Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Apr. 15, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | ZAP | ||
Entity Central Index Key | 1024628 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 460,212,950 | ||
Entity Public Float | $11,946,684 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $238 | $2,629 |
Restricted Cash | 10,673 | 10,758 |
Notes receivable | 81 | 185 |
Accounts receivable | 2,724 | 5,351 |
Inventories, net | 8,380 | 8,034 |
Prepaid tax | 110 | |
Prepaid expenses and other current assets | 377 | 1,007 |
Total current assets | 22,583 | 27,964 |
Property, plant and equipment, net | 42,595 | 48,004 |
Land use rights, net | 9,711 | 10,008 |
Other assets: | ||
Distribution fees, net | 9,399 | 9,839 |
Intangible assets, net | 3,195 | 4,280 |
Goodwill | 332 | 334 |
Due from related party | 2,791 | 6,061 |
Deposits and other assets | 390 | 543 |
Total other assets | 16,107 | 21,057 |
Total assets | 90,996 | 107,033 |
Current liabilities: | ||
Short term loans | 9,849 | 14,961 |
Convertible bond | 1,153 | |
Senior convertible debt | 20,679 | 20,679 |
Accounts payable | 21,389 | 23,276 |
Accrued liabilities | 3,848 | 7,874 |
Notes payable | 17,747 | 15,695 |
Advances from customers | 7,139 | 5,233 |
Taxes payable | 1,266 | 1,704 |
Due to related party | 7,121 | 2,781 |
Other payables | 3,094 | 3,574 |
Total current liabilities | 92,132 | 96,930 |
Long term liabilities: | ||
Accrued liabilities and others | 745 | 752 |
Total liabilities | 92,877 | 97,682 |
Commitments and contingencies | ||
Equity (Deficiency) | ||
Common stock, no par value; 800 million shares authorized; 461,395,508 and 302,518,002 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively | 244,368 | 231,125 |
Accumulated other comprehensive income | 1,655 | 1,707 |
Accumulated deficit | -250,000 | -232,417 |
Total ZAP shareholders' equity (deficiency) | -3,977 | 415 |
Non-controlling interest (deficiency) | 2,096 | 8,936 |
Total equity (deficiency) | -1,881 | 9,351 |
Total liabilities and equity | $90,996 | $107,033 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Common stock, par value | ||
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 461,395,508 | 302,518,002 |
Common stock, shares outstanding | 461,395,508 | 302,518,002 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS [Abstract] | ||
Net sales | $28,689 | $51,547 |
Cost of goods sold | -31,703 | -50,595 |
Gross profit | -3,014 | 952 |
Operating expenses: | ||
Sales and marketing | 3,982 | 6,428 |
General and administrative | 8,711 | 9,655 |
Research and development | 634 | 618 |
Impairment loss on assets | 5,596 | 2,640 |
Total operating expenses | 18,923 | 19,341 |
Loss from operations | -21,937 | -18,389 |
Other income (expense): | ||
Interest expense, net | -4,023 | -3,666 |
Loss from equity in joint venture | -899 | |
Other Income | 1,888 | 951 |
Total income (expense) | -2,135 | -3,614 |
Loss before income taxes | -24,072 | -22,003 |
Income tax benefit (expense) | -301 | 54 |
Net Loss | -24,373 | -21,949 |
Less: loss attributable to non-controlling interest | 6,790 | 6,953 |
Net loss attributable to ZAP's common shareholders | -17,583 | -14,996 |
Net Loss | -24,373 | -21,949 |
Other Comprehensive income (loss) | ||
Foreign currency translation adjustments | -102 | 1,013 |
Total comprehensive income (loss) | -24,475 | -20,936 |
Less : Comprehensive loss attributable to non-controlling interest | 6,840 | 6,457 |
Comprehensive loss attributable to ZAP's common shareholders | ($17,635) | ($14,479) |
Net loss per share attributable to common shareholders: | ||
Basic and diluted | ($0.05) | ($0.05) |
Weighted average number of common shares outstanding: | ||
Basic and diluted | 377,547 | 302,518 |
CONSOLIDATED_STATEMENT_OF_EQUI
CONSOLIDATED STATEMENT OF EQUITY (DEFICIENCY) (USD $) | Total | Common Stock [Member] | Accumulated Deficit [Member] | Accumulated Comprehensive Loss [Member] | Shareholders' Equity (Deficiency) | Non-controlling interest [Member] |
Balance at Dec. 31, 2012 | $28,947,000 | $229,785,000 | ($217,421,000) | $1,190,000 | $13,554,000 | $15,393,000 |
Balance, shares at Dec. 31, 2012 | 302,448,000 | |||||
Stock Based Compensation | 611,000 | 611,000 | 611,000 | |||
Stock Based Compensation, shares | 70,000 | |||||
Note discount for convertible senior debt | 729,000 | 729,000 | 729,000 | |||
Common stock issued for services | ||||||
Common stock issued for acquisition of distribution rights | ||||||
Common stock issued to settle interest payable | ||||||
Common stock issued to redeem convertible bond | ||||||
Common stock issued to settle outstanding balance due to related parties and third parties | ||||||
Foreign currency translation gain | 1,013,000 | 517,000 | 517,000 | 496,000 | ||
Net Loss | -21,949,000 | -14,996,000 | -14,996,000 | -6,953,000 | ||
Balance at Dec. 31, 2013 | 9,351,000 | 231,125,000 | -232,417,000 | 1,707,000 | 415,000 | 8,936,000 |
Balance, shares at Dec. 31, 2013 | 302,518,000 | |||||
Stock Based Compensation | 219,000 | 219,000 | 219,000 | |||
Stock Based Compensation, shares | ||||||
Note discount for convertible senior debt | -120,000 | -120,000 | -120,000 | |||
Issuance of common stock | 1,900,000 | 1,900,000 | 1,900,000 | |||
Issuance of common stock, shares | 31,667,000 | |||||
Common stock issued for services | 5,000 | 5,000 | 5,000 | |||
Common stock issued for services, shares | 62,500 | 63,000 | ||||
Common stock issued for acquisition of distribution rights | 5,969,000 | 5,969,000 | 5,969,000 | |||
Common stock issued for acquisition of distribution rights, shares | 61,000,000 | 61,000,000 | ||||
Common stock issued to settle interest payable | 1,876,000 | 1,876,000 | 1,876,000 | |||
Common stock issued to settle interest payable, shares | 15,166,651 | 15,167,000 | ||||
Common stock issued to redeem convertible bond | 1,200,000 | 1,200,000 | 1,200,000 | |||
Common stock issued to redeem convertible bond, shares | 15,066,328 | 15,066,000 | ||||
Common stock issued to settle outstanding balance due to related parties and third parties | 2,194,000 | 2,194,000 | 2,194,000 | |||
Common stock issued to settle outstanding balance due to related parties and third parties, shares | 35,915,360 | 35,915,000 | ||||
Foreign currency translation gain | -102,000 | -52,000 | -52,000 | -50,000 | ||
Net Loss | -24,373,000 | -17,583,000 | -17,583,000 | -6,790,000 | ||
Balance at Dec. 31, 2014 | ($1,881,000) | $244,368,000 | ($250,000,000) | $1,655,000 | ($3,977,000) | $2,096,000 |
Balance, shares at Dec. 31, 2014 | 461,396,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | ($24,373) | ($21,949) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||
Stock-based employee compensation | 224 | 611 |
Depreciation and amortization | 6,844 | 6,729 |
Amortization of Distribution agreement | 1,440 | 1,440 |
Provision for doubtful accounts | 236 | 483 |
Change in inventory reserve | -170 | -391 |
Impairment loss of long-lived assets | 5,596 | 2,640 |
Loss from joint venture and other investments | 899 | |
Loss on disposal of equipment | 87 | 35 |
Deferred tax provision (benefit) | 301 | -54 |
Amortization of debt discount | 513 | 1,167 |
Amortization of prepaid interest expense | 127 | |
Changes in assets and liabilities | ||
Accounts receivable | 2,709 | 126 |
Notes receivable | 102 | 1,492 |
Inventories | -603 | 3,848 |
Prepaid expenses and other assets | 333 | -707 |
Due from related parties | 3,466 | -1,779 |
Accounts payable | -2,116 | 1,164 |
Accrued liabilities | -1,205 | -844 |
Taxes Payable | -425 | 826 |
Advances from customers | 1,935 | 1,328 |
Due to related parties | 5,542 | 222 |
Other payables | -287 | 306 |
Net cash provided by (used in) operating activities | 149 | -2,281 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of property and equipment | -1,114 | -2,199 |
Proceeds from sale of equipment | 56 | 17 |
Net cash flows used in investing activities: | -1,058 | -2,182 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Change in restricted cash | 26 | 1,383 |
Proceeds from issuance of common stock | 1,900 | |
Proceeds from notes payable | 33,964 | 39,145 |
Proceeds from short term borrowing | 13,267 | 22,862 |
Proceeds from convertible bond | 1,496 | |
Repayments of notes payable | -31,826 | -42,557 |
Repayment of convertible bond | -500 | |
Payments on short term debt | -18,297 | -16,940 |
Net cash provided by (used in) financing activities | -1,466 | 5,389 |
Effect of exchange rate changes on cash and cash equivalents | -16 | 47 |
NET (DECREASE) IN CASH AND CASH EQUIVALENTS | -2,391 | 973 |
CASH AND CASH EQUIVALENTS, beginning of year | 2,629 | 1,656 |
CASH AND CASH EQUIVALENTS, end of year | 238 | 2,629 |
Supplemental disclosure of cash flow information: | ||
Cash paid during period for interest | 1,778 | 1,627 |
Cash paid during period for taxes | 2 | |
Supplemental disclosure of cash flow information | ||
Issue 61 million shares of common stock for acquisition of IPR and Distribution rights for Minivan and CNG products | 5,969 | |
Issue 15,166,651 shares of common stock to settle interest payable | 1,876 | |
Issue 15,066,328 shares of common stock to redeem Convertible bond | 1,200 | |
Issue 35,915,360 shares of common stock to settle oustanding balance due to related parties and third parties | 2,194 | |
Issue 62,500 shares of common stock for service | $5 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 12 Months Ended |
Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | |
Stock issued for acquisition of IPR and Distribution rights for Minivan and CNG products, shares | 61,000,000 |
Stock issued to settle interest payable, shares | 15,166,651 |
Stock issued to redeem Convertible bond, shares | 15,066,328 |
Stock issued for due to related parties and third parties, shares | 35,915,360 |
Stock for service, shares | 62,500 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended | ||
Dec. 31, 2014 | |||
ORGANIZATION AND BASIS OF PRESENTATION [Abstract] | |||
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION: | ||
ZAP was incorporated in California in September 1994 (together with its subsidiaries, “the Company,” or “ZAP”). ZAP markets advanced transportation, including alternative energy and fuel efficient automobiles, motorcycles, bicycles, scooters, personal watercraft, hovercraft, neighborhood electric vehicles and commercial vehicles. The Company's business strategy has been to develop, acquire and commercialize electric vehicles and electric vehicle power systems, which the Company believes have fundamental practical and environmental advantages over available internal combustion modes of transportation that can be produced commercially on an economically competitive basis. In pursuit of a manufacturing plant and a partner with an existing product line, a distribution and customer support network in China and experience in vehicle manufacturing, ZAP acquired a majority of the outstanding equity in Zhejiang Jonway Automobile Co., Ltd. (“Jonway”). | |||
