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</LabelSeparator><Level>2</Level><ElementName>DLYT_AmortizationOfDebtDiscountOnConvertibleNotePayableTextBlock</ElementName><ElementPrefix>DLYT_</ElementPrefix><IsBaseElement>false</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2013-01-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On March 22, 2011, the Company entered into
a 10% note and warrant purchase agreement, secured convertible promissory note and patent security agreement (&amp;#147;financing
agreements&amp;#148;) with an investor. In connection with the financing agreements, the Company issued a stock purchase warrant to
the investor to purchase 3,000,000 shares of the Company&amp;#146;s common stock at $0.45 per share, exercisable until March 22, 2016.
The warrant was fair valued on the date of issuance, which amounted to $1,204,787. The warrant value was recorded as a debt discount
based on the relative fair value of the warrant to the total proceeds received, which amounted to $435,240. The warrant was fair
valued using the Black-Scholes-Merton valuation model. In addition, the debt contained a beneficial conversion feature, which was
valued at the date of issuance at $1,762,163; however, since this amount is in excess of the net value of the debt less the warrant
discount, the beneficial conversion feature will be limited to $1,064,760 and recorded as a discount on the loan. The total debt
discount of $1,500,000 is being amortized using the effective interest method over the 12-month term of the Secured Note. For the
six months ended June 30, 2012 the Company recognized $358,555 as amortization of this debt discount. The debt discount was fully
amortized as of December 31, 2012.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Custom Element.</ElementDefenition><ElementReferences>No definition available.</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Note 11 - Amortization of Debt Discount on Convertible Note Payable</Label></Row></Rows><Footnotes /><IsEquityReport>false</IsEquityReport><ReportName>Amortization of Debt Discount on Convertible Note Payable</ReportName><MonetaryRoundingLevel>UnKnown</MonetaryRoundingLevel><SharesRoundingLevel>UnKnown</SharesRoundingLevel><PerShareRoundingLevel>UnKnown</PerShareRoundingLevel><ExchangeRateRoundingLevel>UnKnown</ExchangeRateRoundingLevel><HasCustomUnits>true</HasCustomUnits><IsEmbedReport>false</IsEmbedReport><IsMultiCurrency>false</IsMultiCurrency><ReportType>Sheet</ReportType><RoleURI>http://daisanalytic.com/role/AmortizationOfDebtDiscountOnConvertibleNotePayable</RoleURI><NumberOfCols>1</NumberOfCols><NumberOfRows>2</NumberOfRows></InstanceReport>
