Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 14 – Subsequent Events

Standby Letter of Credit

On June 3, 2011, DCT and Microtek International (“Microtek”) entered into an agreement (“Microtek Agreement”) giving DCT exclusive distribution rights for four of Microtek’s leading products, which expand and complement DCT’s current products.  Microtek is a multi-national designer, developer and manufacturer of proprietary scanner technology.

To support anticipated purchases under the Microtek Agreement, DCT arranged for the issuance to Microtek of a $300,000 standby letter of credit that may be drawn upon by Microtek in the event that timely payment is not made for the products purchased.  As a result, the borrowing capacity on DCT’s line of credit decreased by $300,000 to $1,178,000 on July 6, 2011.  The standby letter of credit will continue to reduce our available borrowing capacity by $300,000 until Microtek no longer requires the guarantee, or until July 6, 2012, at which time the current guarantee terminates.

Employment Agreement

In July 2011, DCT entered into an employment agreement with a key senior employee, which increased DCT’s termination payment commitment to $1,457,000.  See note 11.

Stock Option Grant

In July 2011, the Company’s Compensation Committee issued 198,710 options to an officer of the Company pursuant to the 2002 Amended and Restated Stock Option Plan.  The options are exercisable for a period of ten years from the date of grant at an exercise price of $0.45 per share and vest as follows: one-half on November 3, 2011 and one-half on November 3, 2012.