SEGMENT REPORTING

3 Months Ended

Mar. 31, 2016

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 9 – 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:

For the three months ended March 31, 2016	Jonway Auto			ZAP			ZAP Hong Kong		Total
Net sales	$	3,378		$	4		$	-	$	3,382
Gross profit	$	65		$	1		$	-	$	66
Depreciation and amortization	$	1,271		$	651		$	-	$	1,922
Net loss	$	(2,230	)	$	(1,159	)	$	-	$	(3,389	)
Total assets	$	62,443		$	14,011		$	-	$	79,454
For the three months ended March 31, 2015
Net sales	$	8,186		$	176		$	-	$	8,362
Gross profit (loss)	$	(587	)	$	75		$	-	$	(512	)
Depreciation and amortization	$	1,435		$	657		$	-	$	2,092
Net profit (loss)	$	(3,272	)	$	(1,404	)	$	-	$	(4,676	)
Total assets	$	69,799		$	19,077		$	8	$	88,884

Customer information

Approximately 99.9% or $3.4 million of our revenues for the three months ended March 31, 2016 are from sales in China. Jonway Auto distributes its products to an established network of over 70 factory level dealers in China with two customers contributing to 33% and 11% of our consolidated revenue, respectively. Approximately 97.9% or $8.2 million of our revenues for the three months ended March 31, 2015 are from sales in China. Jonway Auto distributes its products to an established network of over 63 factory level dealers in China with no customer contributing to more than 10% of our consolidated revenue.

Supplier information

For the three months ended March 31, 2016 and 2015, approximately 99.9% or $3.4 million and 98.8% or $8.7 million of the consolidated cost of goods sold were purchased in China. For the three months ended March 2016, two venders contributed to 19% and 17% of our purchases, respectively. For the three months ended March 31, 2015, one supplier accounted for 11% of the total purchases.