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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2014
SUBSEQUENT EVENTS [Abstract]  
SUBSEQUENT EVENTS
NOTE 12 - SUBSEQUENT EVENTS
 
In May 2014, Jonway repaid $0.81 million of a short term loan to Taizhou Bank when they became due. In April 2014, Jonway partially repaid $0.56 million of a short term loan to CITIC Bank.
 
In May 2014, Jonway borrowed $0.81 million of a short term loan from Taizhou Bank. The loan expires in November 2014 and the annual interest rate is 8.89%.
 
In April 2014, Jonway borrowed $0.81 million of short term loan from Industrial and Commercial Bank of China (ICBC). The loan expires in April 2015 and the annual interest rate is 5.6%. Restricted cash of the same amount was deposited with the bank.
 
From April 2014 to May 2014, approximately $4.07 million of notes payable matured.
 
In April 2014, approximately $7.39 million of notes payable were issued. The Company is required to maintain cash deposits of 50% or 100% of the notes payable with the bank. These notes payable expire in October 2014.
 
 
On April 29, 2014, the Company, Cathaya Capital L.P and Korea Yung ("Yung") entered into an agreement ("Agreement") to amend the terms of Yung's Convertible Bond. The Agreement provides that in the event the Company is unable to make the required Bond payment to Yung on or before June 20, 2014, the Company will be required to provide Yung with written notice setting forth the Company's proposal to extend the June 20, 2014 maturity date which proposal to subject to approval by Yung in her absolute discretion. The Agreement also provides that in the event either the Company or Zhejiang Jonway Automobile Co. Ltd. ("Jonway") is a party to a change of control transaction or a sale of assets, the proceeds from such transactions, subject to applicable law, shall first be applied by the Company toward the Bond payments to Yung prior to payments to any other creditors of either the Company or Jonway. Lastly, the Agreement provides that in the event of the liquidation and dissolution of the Company, the Bond payments to Yung, in compliance with applicable law, shall have priority over payments to other of the Company's unsecured creditors and that Cathaya Capital L.P. will subordinate to the Bond payments to Yung all preferences to which Cathaya Capital L.P. would be entitled upon such liquidation and dissolution.
 
Cathaya Operations Management Limited, China Electric Vehicle Corp and Ms. Lu have elected to convert the amounts recorded as due to related parties to common stock.  The amount of $937,312 due to Cathaya Operations Management Limited and the amount of $30,231 due to Ms. Lu have been converted into 17,819,783 shares of common stock at 30% below market price based on the average trading prices of the previous 120 days after notification. The 17,819,783 shares of common stock have been issued in April 2014.
 
Ms. Lu has elected to have her investment in the Convertible bond of $300,000 converted to 4,862,237 shares of common stock at 30% below market price based on the average trading prices of the previous 120 days after notification. The 4,862,237 shares of common stock have been issued in May 2014.
 
.    China Electric Vehicle Corporation (CEVC) has elected to convert the interest of $639,068 due on the $20.7 million convertible note to 6,439,552 shares of common stock at the average of the closing prices for each trading day during such fiscal quarter ended on (and including) the last trading day of such fiscal quarter. The 6,439,552 shares of common stock have been issued in April 2014.
 
.     In March 2014, Jonway Group agreed to pay all of the outstanding mold expenses of the Minivan that is currently still outstanding, and in return ZAP will share half of the asset value and share the IPR (50%) of the Minivan with Jonway Auto. The Minivan was purchased by ZAP from a prior agreement between ZAP and Jonway Group which was signed on January 18, 2012.  In return for ZAP receiving worldwide exclusivity for the sales, distribution, and product IPR rights for all current and future models of the compressed natural gas ("CNG") versions of Jonway Auto's Products, including, but not limited to, SUV, minivan, and all other models, the Company's Board of Directors authorized on March 28, 2014 to issue 61,000,000 shares of common stock to the companies owned by the Co-CEO and shareholder Alex Wang, including 20,000,000 shares to Major Management Limited, 20,000,000 shares to Max Reliance Management Limited and 21,000,000 shares to New Dragon Management Limited. The 61,000,000 shares of common stock have been issued in April 2014.
 
In May 2014, ZAP issued 62,500 shares of common stock to Jeffery and Karen Bank, who paid $5,000 in cash on behalf of ZAP to address a lawsuit from Jackson Long.