On January 21, 2011, the Company completed the acquisition of 51% of the equity shares of Jonway for a total purchase price of $31.75 million consisting of approximately $29.03 million in cash and 8 million shares of ZAP common stock valued at $2.72 million. The Company believes that the acquisition will allow it to expand its electric vehicle (“EV”) business and distribution network around the world, give it access to the rapidly growing Chinese market for electric vehicles and have competitive production capacity in an ISO 9000 certified manufacturing facility with the capacity and resources to support production of ZAP's electric vehicles and new product line of mini vans and mini SUVs. | |||
Jonway is a limited liability company incorporated in Sanmen County, Zhejiang Province of the People's Republic of China (“the PRC”) on April 28, 2004 by Jonway Group Co., Ltd. (“Jonway Group”). Jonway Group is under the control of three individuals, Wang Huaiyi, Alex Wang (the son of Wang Huaiyi) and Wang Xiao Ying (the daughter of Wang Huaiyi and all three individuals collectively referred to as the “Wang Family”). | |||
Jonway's approved scope of business operations includes the production and sale of vehicle spare parts, and the sale of UFO licensed vehicles. The principal activities of Jonway are the production and sale of automobile spare parts and the production and distribution of SUVs and minivans in China using the consigned UFO license from an affiliate of Jonway Group. | |||
With the completion of the acquisition of a majority interest in Jonway, the combined companies' new product lines include the A380 SUV EV and the minivan EV. Both products leverage the production moldings, the manufacturing engineering infrastructure and facilities currently in place for the gasoline models of these vehicles. Since the acquisition, the companies have been working on developing the joint product line, marketing and sales plans for the EV product lines. | |||
Jonway received certification of the EV production line by the Chinese electric vehicle authorities, which occurred in February 2013. Meanwhile; the engineering teams from both companies are undertaking extensive testing of the A380 SUV EV at Jonway Auto and ZAP Hangzhou EV research and development center. | |||
Our target is to deliver the EV A380 SUV and EV minivan in 2015, with the purpose of obtaining the Chinese central government electric vehicle incentives of up to RMB 70,000 or over $11,390 per vehicle. ZAP intends to use the existing manufacturing plant from Jonway that is being upgraded for the production of the electric vehicles and utilizing the existing Jonway models to gain economy of scale and reduce molding investment costs. ZAP also intends to leverage Jonway's distribution and customer support centers in China to support the sales and marketing of its new EV product line. In the meantime, Jonway auto established its three wholly-owned subsidiaries, namely, Taizhou Selling Co., Ltd . focusing on vehicles marketing and distribution ,Taizhou Fuxing Vehicle Sale Co., Ltd. focusing on minivan marketing and distribution in China and Taizhou Vehicle Leasing Co., Ltd focusing on the vehicle leasing business in Taizhou. | |||
ZAP plans to focus on developing new international markets such as Brazil, South Africa, Russia and some of the Central America countries such as Costa Rica, Ecuador and Mexico. These countries are looking for affordable gasoline and electric SUVs and minivans with a competitive price and qualities. | |||
BASIS OF PRESENTATION AND CONSOLIDATION | |||
The accompanying consolidated financial statements include the financial statements of ZAP, and its subsidiaries: Jonway Automobile, Voltage Vehicles, Advanced Technology Vehicles, ZAP and ZAP Hong Kong for the years ended December 31, 2014 and 2013 and are prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”). | |||
Management considers subsidiaries to be companies that are over 50% controlled. Significant intercompany transactions and balances are eliminated in consolidation; profits from intercompany sales, are also eliminated; non –controlling interests are included in equity. We account for our 37.5% interest in the ZAP Hangzhou and our 50% interest in Shanghai Zapple using the equity method of accounting because we have significant influence but not control. | |||
ZAP's common stock is quoted on the OTC Bulletin Board under the symbol “ZAAP.OB.” | |||
Liquidity and Capital Resources | |||
As of December 31, 2014, our current liabilities exceeded the current assets by approximately $69.5 million and our equity deficiency was $1,881,000, which raise substantial doubt about our ability to continue as a going concern. In addition, we have recurring net losses. Given our expected capital expenditure in the foreseeable future, we have comprehensively considered our available sources of funds as follows: | |||
• | Financial support and credit guarantee from related parties; and | ||
• | Other available sources of financing from domestic banks and other financial institutions given our credit history. | ||
Based on the above considerations, our Board of Directors is of the opinion that we have sufficient funds to meet our working capital requiremements and debt obligations as they become due. However this opinion is based on the demand of our products, economic conditions, the overcapacity issue in the automobile industry and our operating results not continuing to deteriorate and on our vendors and related parties being able to provide continued liquidity. As a result our consolidated financial statements for the year ended December 31, 2014 have been prepared on a going concern basis. | |||
In assessing our liquidity, we monitor and analyze our cash on-hand, liquidation value of our investment in securities, and our operating and capital expenditure commitments. Our principal liquidity needs are to meet our working capital requirements, operating expenses and capital expenditure obligations. | |||
As of March 2014, we were approved up to an aggregate of $24.3 million of a credit line, with the credit exposure of $7.3 million from the Sanmen Branch of CITIC Bank (“CITIC”) through Jonway. As of December 31, 2014, the credit exposure of $6.02 million has been fully used. The credit line expires in November 2015. | |||
In early 2014, we were approved up to an aggregate of $2.4 million of a credit line from Taizhou Bank. As of December 31, 2014, a total credit exposure of $1.46 million has been used. The bank informed the company that the credit line will not renew after the settlement of outstanding borrowings in early 2015. | |||
In December 2013, we were approved for up to an aggregate of $9.2 million of a credit line from Everbright Bank. This credit line can only been used in the form of notes payable with 50% restricted cash deposited. Thus, we were approved a credit exposure of $4.6 million. As of December 31, 2014, the credit exposure of $4.6 million has been fully used. The credit line expires in December 2014 and not yet renewed as of December 31, 2014. | |||
In December 2013, we were approved up to an aggregate of $5.4 million of a credit line from Industrial and Commercial Bank of China (ICBC). As of December 31, 2014, a credit exposure of $4.9 million has been used, and $0.5 million was still available for use. The credit line expires in December 2014 and not yet renewed as of December 31, 2014. | |||
Jonway intends to utilize the above credit lines to expand its electric vehicle business as well as other future vehicle models. This includes on-going working capital needs, electric vehicle production equipment requirements, testing, homologation and new EV product molds. Also our principal shareholder, Jonway Group, has agreed to provide the necessary support to meet our financial obligations through March 31, 2016 in the event that we require additional liquidity. In addition, CEVC (China Electric Vehicle Corporation) would likely renew this convertible note and in the event that CEVC decides to call on the repayment, the repayment would likely be paid in full or in part in Jonway Auto shares or ZAP shares unless there is a breach by the Company on the covenant of the convertible note. | |||
We will require additional capital to expand our current operations. In particular, we require additional capital to expand our presence across the world, to continue development of our electric vehicle business, to continue strengthening our dealer network and after-sale service centers and expanding our market initiatives. We also require financing the investment for the continued roll-out of new products and to add qualified sales and professional staff to execute on our business plan and pursue our efforts in the research and development of advanced technology vehicles, such as the new ZAP Alias, the electric and other fuel efficient vehicles. | |||
We intend to fund our long term liquidity needs related to operations through the incurrence of indebtedness, equity financing or a combination of both. Although we believe that these sources will provide sufficient liquidity for us to meet our future liquidity and capital obligations, our ability to fund these needs will depend on our future performance, which will be subject in part to general economic, financial, regulatory and other factors beyond our control, including trends in our industry and technological developments. | |||
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | NOTE-2 SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||
Use of Estimates | |||||||||||||||||||
The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. The more significant estimates relate to revenue recognition, contractual allowances and uncollectible accounts, intangible assets, accrued liabilities, warranty costs, stock based compensation, income taxes, litigation and contingencies. Estimates are based on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances, the results of which form the basis for judgments about results and the carrying values of assets and liabilities. Actual results and values may differ significantly from these estimates. | |||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||
The Company's operations are substantially carried out in the PRC. Accordingly, the Company's business, financial condition and results of operations maybe substantially influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy. The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. | |||||||||||||||||||
Financial instruments which subject the Company to potential credit risk consist of its cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with one high credit quality financial institution. As of December 31, 2014, deposits exceeded the amount of insurance provided by $161,000; however, these deposits typically are redeemable upon demand and, therefore, the Company believes the financial risks associated with these financial instruments are minimal. The Company has not experienced any losses to date on its deposits. | |||||||||||||||||||
