Commitments and Contingencies

9 Months Ended

Jul. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Lease commitments

Versant’s principal commitments as of July 31, 2011 consist of obligations under operating leases for facilities and equipment.

Versant leases office space for its U.S. headquarters in Redwood City, California and also leases field office space in Hamburg and Munich, Germany under multi-year operating lease agreements. The Company's operating lease arrangements as of July 31, 2011 are summarized below:

Leased Office Facility:	Lease Expiration Date	Total Rent Payable over the Remaining Lease Term		Options to Renew at Fair Value
Hamburg, Germany	11/30/2014	$	605,000	Two three year renewal options
Redwood City, California	5/31/2013	$	373,000	Single one year renewal option
Munich, Germany	2/28/2014	$	73,000	Single two year renewal option

Our minimum commitments under non-cancelable operating leases as of July 31, 2011 are as follows (in thousands): 

	Facilities Leases		Equipment Leases		Total
Three months ending October 31, 2011	$	102	$	1	$	103
Fiscal year ending October 31,
2012	412		5		417
2013	331		3		334
2014	191				191
2015	15				15
Total	$	1,051	$	9	$	1,060

Contingencies

The Company is subject to various legal proceedings and disputes that arise in the ordinary course of business from time to time. There were no ongoing material legal proceedings as of July 31, 2011.

The Company enters into indemnification agreements in the ordinary course of business. The Company's license agreements with customers generally require it to indemnify the customer against claims that its software infringes third party patent, copyright, trademark or other proprietary rights. Such indemnification obligations are generally limited in a variety of industry-standard respects. If a liability associated with any of the Company's indemnifications becomes probable and the amount of the liability is reasonably estimable or the minimum amount of a range of loss is reasonably estimable, then an appropriate liability will be established. The estimated fair value of these indemnification clauses is minimal.