SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2012

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS' EQUITY

NOTE- 14 SHAREHOLDERS' EQUITY

Common stock

2012 ISSUANCES

ZAP issued 1,279,354 shares of common stock valued at $231,178 in exchange for consulting services. These shares were issued pursuant to Section 4(2) of the Securities Act of 1933, as amended, on the basis of each recipient's pre-existing relationship with Zap and the fact that no public offering was involved.

ZAP issued 949,269 shares of common stock valued at $179,530 for employee compensation. These shares were issued pursuant to Section 4(2) of the Securities Act of 1933, as amended, on the basis of each recipient's pre-existing relationship with Zap and the fact that no public offering was involved.

ZAP issued 2,109,689 shares of common stock valued at $203,957 to settle legal claims against the company. These shares were issued pursuant to Section 4(2) of the Securities Act of 1933, as amended, on the basis of each recipient's pre-existing relationship with Zap and the fact that no public offering was involved.

ZAP issued 363,637 shares of common stock valued at $40,000 to a departing board member. These shares were issued pursuant to Section 4(2) of the Securities Act of 1933, as amended, on the basis of each recipient's pre-existing relationship with Zap and the fact that no public offering was involved.

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, 2012 are summarized as follows (in thousands):

	Number of		Exercise		Expiration
	Warrants		Price		Dates
Series D-2-Restricted		55		1.09		7-1-12
$0.50 Warrants-Restricted		38,000		0.50		6-1-14
$0.70 Warrants-Unrestricted		100		0.70		6-2-13
		38,155

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 15 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.

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