Commitments and Contingencies

9 Months Ended

Jul. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Lease commitments

Versant’s principal commitments as of July 31, 2012 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 Cupertino, California and Hamburg and Munich, Germany under operating lease agreements. The Company's operating lease arrangements as of July 31, 2012 are summarized below (in thousands):

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	$	371	Two three year renewal options
Redwood City, California	5/31/2013	$	172	Two one year renewal options
Munich, Germany	2/28/2014	$	38	Single two year renewal option
Redwood City, California	5/31/2014	$	187	Single one year renewal option
Cupertino, California	1/15/2013	$	18	none

Our minimum commitments under non-cancelable operating leases with an initial term in excess of one year as of July 31, 2012 are as follows (in thousands): 

	Facilities Leases		Equipment Leases		Total
Three months ending October 31, 2012	$	122	$	1	$	123
Fiscal year ending October 31,
2013	406		3		409
2014	227		—		227
2015	13		—		13
2016	—		—		—
Total	$	768	$	4	$	772

Total rent expense for all operating leases was $128,000 and $98,000 for the three months ended July 31, 2012 and 2011, respectively, and $373,000 and $292,000 for the nine months ended July 31, 2012 and 2011, respectively.

Contingencies

The Company is subject to various legal proceedings and disputes that may arise from time to time in the ordinary course of business. There were no ongoing material legal proceedings as of July 31, 2012.

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 liabilities is minimal and no accrual has been established.