Commitments and Contingencies

12 Months Ended

Nov. 30, 2011

Notes to Financial Statements

Commitments and Contingencies

7 Commitments and Contingencies

Operating Leases

The Company leases facilities under operating lease agreements that can be canceled with 90-day advance notice.

Rent expense was approximately $15,000 and $43,000 in fiscal 2011 and 2010, respectively.

Capital Lease Obligations

The Company has one obligation under a capital lease that has been recorded in the accompanying financial statements. The lease is in default and is recorded on the books of an inactive subsidiary of the Company (see Note 3). The Company does not utilize any equipment associated with such lease.

Litigation

The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. In the opinion of management, the amount of ultimate liability, if any, is not likely to have a material effect on the financial condition, results of operations or liquidity of the Company. However, as the outcome of litigation or legal claims is difficult to predict, significant changes in the estimated exposures could occur.