line of Credit [Member]
Debt Instrument
Total Debt	0	0
Long-term Debt, Maturities, Repayments of Principal in Year Two	$ 0

- Definition

Carrying amount of long-term debt, net of unamortized discount or premium, including current and noncurrent amounts. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References+ Details

Debt - Schedule of Future Principal Repayments of Long-Term Debt (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013
Debt Instrument
Payments Due by 2013	$ 1,250
Payments Due by 2014	12,438
Senior Notes
Debt Instrument
Payments Due by 2013	1,250
Payments Due by 2014	3,438
Senior Subordinated Notes [Member]
Debt Instrument
Payments Due by 2013	0
Payments Due by 2014	9,000
Line of Credit [Member]
Debt Instrument
Payments Due by 2013	0
Payments Due by 2014	$ 0

Goodwill and Intangibles - Schedule of Goodwill Activity (Details) (USD $)	12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Goodwill [Roll Forward]
Goodwill, Beginning of Period	$ 4,060,504	$ 0
Goodwill acquired during the year	8,073,000	4,060,504
Goodwill, End of Period	$ 12,133,304	$ 4,060,504

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph 68

-Subparagraph l

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 350

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 350

-SubTopic 20

-Section 45

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 142

-Paragraph 45

-Subparagraph e

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 142

-Paragraph 43

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph 72

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 142

-Paragraph 45

-Subparagraph e

-Clause 1

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph 34

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The aggregate amount of goodwill acquired in the period and allocated to the reportable segment. The value is stated at fair value based on the purchase price allocation.

+ References+ Details

Goodwill and Intangibles - Schedule of Goodwill and Intangibles (Details) (USD $)				12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Jan. 31, 2011	Jan. 31, 2013 Client relationships	Jan. 31, 2012 Client relationships	Jan. 31, 2013 Covenants not to compete	Jan. 31, 2012 Covenants not to compete	Jan. 31, 2013 Supplier agreements
Intangible Assets, Net (Including Goodwill) [Abstract]
Goodwill	$ 12,133,304	$ 4,060,504	$ 0
Trade names	1,588,000	0
Estimated Useful Life				10 years	10 years	5 years 6 months	6 months	5 years
Gross Assets				4,879,000	413,000	727,000	7,000	1,582,000
Accumulated Amortization	588,000	2,000		271,000	0	172,000	2,000	145,000
Net Assets	6,600,000			4,608,000	413,000	555,000	5,000	1,437,000
Intangible Assets, Gross (Including Goodwill)	20,909,000	4,481,000
Intangible Assets, Net (Including Goodwill)	$ 20,321,000	$ 4,479,000

- Definition

+ References

+ Details

Goodwill and Intangibles - Schedule of Future Amortization Expense (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
2013	$ 1,259
2014	974
2015	949
2016	902
2017	692
Thereafter	1,824
Net Assets	$ 6,600

Income Taxes - Components of Income Tax Expense (Details) (USD $)	12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Current tax expense:
Federal	$ (9,391)	$ (4,315)
State	(37,594)	(20,000)
Total current tax expense	(46,985)	(24,315)
Deferred tax benefit (expense):
Federal	2,642,580	0
State	292,942	0
Total deferred tax beneit (expense)	2,935,522	0
Current and deferred income tax benefit (expense)	$ 2,888,537	$ (24,315)

- Definition

The component of income tax expense for the period representing amounts paid or payable (or refundable) as determined by applying the provisions of enacted federal tax law to the domestic taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SAB TOPIC 6.I.7)

-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Current Tax Expense (or Benefit)

-URI http://asc.fasb.org/extlink&oid=6509736

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 9

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(h))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 45

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph h

-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 289

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 6

-Section I

-Paragraph Question 1-7

+ Details

- Definition

The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Publisher FASB

-Name Accounting Standards Codification

-Glossary Current Tax Expense (or Benefit)

-URI http://asc.fasb.org/extlink&oid=6509736

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 289

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The component of income tax expense for the period representing amounts paid or payable (or refundable) as determined by applying the provisions of enacted state and local tax law to relevant amounts of taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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+ Details

- Definition

The component of total income tax expense for the period comprised of the increase (decrease) during the period in the entity's domestic deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of the federally enacted tax law.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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+ Details

- Definition

The component of income tax expense for the period representing the increase (decrease) in the entity's deferred tax assets and liabilities pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

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-Glossary Deferred Tax Expense (or Benefit)

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+ Details

- Definition

The component of total income tax expense for the period comprised of the increase (decrease) in the entity's state and local deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of the applicable enacted tax laws.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

-Topic 740

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-Glossary Deferred Tax Expense (or Benefit)

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-Number 109

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

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+ Details

- Definition

The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to continuing operations.

