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Concentrations
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6 Months Ended | ||
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May 31, 2012
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| Concentrations [Abstract] | |||
| CONCENTRATIONS |
The Company has historically invested in securities of privately-held and publicly-traded companies in the midstream and downstream segments of the U.S. energy infrastructure sector. As of May 31, 2012, investments in securities of energy infrastructure companies represented approximately 75 percent of the Company’s total assets. The Company is now focused on identifying and acquiring real property assets in the U.S. energy infrastructure sector that are REIT qualified.
The Company’s leased property at May 31, 2012 is leased to a single entity, Public Service Company of New Mexico, as further described in Note 8. Public Service Company of New Mexico’s financial condition and ability and willingness to satisfy its obligations under its leases with the Company has a considerable impact on the Company’s results of operations and ability to service its indebtedness. Omega has a ten-year contract expiring in 2015 to supply natural gas to the Department of Defense (“DOD”). Revenue related to the DOD contract accounted for 85 percent of sales revenues for the period from March 1, 2012 through May 31, 2012 and 85 percent of sales revenues for the period from December 1, 2011 through May 31, 2012. Mowood, through its wholly owned subsidiary Omega, performs management and supervision services related to the expansion of the natural gas distribution system used by the DOD. Amounts due from the DOD account for 91 percent of the consolidated accounts receivable balance at May 31, 2012. Mowood’s contracts for its supply of natural gas are concentrated among select providers. Payments to its largest supplier of natural gas accounted for 41 percent of cost of sales for the period from March 1, 2012 through May 31, 2012 and 18 percent of cost of sales for the period from December 1, 2011 through May 31, 2012.
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