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Related-Party Transactions
3 Months Ended
Mar. 31, 2013
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

Note 2 – Related-Party Transactions

 

Purchases

 

Historically, DCT has purchased the majority of its finished scanner imaging products from various related entities (referred to collectively as “Scanner Manufacturers”) owned by a DCT stockholder who currently owns approximately 14% of DCT’s outstanding common stock.

 

The Scanner Manufacturers purchase the non-critical raw materials, parts and components. DCT procures the critical components required to manufacture its proprietary scanners. Subsequently, the Scanner Manufacturers reimburse DCT for the cost of procuring these critical components.

 

Purchases from Scanner Manufacturers totaled $1,788,000 and $2,339,000 for the three months ended March 31, 2013 and 2012, respectively. All purchases to and from Scanner Manufacturers were carried out in the normal course of business. As a result of the aforementioned purchases, the net due to related parties was $693,000 and $720,000 at March 31, 2013 and December 31, 2012, respectively.

 

Legal Services Agreement

 

In September 2009, DCT entered into a legal services agreement (“Agreement”) with Jody R. Samuels, a director of the Company.  Pursuant to the Agreement, Mr. Samuels will provide certain legal services to us which will consist of assisting the Company in (i) the preparation of its periodic and other filings with the Securities and Exchange Commission (“SEC”), including proxy statements, special and annual meetings of shareholders, (ii) the negotiation of financing and corporate development transactions, (iii) preparation and review of documentation related to financing arrangements and corporate development transactions, (iv) preparing registration statements, and responding to any SEC inquiries/comment letters, (v) documenting corporate governance policies and procedures, and (vi) any other legal matters reasonably within the legal expertise of Mr. Samuels.

 

Pursuant to the Agreement, Mr. Samuels was paid $4,000 per month for a total of $12,000 during each of the three months ended March 31, 2013 and 2012. The Agreement may be cancelled by either party with 30 days prior written notice.

 

Agreement to License Office Space

 

Through April 26, 2013, DCT licensed office space from Beau Dietl & Associates (“BDA”), a company owned by DCT’s board of directors’ chair. Effective April 27, 2013 DCT no longer licenses office space from BDA.

 

In connection with the licensed office space, DCT recorded rent expense of $6,000 for both the three months ended March 31, 2013 and 2012.

 

Professional Services

 

During the three months ended March 31, 2013, DCT paid BDA $34,000 for professional services provided during the 2013 Restructure.