+ References+ Details

Income Taxes - Tax Provision at Statutory Rate Reconciliation (Details) (USD $)	12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Federal tax benefit (expense) at statutory rate	$ 2,810,870	$ (12,574)
State and local taxes, net of federal benefit (expense)	255,348	(20,000)
Change in valuation allowance	2,000,295	194,602
Loss from conversion of notes payable	(1,937,411)	0
Transaction costs	(339,320)	0
Change in fair value of warrants liability	166,408	0
Other	(45,540)	(22,389)
Deferred tax provision true-ups	0	(159,651)
Reserve for uncertain tax position	0	0
Alternative minimum tax expense	0	(2,721)
Other	(22,113)	(1,582)
Current and deferred income tax benefit (expense)	$ 2,888,537	$ (24,315)

Income Taxes - Schedule of Deferred Tax Assets and Tax Carryforwards (Details) (USD $)	Jan. 31, 2013	Jan. 31, 2012
Net Current Deferred Tax Assets:
Net operating loss carryforwards	$ 0	$ 167,000
Allowance for doubtful accounts	49,130	35,600
Deferred revenue	87,338	0
Accruals	209,428	88,513
Other	110,383	18,977
Other accruals	(4,083)	(2,890)
Valuation allowance	(487,815)	(140,200)
Current deferred tax (liabilities) assets	(35,619)	167,000
Net Noncurrent Deferred Tax Assets:
Net operating loss carryforwards	9,857,529	9,872,202
Property and equipment	715,818	398,643
Property and equipment	184,605	135,240
AMT credit	97,200	0
Definite-lived intangible assets	(3,456,605)	0
Trade name	(565,328)	0
Goodwill	(15,753)	0
Valuation allowance	(7,347,175)	(9,695,085)
Net noncurrent deferred tax (liabilities) assets	(529,709)	711,000
Net deferred tax (liabilities) assets	$ (565,328)	$ 878,000

Income Taxes - Additional Information (Details) (USD $)			12 Months Ended
Income Taxes - Additional Information (Details) (USD $)	Jan. 31, 2013	Jan. 31, 2012	Jan. 31, 2013 Meta	Jan. 31, 2013 Internal Revenue Service (IRS) [Member]	Jan. 31, 2013 Internal Revenue Service (IRS) [Member] Alternative Minimum Tax [Member]
Income Tax Contingency [Line Items]
Operating loss carryforwards				$ 28,000,000	$ 27,875,000
Operating loss carryforwards, subject to expire next fiscal year				10,037,000
Additional deferred tax liabilities			4,602,000
Valuation allowance for deferred tax benefit released			3,000,000
Valuation allowance	7,347,175	9,695,085	7,800,000
Trade name related deferred tax liability	565,328	0	565,000
Unrecognized tax benefits	727,321
Tax effected unrecognized tax benefits	262,951
Liability for uncertain tax positions	$ 152,000	$ 0

Major Clients (Details) (Customer Concentration Risk [Member])	12 Months Ended
	Jan. 31, 2013 customers	Jan. 31, 2012 customers
Revenue \| Nonremarketing Partners
Concentration Risk
Concentration risk, number of customers	2	2
Revenue \| Nonremarketing Partner A
Concentration Risk
Concentration risk, percentage	7.00%	8.00%
Revenue \| Nonremarketing Partner B
Concentration Risk
Concentration risk, percentage	5.00%	6.00%
Revenue \| GE Healthcare
Concentration Risk
Concentration risk, percentage	25.00%	35.00%
Accounts Receivable \| Nonremarketing Partners
Concentration Risk
Concentration risk, number of customers	2	1
Concentration risk, percentage	24.00%
Accounts Receivable \| Nonremarketing Partner A
Concentration Risk
Concentration risk, percentage		16.00%
Accounts Receivable \| Nonremarketing Partner B
Concentration Risk
Concentration risk, percentage		11.00%
Accounts Receivable \| GE Healthcare
Concentration Risk
Concentration risk, percentage	1.00%	16.00%

