I purchased a very nice Orange AT2 125 that seems to me to be in great original shape. Not presently running. 2000 miles displayed. Solid compression. Seat is in good shape except for one perf. Gas tank paint is fabulous looking, having 3 small dents and the inside looks like there's never been fuel in it, it's so clean. Looks like the original front tire. Gauges are crisp. Complete air filter and box, no foam. Cosmetically it looks good. Many areas look to have very little wear. BUT... There are some deficient areas that make me less confident in wanting to put money into it and not knowing the worth of an AT2. The head light wiring needs a lot of work...missing headlight socket etc. The starter/generator area is missing the governor and bolt that I know of. Key is missing. No battery. I haven't opened up any thing to speak of...like carb. I would greatly appreciate any feedback for what direction to take the bike. I have a favored DT3 250 waiting on my attention so my plans are to sell the AT2...but then I may change my mind. Thanks in advance.

where are you located? ironically I have an old at I've been working on, and I'm looking for a good fixer-upper

I'm in Oklahoma City. I've been working on the AT a bit. Got a key for it. Hooked up a 12v battery and traced some current paths. Coil is getting voltage but it get hot with key turned on AND there's no fire to the plug. Seems to me the starting system wouldn't need to be 100% if the system would fire properly with kick starting.

Did you replace the missing governor?

Ignition coil will get hot enough to damage it if key left on too long without motor running, best to unplug it’s connection while your testing electrical circuits
Quick way to test for spark is to rotate motor till points closed, turn on key to power the coil then open and close points with small screwdriver. Sparkplug should spark each time points are opened.
No spark ? Rotate motor till points are open then use screwdriver to short across point arms a few times. If you now have spark points are dirty.
Still no spark do ohmeter test on condenser, check wires, check coil and coil wire
There only is a few things that make up this ignition and one advantage is that it can be checked without having to kick over

DaveHunter has pretty much covered it. My question about the "governor" is because it's a part with an extremely misleading name.

It's actually the points cam and mechanism to retard the timing slightly while starting. Without the "governor" there's nothing to open the points so no spark.

No I haven't put any energy into the starter system since I'm not sure about the condition of the engine. I wanted to get it going on 'kick start' if possible first.

Thanks Dave .. I found out about the coil heating up...it got hot so I switch the key off.
I assumed there was a 'starter' system and a 'magneto' system on the bike. I guess the breaker points that are visible on the outside of the stator assemble ARE the ignition points. Well the governor assembly may be hard to come by. I don't find but one and it's beat to hell and $100. Sad deal on these bikes...parts aren't produced like they are for the auto industry.