10-Q/A

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

Amendment No. 1

þ Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2012

¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________ to ________ .

Commission file number 1-12711

DIGITAL POWER CORPORATION

( Exact name of registrant as specified in its charter )

California	94-1721931
(State or other jurisdiction of	(I.R.S. Employer Identification Number)
incorporation or organization)

41324 Christy Street

Fremont, CA 94538-3158

(Address of principal executive offices)

(510) 657-2635

(Registrant’s telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ    No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes þ     No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12(b)-2 of the Exchange Act).  Yes ¨    No þ

At August 14, 2012, the registrant had outstanding 6,863,150 shares of common stock.

Explanatory Note

The purpose of this Amendment No. 1 to the Quarterly Report on Form 10-Q of Digital Power Corporation, for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 14, 2012 (the “Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

No other changes have been made to the Form 10-Q.  This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

PART II
ITEM 6.	EXHIBITS

Exhibits

3.1	Amended  and  Restated  Articles  of  Incorporation  of  Digital  Power Corporation (1)
3.2	Amendment to Articles of Incorporation (1)
3.3	Bylaws of Digital Power Corporation (1)
10.1	1996 Digital Power Stock Option Plan (1)
10.2	1998 Digital Power Stock Option Plan (2)
10.3	2002 Digital Power Stock Option Plan (3)
10.4	Lease, dated as of August 21, 2007, between the Company and SDC Fremont Business Center, Inc. (4)
10.5	Employment Agreement with Amos Kohn (5)
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer and Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley of 2002
32	Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.1	Press Release, dated August 10,  2011, issued by Digital Power Corporation
101.INS**	XBRL Instance
101.SCH**	XBRL Taxonomy Extension Schema
101.CAL**	XBRL Taxonomy Extension Calculation
101.DEF**	XBRL Taxonomy Extension Definition
101.LAB**	XBRL Taxonomy Extension Labels
101.PRE**	XBRL Taxonomy Extension Presentation
(1)	Previously filed with the Commission on October 16, 1996 as an exhibit to the Company’s Registration Statement on Form SB-2.
(2)	Previously filed with the Commission as Exhibit 10.7 to the Company’s Form 10-KSB for the year ended December 31, 1998.
(3)	Previously filed with the Commission as Exhibit A to the Company’s Proxy Statement filed on September 5, 2002.
(4)	Previously filed with the Commission as Exhibit 10.1 to the Company’s Form 8-K filed on October 22, 2007.
(5)	Previously filed with the Commission as Exhibit 10.1 to the Company’s Form 8-K filed on July 10, 2008.

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated:  September 11, 2012

Digital Power Corporation

By:	/s/ Amos Kohn
	Amos Kohn
	President, Chief Executive Officer and Chief Financial Officer
	(Principal Executive Officer and Principal Financial Officer)

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Amos Kohn, certify that:

     1.  I have reviewed this quarterly report on Form 10-Q of Digital Power Corporation;

     2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

     4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

                  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

                  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

                  (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

                  (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

     5.  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

                  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

                  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:  September 12, 2012

/s/ Amos Kohn

Amos Kohn

President & Chief Executive Officer

(Principal Executive Officer and Principal Financial Officer)

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 In connection with the quarterly report of Digital Power Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

         (1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

         (2) the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Dated:  September 12, 2012

/s/ Amos Kohn

Amos Kohn

President & Chief Executive Officer

(Principal Executive Officer and Principal  Financial Officer)

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Note 5 - Acquisition of Shares of Telkoor (Detail) (USD $)	Jun. 30, 2012	Jun. 16, 2011
Business Acquisition, Shares Acquired		$ 1,136,666
Stock Closing Price, Per Share	1.20
Business Acquisition, Percentage of Voting Interests Acquired		8.80%
Tel Aviv Stock Exchange [Member]
Stock Closing Price, Per Share		$ 0.88

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Note 3 - Inventories

6 Months Ended

Jun. 30, 2012

Inventory Disclosure [Text Block]

NOTE 3:-              INVENTORIES

	June 30,		December 31,
	2012		2011
	Unaudited
Raw materials, parts and supplies	$	324	$	239
Work in progress		334		486
Finished products		1,228		1,607
	$	1,886	$	2,332

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Note 2 - Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Significant Accounting Policies [Text Block]

NOTE 2:-              SIGNIFICANT ACCOUNTING POLICIES

a. The accompanying unaudited consolidated financial statements as of June 30, 2012 and for the six months ended June 30, 2012 and 2011 are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management's discussion and analysis of the financial condition and results of operations, contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011. The results of operations for the three and six months ended June 30, 2012 are not necessarily indicative of the results for the entire fiscal year ending December 31, 2012. The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2011 are applied consistently in these financial statements. In addition, the following accounting policy is applied:

b.

