Property and Equipment

9 Months Ended

Sep. 30, 2014

Notes to Financial Statements

Property and Equipment

Property and equipment consisted of the following at:

	September 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		(472,000	)		(443,000	)
Total	$	51,000		$	80,000

Depreciation and amortization expense was $29,000 and $114,000 for the nine months ended September 30, 2014 and 2013, respectively, and within those total expenses, the amortization of leasehold improvements was $0 and $22,000 for the nine months ended September 30, 2014 and 2013, respectively. Depreciation and amortization expense was $9,000 and $23,000 for the three months ended September 30, 2014 and 2013, respectively, and within those total expenses, the amortization of leasehold improvements was $0 for the three months ended September 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 nine months ended September 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. In addition, three vehicles were repossessed in October 2013.  For the three months ended September 30, 2013, the Company recorded a loss on the impairment of fixed assets of $65,000 for the three vehicles repossessed in October.  For the nine months ended September 30, 2013, the Company recorded proceeds from the sale of fixed assets of $29,000, a loss on the impairment of fixed assets of $45,000 and a loss on the disposal of fixed assets of $4,000.  There was no impairment charge on fixed assets recorded in the three and nine months ended September 30, 2014.