SEGMENT REPORTING

6 Months Ended

Jun. 30, 2015

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 8 – SEGMENT REPORTING

Operating Segments

In accordance with ASC 280, the Company has identified three reportable segments consisting of Jonway Auto, ZAP (Consumer Product) and ZAP Hong Kong. The Jonway Auto segment represents sales of the gas fueled Jonway Auto A380 three and five-door sports utility vehicles, EV minivan and EV SUVs and spare parts principally through distributors in China. The ZAP 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 Co-CEOs 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			ZAP  Hong Kong		Total
For the three months ended June 30, 2015
Net sales	$	5,331		$	25		$	-	$	5,356
Gross profit (loss)	$	(278	)	$	7		$	-	$	(271	)
Depreciation and amortization	$	1,455		$	651		$	-	$	2,106
Net profit (loss)	$	(4,023	)	$	(1,454	)	$	-	$	(5,477	)
Total assets	$	67,925		$	18,273		$	9	$	86,207
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 loss	$	(2,252	)	$	(1,619	)	$	-	$	(3,871	)
Total assets	$	82,487		$	24,357		$	139	$	106,983
For the six months ended June 30, 2015
Net sales	$	13,517		$	201		$	-	$	13,718
Gross profit (loss)	$	(865	)	$	82		$	-	$	(783	)
Depreciation and amortization	$	2,890		$	1,308		$	-	$	4,198
Net loss	$	(7,294	)	$	(2,859	)	$	-	$	(10,153	)
Total assets	$	67,925		$	18,273		$	9	$	86,207
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 loss	$	(5,585	)	$	(3,296	)	$	-	$	(8,881	)
Total assets	$	82,487		$	24,357		$	139	$	106,983

Customer information

Approximately 99.6% or $5.3 million of our revenues for the three months ended June 30, 2015 are from sales in China.  Jonway Auto distributes its products to an established network of over 63 factory level dealers in China with none customer contributing over 10% of our consolidated revenue. Approximately 95.4% or $7.2 million of our revenues for the three months ended June 30, 2014 are from sales in China. Jonway Auto distributes its products to an established network of over 70 factory level dealers in China with no customer contributing to more than 10% of our consolidated revenue.

Approximately 98.5% or $13.5 million of our revenue for the six months ended June 30, 2015 are from sales in China. Jonway Auto distributes its products to an established network of over 65 factory level dealers in China with none customer contributing over 10% of our consolidated revenue. Approximately 97.0% or $14.0 million of our revenue for the six months ended June 30, 2014 are from sales in China. Jonway Auto distributed its product to an established network of over 45 factory level dealers in China with one customer contributing 14% of our consolidated revenue.

Supplier information

For the three months ended June 30, 2015 and 2014, approximately 100% or $5.6 million and 99% or $7.6 million of the consolidated cost of goods sold were purchased in China. For the three months ended June 30, 2015, Zhejiang Changxing Tianneng Power Co. Ltd accounted for 11% of the total purchase. For the three months ended June 30, 2014, and Haerbin Dongan Auto, Engine Manufacturing Co., Ltd. accounted for 29% of the total purchase.For the six months ended June 30,2015 no vendors contributed to over 10% of our purchase. For the six months ended June 30, 2014, Haerbin Dongan Auto Engine Manufacturing Co.,Ltd accounted for 21% of our total purchase.