Employee Retirement Plan (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Employee Retirement Plan [Abstract]
Matching contribution percent	100.00%
Maximum contribution as a percent of participant compensation	4.00%
Defined contribution plan, cost recognized	$ 289	$ 249

Employee Stock Purchase Plan (Details) (USD $)	12 Months Ended		0 Months Ended	12 Months Ended		0 Months Ended
Employee Stock Purchase Plan (Details) (USD $)	Jan. 31, 2013	Jan. 31, 2012	Jul. 02, 2012 Employee Stock Purchase Plan	Jan. 31, 2013 Employee Stock Purchase Plan	Jan. 31, 2012 Employee Stock Purchase Plan	Jul. 01, 2013 Subsequent Event [Member] Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares authorized to be purchased under Employee Stock Purchase Plan				500,000
Employee Stock Purchase Plan, maximum annual contribution per employee, percent				10.00%
Employee Stock Purchase Plan, percent of fair market value, prior year				85.00%
Employee Stock Purchase Plan, percent of fair market value, current year				85.00%
Allocated share-based compensation expense	$ 956,000	$ 895,000		$ 32,000	$ 18,000
Stock purchased during period, shares, Employee Stock Purchase Plan				44,743	29,452
Stock purchased during period, price per share, Employee Stock Purchase Plan				$ 1.70	$ 1.15
Cash received from purchase of shares under Employee Stock Purchase Plan				$ 76,000	$ 34,000
Purchase price discount						85.00%
Closing price on July 2,2012	$ 1.46		$ 3.73

Stock Based Compensation - Additional Information (Details) (USD $)	12 Months Ended								12 Months Ended				12 Months Ended		12 Months Ended					1 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Jan. 31, 2013 $1.46 to $2.00	Jan. 31, 2013 $2.08 to $4.00	Jan. 31, 2013 $4.08 to $6.03	Jan. 31, 2013 Stock Options	Jan. 31, 2012 Stock Options	Jan. 31, 2011 Stock Options	Jan. 31, 2013 Restricted Stock	Jan. 31, 2012 Restricted Stock	Jan. 31, 2013 1996 Employee Stock Option Plan [Member] Stock Options	Jan. 31, 2012 1996 Employee Stock Option Plan [Member] Stock Options	Jan. 31, 2013 1996 Non-Employee Directors Stock Option Plan [Member] Stock Options	Jan. 31, 2013 2005 Incentive Compensation Plan [Member] Stock Options	Jan. 31, 2013 2005 Incentive Compensation Plan [Member] Blended Equity Awards (Stock Options, Stock Appreciation Rights, Resticted Stock) [Member]	Jan. 31, 2013 2005 Incentive Compensation Plan [Member] Restricted Stock	Jan. 31, 2013 Executive Inducement Grants [Member] Stock Options	Jan. 31, 2012 Executive Inducement Grants [Member] Stock Options	Jan. 31, 2012 Executive Inducement Grants [Member] Restricted Stock	Jan. 31, 2012 Share Subscription [Member]	Dec. 28, 2011 Share Subscription [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Term of options granted											10 years		10 years		10 years
Vesting period											3 years		3 years		3 years	1 year
Options outstanding	2,685,237	1,920,550	1,452,237	420,000	813,000	2,685,237	1,920,550	942,064			5,000	7,500		1,556,910			1,123,328	715,000
Equity awards authorized															2,500,000
Granted shares of restricted common stock									137,325	270,304									25,000
Granted options						1,295,000	1,388,500										675,000	515,000
Options expired						425,292	377,416										177,783	200,000
Options exercised						105,021	32,598										88,889
Exercise price range, lower range limit	$ 1.46		$ 1.46	$ 2.08	$ 4.08
Exercise price range, upper range limit	$ 6.03		$ 2.00	$ 4.00	$ 6.03
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options						$ 2,777,000
Options exercisable		553,945	716,879	184,165	75,000	976,044	553,945
Compensation cost not yet recognized									91,000
Weighted average period of recognition for compensation cost	3 years
Allocated share-based compensation expense	956,000	895,000				664,000	393,000		260,000	483,000
Cash received from exercise of options						283,000	93,000
Common stock, shares issued	12,643,620	10,433,716																			244,845
Common stock, par value (USD per share)	$ 0.01	$ 0.01																			$ 1.65
Proceeds from stock sale	$ 0	$ 403,988																		$ 404,000