The Company performs ongoing credit evaluations of its customers, and generally does not require collateral on its accounts receivable. The Company estimates the need for allowances for potential credit losses based on historical collection activity and the facts and circumstances relevant to specific customers and records a provision for uncollectible accounts when collection is uncertain. The Company has not experienced significant credit related losses to date. | |||||||||||||||||||
The Company currently relies on various outside contract manufacturers in China to supply electric vehicles and products for its customers. Although management believes that other contract manufactures could provide similar services and intends to transition its manufacturing to Jonway's facilities in Sanmen, China, but, if these Chinese companies are unable to supply electric vehicles and the Company is unable to transition manufacturing to Jonway's facilities or find alternative sources for these product and services, the Company might not be able to fill existing backorders and/or sell more electric vehicles. Any significant manufacturing interruption could have a material adverse effect on the Company's business, financial condition and results of operations. | |||||||||||||||||||
Revenue Recognition | |||||||||||||||||||
The Company records revenues for non-Jonway sales when all of the following criteria have been met: | |||||||||||||||||||
- | Persuasive evidence of an arrangement exists. The Company generally relies upon sales contracts or agreements, and customer purchase orders to determine the existence of an arrangement. | ||||||||||||||||||
- | Sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment. | ||||||||||||||||||
- | Delivery has occurred. The Company uses shipping terms and related documents, or written evidence of customer acceptance, when applicable, to verify delivery or performance. The Company's customary shipping terms are FOB shipping point. | ||||||||||||||||||
- | Collectability is reasonably assured. The Company assesses collectability based on creditworthiness of customers as determined by our credit checks and their payment histories. The Company records accounts receivable net of allowance for doubtful accounts and estimated customer returns. | ||||||||||||||||||
The Company records revenues for Jonway sales only upon the occurrence of all of the following conditions: | |||||||||||||||||||
- | The Company has received a binding purchase order from the customer or distributor authorized by a representative empowered to commit the purchaser (evidence of a sale); | ||||||||||||||||||
- | The purchase price has been fixed, based on the terms of the purchase order; | ||||||||||||||||||
- | The Company has delivered the product from its factory to a common carrier acceptable to the customer; and | ||||||||||||||||||
- | The Company deems the collection of the amount invoiced probable. | ||||||||||||||||||
The Company provides no price protection. Sales are recognized net of sale discounts, rebates and return allowances. | |||||||||||||||||||
Stock-based compensation | |||||||||||||||||||
The Company accounts for stock-based compensation which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes-Merton option pricing model (the “Black-Scholes model”). The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. We estimate forfeitures at the time of grant and revise our estimate in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||||||||
The Company accounts for stock-based compensation awards and warrants granted to non-employees by determining the fair value of the warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either (1) the date at which commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. | |||||||||||||||||||
Income Taxes | |||||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires the Company to use the assets and liability method of accounting for income taxes. Under the assets and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forward. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. | |||||||||||||||||||
ASC 740-10, Accounting for Uncertainty in Income Taxes defines uncertainty in income taxes and the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. | |||||||||||||||||||
United States federal, state and local income tax returns prior to 2010 are not subject to examination by tax authority. | |||||||||||||||||||
Foreign Currency Translation | |||||||||||||||||||
The Company and its wholly owned subsidiary/investments, maintain their accounting records in United States Dollars (“US$”) whereas Jonway Auto maintains its accounting records in the currency of Renminbi (“RMB”), being the primary currency of the economic environment in which their operations are conducted. | |||||||||||||||||||
Jonway Auto's principal country of operations is the PRC. The financial position and results of our operations are determined using RMB, the local currency, as the functional currency. The results of operations and the statement of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Due to the fact that cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholder's equity as “Accumulated Other Comprehensive Income.” | |||||||||||||||||||
The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in China's political and economic conditions, any significant revaluation of RMB may materially affect our financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: | |||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||
Balance sheet items, except for share capital, additional | $1=B 6.1460 | $1=B 6.1122 | |||||||||||||||||
paid in capital and retained earnings, as of year end | |||||||||||||||||||
Amounts included in the statements of operations | $1=B 6.1457 | $1=B6.1171 | |||||||||||||||||
and cash flows for the year | |||||||||||||||||||
Loss per Share | |||||||||||||||||||
Basic and diluted net loss per share is computed by dividing consolidated net loss by the weighted-average number of common shares outstanding during the period. The Company's potentially dilutive shares, which include outstanding common stock options convertible debt and warrants, have not been included in the computation of diluted net loss per share for all periods presented as the result would be anti-dilutive. Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share. | |||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||
The Company invests its excess cash in short-term investments with various banks and financial institutions. Short-term investments are cash equivalents, as they are part of the cash management activities of the company and are comprised of investments having maturities of three months or less when purchased. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. | |||||||||||||||||||
Restricted Cash | |||||||||||||||||||
The Company has cash restricted in connection with the issuance of bank acceptance notes to various suppliers of spare parts which were issued through Jonway's banks. To issue these bank acceptance notes to Jonway's suppliers, the banks require a deposit of 50% or 100% of the full amount of such notes which are payable within 6 months from issuance. Upon the maturity date, restricted funds will be used to settle the bank acceptance notes. | |||||||||||||||||||
Fair value of financial instruments | |||||||||||||||||||
The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. Accounting standards establish a three level valuation hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair values. For certain of the Company's financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, the carrying amount approximates fair value because of the short maturities. It was impracticable to determinate the fair value of the receivable from a related party and the obligation for distribution fee because there is no market for such instruments. The three levels of inputs are defined as follows: | |||||||||||||||||||
Level 1: Observable inputs such as quoted prices in active markets; | |||||||||||||||||||
Level 2: Inputs other than quoted prices in active markets that is directly or indirectly observable; | |||||||||||||||||||
Level 3: Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions and methodologies that result in management's best estimate of fair value. | |||||||||||||||||||
The Company records certain assets and liabilities at fair value on a nonrecurring basis as required by accounting principles generally accepted in the United States. Generally assets are measured at fair value on a nonrecurring basis as a result of impairment changes. Fair value was estimated based on discounted cash flows (Level 3 inputs).Assets measured at fair value on a nonrecurring basis for the years ended December 31, 2014 are summarized below (in thousands): | |||||||||||||||||||
31-Dec-14 | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Measurements | |||||||||||||||
CNG distribution right | (1 | ) | - | - | $ | 1,000 | $ | 1,000 | |||||||||||
Trade name | (2 | ) | - | - | 1,600 | 1,600 | |||||||||||||
31-Dec-13 | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Measurements | |||||||||||||||
Trade name | (1 | ) | - | - | $ | 2,239 | $ | 2,239 | |||||||||||
Impairment loss | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Impairment loss on Distribution rights | (1 | ) | $ | 4,969 | $ | 0 | |||||||||||||
Impairment loss on Intangible assets | (2 | ) | $ | 627 | $ | 0 | |||||||||||||
-1 | The CNG distribution right was acquired in the fiscal year of 2014 at $5.96 million by issuing 61 million shares. In March 2014, Jonway Group agreed to pay all of the outstanding mold expenses of the Minivan that is currently still outstanding, and in return ZAP will share half of the asset value and share the IPR (50%) of the Minivan with Jonway Auto. The Minivan was purchased by ZAP from a prior agreement between ZAP and Jonway Group which was signed on January 18, 2012. In return for ZAP receiving worldwide exclusivity for the sales, distribution, and product IPR rights for all current and future models of the compressed natural gas (“CNG”) versions of Jonway Auto's Products, including, but not limited to, SUV, minivan, and all other models, the Company's Board of Directors authorized on March 28, 2014 to issue 61,000,000 shares of common stock to the companies owned by the Co-CEO and shareholder Alex Wang. The 61,000,000 shares of common stock have been issued in April 2014.The Company recognized impairment charges of $4.96 million for the years ended December 31, 2014. | ||||||||||||||||||
-2 | The Company recognized impairment loss for Trade name in the year ended December 31, 2014. | ||||||||||||||||||
Accounts Receivable and Notes Receivable | |||||||||||||||||||
Accounts and note receivable consist mainly of receivables from our established dealer network. A credit review is performed by the Company before the dealer is approved to purchase vehicles form the Company. The Company performs ongoing credit evaluations of its dealers, and generally does not require collateral on its accounts receivable. The Company estimates the need for allowances for potential credit losses based on historical collection activity and the facts and circumstances relevant to specific customers and records a provision for uncollectible accounts when collection is uncertain. The allowance for doubtful accounts was $439,284 and $696,000 on December 31, 2014 and 2013, respectively. | |||||||||||||||||||