Marketable securities: The Company classifies its investment in Telkoor's shares as available-for-sale securities in accordance with ASC 320 (originally issued as SFAS 115), "Investment in Debt and Equity Securities". The investment is stated at market value. Unrealized gains and losses are comprised of the difference between market value and the investment fair value at the acquisition date and are reflected as "accumulated other comprehensive loss" in equity.

c.

Accounting for stock-based compensation: The Company has several stock-based employee compensation plans, which are described more fully in Note 4. The Company accounts for stock-based compensation in accordance with Accounting Standards Codification Statement ("ASC") 718 (formerly SFAS No. 123 (revised 2004)) "Stock compensation" ("ASC 718"). The Company and its subsidiary apply ASC 718 and ASC 505-50 (formerly EITF 96-18) "Equity-Based Payments to Non-Employees" ("ASC 505-50") to options issued to non-employees. ASC 718 requires use of an option valuation model to measure the fair value of the options at the grant date.

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Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
CURRENT ASSETS:
Cash and cash equivalents	$ 1,922	$ 1,777
Trade receivables (net of allowance for doubtful accounts of $ 146 and $ 148 at June 30, 2012 and December 31, 2011, respectively)	2,326	1,845
Prepaid expenses and other receivables	146	108
Inventories (Note 3)	1,886	2,332
Total current assets	6,280	6,062
PROPERTY AND EQUIPMENT, NET	472	448
INTANGIBLE ASSET, NET	306	350
AVAILABLE FOR SALE SECURITIES OF TELKOOR	607	483
LONG-TERM DEPOSITS	6	6
Total assets	7,671	7,349
CURRENT LIABILITIES:
Accounts payable	942	1,032
Related parties - trade payables	363	369
Advances from customers and deferred revenues	16	286
Other current liabilities	472	529
Total current liabilities	1,793	2,216
Series A Redeemable, Convertible Preferred shares, no par value - 500,000 shares authorized at June 30, 2012 and December 31, 2011; No shares are issued and outstanding.	0	0
Preferred shares, no par value - 1,500,000 shares authorized at June 30, 2012 and December 31, 2011; No shares are issued and outstanding.	0	0
Common shares, no par value - 30,000,000 shares authorized at June 30, 2012 and December 31, 2011; 6,863,150 shares and 6,849,654 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively	0	0
Additional paid-in capital	14,410	14,358
Accumulated deficit	(7,768)	(8,321)
Accumulated other comprehensive loss	(764)	(904)
Total shareholders' equity	5,878	5,133
Total liabilities and shareholders' equity	$ 7,671	$ 7,349

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Net income	$ 553	$ 578
Adjustments required to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	50	31
Amortization of intangible asset	49	50
Stock based compensation related to options granted to employees	61	68
Stock based compensation related to options granted to Telkoor's employees	(9)	14
Decrease (increase) in trade receivables, net	(484)	345
(Increase) decrease in prepaid expenses and other accounts receivable	(37)	28
Decrease in inventories	462	49
Decrease in accounts payable and related parties- trade payables	(100)	(247)
Decrease in deferred revenues and other current liabilities	(335)	(579)
Net cash provided by operating activities	210	337
Cash flows from investing activities :
Purchase of available for sale securities of Telkoor		(1,007)
Purchase of property and equipment	(71)	(27)
Net cash used in investing activities	(71)	(1,034)
Cash flows from financing activities :
Exercise of employees stock options		26
Net cash provided by financing activities		26
Effect of exchange rate changes on cash and cash equivalents	6	47
Increase/ (decrease) in cash and cash equivalents	145	(624)
Cash and cash equivalents at the beginning of the period	1,777	2,115
Cash and cash equivalents at the end of the period	$ 1,922	$ 1,491

