Equity Incentive Plans

3 Months Ended

Mar. 31, 2012

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

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

Note 6 – 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.

The following table sets forth, by the respective option plan, certain aspects of DCT’s stock options as of March 31, 2012:

	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		2,299,000		201,000		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		5,917,315		–		5,917,315
		7,875,000		10,700,000		18,575,000		14,374,358		2,242,957		16,617,315

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 to ten years from the date of grant.

Stock-Based Compensation

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

	Three Months Ended March 31,
	2012		2011
Selling, general and administrative	$	233	$	291
Research and development		14		31
	$	247	$	322

At March 31, 2012, DCT had approximately $692,000 of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately one year.

Stock Option Activity and Outstanding

DCT had the following stock option activity during the three months ended March 31, 2012:

	Options		Weighted- Average Exercise Price
Outstanding at December 31, 2011		14,524,358	$	0.34
Granted		-		-
Cancelled		50,000		0.32
Exercised		100,000		0.01
Outstanding at March 31, 2012		14,374,358	$	0.35
Vested or expected to vest at March 31, 2012		14,374,358	$	0.35

The following table summarizes all options outstanding and exercisable by price range as of March 31, 2012:

		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		2,042,315		0.1	$	0.01		2,042,315	$	0.01
$	0.29-$0.45		9,432,043		5.9	$	0.32		5,884,214	$	0.32
$	0.60 - $0.70		2,900,000		6.6	$	0.68		2,200,000	$	0.68
			14,374,358						10,126,529

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) at March 31, 2012 was approximately $1,081,000. The total intrinsic value of options outstanding at December 31, 2011 was $1,546,000. The total intrinsic value for exercisable options was $953,000 and $1,303,000 at March 31, 2012 and December 31, 2011, respectively. The total intrinsic value was $27,000 for options exercised during the three months ended March 31, 2012.