Inventories | |||||||||||||||||||
ZAP Inventories consist primarily of vehicles, both gas and electric, parts and supplies, and finished goods and are carried at the lesser of lower of cost (first-in, first-out basis for ZAP and moving average basis for Jonway) or market (net realizable value or replacement cost). The Company maintains reserves for estimated excess, obsolete and damaged inventory based on projected future shipments using historical selling rates, and taking into account market conditions, inventory on-hand, purchase commitments, product development plans and life expectancy, and competitive factors. If markets for the Company's products and corresponding demand were to decline, then additional reserves may be deemed necessary. Any changes to the Company's estimates of its reserves are reflected in cost of goods sold within the statement of operations during the period in which such changes are determined by management. | |||||||||||||||||||
As of December 31, 2014 and 2013 respectively, the company has reserved $1,380,000 and 1,981,000 of its inventory for obsolescence.. | |||||||||||||||||||
Property and equipment | |||||||||||||||||||
Property and equipment consists of land, building and improvements, machinery and equipment, office furniture and equipment, vehicles, and leasehold improvements. Property and equipment is stated at cost, net of accumulated depreciation and amortization, and is depreciated or amortized using straight-line method over the asset's estimated useful life. Costs of maintenance and repairs are charged to expense as incurred; significant renewals and betterments are capitalized. Estimated useful lives are as follows: | |||||||||||||||||||
Machinery and equipment | 5-10 years (Jonway 10 years) | ||||||||||||||||||
Computer equipment and software | 3-5 years | ||||||||||||||||||
Office furniture and equipment | 5 years | ||||||||||||||||||
Vehicles | 5 years | ||||||||||||||||||
Leasehold improvements | 10 years or life of lease, | ||||||||||||||||||
whichever is shorter | |||||||||||||||||||
Building and improvements | 20-30 years (Jonway 20 years) | ||||||||||||||||||
Land use rights | |||||||||||||||||||
Under PRC law, all land in the PRC is permanently owned by the government and cannot be sold to an individual or company but companies can purchase the land use rights for the specified period of time, as in our industry the industrial purpose has a useful life of 50 years. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership”. Land use rights are stated at cost less accumulated amortization. Amortization is provided over the respective useful lives, using the straight –line method. Estimated useful life is 50 years, and is determined in the connection with the term of the land use right. | |||||||||||||||||||
Long-lived assets | |||||||||||||||||||
Long-lived assets are comprised of property and equipment and intangible assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An estimate of undiscounted future cash flows produced by the asset, or by the appropriate grouping of assets, is compared to the carrying value to determine whether impairment exists. If an asset is determined to be impaired, the loss is measured based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including a discounted value of estimated future cash flow and fundamental analysis. The Company reports an asset to be disposed of at the lower of its carrying value or its estimated net realizable value. | |||||||||||||||||||
Intangible Assets-Finite | |||||||||||||||||||
Intangible assets consist of patents, trademarks, land use rights, government approvals and customer relationships (including client contracts). For financial statement purposes, identifiable intangible assets with a defined life are being amortized using the straight-line method over the estimated useful lives of seven years for the EPA license and 8.5 years for the customer relationships. Costs incurred by the Company in connection with patent, trademark applications and approvals from governmental agencies such as the Environmental Protection Agency, including legal fees, patent and trademark fees and specific testing costs, are expensed as incurred. Purchased intangible costs of completed developments are capitalized and amortized over an estimated economic life of the asset, generally seven years, commencing on the acquisition date. Costs subsequent to the acquisition date are expensed as incurred. As of December 31, 2014, the company recognized an impairment loss of $627,000 for the Trade name. The impairment charge was based on the fair value which was the estimation of discounted cash flow. | |||||||||||||||||||
Goodwill and Intangible Assets – Indefinite | |||||||||||||||||||
Goodwill and intangible assets determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance applicable accounting principles. The Company assesses annually whether there is an indication that goodwill is impaired, or more frequently if events and circumstances indicate that the asset might be impaired during the year. The Company performs its annual impairment test in the fourth quarter of each year. Calculating the fair value of the reporting units requires significant estimates and assumptions by management. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, there is an indication that the reporting unit goodwill may be impaired and a second step of the impairment test is performed to determine the amount of the impairment to be recognized, if any. | |||||||||||||||||||
Product warranty costs | |||||||||||||||||||
Jonway provides a 3-year or 60,000 kilometer warranty for its SUV and minivan products. Jonway records the estimated cost of the product warranties at the time of sale using the estimated cost of product warranties based on historical results. The estimated cost of warranties has not been significant to date. Should actual failure rates and material usage differ from our estimates, revisions to the warranty obligation may be required. | |||||||||||||||||||
Jonway | 2014 | 2013 | |||||||||||||||||
Balance as of January 1 | $ | 631 | $ | 964 | |||||||||||||||
Provision for warranties | 483 | 732 | |||||||||||||||||
Charges against warranties | (633 | ) | (858 | ) | |||||||||||||||
Balance December 31 | 481 | 838 | |||||||||||||||||
Less: long term portion | (188 | ) | (207 | ) | |||||||||||||||
Current portion | $ | 293 | $ | 631 | |||||||||||||||
$188,000 was included in “accrued liabilities and others- long term” on the consolidated balance sheets. $293,000 was included in short-term “accrued liabilities” on the consolidated balance sheets. | |||||||||||||||||||
Comprehensive loss | |||||||||||||||||||
Comprehensive loss represents the net loss for the period plus the results of certain changes to shareholders' equity that are not reflected in the consolidated statements of operations. The Company's comprehensive loss consists of net losses, foreign currency translation adjustments and unrealized net losses on investments. | |||||||||||||||||||
Risks and Uncertainties | |||||||||||||||||||
A substantial portion of the Company's operations are located in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The company's results may be adversely affected by interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | |||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||
In April 2014, the FASB has issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a significant impact on the Company's condensed consolidated financial statements. | |||||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers: Topic 606. This Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this Update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to illustrate the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a cohesive set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization's contracts with customers. This ASU is effective retrospectively for fiscal years, and interim periods within those years beginning after December 15, 2016 for public companies and 2017 for non-public entities. Management is evaluating the impact, if any, of this ASU on the Company's financial position, results of operations and cash flows. | |||||||||||||||||||
In June 2014, FASB issued Accounting Standards Update (ASU) No. 2014-12 Compensation – Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments stipulate that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation — Stock Compensation. As a result, the target is not reflected in the estimation of the award's grant date fair value. Compensation cost should be recognized over the required service period, if it is probable that the performance condition would be achieved. The amendments in this Accounting Standards Update are effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-12 to have a material impact on the Company's condensed consolidated financial statements. | |||||||||||||||||||
In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity's liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity's liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements-Liquidation Basis of Accounting. Even when an entity's liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity's ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Accounting Standards Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company does not expect the adoption of ASU 2014-15 to have material impact on the Company's condensed consolidated financial statements, although there may be additional disclosures upon adoption. | |||||||||||||||||||
In November 2014, FASB issued Accounting Standards Update No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). The amendments permit the use of the Fed Funds Effective Swap Rate (also referred to as the Overnight Index Swap Rate, or OIS) as a benchmark interest rate for hedge accounting purposes. Public business entities are required to implement the new requirements in fiscal years (and interim periods within those fiscal years) beginning after December 15, 2015. All other types of entities are required to implement the new requirements in fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. The Company does not expect the adoption of ASU 2014-16 to have material impact on the Company's consolidated financial statement. | |||||||||||||||||||
In January 2015, FASB issued ASU No. 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This Update is issued as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The effective date is the same for both public business entities and all other entities. The Company does not expect the adoption of ASU 2015-01 to have material impact on the Company's consolidated financial statements. | |||||||||||||||||||
