Segment Reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

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 Vehicles, Advanced Technology Vehicles, Consumer Product and Car Outlet.  The Jonway 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. Jonway and ZAP are also jointly developing various electric vehicles anticipated to enter into the electric vehicle market in 2012.  The Advanced Technology Vehicles segment represents sales and marketing outside of China of the ZAPTRUCK XL, the ZAPVAN Shuttle and the Xebra® Sedan and will transition to selling mostly Jonway's EV A380SUV and EV minivan by the first half of 2012. The Consumer Product segment represents rechargeable portable energy products, our Zapino scooter, and our ZAPPY3 personal transporters. 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):

	Jonway Vehicles		Consumer Products		Car Outlet		Advanced Technology Vehicles		Total
For the three months ended September 30, 2011:
Net sales		13,734		155		196		3		14,088
Gross profit (loss)		1,979		47		74		37		2,137
Depreciation, amortization		1,138		551		3		7		1,699
Net loss		(2,093)		(7,622)		(12)		(161)		(9,888)
Total assets		93,369		17,744		704		1,058		112,875
For the three months ended September 30, 2010:  Restated
Net sales		—		75		419		491		985
Gross profit (loss)		—		16		45		87		148
Depreciation, amortization		—		10		2		8		20
Net loss (restated)		—		(2,065)		(49)		(147)		(2,261)
Total assets		-		20,013		440		1,969		22,422
For the Nine months ended September 30, 2011:
Net sales		40,402		457		810		393		42,062
Gross profit (loss)		4,336		120		227		69		4,752
Depreciation, amortization		6,802		1,664		7		23		8,496
Net loss		(5,588)		(26,679)		(83)		(1,151)		(33,501)
Total assets		93,369		17,744		704		1,058		112,875
For the Nine months ended September 30, 2010: Restated
Net sales		—-		255		1,424		1,003		2,682
Gross profit (loss)		—-		75		269		20		364
Depreciation, amortization		—-		47		7		30		84
Net loss  (restated)		—-		(6,485)		(92)		(1,022)		(7,599)
Total assets		—-		20,013		440		1,969		22,422

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 nine months ended September 30, 2011 and 2010, no customers accounted for more than 10% of our revenue.