SEGMENT REPORTING

12 Months Ended

Dec. 31, 2012

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 13 - 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):

 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:

	Jonway Auto			ZAP			Voltage Vehicles Car Lot			Portable Energy			ZAP  Stores			Advanced Technology Vehicles			ZAP Hong Kong			Totals
For the year ended December 31, 2012
Net sales		49,265			723			142			--			--			151			-			50,281
Gross profit (loss)		1,071			285			(230	)		--			--			499			-			1,625
Depreciation, amortization		5,062			2,770			6			--			--			26			-			7,864
Net loss		(19,057	)		(9,608	)		(1,859	)		--			--			(631	)		(8	)		(31,163	)
Total assets		91,396			23,979			235			--			--			354						115,964
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

Customer information

Approximately 97.98% or $49.3 million of our 2012 revenues are from sales in China.  Jonway Auto distributes its products to an established network of over 100 factory level dealers in China with one customer contributing to more than 10% of our consolidated revenue

Supplier information

For the year ended 2012 and 2011, approximately 99% or $48.2 million and 89% or $45.8 million of the consolidated cost of goods sold were purchased in China. For the year ended December 31, 2012 and 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.