Note 4 - Inventory

12 Months Ended

Jan. 31, 2014

4.	Inventory

Inventory, net of reserves, consists of the following (in thousands):

	January 31,
	2014		2013

Raw materials	$	-	$	397
Finished goods		-		69
	$	-	$	466

As of January 31, 2014, we wrote down our remaining inventory balances, representing primarily component inventory in excess of requirements and charged to cost of revenues. We also shipped certain components to a liquidator in an attempt to salvage some economic value from these parts, but to date we have not recovered any amounts and expect such recoveries to be minor.

As of January 31, 2013, approximately $720,000 of total gross inventory was located at our corporate headquarters. The remaining balance was located at various contract manufacturer locations in Asia and at a third party inventory warehouse for our customer, Lenovo.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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