In February 2015, FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. This Update focuses on the consolidation evaluation for reporting organizations that are required to evaluate consolidation of certain legal entities by reducing the number of consolidation models from four to two and is intended to improve current GAAP. The amendments in the ASU are effective beginning after December 15, 2016. We do not expect the adoption of ASU 2015-02 to have material impact on our consolidated financial statements. | |||||||||||||||||||
In April 2015, FASB issued ASU 2015-03, interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments in the ASU are effective beginning after December 15, 2015. We do not expect the adoption of ASU 2015-03 to have material impact on our consolidated financial statements. |
INVENTORIES_NET
INVENTORIES, NET | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
INVENTORIES, NET [Abstract] | |||||||||
INVENTORIES, NET | NOTE 3– INVENTORIES, NET | ||||||||
Inventories, net at December 31, 2014 and 2013 are summarized as follows (in thousands): | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Work in Process | $ | 3,054 | $ | 2,228 | |||||
Parts and supplies | 3,601 | 2,906 | |||||||
Finished goods | 3,105 | 4,881 | |||||||
9,760 | 10,015 | ||||||||
Less - inventory reserve | (1,380 | ) | (1,981 | ) | |||||
Inventories, net | $ | 8,380 | $ | 8,034 | |||||
Changes in the Company's inventory reserve during the years ended December 31, 2014 and 2013 are as follows (in thousands): | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Balance opening period | $ | 1,981 | $ | 2,325 | |||||
Current provision for Jonway Auto | 251 | (529 | ) | ||||||
Current provision for inventory ZAP-net | (852 | ) | 185 | ||||||
Balance end of period | $ | 1,380 | $ | 1,981 |
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT, NET, AND LAND USE RIGHTS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PROPERTY, PLANT AND EQUIPMENT, NET, AND LAND USE RIGHTS [Abstract] | |||||||||
PROPERTY, PLANT AND EQUIPMENT, NET, AND LAND USE RIGHTS | NOTE 4 - Property, plant and equipment, net, and Land Use Rights | ||||||||
Property, plant and equipment, net at December 31, 2014 and 2013 are summarized as follows (in thousands): | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Buildings and improvements | $ | 21,381 | $ | 21,473 | |||||
Machinery and equipment | 48,914 | 48,572 | |||||||
Office furniture and equipment | 889 | 518 | |||||||
Vehicles | 817 | 865 | |||||||
72,001 | 71,428 | ||||||||
Less: accumulated depreciation | |||||||||
and amortization | (29,406 | ) | (23,424 | ) | |||||
$ | 42,595 | $ | 48,004 | ||||||
Four pieces of land were acquired from the acquisition of Jonway auto in 2011.All land in the People's Republic of China is government owned and cannot be sold to any individual or company. However, the government grants the user a “land use right” (the Right) to use the land. The Company has the right to use the land for 50 years and amortized the Right on a straight-line basis over the period of 50 years. As of December 31, 2014 and 2013, land use rights consist of the following: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Land use right | $ | 10,978 | $ | 10,855 | |||||
Software | 109 | 109 | |||||||
11,087 | 10,964 | ||||||||
Less: accumulated amortization | (1,146 | ) | (912 | ) | |||||
Less: accumulated Translation Adjustments | (230 | ) | (44 | ) | |||||
$ | 9,711 | $ | 10,008 | ||||||
As of December 31, 2014, estimated future amortization expense for land use rights is as follows (in thousands): | |||||||||
Amortization | |||||||||
Year | Expense | ||||||||
2015 | $ | 226 | |||||||
2016 | 207 | ||||||||
2017 | 207 | ||||||||
2018 | 205 | ||||||||
2019 | 205 | ||||||||
Thereafter | 8,661 | ||||||||
$ | 9,711 | ||||||||
Depreciation and amortization expense of property, plant and equipment, as well as land use rights and software was approximately $6.8 million and $6.7 million for the years ended December 31, 2014 and 2013. | |||||||||
INTANGIBLE_ASSETS_NET_GOODWILL
INTANGIBLE ASSETS, NET & GOODWILL | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
INTANGIBLE ASSETS, NET & GOODWILL [Abstract] | ||||||||||||||||
INTANGIBLE ASSETS, NET & GOODWILL | NOTE 5- INTANGIBLE ASSETS, NET & GOODWILL | |||||||||||||||
The goodwill and intangible assets at December 31, 2014 and 2013 are summarized as follows: | ||||||||||||||||
Impairment provision, | ||||||||||||||||
Amortization and accumulated | ||||||||||||||||
Net Book | translation adjustments (“ATA”) | Net Book | ||||||||||||||
Useful Life | Value | for the six months ended | Value | |||||||||||||
(In Years) | December 31, 2013 | December 31, 2014 | December 31, 2014 | |||||||||||||
Patents and Trademarks | 7 | $ | 30 | $ | (23 | ) | $ | 7 | ||||||||
Customer Relationships | 8.5 | 525 | (97 | ) | 428 | |||||||||||
Developed Technology | 7 | 1,297 | (325 | ) | 972 | |||||||||||
In Process Technology | (a | ) | 189 | (1 | ) | 188 | ||||||||||
Trade name | (a | ) | 2,239 | (639 | ) | 1,600 | ||||||||||
Intangible assets | $ | 4,280 | $ | (1,085 | ) | $ | 3,195 | |||||||||
Goodwill | $ | 334 | $ | (2 | ) | $ | 332 | |||||||||
(a) | The in process technology and trade name have been determined to have an indefinite life. | |||||||||||||||
As of December 31, 2014, the company recognized an impairment loss of $627,000 for the Trade name. The impairment charges was based on the fair value which was the estimation of discounted cash flow. | ||||||||||||||||
As of December 31, 2014, estimated future amortization expense for intangibles assets, subject to amortization, is as follows (in thousands): | ||||||||||||||||
Year ended December 31, | Amortization Expense | |||||||||||||||
2015 | $ | 429 | ||||||||||||||
2016 | 422 | |||||||||||||||
2017 | 419 | |||||||||||||||
Thereafter | 137 | |||||||||||||||
$ | 1,407 |
DISTRIBUTION_AGREEMENTS
DISTRIBUTION AGREEMENTS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
DISTRIBUTION AGREEMENTS [Abstract] | |||||||||
DISTRIBUTION AGREEMENTS | NOTE 6 - DISTRIBUTION AGREEMENTS | ||||||||
Distribution agreements as of December 31, 2014 and 2013 are presented below (in thousands): | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Better World Products-related party | $ | 2,160 | $ | 2,160 | |||||
CNG Products | 1,000 | - | |||||||
Jonway Products | 14,400 | 14,400 | |||||||
17,560 | 16,560 | ||||||||
Less amortization and impairment | (8,161 | ) | (6,721 | ) | |||||
$ | 9,399 | $ | 9,839 | ||||||
Amortization expenses related to these distribution agreements for the years ended December 31, 2014 and 2013 was $1,440,000and $1,440,000, respectively. Amortization is based over the term of the agreements. As of December 31, 2014, the company recognized an impairment loss of $5.0 million for the distribution right of CNG Products which was acquired in the current year.The estimated future amortization expense is as follows (in thousands): | |||||||||
Year ended December 31, | |||||||||
2015 | $ | 1,540 | |||||||
2016 | 1,540 | ||||||||
2017 | 1,540 | ||||||||
2018 | 1,540 | ||||||||
2019 | 1,540 | ||||||||
Thereafter | 1,699 | ||||||||
Total | $ | 9,399 | |||||||
Distribution Agreement with Better World, Ltd | |||||||||
On January 15, 2010, ZAP entered into a Stock Purchase Agreement with a related party, Better World, Ltd., a British Virgin Islands company, whereby the Company issued 6 million shares of its common stock valued at $2.16 million in exchange for an agreement on terms relating to rights to the distribution of Better World products, such as charging stations for electric vehicles both in the U.S. and internationally. Priscilla Lu, Chairman of the Board of Directors of ZAP, is also director of Better World, Ltd. | |||||||||
Distribution Agreement with Goldenstone Worldwide Limited for Jonway Products | |||||||||
On October 10, 2010, ZAP entered into an International Distribution with Goldenstone Worldwide Limited as the distributor of Jonway products such as gasoline SUV's and gasoline and electric motor scooters, both in the U. S. and internationally. In connection with the distribution agreement the Company also issued 30 million shares of ZAP common stock valued at $14.4 million. The Jonway Group had previously granted exclusive worldwide distribution of Jonway products to Goldenstone Worldwide Limited. ZAP acquired a 51% equity interest in Jonway Auto but this equity interest did not include the worldwide distribution rights for Jonway Products. Therefore it was necessary for ZAP to acquire distribution rights for Jonway Products. | |||||||||
Distribution Agreement with Jonway Auto for CNG Products | |||||||||
On June 26, 2014, ZAP entered into an International Distribution with Jonway Auto as the distributor of Jonway Auto's compressed natural gas SUV and compressed natural gas minivan, both in the US. and internationally. In connection with the distribution agreement the Company also issued 61 million shares of ZAP common stock valued at $6.0 million to Jonway Group. As of December 31, 2014, the company recognized an impairment loss of $5.0 million for the distribution right of CNG Products which was acquired in the current year. | |||||||||
INVESTMENT_IN_JOINT_VENTURES
INVESTMENT IN JOINT VENTURES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
INVESTMENT IN JOINT VENTURES [Abstract] | ||||||||||||
INVESTMENT IN JOINT VENTURES | NOTE 7 – INVESTMENT IN JOINT VENTURES | |||||||||||
On December 11, 2009, the Company entered into a Joint Venture Agreement to establish a new US-China company incorporated as ZAP Hangzhou to design and manufacture electric vehicle and infrastructure technology with Holley Group, the parent company of a global supplier of electric power meters and Better World. Priscilla Lu, Ph.D., who is the current Chairman of the Board of ZAP, is also a director and General Partner of Cathaya Capital, which is a director of Better World. In January of 2011, Holley Group's interest in ZAP Hangzhou was purchased by Jonway Group. ZAP and Better World each own 37.5% of the equity shares of ZAP Hangzhou, and Jonway Group owns 25% of the equity shares of ZAP Hangzhou. The joint venture partners have also funded the initial capital requirements under the agreement for a total of $3 million, of which ZAP's portion is $1.1 million. The management decided to suspend the operation of the joint venture after finishing the existing projects on hand. | ||||||||||||
In November 2011, Jonway and ZAP Hangzhou jointly set up Shanghai Zapple Electric Vehicle Technologies Co., Ltd. (Shanghai Zapple) with registered capital of RMB 20 million. Jonway and ZAP Hangzhou each own 50% of the equity share of Shanghai Zapple. Jonway injected RMB 5 million into this joint venture and ZAP Hangzhou injected RMB 3 million. Shanghai Zapple's approved scope of business includes: technical advice, technical development, technical services, technology transfer regarding electric vehicle technology, auto technology, energy technology, material science and technology, sale of commercial vehicle and vehicle for nine seats or more, auto parts, auto supplies, lubricant, mechanical equipment and accessories, business management consulting, industrial investment, exhibition services, business marketing planning, car rental (shall not be engaged in financial leasing), import and export of goods and technologies. Zapple had suspended operation. | ||||||||||||