Stock Based Compensation - Summary of Stock Option Activity (Details) (USD $)

12 Months Ended

Jan. 31, 2013

Jan. 31, 2012

Stock Option Activity

Options, Outstanding - end of year

2,685,237

1,920,550

Options, Exercisable — end of year

553,945

Weighted Average Exercise Price Activity

Weighted Average Exercise Price, Outstanding - end of year (USD per share)

$ 2.96

^[1]

$ 2.22

Weighted Average Exercise Price, Exercisable - end of year (USD per share)

$ 2.27

^[2]

$ 2.53

Stock Options

Stock Option Activity

Options, Outstanding - beginning of year

1,920,550

942,064

Granted options

1,295,000

1,388,500

Options, Exercised

(105,021)

(32,598)

Options, Expired

(425,292)

(377,416)

Options, Forfeited

Options, Outstanding - end of year

2,685,237

1,920,550

Options, Exercisable — end of year

976,044

553,945

Aggregate intrinsic value of outstanding options at year end

$ 13,950,962

$ 3,168,909

Aggregate intrinsic value of exercisable options at year end

5,137,017

914,009

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Granted During Period

$ 2.02

$ 0.88

Weighted Average Exercise Price Activity

Weighted Average Exercise Price, Outstanding - beginning of year (USD per share)

$ 2.22

$ 2.42

Weighted Average Exercise Price, Granted (USD per share)

$ 3.96

$ 1.57

Weighted Average Exercise Price, Exercised (USD per share)

$ 1.97

$ 1.80

Weighted Average Exercise Price, Expired (USD per share)

$ 2.07

$ 1.94

Weighted Average Exercise Price, Forfeited (USD per share)

$ 0.00

Weighted Average Exercise Price, Outstanding - end of year (USD per share)

$ 3.02

$ 2.22

Weighted Average Exercise Price, Exercisable - end of year (USD per share)

$ 2.29

$ 2.53

Total intrinsic value of options exercised during the year

$ 570,264

$ 53,788

[1]	(1)The exercise prices range from $1.46 to $6.03, of which 1,452,237 shares are between $1.46 and $2.00 per share, 420,000 shares are between $2.08 and $4.00 per share, and 813,000 shares are between $4.08 and $6.03 per share.
[2]	(2)The exercise prices range from $1.46 to $6.03, of which 716,879 shares are between $1.46 and $2.00 per share, 184,165 shares are between $2.08 and $4.00 per share, and 75,000 shares are between $4.08 and $6.03 per share.

Stock Based Compensation - Weighted Average Assumptions (Details) (USD $)

12 Months Ended

Jan. 31, 2013

Jan. 31, 2012

Share-based Compensation [Abstract]

Expected life

5 years

Risk-free interest rate

0.00%

Weighted average volatility factor

57.00%

72.00%

Dividend yield

$ 0.00

Forfeiture rate

0.00%

Number of Options Outstanding

2,685,237

1,920,550

Number of Options Exercisable

553,945

Average Exercise Price, Outstanding (USD per share)

$ 2.96

^[1]

$ 2.22

Average Exercise Price, Exercisable (USD per share)

$ 2.27

^[2]

$ 2.53

Remaining Life in Years, Outstanding

8 years 3 months 18 days

8 years

Remaining Life in Years, Exercisable

6 years 7 months 6 days

6 years 8 months 12 days

[1]	(1)The exercise prices range from $1.46 to $6.03, of which 1,452,237 shares are between $1.46 and $2.00 per share, 420,000 shares are between $2.08 and $4.00 per share, and 813,000 shares are between $4.08 and $6.03 per share.
[2]	(2)The exercise prices range from $1.46 to $6.03, of which 716,879 shares are between $1.46 and $2.00 per share, 184,165 shares are between $2.08 and $4.00 per share, and 75,000 shares are between $4.08 and $6.03 per share.

