Property and Equipment

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Note 4. Property and Equipment

Property and equipment consisted of the following at:

	June 30, 2012			December 31, 2011
Computers and software	$	618,000		$	618,000
Machinery and equipment		947,000			892,000
Furniture and office equipment		98,000			98,000
Demonstration vehicles and buses		675,000			774,000
Leasehold improvements		1,348,000			1,348,000
Construction in process		-			39,000
		3,686,000			3,769,000
Less accumulated depreciation and amortization		(3,048,000	)		(2,841,000	)
Total

Depreciation and amortization expense was $238,000 and $253,000 for the six months ended June 30, 2012 and 2011, respectively, and within those total expenses, the amortization of leasehold improvements was $131,000 for the six months ended June 30, 2012 and 2011. Depreciation and amortization expense was $119,000 and $29,000 for the three months ended June 30, 2012 and 2011, respectively, and within those total expenses, the amortization of leasehold improvements was $65,000 for the three months ended June 30, 2012 and 2011. In addition, the company recorded an impairment loss of $68,000 for the three and six months ended June 30, 2102 and a loss on disposal of fixed assets in the amount of $49,000 was recorded in the three and six months ended June 30, 2011.