SEGMENT REPORTING

9 Months Ended

Sep. 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 and electric vehicles of Jonway A380 three and five-door sports utility vehicles, minivans and spare parts principally through distributors in China. The Advanced Technology Vehicles segment represents EV sales and marketing outside of China. The Consumer Product segment represents our ZAPPY3 personal transporters. 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 September 30, 2014:
Net sales	$	4,951		$	269		$	-		$	-		$	-	$	5,220
Gross profit (loss)	$	(692	)	$	72		$	-		$	-		$	-	$	(620	)
Depreciation and amortization	$	1,445		$	655		$	-		$	-		$	-	$	2,100
Net profit (loss)	$	(2,837	)	$	(1,966	)	$	-		$	-		$	-	$	(4,803	)
Total assets	$	82,207		$	22,870		$	-		$	-		$	1,439	$	106,516
For the three months ended September 30, 2013
Net sales	$	9,660		$	252		$	-		$	17		$	-	$	9,929
Gross profit (loss)	$	512		$	107		$	-		$	(6	)	$	-	$	613
Depreciation and amortization	$	1,389		$	657		$	-		$	-		$	-	$	2,046
Net loss	$	(1,719	)	$	(1,622	)	$	-		$	(5	)	$	-	$	(3,346	)
Total assets	$	88,226		$	22,692		$	-		$	0		$	-	$	110,918
For the nine months ended September 30, 2014:
Net sales	$	18,926		$	704		$	-		$	-		$	-	$	19,630
Gross profit (loss)	$	(1,759	)	$	189		$	-		$	-		$	-	$	(1,570	)
Depreciation and amortization	$	4,309		$	1,967		$	-		$	-		$	-	$	6,276
Net profit (loss)	$	(8,424	)	$	(5,262	)	$	-		$	-		$	-	$	(13,686	)
Total assets	$	82,207		$	22,870		$	-		$	-		$	1,439	$	106,516
For the nine months ended September 30, 2013
Net sales	$	35,878		$	639		$	-		$	45		$	-	$	36,562
Gross profit (loss)	$	166		$	174		$	-		$	(32	)	$	-	$	308
Depreciation and amortization	$	4,079		$	1,970		$	-		$	0		$	-	$	6,049
Net loss	$	(8,360	)	$	(5,078	)	$	(174	)	$	(33	)	$	-	$	(13,645	)
Total assets	$	88,226		$	22,692		$	-		$	0		$	-	$	110,918

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

Customer information

Approximately 96% or $18.9 million of our revenues for the nine months ended September 30, 2014 are from sales in China. Jonway Auto distributes its products to an established network of over 50 factory level dealers in China. Approximately 98%  or $35.9 million of our revenues for the nine months ended September 30, 2013 are from sales in China. Jonway Auto distributed its products to an established network of over 50 factory level dealers in China.

Supplier information

            For the three and nine months ended September 30, 2014 and 2013, approximately 96.6% or $5.6 million and  97.6% or $20.6 million and 98.2% or $9.1 million and 98.5% or $35.7 million of the consolidated cost of goods sold were purchased in China.