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Note 4 - Accounting For Stock-Based Compensation (Detail) - Stock Option Plan Activity (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Exercisable options at the end of the period	476,013
Exercisable options at the end of the period (in Dollars per share)	$ 1.21
Exercisable options at the end of the period	4 years 354 days
Exercisable options at the end of the period (in Dollars)	$ 56
Beginning of Period [Member]
Outstanding at the beginning of the period	792,763
Outstanding at the beginning of the period (in Dollars per share)	$ 1.33
Outstanding at the beginning of the period	6 years 321 days
Outstanding at the beginning of the period (in Dollars)	411
Outstanding at the end of the period	6 years 321 days
End of Period [Member]
Outstanding at the beginning of the period	6 years 138 days
Outstanding at the end of the period	792,763
Outstanding at the end of the period (in Dollars per share)	$ 1.33
Outstanding at the end of the period	6 years 138 days
Outstanding at the end of the period (in Dollars)	$ 67

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Note 4 - Accounting For Stock-Based Compensation (Detail) - Employee Equity-Based Compensation Expense Recognized (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Employees equity-based compensation expense	$ 31	$ 32	$ 61	$ 68
Selling and Marketing Expense [Member]
Employees equity-based compensation expense	1	4	3	8
General and Administrative Expense [Member]
Employees equity-based compensation expense	$ 30	$ 28	$ 58	$ 60

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Note 1 - General

6 Months Ended

Jun. 30, 2012

Business Description and Basis of Presentation [Text Block]

NOTE 1:-              GENERAL

a. Digital Power Corporation (the "Company" or "DPC") was incorporated in 1969, under the General Corporation Law of the State of California. The Company and Digital Power Limited ("DPL"), a wholly owned subsidiary located in the United Kingdom, are currently engaged in the design, manufacture and sale of switching power supplies and converters. The Company has two reportable geographic segments - North America (sales through DPC) and Europe (sales through DPL).

b. The Company depends on Telkoor Telecom Ltd. ("Telkoor"), a major shareholder of the Company and one of DPC's third party subcontractors, for design and manufacturing capabilities of some of the products which the Company sells. The Company also relies on third party contract manufacturer’s (CMs) to manufacture its products. If Telkoor and these manufacturers are unable or unwilling to continue manufacturing the Company's products in required volumes on a timely basis, that could lead to loss of sales, and adversely affect the Company's operating results and cash position. The Company also depends on Telkoor's intellectual property and its willingness and ability to transfer production to third party manufacturers allowing the Company to use these production rights. Failure to obtain new products in a timely manner or delay in delivery of product to customers would have an adverse effect on the Company's ability to meet its customers' expectations.

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Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Allowance for doubtful accounts (in Dollars)	$ 146	$ 148
Series A Redeemable, par value (in Dollars per share)	$ 0	$ 0
Series A Redeemable, shares authorized	500,000	500,000
Series A Redeemable, shares issued	0	0
Series A Redeemable, shares outstanding.	0	0
Preferred shares, par value (in Dollars per share)	$ 0	$ 0
Preferred shares, shares authorized	1,500,000	1,500,000
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0
Common shares, par value (in Dollars per share)	$ 0	$ 0
Common shares, shares authorized	30,000,000	30,000,000
Common shares, shares issued	6,863,150	6,849,654
Common shares, shares outstanding	6,863,150	6,849,654

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Note 6 - Net Income (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block]

	Six months ended June 30,				Three months ended June 30,
	2012		2011		2012		2011
	Unaudited
Net income available to Common shareholders	$	553	$	578	$	478	$	408

	Six months ended June 30,				Three months ended June 30,
	2012		2011		2012		2011
	Unaudited
Denominator for basic net income  per share of weighted average number of common shares		6,851,614		6,705,046		6,853,594		6,711,056
Effect of dilutive securities:
Employee stock options		154,501		268,080		85,753		259,884
Denominator for diluted net income per common share		7,006,115		6,973,126		6,939,347		6,970,940

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Document And Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 14, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	DIGITAL POWER CORP
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		6,863,150
Amendment Flag	false
Entity Central Index Key	0000896493
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

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Note 7 - Segments (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Six months ended June 30, 2012 (unaudited)
	DPC		DPL		Eliminations			Total
Revenues	$	2,853	$	2,329	$	-		$	5,182
Intersegment revenues		290		3		(293	)		-
Total revenues	$	3,143	$	2,332	$	(293	)	$	5,182
Depreciation and amortization	$	23	$	76	$	-		$	99
Operating income	$	244	$	343	$	-		$	587
Financial expense, net								$	(22	)
Tax expense								$	(12	)
Net income	$	232	$	321	$	-		$	553
Expenditures for segment assets	$	57	$	14	$	-		$	71
Identifiable assets	$	4,367	$	3,304	$	-		$	7,671

