SEGMENT REPORTING

3 Months Ended

Mar. 31, 2013

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 10 - SEGMENT REPORTING

Operating Segments

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. 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 2013. 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 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 March 31, 2013:
Net sales	$	14,235		$	123		$	--		$	7		$	14,365
Gross profit (loss)	$	649		$	50		$	--		$	51		$	750
Depreciation and amortization	$	947		$	657		$	--		$	1		$	1,605
Net profit (loss)	$	(2,358	)	$	(1,605	)	$	--		$	48		$	(3,915	)
Total assets	$	94,227		$	22,884		$	179		$	377		$	117,667
For the three months ended March 31, 2012
Net sales	$	11,989		$	114		$	73		$	5		$	12,181
Gross profit (loss)	$	723		$	28		$	7		$	(56	)	$	702
Depreciation and amortization	$	1,244		$	546		$	2		$	7		$	1,799
Net loss	$	(2,191	)	$	(2,119	)	$	(34	)	$	(168	)	$	(4,512	)
Total assets	$	88,749		$	27,261		$	447		$	250		$	116,707

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

Customer information

Approximately 99% or $14.2 million of our revenues for the three months ended March 31, 2013 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