Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 11 – Commitments and Contingencies

Operating Leases

DCT’s corporate office and warehouse space is an operating lease that extends through October 2015. As of December 31, 2011, future minimum rental commitments under non-cancellable leases were as follows (in thousands):

Year Ending December 31,		Future Minimum Lease Payments
	2012	$	207
	2013		246
	2014		265
	2015		235
	Thereafter		–
		$	953

Under the lease agreement, DCT is responsible for common area maintenance (“CAM”) charges and pro-rated taxes and insurance. Rent, CAM, and pro-rated taxes and insurance expenses under the operating lease totaled $381,000 and $304,000 for the years ended December 31, 2011, respectively.

Rent expense was $259,000 and $284,000 for the years ended December 31, 2011 and 2010, respectively.

Employment Agreements

DCT maintains employment agreements with certain of its executive officers that provide for a base salary and annual bonus to be determined by the Board of Directors. The agreements also provide for termination payments, stock options, non-competition provisions, and other terms and conditions of employment. DCT also maintains employment agreements with other key employees with similar terms and conditions. As of December 31, 2011, termination payments totaling $1,382,000 remain in effect. Additionally, DCT has commitments to several key employees to pay severance if the employee is terminated by DCT. Such commitments total $48,000 as of December 31, 2011. Subsequent to year end, one employment agreement was not renewed, which reduced the termination payments to $1,117,000.

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 year ended December 31, 2011, DCT recognized revenue of $56,000 based on an estimated percentage of completion. As of December 31, 2011, DCT had no deferred revenue associated with the Development Agreement.

Litigation, Claims and Assessments

DCT 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.