Property and Equipment

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements

Property and Equipment

Property and equipment consisted of the following at:

	June 30, 2013			December 31, 2012
Computers and software	$	231,000		$	580,000
Machinery and equipment		251,000			535,000
Furniture and office equipment		86,000			87,000
Demonstration vehicles and buses		423,000			675,000
Leasehold improvements		-			1,327,000
		991,000			3,204,000
Less accumulated depreciation and amortization		(808,000	)		(2,897,000	)
Total	$	183,000		$	307,000

Depreciation and amortization expense was $91,000 and $238,000 for the six months ended June 30, 2013 and 2012, respectively, and within those total expenses, the amortization of leasehold improvements was $22,000 and $131,000 for the six months ended June 30, 2013 and 2012, respectively. Depreciation and amortization expense was $33,000 and $119,000 for the three months ended June 30, 2013 and 2012, respectively, and within those total expenses, the amortization of leasehold improvements was $0 and $65,000 for the three months ended June 30, 2013 and 2012, respectively.

For the three months ended June 30, 2013, fixed assets with an original book value of $272,000 were exchanged in settlement of vendor payables, two vehicles were sold and one vehicle was repossessed. The Company recorded proceeds from the sale of fixed assets of $29,000 amd a loss on the disposal of fixed assets of $4,000 for the three and six months ended June 30, 2013, and an impairment loss of $68,000 for the three and six months ended June 30, 2012. In addition, the Company’s headquarters lease expired on January 31, 2013, which resulted in a decrease in gross leasehold improvements in the amount of $1,327,000 and a net book value of zero.