	Six months ended June 30, 2011 (unaudited)
	DPC		DPL		Eliminations			Total
Revenues	$	3,324	$	2,826	$	-		$	6,150
Intersegment revenues		237		5		(242	)		-
Total revenues	$	3,561	$	2,831	$	(242	)	$	6,150
Depreciation and amortization	$	9	$	22	$	-		$	31
Operating income	$	320	$	295	$	-		$	615
Financial expense, net								$	(27	)
Tax expense								$	(10	)
Net income	$	310	$	268	$	-		$	578
Expenditures for segment assets	$	4	$	23	$	-		$	27
Identifiable assets	$	3,514	$	3,482	$	-		$	6,996

	Three months ended June 30, 2012 (unaudited)
	DPC		DPL		Eliminations			Total
Revenues	$	1,442	$	1,500	$	-		$	2,942
Intersegment revenues		162		1		(163	)		-
Total revenues	$	1,604	$	1,501	$	(163	)	$	2,942
Depreciation expense	$	11	$	39	$	-		$	50
Operating income	$	132	$	339	$	-		$	471
Financial expenses, net								$	7
Tax expense								$	-
Net income	$	124	$	354	$	-		$	478
Expenditures for segment assets	$	43	$	8	$	-		$	51
Identifiable assets	$	3,514	$	3,304	$	-		$	6,996

	Three months ended June 30, 2011 (unaudited)
	DPC		DPL		Eliminations			Total
Revenues	$	1,719	$	1,453	$	-		$	3,172
Intersegment revenues		161		4		(165	)		-
Total revenues	$	1,880	$	1,457	$	(165	)	$	3,172
Depreciation expense	$	4	$	12	$	-		$	16
Operating income	$	211	$	208	$	-		$	419
Financial expenses, net								$	(2	)
Tax expense								$	(9	)
Net income	$	202	$	206	$	-		$	408
Expenditures for segment assets	$	1	$	15	$	-		$	16
Identifiable assets	$	3,514	$	3,482	$	-		$	6,996

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Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues	$ 2,942	$ 3,172	$ 5,182	$ 6,150
Cost of revenues	1,666	1,879	2,979	3,751
Gross profit	1,276	1,293	2,203	2,399
Operating expenses:
Engineering and product development	160	202	322	388
Selling and marketing	252	239	490	514
General and administrative	393	433	804	882
Total operating expenses	805	874	1,616	1,784
Operating income	471	419	587	615
Financial income (expense), net	7	(2)	(22)	(27)
Income before income taxes	478	417	565	588
Income taxes		9	12	10
Net income	$ 478	$ 408	$ 553	$ 578
Basic net income per share (in Dollars per share)	$ 0.070	$ 0.061	$ 0.081	$ 0.086
Diluted net income per share (in Dollars per share)	$ 0.069	$ 0.058	$ 0.079	$ 0.083

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Note 6 - Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Text Block]

The following table sets forth the computation of the basic and diluted net earnings per share:

1.         Numerator:

	Six months ended June 30,				Three months ended June 30,
	2012		2011		2012		2011
	Unaudited
Net income available to Common shareholders	$	553	$	578	$	478	$	408

2.         Denominator:

	Six months ended June 30,				Three months ended June 30,
	2012		2011		2012		2011
	Unaudited
Denominator for basic net income  per share of weighted average number of common shares		6,851,614		6,705,046		6,853,594		6,711,056
Effect of dilutive securities:
Employee stock options		154,501		268,080		85,753		259,884
Denominator for diluted net income per common share		7,006,115		6,973,126		6,939,347		6,970,940

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Note 5 - Acquisition of Shares of Telkoor

6 Months Ended

Jun. 30, 2012

Business Combination Disclosure [Text Block]

NOTE 5:-          ACQUISITION OF SHARES OF TELKOOR

On June 16, 2011 the Company has acquired 1,136,666 shares of Telkoor, a major shareholder of the Company and an Israeli company listed in the Tel Aviv stock exchange, for $0.88 (NIS 3) per share, which represents 8.8% of the outstanding shares of Telkoor. As a result of this transaction, an existing manufacturing agreement between Digital Power and Telkoor will be updated and extended. The investment is accounted for as available-for-sale security.