Stock Based Compensation - Schedule of Restricted Stock Award Activity (Details) (Restricted Stock, USD $)	12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Restricted Stock
Restricted Stock Award Activity
Non-vested number of shares, beginning of period	126,457	223,090
Shares granted	137,325	270,304
Shares vested	(126,457)	(366,937)
Shares forfeited/expired	0	0
Non-vested number of shares, end of period	137,325	126,457
Weighted Average Fair Value Activity
Weighted average grant date fair vale, at beginning of period (USD per share)	$ 1.68	$ 1.25
Weighted average grant date fair value, granted (USD per share)	$ 2.01	$ 1.69
Weighted average grant date fair value, vested (USD per share)	$ 1.79	$ 1.79
Weighted average grant date fair value, forfeited/expired (USD per share)	$ 0.00	$ 0.00
Weighted average grant date fair vale, at end of period (USD per share)	$ 2.01	$ 1.68

Commitments and Contingencies - Additional Information (Details)	Jan. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Shares of common stock authorized for issuance in connection with equity award plans and the Employee Stock Purchase Plan	3,069,024
Shares reserved for conversion of preferred shares	3,999,995
Shares reserved for issuance upon exercise of warrants	1,400,000

Quarterly Results of Operations (Unaudited) - Selected Financial Information (Details) (USD $)

3 Months Ended

12 Months Ended

Jan. 31, 2013

Oct. 31, 2012

Jul. 31, 2012

Apr. 30, 2012

Jan. 31, 2012

Oct. 31, 2011

Jul. 31, 2011

Apr. 30, 2011

Jan. 31, 2013

Jan. 31, 2012

Schedule of Operations, Quarterly Results [Line Items]

Revenues

$ 6,739,000

$ 6,534,000

$ 5,049,000

$ 5,445,000

$ 4,518,000

$ 4,312,000

$ 4,146,000

$ 4,140,000

$ 23,766,803

$ 17,116,208

Gross profit

3,193,000

3,491,000

2,691,000

2,799,000

2,296,000

2,163,000

1,944,000

1,829,000

12,174,000

8,232,000

Operating profit (loss)

(1,181,000)

(302,000)

(24,000)

673,000

116,000

364,000

20,000

(253,000)

(834,931)

246,356

Net earnings (loss)

(7,807,000)

2,400,000

(463,000)

491,000

5,000

296,000

(7,000)

(281,000)

(5,378,729)

12,574

Less: deemed dividends on Series A Preferred Shares

(37,000)

(139,000)

0.00

(176,048)

Net earnings (loss) attributable to common shareholders

(7,844,000)

2,261,000

(463,000)

491,000

(5,554,777)

12,574

Basic net earnings (loss) per common share (in dollars per share)

$ (0.63)

^[1]

$ 0.18

^[1]

$ (0.04)

^[1]

$ 0.05

^[1]

$ 0.00

^[1]

$ 0.03

^[1]

$ 0.00

^[1]

$ (0.03)

^[1]

$ (0.48)

^[1]

$ 0.00

^[1]

Diluted net earnings (loss) per common share (in dollars per share)

$ (0.63)

^[1]

$ 0.15

^[1]

$ (0.04)

^[1]

$ 0.05

^[1]

$ 0.00

^[1]

$ 0.03

^[1]

$ 0.00

^[1]

$ (0.03)

^[1]

$ (0.48)

^[1]

$ 0.00

^[1]

Number of shares used in basic per common share computation

12,493,000

12,393,000

11,316,000

10,307,000

9,645,000

9,944,000

9,817,000

9,650,000

11,634,540

9,887,841

Stock Price, High (in dollars per share)

$ 6.00

^[2]

$ 6.60

^[2]

$ 4.59

^[2]

$ 1.88

^[2]

$ 1.86

^[2]

$ 2.06

^[2]

$ 2.19

^[2]

$ 2.05

^[2]

$ 6.60

^[2]

$ 2.19

^[2]

Stock Price, Low (in dollars per share)

$ 4.75

^[2]

$ 3.50

^[2]

$ 1.70

^[2]

$ 1.61

^[2]

$ 1.35

^[2]

$ 1.43

^[2]

$ 1.60

^[2]

