SHAREHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2014

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS' EQUITY

NOTE9- SHAREHOLDERS' EQUITY

In February 2014, a binding letter of commitment in equity investment in ZAP was signed between ZAP and some investors in China. Based on the agreement, the investors agreed to invest $1,500,000-$2,000,000 to ZAP to pay for the buyback of the 2008 Xebras as mandated by the Department of Transportation. Also based on the agreement, upon receiving the investment, ZAP's common shares will be issued. The strike price of the shares issued will be at $0.06 per share which is discounted from the average price of the last 60 days at the time the agreement was signed, which is approximately $0.09 per share, resulting in the issuance of 25 million shares for $1,500,000 and 33,333,333 shares if $2,000,000 was reached. As of March 31, 2014, ZAP has already received the cash investment of $1,500,000 and recorded in "common stock" on the condensed consolidated balance sheet. As of the report date, common shares have not been issued yet. The Company expects to issue these shares in the 2nd quarter of 2014.  As of the report date, US$1.9 million of the $2 million has been received.