SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2013

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS' EQUITY

NOTE 16-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		18,000		0.50		6-1-14
$0.50 Warrants-Restricted		20,000		0.50		2-12-15
$0.70 Warrants-Unrestricted		100		0.70		6-2-13
		38,155

2013 ISSUANCES

ZAP issued 69,677 shares of common stock valued at $12,000 in exchange for engineering 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.

Total warrants outstanding at December 31, 2013 are summarized as follows (in thousands):

	Number of		Exercise		Expiration
	Warrants		Price		Dates
$0.50 Warrants-Restricted		18,000		0.50		6-1-14
$0.50 Warrants-Restricted		20,000		0.50		2-12-15
		38,000

       55,000 of Series D-2 warrants and 100,000 of $0.70 unrestricted warrants expired in fiscal year 2013.