Property and Equipment

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Property and Equipment

 Property and equipment consisted of the following at:

	June 30, 2014			December 31, 2013
Computers and software	$	59,000		$	59,000
Machinery and equipment		251,000			251,000
Furniture and office equipment		86,000			86,000
Demonstration vehicles and buses		127,000			127,000
Gross assets		523,000			523,000
Less accumulated depreciation and amortization		(463,000	)		(443,000	)
Total	$	60,000		$	80,000

 Depreciation and amortization expense was $9,000 and $33,000 for the three months ended June 30, 2014 and 2013, respectively, and within those total expenses, the amortization of leasehold improvements was $0 for the three months ended June 30, 2014 and 2013.  Depreciation and amortization expense was $20,000 and $91,000 for the six months ended June 30, 2014 and 2013, respectively, and within those total expenses, the amortization of leasehold improvements was $0 and $22,000 for the six months ended June 30, 2014 and 2013. The Company’s headquarters lease expired on January 31, 2013 and the balance of leasehold improvements was decreased to $0.

 For the three and six 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 and a loss on the disposal of fixed assets of $4,000 for the three and six months ended June 30, 2013.  There was no impairment charge recorded in the six months ended June 30, 2014.