Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

NOTE 15 – 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 during 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 in 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):

			Electric				Advanced
	Jonway		Consumer				Technology
	Vehicles		Products		Car Outlet		Vehicles		Totals
For the year ended
December 31, 2011:
Net sales	54,299		652		876		410		56,237
Gross profit (loss)	5,023		71		111		(745	)	4,460
Depreciation,
amortization	5,091		2,217		9		40		7,357
Net loss	(9,090	)	(33,656	)	(220	)	(2,456	)	(45,422	)
Total assets	93,011		27,719		493		265		121,488
For the year ended
December 31, 2010:
Net sales	-		349		1,872		1,595		3,816
Gross profit (loss)	-		62		357		10		429
Depreciation,
amortization	-		1,034		8		36		1,078
Net loss	-		(17,474	)	(130	)	(1,414	)	(19,018	)
Total assets	-		31,516		436		1,560		33,512

     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.

Individual company's results are listed below:

					Voltage
	Jonway				Vehicles		Portable		ZAP		Voltage
	Auto		ZAP		Car Lot		Energy		Stores		Vehicles		Totals
For the year ended December 31, 2011:
Net sales	54,299		622		876		27		3		410		56,237
Gross profit (loss)	5,023		118		111		(36	)	(11	)	(745	)	4,460
Depreciation, amortization	5,091		2,217		9		-		-		40		7,357
Net loss	(9,090	)	(33,697	)	(220	)	(52	)	(11	)	(2,456	)	(45,422	)
Total assets	93,011		27,674		493		45		-		265		121,488
For the year ended December 31, 2010:													-
Net sales	-		307		1,873		23		18		1,595		3,816
Gross profit (loss)	-		43		357		1		18		10		429
Depreciation, amortization	-		1,034		8						36		1,078
Net loss	-		(17,425	)	(130	)	(60	)	11		(1,414	)	(19,018	)
Total assets	-		31,432		436		83		-		1,561		33,512

Customer information

     Approximately 96.56% or $54.3 million of our 2011 revenues are from sales in China. Jonway Auto distributes its products to an established network of over 100 factory level dealers in China with some contributing to more than 10% of our consolidated revenue

Supplier information

     Approximately 89% or $45.8 million of our 2011 spare parts, components and materials are purchased from China-based suppliers with some contributing to more than 10% of our consolidated cost of goods sold.

For the year ended December 31, 2011, Haerbin Dongan Auto Engine Manufacturing Co., Ltd., as the sole supplier of engine to Jonway, contributed more than 10% of our cost of goods sold.