Fair Value

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Note 7 – Fair Value

On August 5, 2010, DCT and NCR Corporation (“NCR”) entered into (i) Share Purchase Agreement, (ii) Investor Rights Agreement, and (iii) Voting Agreement pursuant to which NCR purchased from DCT 3,861,004 shares of the Company’s common stock for an aggregate purchase price of $4,000,000. Additionally, DCT granted NCR a two-year option (“NCR Option”) to purchase up to an additional $4,000,000 of Common Stock at an exercise price of $1.036 per share, subject to adjustment. See Note 14.

Under the provisions of ASC 820, Fair Value Measurements and Disclosures, the NCR Option is a liability that is adjusted to its fair value at the end of each reporting period. As of June 30, 2012, DCT estimated the fair value using the Binomial option pricing model and the following assumptions: 0.04% risk-free interest rate, expected volatility of 226%, expected dividend yield of 0%, and remaining life equal to the remaining contractual life of the option.

As of December 31, 2011, DCT estimated the fair value using the Binomial option pricing model and the following assumptions: 0.12% risk-free interest rate, expected volatility of 198%, expected dividend yield of 0%, and remaining life equal to the remaining contractual life of the option.

The change in fair value each period is reported as non-operating gain or loss. Generally, this accounting treatment will result in a reported loss during any accounting period in which there is a reported increase in the value of the Company’s common stock as quoted on the OTC Bulletin Board. Conversely, this accounting treatment generally will result in a reported gain during any accounting period in which there is reported decrease in the value of the Company’s common stock as quoted on the OTC Bulletin Board.

DCT’s stock option liability fair value is classified as a Level 3 fair value, as unobservable inputs to the valuation methodology are significant to the measurement of the fair value, as defined by ASC 820.

The following table summarizes the changes in Level 3 liabilities measured at fair value on a recurring basis (in thousands):

	As of and for the Three Months Ended June 30,						As of and for the Six Months Ended June 30,
	2012			2011			2012			2011
Beginning balance - stock option liability	$	347		$	618		$	502		$	811
Unrealized loss (gain) included in net income (loss) (1)		(308	)		(77	)		(463	)		(270	)
Ending balance- stock option liability	$	39		$	541		$	39		$	541

⁽¹⁾ Included as a component of non-operating income (expense).