$ 1.44

^[2]

$ 1.61

^[2]

$ 1.35

^[2]

Stock Price, Quarter and year-end close (in dollars per share)

$ 5.43

^[2]

$ 5.72

^[2]

$ 4.34

^[2]

$ 1.79

^[2]

$ 1.65

^[2]

$ 1.50

^[2]

$ 1.99

^[2]

$ 1.84

^[2]

$ 5.43

^[2]

$ 1.65

^[2]

Cash dividends declared (in dollars per share)

^[3]

Loss upon conversion

5,970,002

565,328

Convertible Notes to Preferred Stock | Series A Preferred Stock

Schedule of Operations, Quarterly Results [Line Items]

Loss upon conversion

5,913,000

Meta [Member]

Schedule of Operations, Quarterly Results [Line Items]

$ 565,000

[1]	Quarterly amounts may not be additive
[2]	Based on data available through The NASDAQ Stock Market, Inc.
[3]	The Company has not paid a dividend on its common stock since its inception and does not intend to pay any cash dividends in the foreseeable future

Private Placement Investment - Additional Information (Details) (USD $)

1 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

3 Months Ended

Aug. 31, 2012

Jan. 31, 2013

Jan. 31, 2012

Oct. 31, 2012

Aug. 16, 2012

Jul. 31, 2012

Apr. 30, 2012

Oct. 31, 2011

Jul. 31, 2011

Apr. 30, 2011

Jan. 31, 2013

Common Stock Warrant

Oct. 31, 2012

Common Stock Warrant

Aug. 16, 2012

Common stock

Jan. 31, 2013

Convertible Notes to Preferred Stock

Series A Preferred Stock

Jan. 31, 2013

Convertible Notes to Preferred Stock

Series A Preferred Stock

Nov. 02, 2012

Convertible Notes to Preferred Stock

Series A Preferred Stock

Jan. 31, 2013

Convertible Notes to Preferred Stock

Series A Preferred Stock

Minimum

Jan. 31, 2013

Convertible Notes to Preferred Stock

Series A Preferred Stock

Maximum

Aug. 16, 2012

Private Placement

Jan. 31, 2013

Private Placement

Aug. 16, 2012

Private Placement

Convertible Subordinated Notes Payable

Nov. 02, 2012

Private Placement

Convertible Subordinated Notes Payable

Aug. 16, 2012

Private Placement

Common Stock Warrant

Jan. 31, 2013

Private Placement

Common Stock Warrant

Aug. 16, 2012

Private Placement

Series A Preferred Stock

Jan. 31, 2013

Private Placement

Series A Preferred Stock

Aug. 16, 2012

Private Placement

Series A Preferred Stock

Minimum

Aug. 16, 2012

Private Placement

Series A Preferred Stock

Maximum

Nov. 02, 2012

Private Placement

Convertible Notes to Preferred Stock

Series A Preferred Stock

Jan. 31, 2013

Placement Agent

Common Stock Warrant

Oct. 19, 2012

Placement Agent

Common Stock Warrant

Equity Awards (Textual) [Abstract]

Proceeds Allocation

$ 12,000,000

$ 3,765,738

^[1]

$ 1,688,116

^[2]

$ 6,546,146

^[3]

Stock issued during period, new issues (in shares)

2,416,785

Preferred stock dividend rate

0.00%

Share price (USD per share)

$ 5.43

^[4]

$ 1.65

^[4]

$ 5.72

^[4]

$ 4.34

^[4]

$ 1.79

^[4]

$ 1.50

^[4]

$ 1.99

^[4]

$ 1.84

^[4]

$ 3.00

$ 8.00

Warrants exercisable (in shares)

1,200,000

1,400,000

1,200,000

200,000

Exercise price (USD per share)

3.99

4.00

3.99

4.06

Convertible notes payable

5,699,577

Common shares issued for convertible note and accrued interest (in shares)

1,583,210

Conversion basis

Maximum conversion period

4 years

Stock price at time of conversion (USD per share)

