PROPERTY, PLANT AND EQUIPMENT

6 Months Ended

Jul. 31, 2015

NOTE 8 — PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following at July 31 and January 31, 2015:

	July 31,		January 31,
	2015		2015
Land and improvements	$	473,000	$	473,000
Building and improvements	3,691,000		2,800,000
Furniture, machinery and equipment	4,038,000		3,546,000
Trucks and other vehicles	1,571,000		1,437,000
Construction project costs of variable interest entity	—		2,658,000

	9,773,000		10,914,000
Less-accumulated depreciation	4,584,000		4,396,000

Property, plant and equipment, net	$	5,189,000	$	6,518,000

Depreciation expense amounts were approximately $140,000 and $141,000 for the three months ended July 31, 2015 and 2014, respectively, and were approximately $258,000 and $283,000 for the six months ended July 31, 2015 and 2014, respectively. The costs of maintenance and repairs totaled $169,000 and $70,000 for the three months ended July 31, 2015 and 2014, respectively, and $271,000 and $119,000 for the six months ended July 31, 2015 and 2014, respectively.

The Company also uses equipment and occupies facilities under non-cancelable operating leases and other rental agreements. Rent included in the selling, general and administrative expenses was $53,000 and $49,000 for the three months ended July 31, 2015 and 2014, respectively, and was $103,000 and $97,000 for the six months ended July 31, 2015 and 2014, respectively. Rent incurred on construction projects and included in the costs of revenues was $3,795,000 and $2,965,000 for the three months ended July 31, 2015 and 2014, respectively, and was $8,407,000 and $4,561,000 for the six months ended July 31, 2015 and 2014, respectively.