Too Busted to Repair
A Gadget is completely destroyed if its Current Body Condition is reduced to a negative more extreme than the absolute value of its starting APs.
On the plus side, the notes for creating the Gadget already exists -- the Player did save that Gadget Design blueprint from Step 1, right? -- so the Gadget can be rebuilt or duplicated with much less effort this time. Buy the parts again (making a Wealth check in the process), pay the Hero Point Cost, and call it good.
Of course, if a Character other than the original creator(s) of the device is trying to recreate it, even from the original blueprint, it gets a little more expensive: the copyist must make one Gadgetry Skill Check (having and understanding a set of plans will reduce the OV by 2 Column Shifts) since he's making it for the first time even if he does have a head start.
In some ways, replacing a damaged gadget is easier than fixing it -- but remember that repairs cost no Hero Points, and may not require a Wealth Check. Replacement, on the other hand, costs both those things (but does not require a Gadgetry Check).
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