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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE 9 – SEGMENT REPORTING
 
Operating Segments
 
In accordance with ASC 280, the Company has identified three reportable segments through the entities 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, the Company’s Zapino scooter, and the Company’s 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 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 September 30, 2016
                        
    Net sales
  
$
3,279
    
$
7
    
$
-
    
$
3,286
  
    Gross profit (loss)
  
$
(380
)
  
$
1
    
$
-
    
$
(379
)
    Depreciation and amortization
  
$
684
    
$
1,264
    
$
-
    
$
1,948
  
    Net loss
  
$
(2,185
)
  
$
(1,132
)
  
$
-
    
$
(3,317
)
    Total assets
  
$
56,008
    
$
12,785
    
$
-
    
$
68,793
  
 
                                
For the three months ended September 30, 2015
                                
    Net sales
  
$
7,089
    
$
65
    
$
-
    
$
7,154
  
    Gross profit (loss)
  
$
(189
)
  
$
(5
)
  
$
-
    
$
(194
)
    Depreciation and amortization
  
$
1,363
    
$
653
    
$
-
    
$
2,016
  
    Net loss
  
$
(2,235
)
  
$
(1,479
)
  
$
-
    
$
(3,714
)
    Total assets
  
$
63,904
    
$
17,742
    
$
9
    
$
81,655
  
For the nine months ended September 30, 2016
                          
    Net sales
  
$
9,623
    
$
16
    
$
-
    
$
9,639
  
    Gross profit (loss)
  
$
(1,040
)
  
$
3
    
$
-
    
$
(1,037
)
    Depreciation and amortization
  
$
3,910
    
$
1,915
    
$
-
    
$
5,825
  
    Net loss
  
$
(6,598
)
  
$
(3,485
)
  
$
-
    
$
(10,083
)
    Total assets
  
$
56,008
    
$
12,785
    
$
-
    
$
68,793
  
 
                                
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 loss
  
$
(9,529
)
  
$
(4,338
)
  
$
-
    
$
(13,867
)
    Total assets
  
$
63,904
    
$
17,742
    
$
9
    
$
81,655
  
 
 
Customer information
 
Approximately 99.8% or $3.3 million of the Company’s revenues for the three months ended September 30, 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 44% and 45% of the Company’s consolidated revenue during the three months ended September 30, 2016. Approximately 99.1% or $7.1 million of the Company’s 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 the Company’s consolidated revenue during the three months ended September 30, 2015.
 
Approximately 99.8% or $9.6 million of the Company’s revenue for the nine months ended September 30, 2016 are from sales in China. Jonway Auto distributes its products to an established network of over 70 factory level dealers in China with three customer contributing 14%, 15% and 16% of the Company’s consolidated revenue during the nine months ended September 30, 2016. Approximately 98.7% or $20.6 million of the Company’s revenue for the nine months ended September 30, 2015 are from sales in China. Jonway Auto distributed its product to an established network of over 65 factory level dealers in China with one customer contributing approximately 18% of the Company’s consolidated revenue during the nine months ended September 30, 2015.
 
Supplier information
 
For the three months ended September 30, 2016 and 2015, approximately 99.8% or $3.7 million and 99.0% or $7.3 million of the consolidated cost of goods sold were purchased in China. For the three months ended September 30, 2016, one vendor contributed 29.2% of the Company’s purchases.  For the three months ended September 30, 2015, three venders accounted for 22.6%, 11.9% and 10.1% of the total purchases. For the nine months ended September 30, 2016 and 2015, approximately 99.90% or $10.7 million and 99.1% or $21.7 million of the consolidated cost of goods sold were purchased in China. For the nine months ended September 30, 2016, two vendors accounted for 11.3% and 11.0% of the total purchases, respectively. For the nine months ended September 30, 2015, one vendor contributed to over 11.9% of the Company’s purchases.