SEGMENT REPORTING

9 Months Ended

Sep. 30, 2015

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 9 – 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 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:

For the three months ended September 30, 2015	Jonway Auto			ZAP			ZAP Hong Kong		Total
Net sales	$	7,089		$	65		$	-	$	7,154
Gross profit (loss)	$	(189	)	$	(5	)	$	-	$	(194	)
Depreciation and amortization	$	1,363		$	653		$	-	$	2,016
Net profit (loss)	$	(2,235	)	$	(1,479	)	$	-	$	(3,714	)
Total assets	$	63,904		$	17,742		$	9	$	81,655
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 nine months ended September 30, 2015
Net sales	$	20,606		$	266		$	-	$	20,872
Gross profit (loss)	$	(1,054	)	$	77		$	-	$	(977	)
Depreciation and amortization	$	4,253		$	1,961		$	-	$	6,214
Net profit (loss)	$	(9,529	)	$	(4,338	)	$	-	$	(13,867	)
Total assets	$	63,904		$	17,742		$	9	$	81,655
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

Customer information

Approximately 99.1% or $7.1 million of our revenues for the three months ended September 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 three customers contributing 14%, 12% and 10% of our consolidated revenue, respectively. Approximately 94.9% or $5.0 million of our revenues for the three months ended September 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 98.7% or $20.6 million of our revenue for the nine months ended September 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 one customer contributing approximately 18% of our consolidated revenue. Approximately 96.4% or $18.9 million of our revenue for the nine months ended September 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 no customer contributing 10% of our consolidated revenue.

Supplier information

For the three months ended September 30, 2015 and 2014, approximately 99.0% or $7.3 million and 96.6% or $5.6 million of the consolidated cost of goods sold were purchased in China. For the three months ended September 30, 2015, three venders contributed 22.6%, 11.9% and 10.1% of our purchase, respectively. For the three months ended September 30, 2014, Haerbin Dongan Auto Engine Manufacturing Co., Ltd. accounted for 28% of the total purchases. For the nine months ended September 30, 2015, one vender contributed 11.9% of our purchase. For the nine months ended September 30, 2014, Haerbin Dongan Auto Engine Manufacturing Co.,Ltd accounted for 20% of our total purchase.