Composition of Certain Financial Statement Captions

12 Months Ended

Dec. 31, 2011

Composition Of Certain Financial Statement Captions [Abstract]

Composition Of Certain Financial Statement Captions [Text Block]

Note 5 – Composition of Certain Financial Statement Captions

Inventories, net are summarized as follows (in thousands):

	December 31,
	2011			2010
Raw materials	$	803		$	311
Finished goods		2,106			1,419
		2,909			1,730
Less: Inventory allowance		(33	)		–
	$	2,876		$	1,730

Fixed assets are summarized as follows (in thousands):

	December 31,
	2011			2010
Computer and office equipment	$	123		$	111
Leasehold improvements		26			–
Tooling and product design		294			288
		443			399
Less: Accumulated depreciation		(318	)		(254	)
	$	125		$	145

Depreciation expense totaled $88,000 and $103,000 for the years ended December 31, 2011 and 2010, respectively.

Deferred revenue and customer deposits are summarized as follows (in thousands):

	December 31,
	2011		2010
Deferred revenue	$	–	$	6
Customer deposits		–		23
	$	–	$	29

In certain instances, DCT requires advance payments from customers. Revenue from advanced payments is recognized when the finished product is shipped.

Deferred revenue consists of non-recurring engineering fees and other pre-payments received from customers that have been deferred when one or more revenue recognition criteria have not been met. Once the revenue recognition criteria have been fully met, the revenue is recognized.

Accrued compensation and benefits are summarized as follows (in thousands):

	December 31,
	2011		2010
Vacation	$	147	$	87
Bonuses		219		124
Accrued payroll		33		–
Executive severance(1)		–		246
Executive relocation(2)		45		255
	$	444	$	712

⁽¹⁾Relates to the resignation of a DCT executive in November 2010.

⁽²⁾Relates to the hiring of a DCT executive in November 2010.