Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting

Segment Reporting

NOTE 10 – SEGMENT REPORTING

Operating Segments

Financial Accounting Standards Board ("FASB") ASC Topic 280, Segment Reporting ("ASC 280"), establishes standards for the way public business enterprises report information about operating segments. ASC 280 also establishes standards for related disclosures about products and services, geographic areas and major customers.

In accordance with ASC 280, the Company has identified four reportable segments consisting of Jonway Conventional Vehicles, Advanced Technology Vehicles, Consumer Product and Car Outlet.  The Jonway Conventional Vehicles segment represents sales of the gas fueled Jonway A380 three and five-door sports utility vehicles and spare parts principally through distributors in China;  the Advanced Technology Vehicles segment represents sales and marketing of the ZAPTRUCK XL, the ZAPVAN Shuttle and the Xebra® Sedan; the Consumer Product segment represents rechargeable portable energy products, our Zapino scooter, and our ZAPPY3 personal transporters; and our Car Outlet segment represents operation of a retail car outlet that sells pre-owned conventional vehicles and advanced technology vehicles.  These segments are strategic business units that offer different services.  They are managed separately because each business requires different resources and strategies.  The Company's chief operating decision making group, which is comprised of the Co-Chief Executive Officers and the senior executives of each of ZAP's strategic segments, regularly evaluate the financial information about these segments in deciding how to allocate resources and in assessing performance.  The performance of each segment is measured based on its profit or loss from operations before income taxes.

The performance of each segment is measured based on its profit or loss from operations before income taxes. Segment results are summarized as follows (in thousands):

Segment results are summarized as follow (in thousands):

	Jonway Conventional Vehicles		Consumer Products		Car Outlet		Advanced Technology Vehicles			Total
For the three months ended June 30, 2011:
Net sales		15,721		102		249		194			16,266
Gross profit (loss)		1,422		24		95		14			1,555
Depreciation, amortization		1,116		554		2		3			1,675
Net loss		(2,314)		(10,803)		(15)		(583)			(13,715)
Total assets		89,977		17,470		709		1,053			109,209
For the three months ended June 30, 2010:  Restated
Net sales		—		77		488		284			849
Gross profit (loss)		—		35		129		(63	)		101
Depreciation, amortization				36		4		11			51
Net loss (restated)		—		(2,075)		(4)		(403	)		(2,482)
Total assets		—		7,619		453		1,694			9,923
For the Six months ended June 30, 2011:
Net sales		26,668		302		614		390			27,974
Gross profit (loss)		2,357		73		153		32			2,615
Depreciation, amortization		1,972		3,802		4		9			5.787
Net loss		(6,190)		(16,362)		(71)		(990)			(23,613)
Total assets		89,977		17,470		709		1,053			109,209
For the Six months ended June 30, 2010: Restated
Net sales		—		180		1,005		512			1,697
Gross profit (loss)		—		59		223		(66)			216
Depreciation, amortization				38		2		11			51
Net loss  (restated)		—		(4,424)		(43)		(875)			(5,342)
Total assets		—		7,619		453		1,851			9,923

Operating segments do not sell products to each other, and accordingly, there is no inter-segment revenue to be reported.

Jonway's results of operations have been included since the acquisition date of January 21, 2011.

Customer Information

For the three months and six months ended June 30, 2011 and 2010, no customers accounted for more than 10% of our revenue.