INVESTMENT IN JOINT VENTURES

12 Months Ended

Dec. 31, 2014

INVESTMENT IN JOINT VENTURES [Abstract]

INVESTMENT IN JOINT VENTURES

NOTE 7 – INVESTMENT IN JOINT VENTURES

On December 11, 2009, the Company entered into a Joint Venture Agreement to establish a new US-China company incorporated as ZAP Hangzhou to design and manufacture electric vehicle and infrastructure technology with Holley Group, the parent company of a global supplier of electric power meters and Better World. Priscilla Lu, Ph.D., who is the current Chairman of the Board of ZAP, is also a director and General Partner of Cathaya Capital, which is a director of Better World. In January of 2011, Holley Group's interest in ZAP Hangzhou was purchased by Jonway Group. ZAP and Better World each own 37.5% of the equity shares of ZAP Hangzhou, and Jonway Group owns 25% of the equity shares of ZAP Hangzhou. The joint venture partners have also funded the initial capital requirements under the agreement for a total of $3 million, of which ZAP's portion is $1.1 million. The management decided to suspend the operation of the joint venture after finishing the existing projects on hand.

In November 2011, Jonway and ZAP Hangzhou jointly set up Shanghai Zapple Electric Vehicle Technologies Co., Ltd. (Shanghai Zapple) with registered capital of RMB 20 million. Jonway and ZAP Hangzhou each own 50% of the equity share of Shanghai Zapple. Jonway injected RMB 5 million into this joint venture and ZAP Hangzhou injected RMB 3 million. Shanghai Zapple's approved scope of business includes: technical advice, technical development, technical services, technology transfer regarding electric vehicle technology, auto technology, energy technology, material science and technology, sale of commercial vehicle and vehicle for nine seats or more, auto parts, auto supplies, lubricant, mechanical equipment and accessories, business management consulting, industrial investment, exhibition services, business marketing planning, car rental (shall not be engaged in financial leasing), import and export of goods and technologies. Zapple had suspended operation.

The carrying amount of Company's investment in the joint ventures as of December 31, 2014 and 2013 was nil.

The Company recorded a loss of $0 and $438,000 in ZAP Hangzhou, and a loss of $0 and $461,000 in Shanghai Zapple for the years ended December 31, 2014 and 2013 respectively.

Summarized financial information of Hangzhou ZAP and Shanghai Zapple are as follows (in thousands):

	December 31,
	2014		2013
Hangzhou ZAP
Total assets		1,079		1,346
Total liabilities		429		359
Revenue	$	152	$	83