Basic and Diluted Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 9 – Basic and Diluted Net Income (Loss) Per Common Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock and common stock equivalents outstanding during the period.

Common stock equivalents (“CSE”) were 613,000 and 2,063,000 at September 30, 2012 and 2011, respectively. CSEs were taken into consideration in calculating diluted net income per common share for the three months ended September 30, 2011, but the impact did not change net income per share. CSEs were not considered in calculating diluted net loss per common share for three and nine months ended September 30, 2012 or for the nine months ended September 30, 2011, as their effect would be anti-dilutive.

The computation of DCT’s basic and diluted earnings per share for the three months ended September 30, 2011 is as follows (in thousands, except per share amounts):

Net income available to common shareholders (A)	$	620
Weighted average common shares outstanding (B)		20,578
Dilutive effect of stock options and warrants		2,063
Weighted average common shares outstanding, assuming dilution (C)		22,641
Basic earnings per common share (A)/(B)	$	0.03
Diluted earnings per common share (A)/(C)	$	0.03

The above calculation excluded 16,755,000 of stock options and warrants from the calculation of diluted earnings per common share as the exercise prices of these stock options and warrants were greater than or equal to the market value of the common shares. Such options and warrants could be included in the calculation in the future if the market value of DCT’s common shares increases and is greater than the exercise price of these options and warrants.