Commitments and Contingencies

6 Months Ended

Jun. 30, 2011

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 11 – Commitments and Contingencies

Operating Leases

DCT occupies its corporate office and warehouse space through an operating lease that extends through October 2015.  As of June 30, 2011, future minimum rental commitments under non-cancellable leases were as follows (in thousands ):

Year Ending June 30,	Future Minimum Lease Payments
2012	$	190
2013		228
2014		256
2015		275
Thereafter		94
	$	1,043

Employment Agreements

DCT maintains employment agreements with its executive officers and key employees.  The agreements provide for termination payments, stock options, non-competition provisions, and other terms and conditions of employment.   As of June 30, 2011, termination payments totaling $1,293,000 remain in effect.  See note 14.

Research and Development Agreement

During the second quarter of 2011, the Company entered into an agreement (“Development Agreement”) with a customer to develop scanners to meet the customer’s specific product requirements.  Revenue and the associated cost of revenue are recognized based on a percentage-of-completion estimate.  During the three months ended June 30, 2011, DCT recognized revenue of $19,000 and deferred revenue of $22,000 based on an estimated percentage of completion.

Litigation, Claims and Assessments

The Company experiences routine litigation in the normal course of its business and does not believe that any pending litigation will have a material adverse effect on DCT’s financial condition, results of operations or cash flows.