SEGMENT REPORTING

12 Months Ended

Dec. 31, 2015

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 14 – SEGMENT REPORTING

Operating Segments

              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 CEO 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 :

	Jonway Auto			ZAP			ZAP Hong Kong		Totals
For the year ended December 31, 2015
Net sales	$	29,179		$	281		$	-	$	29,460
Gross profit (loss)	$	(1,333	)	$	71		$	-	$	(1,262	)
Depreciation and amortization	$	5,600		$	2,609		$	-	$	8,209
Net loss	$	(12,063	)	$	(7,992	)	$	-	$	(20,055	)
Total assets	$	64,949		$	14,692		$	9	$	79,650
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

Customer information

Approximately 99.1% or $29.2 million of our 2015 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 22% of our consolidated revenue. 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.

Supplier information

            For the years ended 2015 and 2014, approximately 99.3% or $30.5 million and 98.2% or $31.1 million of the consolidated cost of goods sold were purchased in China. One vendor accounted for 9% of the total purchase. For the year ended December 31, 2015 and 2014, one vender accounted for 9% of the total purchase.