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SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2014
SUBSEQUENT EVENTS [Abstract]  
SUBSEQUENT EVENTS
NOTE 13 - SUBSEQUENT EVENTS
 
 
In July 2014, Jonway borrowed $1.22 million of a short term loan from Everbright Bank. The loan expires in June 2015 and the annual interest rate is 7.2%.
 
In August 2014, Jonway repaid $0.32 million of a short term loan to Taizhou Bank when it became due.
 
In August 2014, Jonway borrowed $0.32 million of a short term loan from Taizhou Bank. The loan expires in February 2015 and the annual interest rate is 8.93%.
 
In August 2014, Jonway repaid $1.14 million of a short term loan to ICBC when it became due.
 
In July 2014, approximately $5.12 million of notes payable matured.
 
In July 2014, approximately $3.9 million of notes payable were issued. The Company is required to maintain cash deposits of 50% of the notes payable with the bank. These notes payable expire in January 2015.

 
           The Company has arrived at an agreement with Korea Yung  ("Yung Agreement")  concerning the repayment of the June 20, 2013 Convertible Bond for US$1,100,000 loan which came due June 20, 2014. Under this new Yung Agreement, the Company will issue approximately 13,656,042 shares of its common stock  ("Shares")  which will have an aggregate market value equal to $1,100,000 plus simple interest owed for the period outstanding until the principle is paid back in the Company's shares. These shares will be issued at a discount to market based on averaged end of the day share price 120 days prior to date of signing the agreement.    The actual number shares issued may vary from the number of shares shown here depending on when the final agreement is signed.    The Company also made arrangements with Yung to have the option to buy back the issued shares at the discounted price during the period through June 20, 2015.
 
On February 26, 2014, a binding letter of commitment in equity investment in ZAP was signed between the Company and four individual investors. The four individual investors are the representatives of the employees of Jonway Auto and Jonway Group in China and they will hold the issued stocks on behalf of these employees. The shares were issued at discounted share price based on averaged price over the last 60 days from the date of signing the agreement. As of June 30, 2014, $1.9 million was received by ZAP. The number of stock to be issued in the third quarter is 31,666,668.