The carrying amount of Company's investment in the joint ventures as of December 31, 2014 and 2013 was nil. | ||||||||||||
The Company recorded a loss of $0 and $438,000 in ZAP Hangzhou, and a loss of $0 and $461,000 in Shanghai Zapple for the years ended December 31, 2014 and 2013 respectively. | ||||||||||||
Summarized financial information of Hangzhou ZAP and Shanghai Zapple are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Hangzhou ZAP | ||||||||||||
Total assets | 1,079 | 1,346 | ||||||||||
Total liabilities | 429 | 359 | ||||||||||
Revenue | $ | 152 | $ | 83 |
LINE_OF_CREDIT_SHORT_TERM_DEBT
LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES [Abstract] | |||||||||
LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES | NOTE 8 –LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES | ||||||||
Line of credit (Credit Exposure) | |||||||||
In November 2013, we were approved up to an aggregate of $24.3 million of a credit line, with the credit exposure of $6.3 million from the Sanmen Branch of CITIC Bank (“CITIC”) through Jonway. In March 2014, the credit exposure increased by $1.0 million to $7.3 million. In November 2014, a land use right pledged to CITIC Bank was released to the company and the credit exposure approved by the bank was $6.02 million. When drawn down, the credit line is secured by land and buildings owned by Jonway and guaranteed by the related party Jonway Group. Jonway borrowed one year short-term loans in the aggregate amount of $6.3 million in November 2013. In April 2014, the company partially repaid $0.56 million. The annual interest rate is 6.6%, and the loans are due in November 2014. The company repaid the loans when they became due. In March 2014, Jonway borrowed one year short-term loan of $1.0 million. The annual interest rate is 7.08% and the loan is due in March 2015. The company early settled the loan in December 2014. The company borrowed a one year short term loan in December 2014 at an annual interest rate of 6.6%. We have also drawn down $5.7 million in the form of notes payable as of December 31, 2014. Except for a note payable utilizing the credit exposure of $5.04 million, we deposited 50% cash as restricted cash as collateral for these notes payable. These notes are due from March 2015 to November, 2015. As of December 31, 2014, the credit exposure of $6.02 million has been fully used. The credit line expires in November 2015. | |||||||||
In December 2012, we were approved up to an aggregate of $4.1 million of a credit line from Taizhou Bank. This credit line was reduced to $2.4 million in early 2014 when it was renewed. This credit line was guaranteed by related parties. As of December 31, 2014, the total outstanding loans under this credit line were $1.1 million. The loans are due separately in February and April 2015 respectively. The annual interest rates are 8.89% and 8.93% respectively. A credit exposure of $0.33 million was used in the form of notes payable of $0.65 million with restricted cash of $0.33 million being deposited with the bank. As of December 31, 2014, a total credit exposure of $1.46 million has been used. The bank informed the company that the credit line will not renew after the settlement of outstanding borrowings in early 2015. | |||||||||
In December 2013, we were approved for up to an aggregate of $9.2 million of a credit line from Everbright Bank. This credit line can only been used in the form of notes payable with 50% restricted cash deposited. Thus, we were approved a credit exposure of $4.6 million. This credit line was guaranteed by the shareholder Wang Huaiyi, as well as a building and land use right at the carrying value of $2.1 million. As of December 31, 2014, $11.4 million was drawn down as notes payable. The amount of restricted cash deposited with the bank was $8.0 million. In June 2014, Jonway borrowed a 6 months short-term loan of $0.31 million at interest rate of 7.28%. The company repaid the loan when it became due. In July 2014, Jonway borrowed an 11 months short-term loan of $1.2 million at interest rate of 7.2%. As of December 31, 2014, the credit exposure of $4.6 million has been fully used. The credit line expires in December 2014 and not yet renewed as of December 31, 2014. | |||||||||
In December 2013, we were approved up to an aggregate of $5.4 million of a credit line from Industrial and Commercial Bank of China (ICBC). This credit line was secured by land and buildings owned by Jonway and guaranteed by related parties. As of December 31, 2014, the total outstanding loan under this credit line was $6.5 million with $1.6 million of restricted cash deposited with the bank. The annual interest rates are from 5.0% to 6.6%. The loans are due in various dates from March to November 2015. Jonway also drew down $0.49 million in the form of a note payable as of June 2014. We deposited 100% cash as restricted cash for the note payable. The note payable was settled when it matured. As of December 31, 2014, a credit exposure of $4.9 million has been used, and $0.5 million was still available for use. The credit line expires in December 2014 and not yet renewed as of December 31, 2014. | |||||||||
Short term debt (in thousands) | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Loan from CITIC bank | $ | 976 | $ | 6,381 | |||||
Loan from ICBC | 6,484 | 6,381 | |||||||
Loan from Taizhou Bank | 1,139 | 2,127 | |||||||
Loan from China Everbright Bank | 1,220 | 0 | |||||||
Loan from Pay-Ins Prem | 30 | 72 | |||||||
$ | 9,849 | $ | 14,961 | ||||||
In November 2013, Jonway borrowed one year short-term loans in the aggregate amount of $6.3 million from CITIC. The annual interest rate is 6.6%, and the loans are due in November 2014. In April 2014, Jonway partially repaid $0.56 million. In November 2014, the company repaid the loans when they come due. In March 2014, Jonway borrowed $0.98 million from CITIC Bank. The loan expires in March 2015 and the annual interest rate is 7.08%. The company settled the loan in December 2014 before it comes due. In December 2014, the company borrowed a one year short term loan of $0.98 million at the annual interest rate of 6.6%. The loans are secured by a Maximum Amount Mortgage Contract between Jonway and CITIC dated November 3, 2014, in which a land use right and a building with a total carrying amount of $5.5 million as of December 31, 2014 has been pledged as security for this loan. The shareholder and Co-CEO Alex Wang also personally guaranteed these loans. | |||||||||
In July, August and November 2013, the company borrowed a total of $2.1 million of short term loans at interest rates of 8.46% and 8.89% from Taizhou Bank. The loans are guaranteed by related parties including Jonway Group, the shareholder Wang Huayi and other individuals. Loans of $1.3 million were due in January and February 2014, and were repaid when due. The remaining balance of $0.8 million was repaid in May 2014. Jonway borrowed a short-term loan of $0.3 million in February 2014 at the annual interest rate of 8.89% which was repaid in August 2014. Jonway borrowed a short-term loan of $0.8 million in May 2014 at the annual interest rate of 8.89% which is due in November 2014. In August, Jonway borrowed a short-term loan of $0.3 million at the annual interest rate of 8.93% which is due in February 2015. The loan was repaid when due. In October 2014, Jonway repaid $0.81 million of a short term loan to Taizhou Bank when it became due. In October 2014, Jonway borrowed $0.81 million of a short term loan from Taizhou Bank. The loan expires in April 2015 and the annual interest rate is 8.496%. | |||||||||
The Company also borrowed loans from Industrial and Commercial Bank of China (ICBC) during 2013. In June 2013, Jonway borrowed a one year short-term loan of $1.1 million at the annual interest rate of 6.9%. The loan was due and repaid in June 2014. In August 2013, Jonway borrowed a 6 months short-term loan of $0.8 million. The annual interest rate was 5.6%. The loan was repaid when due in February 2014. In August 2013, Jonway borrowed a one year short-term loan of $ 1.1 million. The annual interest rate was 6.9%. It was due and repaid. In September 2013, Jonway borrowed a 6 months short-term loan of $0.7 million. The annual interest rate was 5.6%. The loan was repaid when due in March 2014. In November 2013, Jonway borrowed a one year short term loan of $1.5 million. The annual interest rate was 7.2%. The loan was repaid when it became due. In December 2013, Jonway borrowed a one year short term loan of $1.1 million. The annual interest rate was 7.2%. The company repaid the loan when it came due. In March 2014, Jonway borrowed a 6-month short-term loan of $0.8 million with 100% cash deposited as collateral for the loans. The annual interest rate is 5.6% and repaid when due in September 2014. In April 2014, Jonway borrowed a one year short-term loan of 0.8 million with 100% cash deposited as collateral for the loans. The annual interest rate is 6%. In June 2014, Jonway borrowed a one year short-term loan of $1.1 million at the annual interest rate of 6.256%. In August 2014, Jonway borrowed a one year short-term loan of $1.1 million at the annual interest rate of 6.92%. In September 2014, Jonway borrowed a 6-month short-term loan of $0.8 million at the annual interest rate of 5.04%. In October 2014, Jonway borrowed $1.46 million of a short term loan from ICBC. The loan expires in October 2015 and the annual interest rate is 6.6%. The company borrowed a one year short term loan of $1.1 million in November at an annual interest of 6.6%. These loans were guaranteed by related parties including Jonway Group, the shareholder Wang Huaiyi and the shareholder and Co-CEO Alex Wang. The Company also pledged buildings and a land use right with a carrying value of $3.54 million with ICBC and $1.6 million of restricted cash of December 31, 2014. | |||||||||
In June 2014, the company borrowed a 6 month short-term loan of $0.31 million at an interest rate of 7.28% from China Everbright Bank. The loan was repaid when it became due in December 2014. In July 2014, Jonway borrowed an 11 months short-term loan of $1.2 million at the annual interest rate of 7.2%. The loans were guaranteed by the shareholder Wang Huaiyi, as well as a building and land use right with a carrying value of $2.1 million. | |||||||||
The weighted average interest rates were 7.0% and 7.04% for the years ended December 31, 2014 and 2013, respectively. | |||||||||
Bank acceptance notes | |||||||||
As of December 31, 2014, the Company has bank acceptance notes payable in the amount of $17.7 million. The notes are guaranteed to be paid by the banks and are usually for a short-term period of six (6) months. The Company is required to maintain cash deposits of 50% or 100% of the notes payable with these banks, in order to ensure future credit availability. As of December 31, 2014, the restricted cash for the notes was $9.0 million. | |||||||||
