SEGMENT REPORTING

12 Months Ended

Dec. 31, 2016

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, 2016
Net sales	$	10,736		$	39		$	-	$	10,775
Gross profit (loss)	$	(1,151	)	$	25		$	-	$	(1,126	)
Depreciation and amortization	$	5,179		$	2,565		$	-	$	7,744
Interest expense, net	$	881		$	1,661		$	-	$	2,542
Impairment loss on assets	$	12,480		$	7,887		$	-	$	20,367
Net loss	$	(21,506	)	$	(12,515	)	$	-	$	(34,021	)
Expenditure on property and equipment	$	351		$	-		$	-	$	351
Total assets	$	40,136		$	4,178		$	-	$	44,314
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
Interest expense, net	$	767		$	1,697		$	-	$	2,464
Impairment loss on assets	$	82		$	1,000		$	-	$	1,082
Net loss	$	(12,063	)	$	(7,992	)	$	-	$	(20,055	)
Expenditure on property and equipment	$	1,020		$	-		$	-	$	1,020
Total assets	$	64,949		$	14,692		$	9	$	79,650

Customer information

Approximately 99.6% or $10.7 million of our 2016 revenues are from sales in China. Jonway Auto distributes its products to an established network of over 70 factory level dealers in China with three customers contributing to 36%, 25% 15% of our consolidated revenue, respectively. 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.

Supplier information

For the years ended 2016 and 2015, approximately 99.9% or $11.8 million and 99.3% or $30.5 million of the consolidated cost of goods sold were purchased in China. For the year ended December 31, 2016, two venders accounted for 14% and 11% of the total purchase. For the year ended December 31, 2015, one vender accounted for 9% of the total purchase, respectively.