INVENTORIES, NET

12 Months Ended

Dec. 31, 2012

NOTE 3- INVENTORIES, NET

Inventories, net at December 31, 2012 and 2011 are summarized as follows (in thousands):

	2012		2011

Work in Process	$	2,155	$	2,234
Parts and supplies		4,178		4,879
Finished goods		7,144		5,583
		13,477		12,696
Less - inventory reserve		(2,325)		(1,578)
Inventories, net	$	11,152	$	11,118

Changes in the Company's inventory reserve during the years ended December 31, 2012 and 2011 are as follows (in thousands):

	2012		2011
Balance as of January 1,	$	1,578	$	619
Current provision for Jonway Auto		-		292
Current provision for inventory ZAP		748		667
Balance as of December 31,	$	2,325	$	1,578

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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