Property and Equipment

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Note 4. Property and Equipment

Property and equipment consisted of the following at:

	March 31, 2013			December 31, 2012
Computers and software	$	515,000		$	580,000
Machinery and equipment		271,000			535,000
Furniture and office equipment		87,000			87,000
Demonstration vehicles and buses		617,000			675,000
Leasehold improvements		-			1,327,000
		1,490,000			3,204,000
Less accumulated depreciation and amortization		(1,251,000	)		(2,897,000	)
Total	$	239,000		$	307,000

Depreciation and amortization expense was $58,000 and $119,000 for the three months ended March 31, 2013 and 2012, respectively, and within those total expenses, the amortization of leasehold improvements was $22,000 and $66,000 for the three months ended March 31, 2013 and 2012.  The Company’s headquarters lease expired on January 31, 2013, which resulted in a decrease in leasehold improvements in the amount of $1,327,000.  In addition, an evaluation of fixed assets as of March 31, 2013 identified $367,000 in obsolete fixed assets which were disposed of or abandoned and a loss on disposal of fixed assets of $10,000 was recorded in the three months ended March 31, 2013.  There was no impairment recorded in the three months ended March 31, 2012.