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Note 4 - Accounting For Stock-Based Compensation (Detail) - Stock Option Valuation Assumptions	3 Months Ended
	Jun. 30, 2012
Dividend yield	0.00%
Expected volatility	84.00%
Risk-free interest rate	2.23%
Expected forfeiture	5.00%
Expected life (years)	6 years 3 months

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Note 1 - General (Detail)	6 Months Ended
	Jun. 30, 2012
Segment Reporting, Additional Information about Entity's Reportable Segments	The Company has two reportable geographic segments - North America (sales through DPC) and Europe (sales through DPL).

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Note 3 - Inventories (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Inventory, Current [Table Text Block]

	June 30,		December 31,
	2012		2011
	Unaudited
Raw materials, parts and supplies	$	324	$	239
Work in progress		334		486
Finished products		1,228		1,607
	$	1,886	$	2,332

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Note 7 - Segments

6 Months Ended

Jun. 30, 2012

Segment Reporting Disclosure [Text Block]

NOTE 7:-          SEGMENTS

The Company has two reportable geographic segments (see Note 1 for a brief description of the Company's business).

The following data presents the revenues, expenditures and other operating data of the Company's geographic operating segments in accordance with ASC 218 (formerly SFAS No. 131) "Segment Reporting".

	Six months ended June 30, 2012 (unaudited)
	DPC		DPL		Eliminations			Total
Revenues	$	2,853	$	2,329	$	-		$	5,182
Intersegment revenues		290		3		(293	)		-
Total revenues	$	3,143	$	2,332	$	(293	)	$	5,182
Depreciation and amortization	$	23	$	76	$	-		$	99
Operating income	$	244	$	343	$	-		$	587
Financial expense, net								$	(22	)
Tax expense								$	(12	)
Net income	$	232	$	321	$	-		$	553
Expenditures for segment assets	$	57	$	14	$	-		$	71
Identifiable assets	$	4,367	$	3,304	$	-		$	7,671

	Six months ended June 30, 2011 (unaudited)
	DPC		DPL		Eliminations			Total
Revenues	$	3,324	$	2,826	$	-		$	6,150
Intersegment revenues		237		5		(242	)		-
Total revenues	$	3,561	$	2,831	$	(242	)	$	6,150
Depreciation and amortization	$	9	$	22	$	-		$	31
Operating income	$	320	$	295	$	-		$	615
Financial expense, net								$	(27	)
Tax expense								$	(10	)
Net income	$	310	$	268	$	-		$	578
Expenditures for segment assets	$	4	$	23	$	-		$	27
Identifiable assets	$	3,514	$	3,482	$	-		$	6,996

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	Three months ended June 30, 2012 (unaudited)
	DPC		DPL		Eliminations			Total
Revenues	$	1,442	$	1,500	$	-		$	2,942
Intersegment revenues		162		1		(163	)		-
Total revenues	$	1,604	$	1,501	$	(163	)	$	2,942
Depreciation expense	$	11	$	39	$	-		$	50
Operating income	$	132	$	339	$	-		$	471
Financial expenses, net								$	7
Tax expense								$	-
Net income	$	124	$	354	$	-		$	478
Expenditures for segment assets	$	43	$	8	$	-		$	51
Identifiable assets	$	3,514	$	3,304	$	-		$	6,996

	Three months ended June 30, 2011 (unaudited)
	DPC		DPL		Eliminations			Total
Revenues	$	1,719	$	1,453	$	-		$	3,172
Intersegment revenues		161		4		(165	)		-
Total revenues	$	1,880	$	1,457	$	(165	)	$	3,172
Depreciation expense	$	4	$	12	$	-		$	16
Operating income	$	211	$	208	$	-		$	419
Financial expenses, net								$	(2	)
Tax expense								$	(9	)
Net income	$	202	$	206	$	-		$	408
Expenditures for segment assets	$	1	$	15	$	-		$	16
Identifiable assets	$	3,514	$	3,482	$	-		$	6,996

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Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2012
Marketable Securities, Policy [Policy Text Block]	Marketable securities: The Company classifies its investment in Telkoor's shares as available-for-sale securities in accordance with ASC 320 (originally issued as SFAS 115), "Investment in Debt and Equity Securities". The investment is stated at market value. Unrealized gains and losses are comprised of the difference between market value and the investment fair value at the acquisition date and are reflected as "accumulated other comprehensive loss" in equity.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Accounting for stock-based compensation: The Company has several stock-based employee compensation plans, which are described more fully in Note 4. The Company accounts for stock-based compensation in accordance with Accounting Standards Codification Statement ("ASC") 718 (formerly SFAS No. 123 (revised 2004)) "Stock compensation" ("ASC 718"). The Company and its subsidiary apply ASC 718 and ASC 505-50 (formerly EITF 96-18) "Equity-Based Payments to Non-Employees" ("ASC 505-50") to options issued to non-employees. ASC 718 requires use of an option valuation model to measure the fair value of the options at the grant date.

