Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

NOTE 13 – SEGMENT REPORTING

Operating Segments

Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("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 Chief Executive Officer 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 to ZAP before income taxes. Segment results are summarized as follows (in thousands):

		Jonway			Electric						Advanced
		Conventional			Consumer						Technology
		Vehicles			Products			Car outlet			Vehicles			Total
For the three months ended June 30, 2012:
Net sales	$	12,381		$	272		$	42		$	10		$	12,705
Gross profit	$	899		$	45		$	33		$	53		$	1,030
Depreciation, amortization and impairment	$	742		$	547		$	2		$	7		$	1,298
Net loss	$	(4,651	)	$	(2,077	)	$	(94	)	$	(22	)	$	(6,844	)
Total assets	$	81,906		$	44,222		$	631		$	319		$	127,078
For the three months ended June 30, 2011:
Net sales	$	15,721		$	102		$	249		$	194		$	16,266
Gross profit	$	1,422		$	24		$	95		$	14		$	1,555
Depreciation, amortization and impairment	$	1,078		$	554		$	2		$	3		$	1,637
Net loss	$	(2,278	)	$	(10,803	)	$	(15	)	$	(583	)	$	(13,679	)
Total assets	$	82,360		$	17,470		$	709		$	1,053		$	101,592
For the six months ended June 30, 2012:
Net sales	$	24,370		$	386		$	115		$	16		$	24,886
Gross profit (loss)	$	1,622		$	73		$	40		$	(3	)	$	1,732
Depreciation, amortization and impairment	$	2,494		$	1,093		$	4		$	14		$	3,605
Net loss	$	( 6,334	)	$	(4,196	)	$	(128	)	$	(190	)	$	(11,356	)
Total assets	$	81,906		$	44,222		$	631		$	319		$	127,078
For the six months ended June 30, 2011:
Restated
Net sales	$	26,668		$	302		$	614		$	390		$	27,974
Gross profit	$	2,357		$	48		$	153		$	32		$	2,590
Depreciation, amortization and impairment	$	2,210		$	1,063		$	4		$	9		$	3,286
Net loss	$	(6,152	)	$	(13,648	)	$	(71	)	$	(990	)	$	(20,861	)
Total assets	$	82,360		$	17,470		$	709		$	1,053		$	101,592

     Operating segments do not sell products to each other, and accordingly, there is no inter-segment revenue to be reported. Jonway Automobile results have been included since the acquisition date of January 21, 2011.

Customer information

     Approximately 98 % or $24.4 million of our revenues for the six months ended June 30, 2012 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 more than 10% of our consolidated revenue.