(In thousands) | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
a) Bank acceptance notes payable to China Everbright bank | $ | 11,372 | $ | 8,891 | |||||
b) Bank acceptance notes payable to Taizhou bank | 651 | 3,927 | |||||||
c) Bank acceptance notes payable to CITIC bank | 5,724 | 2,700 | |||||||
d) Bank acceptance notes payable to ICBC | - | 177 | |||||||
$ | 17,747 | $ | 15,695 | ||||||
a. Notes payable to China Everbright bank have various maturity dates from January 2015 to June 2015. The notes payable are guaranteed by a land use right and a building with a total carrying value of $2.1 million. The Company is also required to maintain cash deposits at 50% of the notes payable with the bank, in order to ensure future credit availability. In January 2015, the company repaid the note payable when it became due. | |||||||||
b. Notes payable to Taizhou bank have various maturity dates in February, 2015. The Company is required to maintain cash deposits at 50% to 100% of the notes payable with the bank, in order to ensure future credit availability. The note payable was repaid when due. | |||||||||
c. Notes payable to CITIC bank will be due from March 2015 to November 2015. Except for the note payable utilizing credit exposure of $5.04 million, the Company is required to maintain cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. In January 2015, the company issued $4.9 million of notes payable with 100% cash deposits. | |||||||||
d. There is no notes payable due to ICBC at the year ended December 31, 2014. The Company is required to maintain cash deposits at 50% to 100% of the notes payable with the bank, in order to ensure future credit availability. | |||||||||
SENIOR_CONVERTIBLE_DEBT
SENIOR CONVERTIBLE DEBT | 12 Months Ended |
Dec. 31, 2014 | |
SENIOR CONVERTIBLE DEBT [Abstract] | |
SENIOR CONVERTIBLE DEBT | NOTE 9 -SENIOR CONVERTIBLE DEBT-China Electric Vehicle Corporation (“CEVC”) Note |
On January 12, 2011, the Company entered into a Senior Secured Convertible Note and Warrant Purchase Agreement (the “Agreement”) with China Electric Vehicle Corporation (“CEVC”), a British Virgin Island company whose sole shareholder is Cathaya Capital, L.P., and a Cayman Islands exempted limited partnership (“Cathaya”). Priscilla Lu is the chairman of the board of directors of ZAP, a managing partner of Cathaya and a director of CEVC. | |
Pursuant to the Agreement, (i) CEVC purchased from the Company a Senior Secured Convertible Note (the “Note”) in the principal amount of US$19 million, as amended, (ii) the Company issued to CEVC a warrant (the “Warrant”) exercisable for two years for the purchase up to 20 million shares of the Company's Common Stock at $0.50 per share, as amended (iii) the Company, certain investors and CEVC entered into an Amended and Restated Voting Agreement that amended and restated that certain Voting Agreement, dated as of August 6, 2009 that was previously granted to Cathaya Capital L.P., (iv) the Company, certain investors and CEVC entered into an Amended and Restated Registration Rights Agreement that amended and restated that certain Registration Rights Agreement, dated as of August 6, 2009, that was previously granted to Cathaya Capital L.P which grants certain registration rights relating to the Note and the Warrant, and (v) the Company and CEVC entered into a Security Agreement that secures the Note with all of the Company's assets other than those assets specifically excluded from the lien created by the Security Agreement. | |
The Note which initially was scheduled to mature on February 12, 2012 but was extended to August 12, 2013 according to the representation letter dated March 21, 2012 from CEVC and accrues no interest with this new extension. This amendment adjusted the rate at which the note would convert into shares of ZAP Common Stock or shares of capital stock of Zhejiang Jonway Automobile, Co. Ltd. held by ZAP. The interest accrued through the maturity date of February 12, 2012 in the amount of $1.7 million has been added to the existing principal. The total amount of the convertible note is approximately $20.7 million. | |
The note is convertible upon the option of CEVC at any time, into (a) shares of Jonway capital stock owned by ZAP at a conversion rate of 0.003743% of shares of Jonway capital stock owned by ZAP for each $1,000 principal amount of the Note being converted or (b) shares of ZAP common stock at a conversion rate of 4,435 shares of common stock for each $1,000 principal amount of the Note being converted. | |
Since the value of the common stock into which the above-mentioned note is converted is greater than the proceeds for such issuance, a beneficial conversion feature totaling $19 million was recorded. During 2011, a total of $16.9 million in amortization was recorded and charged to interest expense and the remaining balance of $2.1 million of the discount was offset against the Company's equity account due to the note extension to August 12, 2015. | |
In July 2013,this convertible note was extended until August 12, 2014 with interest accrual at 8% per annum. According to ASC 470-10, the market interest should be imputed for the non-interest bearing loan between the related parties; therefore in the extended agreement the Convertible Note bears a market interest rate at 8%. With the new extension, the principal of $20.7 million has the same conversion terms to cash, and will also be convertible in part or in whole to shares of ZAP or Jonway Auto at maturity date or at any time with a 90 day notice. Beginning August 12, 2013 within 10 calendar days following the end of each fiscal quarter, the Company is required to pay Holder the Additional Interest accrued during such fiscal quarter by issuing the Holder or a party designated by the Holder, the number of shares of the Company's Common Stock equal to (i) the Additional Interest accrued during such fiscal quarter divided by (ii) the average of the Closing Prices for each trading day during such fiscal quarter ending on (and including) the last Trading Day of such fiscal quarter. The Additional Interest Rate may be amended from time to time with the written consent of the Holder and the Company. In addition, the warrants issued in connection with the CEVC note was amended for the change of the terms of conversion and for the extension of the maturity date until August 12, 2015. | |
CONVERTIBLE_BOND
CONVERTIBLE BOND | 12 Months Ended |
Dec. 31, 2014 | |
CONVERTIBLE BOND [Abstract] | |
CONVERTIBLE BOND | NOTE10- CONVERTIBLE BOND |
On June 12, 2013, the Company signed a convertible bond agreement, pursuant to which a Convertible Bond would be put in place to fund the formation of JAZ (Jonway and ZAP) from the ZAP Hangzhou Joint Venture that was formed in 2010 in China, Hangzhou. The Convertible Bond was to be funded at US$2 million with the option to convert to JAZ shares upon listing on the AIM market at a discount of 30% of the IPO price, and if no AIM listing will be achieved within the duration of Bond period then the Convertible Bond can be converted into ZAP shares at 30% below market price based on the average trading prices of the previous 120 days after notification by bond holder for shares conversion in whole or in part of the bond sum. The Convertible Bond bears interest at 12% per annum payable in arrears in full. As of December 31, 2014 the Company received $1.7 million ($1.50 million net of interest) of $2 million, leaving $300,000 yet to be received. A total of $0.18 million in amortization was recorded with the remaining balance of $0.55 million of the discount was offset against the Company's equity account. The Bond has not been fully funded and the remaining $300,000 may not be forthcoming and its settlement date is uncertain. Therefore, the final amount of the Bond will not be determined until either the $300,000 is received or the principal amount of the Bond is reduced to $1.7 million. As of December 31, 2014, only the $1.7 million that has been funded is accounted for in the accompanying consolidated financial statements. Ratification by the Company's board of directors of the final amount of the Bond is pending the definitive payment or nonpayment of the remaining$300,000. | |
On April 23, 2014, the Company entered into an agreement with Bernard Fung (“Fung Agreement”) concerning the balance owing to him under the Company's Convertible Bond dated June 20, 2013 (“Bond”). Mr. Fung notified the Company that he wanted to convert the $300,000 balance owing on the Bond into shares of the Company's common stock in accordance with the conversion procedures set forth in the Bond. Pursuant to the Fung Agreement, the Company issued 3,108,747 shares of its common stock in satisfaction of all amounts owing to Mr. Fund under the Bond. | |
On January 25, 2014, Ms. Lu, one of the bond holders, had elected to have her investment in the Convertible bond of $300,000 converted to 4,862,237 shares of common stock under the same terms and conditions as the other bond holders based upon the conversion terms set forth in the Bond 4,862,237 shares of common stock were issued in May 2014 and Ms. Lu transferred these shares to Cathaya Operations Management the shares were reissued to Cathaya Operations Management. | |
Effective September 29, 2014, the Company and Korea Yung amended their original agreement dated August 12, 2014. Under the amendment, the Company made a payment totaling $528,500 to Yung as of October 27th, 2014. The payment represented a principal reduction of $500,000 and $28,500 of interest on the Company's outstanding convertible bond held by Yung. On December 16, 2014, the company issued $7,095,344 shares to Yung to settle the remaining balance of convertible bond. As of December 31, 2014 and 2013 respectively, the outstanding balance of convertible bond was $0 and $1,153,000 net of $547,000 of bond discount. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES [Abstract] | |||||||||||
INCOME TAXES | NOTE 11 - INCOME TAXES | ||||||||||
The Company is subject to United States of America (“United States” or “US”) and People's Republic of China (“China” or “PRC”) income tax on any profit generated, if any. | |||||||||||
Income (loss) before provision for income taxes consisted of: | |||||||||||
2014 | 2013 | ||||||||||
United States | $ | (10,515 | ) | $ | (7,759 | ) | |||||
China | (13,557 | ) | (14,244 | ) | |||||||
$ | (24,072 | ) | $ | (22,003 | ) | ||||||
Provision for income taxes consisted of: | |||||||||||
2014 | 2013 | ||||||||||
Current provision: | |||||||||||
US | $ | - | $ | - | |||||||
China | - | - | |||||||||
Total current provision | - | - | |||||||||
Deferred provision (benefit): | |||||||||||
US | - | - | |||||||||
China | 301 | (54 | ) | ||||||||
Total Deferred provision (benefit) | 301 | (54 | ) | ||||||||
Total provision (benefit ) for income taxes | $ | 301 | $ | (54 | ) | ||||||
United States | |||||||||||