$ 3.00

$ 8.00

$ 3.00

$ 8.00

Annual volatility

75.00%

Risk-free rate

0.90%

0.80%

0.90%

Dividend yield

0.00%

Expected life

5 years

Placement and other advisor fees

1,894,000

Cost of warrants issued

754,000

Deferred financing cost, net

541,740

145,857

611,000

Fair value Allocation discount to the preferred shares

1,020,000

4,410,000

Issuance of common stock warrants

263,000

2,441,852

New issuance of series A convertible preferred stock (in shares)

2,416,785

Preferred stock, par value (USD per share)

$ 5.80

$ 3.00

Market value per share (USD per share)

$ 3.82

Period over which share price is evaluated

10 days

Period over which trade volume is evaluated

60 days

Average daily trading volume for period (in shares)

100,000

Recorded beneficial conversion feature amount

2,686,000

Amortization of debt discount

(111,583)

176,048

Loss upon conversion

(5,970,002)

5,913,000

Issuance of shares at redemption value for conversion of notes payable

9,183,000

Carrying value of the notes and unamortized deferred financing costs

3,300,000

Aggregate redemption value

4,750,000

Difference between fair value and redemption value recorded as additional paid in capital

4,433,000

Initial issuance price (UDS per share)

$ 3.00

Maximum Warrants exercisable period

5 years

Net of transaction costs, allocated to the warrants

1,425,000

Fair value of warrants

$ 3,649,000

$ 4,139,000

$ 2,555,022

^[2]

$ 754,000

[1]	The fair value of convertible subordinated notes payable was determined based on its current yield as compared to that of those currently outstanding in the marketplace. Management reviewed the convertible note agreement and determined that the note's interest rate is a reasonable representative of a market rate; therefore the face or principal amount of the loan is a reasonable estimate of its fair value.
[2]	The fair value of the common stock warrants was determined using a Monte-Carlo simulation following a Geometric Brownian motion, using the following assumptions: annual volatility of 75%, risk-free rate of 0.9%, dividend yield of 0.0% and expected life of 5 years. Because the dilutive down-round financing was subject to approval by shareholder vote which had not happened at the time of the valuation, the model utilized the assumption that the down-round financing would not occur within the simulation.
[3]	The Series A Preferred Stock convert on a 1:1 basis into common stock, but differ in value from common stock due to the downside protection relative to common stock in the event the Company liquidates, and the downside protection, if, after four years, the holder has not converted and the stock is below $3.00. The fair value of Series A Preferred Stock was determined using a Monte-Carlo simulation following a Geometric Brownian Motion, using the following assumptions: annual volatility of 75%, risk-free rate of 0.9% and dividend yield of 0.0%. The model also utilized the following assumptions to account for the conditions within the agreement: after four years, if the simulated common stock price fell below a price of $3.00 per share, the convertible preferred stock would automatically convert to common stock on a 1:1 basis moving forward at a price of exactly $3.00 per share and a forced conversion if the simulated stock price exceeded $8.00 per share.
[4]	Based on data available through The NASDAQ Stock Market, Inc.

Private Placement Investment - Schedule of Investment Allocation (Details) (USD $)

0 Months Ended

Jan. 31, 2013

Common Stock Warrant

Oct. 31, 2012

Common Stock Warrant

Aug. 16, 2012

Private Placement

Aug. 16, 2012

Private Placement

Common Stock Warrant

Aug. 16, 2012

Private Placement

Convertible Subordinated Notes Payable

Aug. 16, 2012

Private Placement

Series A Preferred Stock

Instruments:

Series A Preferred Stock, Fair Value

$ 9,907,820

^[1]

Convertible subordinated notes payable, Fair Value

5,699,577

^[2]

Warrants, Fair Value

3,649,000

4,139,000

2,555,022

^[3]

Total investment, Fair Value

18,162,419

Proceeds Allocation

$ 12,000,000

$ 1,688,116

^[3]

$ 3,765,738

^[2]

$ 6,546,146

^[1]