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Note 4 - Accounting For Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Six months ended June 30, 2012
	Amount of options		Weighted average exercise price		Weighted average remaining contractual term (years)		Aggregate intrinsic value (*)
Outstanding at the beginning of the period		792,763	$	1.33		6.88	$	411
Outstanding at the end of the period		792,763	$	1.33		6.38	$	67
Exercisable options at the end of the period		476,013	$	1.21		4.97	$	56

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Three months ended June 30, 2011
	Unaudited
Dividend yield	0%
Expected volatility	84%
Risk-free interest rate	2.23%
Expected forfeiture	5%
Expected life (years)	6.25

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Six months ended				Three months ended
	June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
	Unaudited		Unaudited		Unaudited		Unaudited
Sales and marketing  expenses		3		8		1		4
General and administrative		58		60		30		28
Total employees equity-based compensation expense		61		68		31		32

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Note 4 - Accounting For Stock-Based Compensation (Detail) (USD $)	6 Months Ended
	Jun. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	410,145
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	4 years 354 days
Stock Closing Price, Per Share (in Dollars)	$ 1.20
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)	$ 1.19
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized (in Dollars)	$ 337,000
Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	513,000
Management [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	240,000
Other Key Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,519,000
ESOT [Member]
Stock Issued During Period, Shares, Employee Stock Ownership Plan	167,504

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Note 6 - Net Income (Loss) Per Share (Detail) - Computation Of The Basic And Diluted Earnings Per Share (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Sep. 30, 2011
Net income available to Common shareholders (in Dollars)	$ 478	$ 408	$ 553	$ 578
Denominator for basic net income per share of weighted average number of common shares	6,853,594	6,711,056	6,851,614	6,705,046
Effect of dilutive securities:
Employee stock options	85,753	259,884	154,501	268,080
Denominator for diluted net income per common share	6,939,347	6,970,940	7,006,115	6,973,126

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Statement of Changes in Shareholders' Equity (Unaudited) (USD $) In Thousands, except Share data	Common Stock [Member]	Additional Paid-in Capital [Member] USD ($)	Retained Earnings [Member] USD ($)	Accumulated Other Comprehensive Income (Loss) [Member] USD ($)	Comprehensive Income [Member] USD ($)	Total USD ($)
Balance at Dec. 31, 2011		$ 14,358	$ (8,321)	$ (904)		$ 5,133
Balance (in Shares) at Dec. 31, 2011	6,849,654
Stock based compensation related to options granted to Telkoor's employees and other non- employee consultants		(9)				(9)
Stock based compensation related to options granted to employees		61				61
Exercise of options granted to employees (in Shares)	13,496
Net Income			553		553	553
Unrealized loss from available-for-sale securities				130	130	130
Foreign currency translation adjustments				10	10	10
Total comprehensive income					693
Balance at Jun. 30, 2012		$ 14,410	$ (7,768)	$ (764)		$ 5,878
Balance (in Shares) at Jun. 30, 2012	6,863,150

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Note 4 - Accounting For Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 4:-              ACCOUNTING FOR STOCK-BASED COMPENSATION

a. Stock option plans:

1. Under the Company's stock option plans, options may be granted to employees, officers, consultants, service providers and directors of the Company or its subsidiary.

2. As of June 30, 2012, the Company has authorized, by way of three Incentive Share Option Plans, the grant of options to officers, management, other key employees and others of up to 513,000, 240,000 and 1,519,000 shares, respectively, of the Company's common stock. As of June 30, 2012, options to purchase up to an aggregate of 410,145 shares of the Company's common stock are still available for future grant.

3. The options granted generally become fully exercisable after four years and expire no later than 10 years from the date of the option grant. Any options that are forfeited or cancelled before expiration become available for future grants.

