Employee Equity Incentive Plans

12 Months Ended

Dec. 31, 2011

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 4 – Employee Equity Incentive Plans

General

DCT’s share-based awards are long-term retention plans that are intended to attract, retain and provide incentives for talented employees. DCT believes its share-based awards are critical to its operation and productivity. The employee share-based award plans allow DCT to grant, on a discretionary basis, incentive stock options and non-qualified stock options.

Stock Options

DCT issues options under four different stock option plans as well as through employment agreements with key employees, executives and consultants (approved by the board of directors on a case-by-case basis). Options generally vest over two to three years from the date of grant and expire seven years from the date of grant.

The following table sets forth, by the respective option plan, certain aspects of DCT’s stock options as of December 31, 2011:

	Option Approval Method						Options Outstanding and Options Available
Description	Board of Directors		Board of Directors and Shareholders		Total		Outstanding		Available For Future Grant		Total
2002 Amended and Restated Stock Option Plan		–		3,200,000		3,200,000		2,478,710		721,290		3,200,000
2006 Stock Option Plan		–		2,500,000		2,500,000		2,349,000		151,000		2,500,000
2009 Stock Option Plan		–		1,500,000		1,500,000		1,179,333		320,667		1,500,000
2010 Stock Option Plan		–		3,500,000		3,500,000		2,500,000		1,000,000		3,500,000
Key Personnel Option Grants		7,875,000		–		7,875,000		6,017,315		–		6,017,315
		7,875,000		10,700,000		18,575,000		14,524,358		2,192,957		16,717,315

Stock-Based Compensation

The following table sets forth the total stock-based compensation expense included in DCT’s statements of operations (in thousands):

	Year Ended December 31,
	2011		2010
Selling, general and administrative	$	1,162	$	813
Research and development		108		127
	$	1,270	$	940

At December 31, 2011, DCT had approximately $970,000 of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 1.1 years.

Stock Option Activity and Outstanding

Additional information with respect to stock option activity is as follows:

	Options			Weighted-Average Exercise Price
Outstanding at December 31, 2009		11,355,498		$	0.32
Granted		4,250,000			0.42	*
Cancelled		(361,000	)		0.43
Outstanding at December 31, 2010		15,244,498		$	0.34
Granted		1,143,710			0.39	*
Cancelled		(1,765,000	)		0.38
Exercised		(98,850	)		0.01
Outstanding at December 31, 2011		14,524,358		$	0.34
Vested or expected to vest at December 31, 2011		14,524,358		$	0.34

* Approximates the weighted-average fair value.

The following table summarizes all options outstanding and exercisable by price range as of December 31, 2011:

		Options Outstanding						Options Exercisable
Range of Exercise Prices		Number Outstanding		Weighted-Average Remaining Contractual Life (Years)		Weighted-Average Exercise Price		Number Exercisable		Weighted-Average Exercise Price
	$0.01		2,142,315		0.32	$	0.01		2,142,315	$	0.01
	$0.29-$0.45		9,482,043		6.20	$	0.32		5,917,547	$	0.32
	$0.60 - $0.70		2,900,000		6.85	$	0.68		2,200,000	$	0.68
			14,524,358						10,259,862

The “intrinsic value” of options is the excess of the value of DCT stock over the exercise price of such options. The total intrinsic value of options outstanding (of which all are expected to vest) was approximately $1,546,000 and $3,462,000 at December 31, 2011 and 2010, respectively. The total intrinsic value for exercisable options was $1,303,000 and $2,024,000 at December 31, 2011 and 2010, respectively. The total intrinsic value for options exercised during the year ended December 31, 2011 was $43,000. No options were exercised during the year ended December 31, 2010.