SEGMENT REPORTING

6 Months Ended

Jun. 30, 2014

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 8 - 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):

	Jonway			Electric						Advanced
	Conventional			Consumer						Technology
	Vehicles			Products			Car outlet			Vehicles			ZAP HK		Total
For the three months ended June 30, 2014:
Net sales	$	7,240		$	348		$	-		$	-		$	-	$	7,588
Gross profit (loss)	$	(74	)	$	95		$	-		$	-		$	-	$	21
Depreciation and amortization	$	1,428		$	656		$	-		$	-		$	-	$	2,084
Net profit (loss)	$	(2,252	)	$	(1,619	)	$	-		$	-		$	-	$	(3,871	)
Total assets	$	82,487		$	24,357		$	-		$	-		$	139	$	106,983
For the three months ended June 30, 2013
Net sales	$	11,983		$	264		$	-		$	21		$	-	$	12,268
Gross profit (loss)	$	(995	)	$	17		$	0		$	(77	)	$	-	$	(1,055	)
Depreciation and amortization	$	1743		$	296		$	-		$	-		$	-	$	2,039
Net loss	$	(4,283	)	$	(1,851	)	$	(174	)	$	(76	)	$	-	$	(6,384	)
Total assets	$	95,106		$	21,704		$	-		$	263		$	-	$	117,073
For the six months ended June 30, 2014:
Net sales	$	13,974		$	435		$	-		$	-		$	-	$	14,409
Gross profit (loss)	$	(1,066	)	$	116		$	-		$	-		$	-	$	(950	)
Depreciation and amortization	$	2,864		$	1,312		$	-		$	-		$	-	$	4,176
Net profit (loss)	$	(5,585	)	$	(3,296	)	$	-		$	-		$	-	$	(8,881	)
Total assets	$	82,487		$	24,357		$	-		$	-		$	139	$	106,983
For the six months ended June 30, 2013
Net sales	$	26,218		$	387		$	-		$	28		$	-	$	26,633
Gross profit (loss)	$	(346	)	$	67		$	-		$	(26	)	$	-	$	(305	)
Depreciation and amortization	$	2,690		$	1,313		$	-		$	1		$	-	$	4,004
Net loss	$	(6,641	)	$	(3,456	)	$	(174	)	$	(28	)	$	-	$	(10,299	)
Total assets	$	95,106		$	21,704		$	-		$	263		$	-	$	117,073

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

Customer information

Approximately 97% or $14.0 million of our revenues for the six months ended June 30, 2014 are from sales in China. Jonway Auto distributes its products to an established network of over 45 factory level dealers in China with one customer contributing 14% of our consolidated revenue. Approximately 98%  or $26.2 million of our revenues for the six months ended June 30, 2013 are from sales in China. Jonway Auto distributed its products to an established network of over 50 factory level dealers in China with one customer contributing 10% of our consolidated revenue.

Supplier information

            For the three and six months ended June 30, 2014 and 2013, approximately 99% or $7.7 million and  98% or $15.0 million and 99% or $13.6 million and 99% or $26.6 million of the consolidated cost of goods sold were purchased in China. For the three and six months ended June 30, 2014 and 2013, Haerbin Dongan Auto, Engine Manufacturing Co., Ltd., as the sole supplier of engines to Jonway, accounted for 29% and 18% and 21% and  21% of the total purchases, respectively.