Income Tax

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 10 – Income Tax

DCT’s provision (benefit) for income taxes are summarized as follows (in thousands):

	Year Ended December 31,
	2011		2010
Current taxes:
Federal taxes	$	3	$	11
State taxes		61		91
	$	64	$	102

As of December 31, 2011 DCT has estimated available net operating loss carryforwards of approximately $7,605,000 and $5,100,000 for federal and state income tax purposes, respectively. Pursuant to Sections 382 and 383 of the Internal Revenue Code, the utilization of net operating losses (“NOL”) and other tax attributes may be subject to substantial limitations if certain ownership changes occur during a three-year testing period (as defined). During the year ended December 31, 2008 management analyzed changes to DCT’s ownership and estimated the impact of such changes to DCT’s NOLs. The aforementioned NOLs are based on management’s estimates and are limited to an annual limitation of approximately $500,000 per year. During the years ended December 31, 2011 and 2010, DCT did not have any ownership changes that limit NOLs.

DCT believes sufficient uncertainty exists regarding the realization of net operating loss carryforwards and other timing differences for the periods presented. Accordingly, a valuation allowance has been provided for the entire amount related thereto. The valuation allowance decreased by approximately $164,000 and $12,000 for the years ended December 31, 2011 and 2010, respectively.

A reconciliation of the differences between the United States statutory federal income tax rate and the effective tax rate as provided in the consolidated statements of operations is as follows:

	Year Ended December 31,
	2011			2010
U.S. Federal statutory rate (%)		(35	)%		35	%
State income taxes, net of federal income taxes		14			14
Effect of permanent differences and other		124			26
Use of NOLs		(91	)		(79	)
Change in valuation allowance and other		10			31
		22	%		27	%

The deferred income tax asset consisted of the following (in thousands):

	December 31,
	2011			2010
Deferred tax assets
Federal net operating loss carryforwards	$	2,662		$	2,857
State net operating loss carryforwards		451			451
Other		208			177
		3,321			3,485
Less: valuation allowance		(3,321	)		(3,485	)
	$	-		$	-

Effective at the beginning of 2007, DCT adopted standards that changed the accounting for uncertain tax positions. The implementation of these standards did not result in a cumulative effect adjustment to the Company’s accumulated deficit. As of the date of adoption, the Company had no unrecognized income tax benefits. Accordingly, the annual effective tax rate was not affected. Should the Company incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of interest expense and operating expense, respectively.

At December 31, 2011, the Company had no increase or decrease in unrecognized income tax benefits for the year. There was no accrued interest or penalties relating to tax uncertainties at December 31, 2011. Unrecognized tax benefits are not expected to increase or decrease within the next twelve months.

The Company is subject to income tax in the U.S. federal jurisdiction and California. DCT is no longer subject to U.S. federal or state income tax examination by tax authorities for tax returns filed for the years ended on or before December 31, 2007 and December 31, 2006, respectively. DCT has not filed its U.S. federal or state return for the year ended December 31, 2011. These returns are considered open tax years as of the date of these consolidated financial statements.  No tax returns are currently under examination by any tax authorities.