	Six months ended June 30, 2012
	Amount of options		Weighted average exercise price		Weighted average remaining contractual term (years)		Aggregate intrinsic value (*)
Outstanding at the beginning of the period		792,763	$	1.33		6.88	$	411
Outstanding at the end of the period		792,763	$	1.33		6.38	$	67
Exercisable options at the end of the period		476,013	$	1.21		4.97	$	56

(*)    Calculation of aggregate intrinsic value is based on the share price of the Company's common stock as of June 30, 2012 ($ 1.20 per share).

a. Stock option plans (cont.):

4. Under the provisions of ASC 718, the fair value of each option is estimated on the date of grant using a Black-Sholes option valuation model that uses the assumptions such as stock price on the date of the grant, exercise price, risk-free interest rate, expected volatility, expected life and expected dividend yield of the option. Expected volatility is based exclusively on historical volatility of the entity's stock as allowed by ASC 718. The Company uses historical information with respect to the employee options exercised to estimate the expected term of options granted, representing the period of time that options granted are expected to be outstanding. The risk-free interest rate of period within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. No options were granted during the first six month of 2012. The fair value for options granted in the three months ended June 30, 2011 is amortized over their vesting period using a straight-line recognition method and estimated at the date of grant with the following assumptions:

	Three months ended June 30, 2011
	Unaudited
Dividend yield	0%
Expected volatility	84%
Risk-free interest rate	2.23%
Expected forfeiture	5%
Expected life (years)	6.25

The total employee's equity-based compensation expense related to all of the Company's equity-based awards, recognized for the six months and three months ended June 30, 2012 is comprised as follows:

	Six months ended				Three months ended
	June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
	Unaudited		Unaudited		Unaudited		Unaudited
Sales and marketing  expenses		3		8		1		4
General and administrative		58		60		30		28
Total employees equity-based compensation expense		61		68		31		32

The weighted-average grant-date fair value of options granted during the first six months of 2011 was $1.19.  As of June 30, 2012, there was $ 337 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the stock option plans. That cost is expected to be recognized over a period of the next 40 months.

b.         Employee Stock Ownership Plan:

The Company has an Employee Stock Ownership Plan ("ESOP") covering eligible employees. The ESOP provides for the Employee Stock Ownership Trust ("ESOT") to distribute shares of the Company's Common shares as retirement benefits to the participants. The Company has not distributed shares since 1998. As of June 30, 2012, the ESOT held 167,504 shares of common stock.

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Note 7 - Segments (Detail) - Segment Reporting (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues	$ 2,942	$ 3,172	$ 5,182	$ 6,150
Depreciation expense			50	31
Operating income (loss)	471	419	587	615
Tax expense		(9)	(12)	(10)
Net income (loss)	478	408	553	578
DPC [Member] | Three Month Period [Member]
Identifiable assets	3,514		3,514
DPC [Member]
Revenues	1,442	1,719	2,853	3,324
Intersegment revenues	162	161	290	237
Total revenues	1,604	1,880	3,143	3,561
Depreciation expense	11	4	23	9
Operating income (loss)	132	211	244	320
Net income (loss)	124	202	232	310
Expenditures for segment assets	43	1	57	4
Identifiable assets	4,367	3,514	4,367	3,514
DPL [Member] | Three Month Period [Member]
Identifiable assets	3,304		3,304
DPL [Member]
Revenues	1,500	1,453	2,329	2,826
Intersegment revenues	1	4	3	5
Total revenues	1,501	1,457	2,332	2,831
Depreciation expense	39	12	76	22
Operating income (loss)	339	208	343	295
Net income (loss)	354	206	321	268
Expenditures for segment assets	8	15	14	23
Identifiable assets	3,304	3,482	3,304	3,482
Intersegment Elimination [Member]
Intersegment revenues	(163)	(165)	(293)	(242)
Total revenues	(163)	(165)	(293)	(242)
Total [Member] | Three Month Period [Member]
Identifiable assets	6,996		6,996
Total [Member]
Revenues	2,942	3,172	5,182	6,150
Total revenues	2,942	3,172	5,182	6,150
Depreciation expense	50	16	99	31
Operating income (loss)	471	419	587	615
Financial expense, net	7	(2)	(22)	(27)
Tax expense		(9)	(12)	(10)
Net income (loss)	478	408	553	578
Expenditures for segment assets	51	16	71	27
Identifiable assets	$ 7,671	$ 6,996	$ 7,671	$ 6,996

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Note 3 - Inventories (Detail) - Inventories (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Raw materials, parts and supplies	$ 324	$ 239
Work in progress	334	486
Finished products	1,228	1,607
	$ 1,886	$ 2,332