Property and Equipment

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Note 4. Property and Equipment

Property and equipment consisted of the following at:

	September 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		(3,161,000	)		(2,841,000	)
Total	$	525,000		$	928,000

Depreciation and amortization expense was $351,000 and $373,000 for the nine months ended September 30, 2012 and 2011, respectively, and within those total expenses, the amortization of leasehold improvements was $196,000 for the nine months ended September 30, 2012 and 2011. Depreciation and amortization expense was $113,000 and $120,000 for the three months ended September 30, 2012 and 2011, respectively, and within those total expenses, the amortization of leasehold improvements was $65,000 for the three months ended September 30, 2012 and 2011.  In addition, the Company recorded an impairment loss of $0 and $68,000 for the three and nine months ended September 30, 2102 and a loss on disposal of fixed assets in the amount of $0 and $49,000 was recorded in the three and nine months ended September 30, 2011.