Equity Incentive Plans

6 Months Ended

Jun. 30, 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 June 30, 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		2,753,710		446,290		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		4,518,465		–		4,518,465
		7,875,000		10,700,000		18,575,000		13,250,508		1,967,957		15,218,465

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 June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Selling, general and administrative	$	235	$	293	$	468	$	584
Research and development		21		31		35		62
Total	$	256	$	324	$	503	$	646

At June 30, 2012, DCT had approximately $514,000 of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 1.2 years.

Stock Option Activity and Outstanding

DCT had the following stock option activity during the six months ended June 30, 2012:

	Options			Weighted- Average Exercise Price
Outstanding at December 31, 2011		14,524,358		$	0.34
Granted		275,000			0.35
Exercised		(1,498,850	)		(0.01	)
Cancelled		(50,000	)		(0.32	)
Outstanding at June 30, 2012		13,250,508		$	0.38

In April 2012, DCT’s Board of Director’s approved a one-year extension to 643,465 options. The total fair value of the amended options, as calculated using the Black-Scholes valuation model, was $2,000 and was recorded as operating expense with the offsetting credit to additional paid-in capital during the three months ended June 30, 2012.

The following table summarizes all options outstanding and exercisable by price range as of June 30, 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		643,465	0.8	$	0.01		643,465	$	0.01
	$0.29-$0.45		9,707,043	5.8	$	0.32		7,189,642	$	0.31
	$0.60 - $0.70		2,900,000	6.4	$	0.68		2,200,000	$	0.68
			13,250,508					10,033,107

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 $195,000 and $1,546,000 at June 30, 2012 and December 31, 2011, respectively. The total intrinsic value for exercisable options was $192,000 and $1,303,000 at June 30, 2012 and December 31, 2011, respectively. The total intrinsic value was $475,000 for options exercised during the six months ended June 30, 2012. The total intrinsic value was $43,000 for options exercised during the six months ended June 30, 2011.