Shareholders' Equity

12 Months Ended

Dec. 31, 2011

Shareholders' Equity [Abstract]

Shareholders' Equity

NOTE- 16 SHAREHOLDERS' EQUITY

Common stock

At the ZAP Annual Meeting held on June 20, 2011, the shareholders approved an amendment to increase the authorized shares of common stock from 400 million to 800 million;

2011 ISSUANCES

     STOCK ISSUED FOR CASH. During 2011, the Company received $4.2 million in cash through the issuance of 8.2 million shares of common stock through private placements and exercise of employee stock options.

     STOCK ISSUED FOR EXERCISE OF WARRANTS. In the first quarter of 2011, the Company issued 4.4 million shares of common stock valued at $5.9 million for the exercise of warrants.

     STOCK ISSUED AS PAYMENT FOR DEVELOPMENT OF VEHICLES. In December, 2011 the Company issued 70 million shares of common stock valued at $15.4 million as payment to Jonway Group for the development and production of the Shuttle Van and Alias. See Note 17 Related parties

     STOCK ISSUED FOR ACQUISITION. In December, 2011, the Company issued 4 million shares of common stock valued at $1.72 million for the final stock portion payment for the 51% acquisition of Jonway Automobile which was completed in January, 2011.

     STOCK ISSUED FOR SETTLEMENT OF DEBT. In January 2011, the Company issued 800,000 shares of common stock valued at $896,000 to Al Yousuf as payment to settle outstanding debt.

     STOCK ISSUED FOR SERVICES. In 2011, the Company issued shares of its common stock for consulting and other services and employee compensation. The stock grants were recorded at the fair market value of the stock on the date of grant. During 2011, the Company issued grants for 569,000 shares as consideration under agreements for consulting and related services, and 174,000 shares were issued for employee compensation.

     STOCK ISSUED EMPLOYEE BENEFITS. During December 2010, the Company issued 311,000 shares of stock valued at $68,450 for employee 401K matching contribution.

     Shares acquired through exercises of warrants for all Series other than Series B, C, D and K are restricted as to sale. However, the warrants may be assigned, sold, or transferred by the holder without restriction.

     Series B, C, and D warrants not exercised may be redeemed by ZAP for a price of $0.01 per warrant upon thirty (30) days' written notice to the holders thereof; provided, however, that if not all unexercised warrants in a particular series are redeemed, then the redemption shall be pro-rated equally among the holders of unexercised warrants in the series.

Total warrants outstanding at December 31, 2011 are summarized as follows (in thousands ):

	Number of	Exercise	Expiration
	Warrants	Price	Dates
Series B-Unrestricted	2,693	1.09	7-1-12
Series B-2-Restricted	1,019	1.09	7-1-12
Series C-Unrestricted	5,388	1.08	various
Series C-2-Restricted	1,239	1.09	10-9-12
Series D-Unrestricted	6,705	1.08	7-1-12
Series D-2-Restricted	1,294	1.09	various
Series K-Unrestricted	4,356	0.91	7-1-12
Series K-2-Restricted	4,106	0.91	7-1-12
$0.50 Warrants-Restricted	38,000	0.50	various
$0.70 Warrants-Unrestricted	100	0.70	6-2-13
$0.91 Warrants-Unrestricted	2,470	0.91	various
$1.20 Warrants-Restricted	6,565	1.20	various
$1.36 Warrants Restricted	935	1.36	various
$2.27 Warrants Restricted	363	2.27	2-15-12
	75,233