SEGMENT REPORTING

3 Months Ended

Mar. 31, 2014

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 7 - SEGMENT REPORTING

Operating Segments

In accordance with ASC 280, the Company has identified four reportable segments consisting of Jonway Vehicles, Advanced Technology Vehicles, ZAP (Consumer Product) and ZAP Hong Kong. The Jonway Vehicles segment represents sales of the gas fueled Jonway A380 three and five-door sports utility vehicles, minivans 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 2014. The Consumer Product segment represents rechargeable portable energy products, our Zapino scooter, and our ZAPPY3 personal transporters. 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. Segment results are summarized as follows (in thousands):

							Voltage		Advanced
	Jonway						Vehicles		Technology		ZAP Hong
	Auto			ZAP			Car outlet		Vehicles		Kong		Total
For the three months ended March 31, 2014:
Net sales	$	6,733		$	88		$	-	$	-	$	-	$	6,821
Gross profit (loss)	$	(994	)	$	23		$	-	$	-	$	-	$	(971	)
Depreciation and amortization	$	1,423		$	656		$	-	$	-	$	-	$	2,079
Net profit (loss)	$	(3,334	)	$	(1,677	)	$	-	$	-	$	-	$	(5,011	)
Total assets	$	77,722		$	19,464		$	-	$	-	$	138	$	97,324
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 loss	$	(2,358	)	$	(1,605	)	$	-	$	48	$	-	$	(3,915	)
Total assets	$	94,227		$	22,884		$	179	$	377	$	-	$	117,667

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 $6.7 million of our revenues for the three months ended March 31, 2014 are from sales in China. Jonway Auto distributes its products to an established network of over 70 factory level dealers in China with one customer contributing 14% of our consolidated revenue. Approximately 99% or $14.2 million of our revenues for the three months ended March 31, 2013 are from sales in China. Jonway Auto distributed its products to an established network of over 70 factory level dealers in China with one customer contributing 11% of our consolidated revenue.

Supplier information

For the three months ended March 31, 2014 and 2013, approximately 99% or $7.7 million and 99% or $13.6 million of the consolidated cost of goods sold were purchased in China. For the three months ended March 31, 2014 and 2013, Haerbin Dongan Auto, Engine Manufacturing Co., Ltd., as the sole supplier of engines to Jonway, accounted for 29% and 21% of the total purchases, respectively.