Equity Incentive Plans

3 Months Ended

Mar. 31, 2013

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, 2013:

	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		3,200,000		–		3,200,000
2006 Stock Option Plan		–		2,500,000		2,500,000		2,500,000		–		2,500,000
2009 Stock Option Plan		–		1,500,000		1,500,000		1,500,000		–		1,500,000
2010 Stock Option Plan		–		3,500,000		3,500,000		3,500,000		–		3,500,000
2013 Stock Option Plan		3,500,000		–		3,500,000		1,245,043		2,254,957		3,500,000
Key Personnel Option Grants		5,075,000		–		5,075,000		4,518,465		–		4,518,465
		8,575,000		10,700,000		19,275,000		16,463,508		2,254,957		18,718,465

Stock Options

DCT issues options under five 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,
	2013		2012
Selling, general and administrative	$	171	$	233
Research and development		5		14
	$	176	$	247

At March 31, 2013, DCT had approximately $586,000 of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 1.85 years.

Stock Option Activity and Outstanding

DCT had the following stock option activity during the three months ended March 31, 2013:

	Options		Weighted- Average Exercise Price
Outstanding at December 31, 2012		13,100,508	$	0.38
Granted		3,813,000		0.16
Cancelled		450,000		0.37
Outstanding at March 31, 2013		16,463,508	$	0.33
Vested or expected to vest at March 31, 2013		16,463,508	$	0.33

In January 2013, as part of the 2013 Restructure, DCT’s Board of Directors approved a nine-month extension to 1,583,333 options that were scheduled to expire in April 2013.  The total fair value of the amended options, as calculated using the Black-Scholes valuation model, was approximately $80,000 and was recorded as operating expense with the offsetting credit to additional paid-in capital during the three months ended March 31, 2013.

In March 2013, DCT’s Board of Director’s approved a one-year extension to 300,000 options that were scheduled to expire April 2013. The total fair value of the amended options, as calculated using the Black-Scholes valuation model, was approximately $1,000 and was recorded as operating expense with the offsetting credit to additional paid-in capital during the three months ended March 31, 2013.

The following table summarizes all options outstanding and exercisable by price range as of March 31, 2013:

	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		0.5	$	0.01		643,465	$	0.01
$0.12-$0.17		3,813,000		9.8	$	0.16		–		–
$0.29-$0.45		9,107,043		4.2	$	0.31		8,538,288	$	0.31
$0.60-$0.70		2,900,000		5.2	$	0.68		2,900,000	$	0.68
		16,463,508						12,081,753

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, 2013 was approximately $96,000. The total intrinsic value of options outstanding at December 31, 2012 was $103,000. The total intrinsic value for exercisable options was $84,000 and $103,000 at March 31, 2013 and December 31, 2012, respectively. No options were exercised during the three months ended March 31, 2013. The total intrinsic value was $27,000 for options exercised during the three months ended March 31, 2012.