[1]	The Series A Preferred Stock convert on a 1:1 basis into common stock, but differ in value from common stock due to the downside protection relative to common stock in the event the Company liquidates, and the downside protection, if, after four years, the holder has not converted and the stock is below $3.00. The fair value of Series A Preferred Stock was determined using a Monte-Carlo simulation following a Geometric Brownian Motion, using the following assumptions: annual volatility of 75%, risk-free rate of 0.9% and dividend yield of 0.0%. The model also utilized the following assumptions to account for the conditions within the agreement: after four years, if the simulated common stock price fell below a price of $3.00 per share, the convertible preferred stock would automatically convert to common stock on a 1:1 basis moving forward at a price of exactly $3.00 per share and a forced conversion if the simulated stock price exceeded $8.00 per share.
[2]	The fair value of convertible subordinated notes payable was determined based on its current yield as compared to that of those currently outstanding in the marketplace. Management reviewed the convertible note agreement and determined that the note's interest rate is a reasonable representative of a market rate; therefore the face or principal amount of the loan is a reasonable estimate of its fair value.
[3]	The fair value of the common stock warrants was determined using a Monte-Carlo simulation following a Geometric Brownian motion, using the following assumptions: annual volatility of 75%, risk-free rate of 0.9%, dividend yield of 0.0% and expected life of 5 years. Because the dilutive down-round financing was subject to approval by shareholder vote which had not happened at the time of the valuation, the model utilized the assumption that the down-round financing would not occur within the simulation.

- Definition

The cash inflow associated with the amount received from entity's raising of capital via private rather than public placement.

+ References+ Details

Private Placement Investment - Schedule of Series A Preferred Stock Activity (Details) (USD $)	12 Months Ended
	Jan. 31, 2013
Increase (Decrease) in Shares of Temporaty Equity [Roll Forward]
Balance, January 31, 2013 (in shares)	3,999,995
Series A Preferred Stock
Increase (Decrease) in Shares of Temporaty Equity [Roll Forward]
Balance, February 1, 2012 (in shares)	0
Issuance from private placement, at redemption value (in shares)	2,416,785
Issuance of shares at redemption value for conversion of notes payable (in shares)	1,583,210
Balance, January 31, 2013 (in shares)	3,999,995
Increase (Decrease) in Temporary Equity [Roll Forward]
Balance, February 1, 2012	$ 0
Issuance from private placement, at redemption value	7,250,355
Discount related to warrants	(704,209)
Discount related to beneficial conversion feature	(2,685,973)
Discount related to issuance cost	(1,020,135)
Issuance of shares at redemption value for conversion of notes payable	4,749,630
Accretion of Preferred Stock discount	176,048
Balance, January 31, 2013	$ 7,765,716

Private Placement Investment - Schedule of Warrants Issued and Outstanding (Details)	Aug. 16, 2012	Jan. 31, 2013 Common Stock Warrant	Jan. 31, 2013 Private Placement Common Stock Warrant	Aug. 16, 2012 Private Placement Common Stock Warrant	Jan. 31, 2013 Placement Agent Common Stock Warrant	Oct. 19, 2012 Placement Agent Common Stock Warrant
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares issuable (in shares)	1,200,000	1,400,000	1,200,000	1,200,000	200,000	200,000
Weighted average exercise price (USD per share)	3.99	4.00	3.99	3.99	4.06	4.06

Valuation and Qualifying Accounts and Reserves (Details) (USD $)	12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 100,000
Charged to costs and Expenses	489,434	0
Balance at End of Period	134,000	100,000
Allowance for doubtful accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	100,000	100,000
Charged to costs and Expenses	67,000	159,000
Charged to Other Accounts	34,000	0
Deductions	(67,000)	(159,000)
Balance at End of Period	$ 134,000	$ 100,000

Major Clients	12 Months Ended
Major Clients	Jan. 31, 2013
Major Clients [Abstract]
MAJOR CLIENTS	MAJOR CLIENTS During fiscal year 2011, two clients, exclusive of remarketing partners, accounted for 8% and 6%, respectively, of total revenues. One client represented 24% of total accounts receivable as of January 31, 2012. During fiscal year 2012, two clients, exclusive of remarketing partners, accounted for 7% and 5%, respectively, of total revenues. Two clients represented 16% and 11%, respectively, of total accounts receivable as of January 31, 2013. The Company recognizes a significant amount of revenue from a remarketing agreement with GE Healthcare. GE Healthcare (including GE Healthcare clients who have now entered into direct contracts with the Company) accounted for 25% and 35% of revenues in fiscal 2012 and 2011, respectively. At January 31, 2013 and 2012, approximately 1% and 16%, respectively, of the Company’s accounts receivable were due from GE Healthcare.

Bad debt expense