SEGMENT REPORTING

12 Months Ended

Dec. 31, 2014

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 14 – 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 2013. 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 Auto			ZAP			Voltage Vehicles Car Lot			Advanced Technology Vehicles			ZAP Hong Kong			Totals
For the year ended December 31, 2014
Net sales	$	27,889		$	800		$	-		$	-		$	-		$	28,689
Gross profit (loss)	$	(3,239)		$	225		$	-		$	-		$	-		$	(3,014)
Depreciation and amortization	$	5,756		$	2,528		$	-		$	-		$	-		$	8,284
Net loss	$	(13,858)		$	(10,515)		$	-		$	-		$	-		$	(24,373)
Total assets	$	73,168		$	17,754		$	-		$	-		$	74		$	90,996
For the year ended December 31, 2013
Net sales	$	50,631		$	871		$	-		$	45		$	-		$	51,547
Gross profit (loss)	$	797		$	188		$	-		$	(33	)	$	-		$	952
Depreciation and amortization	$	5,541		$	2,628		$	-		$	-		$	-		$	8,169
Net loss	$	(14,190	)	$	(7,516	)	$	(174	)	$	(68	)	$	(1	)	$	(21,949)
Total assets	$	86,971		$	19,991		$	-		$	-		$	71		$	107,033

Customer information

Approximately 97.2% or $27.9 million of our 2014 revenues are from sales in China.  Jonway Auto distributes its products to an established network of over 63 factory level dealers in China with one customer contributing to 11.0% of our consolidated revenue. Approximately 98.2% or $50.6 million of our 2013 revenues 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 to 11% of our consolidated revenue.

Supplier information

For the years ended 2014 and 2013, approximately 98.2% or $31.1 million and 98.5% or $49.8 million of the consolidated cost of goods sold were purchased in China. For the year ended December 31, 2014 and 2013, Haerbin Dongan Auto, Engine Manufacturing Co., Ltd., as the sole supplier of engine to Jonway, accounted for 9% and 22% of the total purchase, respectively.