The Company is incorporated in the United States of America and is subject to United States federal taxation. The Company has no taxable income for the year so did not incur income taxes. The applicable income tax rate for the Company for both years ended December 31, 2014 and 2013 was 34%. | |||||||||||
The tax effect of temporary differences that give rise to significant portions of the deferred tax assets as of December 31, 2014 and 2013 is presented below: | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Net operating loss carryovers - US | $ | 51,415 | $ | 49,824 | |||||||
Temporary differences, including | |||||||||||
Stock based compensation | (6,532 | ) | (6,456 | ) | |||||||
Fixed assets, due to differences in depreciation | (288 | ) | (288 | ) | |||||||
Non-qualified options and warrants | (6,728 | ) | (6,728 | ) | |||||||
Reserves on investments | (2,069 | ) | (2,026 | ) | |||||||
Intangible assets, due to impairment | (2,002 | ) | (99 | ) | |||||||
R&D credit | 138 | 138 | |||||||||
Amortization of debt discount | (1,865 | ) | (1,691 | ) | |||||||
Total gross deferred tax assets - US | $ | 32,069 | $ | 32,674 | |||||||
Valuation allowance - US | (32,069 | ) | (32,674 | ) | |||||||
Net deferred tax assets | $ | - | $ | - | |||||||
The net change in the valuation allowances for the years ended December 31, 2014 and 2013 were a decrease of $0.6 million and an increase of $1.1 million, respectively. Because there is uncertainty regarding the Company's ability to realize its deferred tax assets, a 100% valuation allowance has been established. | |||||||||||
As of December 31, 2014, the Company had net operating loss carry forwards of approximately $151 million, in US tax Jurisdiction which expires in the years 2015 through 2030. | |||||||||||
The Company's policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company did not have any accrued interest or penalties associated with any unrecognized tax benefits, nor were any interest expense recognized for the years ended December 31, 2014 and 2013. The federal tax returns of 2010, 2011, 2012 and 2013 remain subject to examination. And the state tax returns from 2008 to 2013 remain subject to examination. | |||||||||||
PRC | |||||||||||
Effective January 1, 2008, the PRC Enterprise Income Tax Law, EIT Law, and Implementing Rules impose unified enterprise income tax rate of 25% on all domestic-invested enterprises and foreign investment enterprises in PRC, unless they qualify under certain limited exceptions. As such, the Company's subsidiary in PRC is subject to an enterprise income tax rate of 25%. No provision for income taxes has been made as the Company has no taxable income for the periods. | |||||||||||
The tax effect of temporary differences that gave rise to significant portions of the deferred tax assets at December 31, 2014 and 2013 is presented below (in thousand): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets - PRC: | |||||||||||
Property and equipment, | |||||||||||
due to differences in depreciation | $ | 447 | $ | 303 | |||||||
Inventories, due to impairment | 427 | 236 | |||||||||
Accrued liabilities | 597 | 217 | |||||||||
Net operating loss Carry forward | 8,223 | 7,395 | |||||||||
Total deferred tax assets, gross - PRC | 9,694 | 8,151 | |||||||||
Valuation allowance - PRC | (9,694 | ) | (7,848 | ) | |||||||
Deferred tax assets, net of valuation allowance | - | 303 | |||||||||
Less: current portion - PRC | - | - | |||||||||
Non-current portion - PRC | $ | - | $ | 303 | |||||||
The non-current portion of deferred tax assets were included in the “Deposits and other assets” on the accompanying consolidated balance sheets. | |||||||||||
The net change in the valuation allowances for the years ended December 31, 2014 and 2013 was .an increase of $1.8 million and $1.8 million, respectively. | |||||||||||
As of December 31, 2014, the Company had net operating loss carry forwards of approximately of $32.9 million in PRC tax Jurisdiction, which expires in the years 2015 through 2019. | |||||||||||
The following table reconciled the U.S. and PRC statutory rates to the Company's effective rate for the years ended December 31, 2014 and 2013. | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
U.S. statutory rate | 34 | % | 34 | % | |||||||
U.S. permanent differences | -34 | % | -34 | % | |||||||
China income tax rate | 25 | % | 25 | % | |||||||
Changes in DTA valuation allowance | -25.2 | % | -25.2 | % | |||||||
Effective tax rate | -0.2 | % | -0.2 | % |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | |||||||||||||||||
STOCK-BASED COMPENSATION | NOTE 12– STOCK-BASED COMPENSATION | ||||||||||||||||
Services performed and other transactions settled in the Company's common stock are recorded at the estimated fair value of the stock issued if that value is more readily determinable, than the fair value of the consideration received. | |||||||||||||||||
We have stock compensation plans for employees and directors. We recognize the stock-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. All of our stock-based compensation is accounted for as an equity instrument. | |||||||||||||||||
Weighted | Aggregate | ||||||||||||||||
Number of | Weighted | Average | Intrinsic | ||||||||||||||
Shares | Average | Remaining | Value | ||||||||||||||
Exercise | Contractual | ||||||||||||||||
Price | Term | ||||||||||||||||
(in years) | |||||||||||||||||
Options exercisable and outstanding at | 28,691 | $ | 0.44 | 5 | -- | ||||||||||||
31-Dec-12 | |||||||||||||||||
Options forfeited and expired | (16,643 | ) | - | -- | |||||||||||||
Options exercisable and outstanding at | 12,048 | $ | 0.4 | 4 | -- | ||||||||||||
31-Dec-13 | |||||||||||||||||
Options forfeited and expired | (200 | ) | |||||||||||||||
31-Dec-14 | 11,848 | $ | 0.38 | 3 | |||||||||||||
Aggregate intrinsic value is the sum of the amounts by which the quoted market price of our stock exceeded the exercise price of the options at December 31, 2014 for those options for which the quoted market price was in excess of the exercise price (“in-the-money options”). There were no options in the money at December 31, 2014. | |||||||||||||||||
As of December 31, 2014, total compensation cost of unvested employee stock options is $224,000. This cost is expected to be recognized through December 31, 2016. We recorded no income tax benefits for stock-based compensation expense arrangements for the years ended December 31, 2014 and 2013, as we have cumulative operating losses. | |||||||||||||||||
LOSS_PER_SHARE
LOSS PER SHARE | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
LOSS PER SHARE [Abstract] | |||||||||
LOSS PER SHARE | NOTE 13 – LOSS PER SHARE | ||||||||
Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution of securities by including other potential common stock, including convertible preferred stock, stock options and warrants, in the weighted average number of common shares outstanding for the period, if dilutive. The numerators and denominators used in the computations of basic and dilutive earnings per share are presented in the following table: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Net loss used in computing basic and diluted earnings per share | $ | (17,583 | ) | $ | (14,996 | ) | |||
Basic and diluted loss per share | $ | (0.05 | ) | $ | (0.05 | ) | |||
Basic weighted average shares outstanding | 377,547 | 302,518 | |||||||
Anti-dilutive shares as of December 31: | |||||||||
Warrants outstanding | 38,000 | 38,000 | |||||||
Options outstanding | 12,048 | 12,048 | |||||||
For the years ended December 31, 2014 and 2013, 12.0 million and 12.0 million options, and 38.0 million and 38.0 million warrants, respectively were not included in the diluted loss per share because the average stock price was lower than the strike price of these options and warrants. | |||||||||
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
SEGMENT REPORTING [Abstract] | |||||||||||||||||||||||||
SEGMENT REPORTING | NOTE 14 – SEGMENT REPORTING | ||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||
In accordance with ASC 280, the Company has identified four reportable segments consisting of Jonway Vehicles, Advanced Technology Vehicles, ZAP (Consumer Product) and ZAP Hong Kong. The Jonway Vehicles segment represents sales of the gas fueled Jonway A380 three and five-door sports utility vehicles, minivans and spare parts principally through distributors in China. The Advanced Technology Vehicles segment represents sales and marketing outside of China of the ZAPTRUCK XL, the ZAPVAN Shuttle and the Xebra® Sedan and will transition to selling mostly Jonway's EV A380SUV and EV minivan in 2013. The 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 Chief Executive Officer 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 | Voltage | Advanced | ZAP Hong Kong | Totals | ||||||||||||||||||||
Vehicles Car Lot | Technology Vehicles | ||||||||||||||||||||||||
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 | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||
Net sales | $ | 50,631 | $ | 871 | $ | - | $ | 45 | $ | - | $ | 51,547 | |||||||||||||
Gross profit (loss) | $ | 797 | $ | 188 | $ | - | $ | (33 | ) | $ | - | $ | 952 | ||||||||||||
Depreciation and amortization | $ | 5,541 | $ | 2,628 | $ | - | $ | - | $ | - | $ | 8,169 | |||||||||||||
Net loss | $ | (14,190 | ) | $ | (7,516 | ) | $ | (174 | ) | $ | (68 | ) | $ | (1 | ) | $ | (21,949) | ||||||||
Total assets | $ | 86,971 | $ | 19,991 | $ | - | $ | - | $ | 71 | $ | 107,033 | |||||||||||||
Customer information | |||||||||||||||||||||||||
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. Approximately 98.2% or $50.6 million of our 2013 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 11% of our consolidated revenue. | |||||||||||||||||||||||||
Supplier information | |||||||||||||||||||||||||
For the years ended 2014 and 2013, approximately 98.2% or $31.1 million and 98.5% or $49.8 million of the consolidated cost of goods sold were purchased in China. For the year ended December 31, 2014 and 2013, Haerbin Dongan Auto, Engine Manufacturing Co., Ltd., as the sole supplier of engine to Jonway, accounted for 9% and 22% of the total purchase, respectively. | |||||||||||||||||||||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||
SHAREHOLDERS' EQUITY | NOTE 15-SHAREHOLDERS' EQUITY | ||||||||||||
Common stock | |||||||||||||
2013 ISSUANCES | |||||||||||||
ZAP issued 69,677 shares of common stock valued at $12,000 in exchange for engineering services. These shares were issued pursuant to Section 4(2) of the Securities Act of 1933, as amended, on the basis of each recipient's pre-existing relationship with Zap and the fact that no public offering was involved. | |||||||||||||
Total warrants outstanding at December 31, 2013 are summarized as follows (in thousands): | |||||||||||||
Number of | Exercise | Expiration | |||||||||||
Warrants | Price | Dates | |||||||||||
$0.50 Warrants-Restricted | 18,000 | 0.5 | 6/1/14 | ||||||||||
$0.50 Warrants-Restricted | 20,000 | 0.5 | 2/12/15 | ||||||||||
38,000 | |||||||||||||
55,000 of Series D-2 warrants and 100,000 of $0.70 unrestricted warrants expired in fiscal year 2013 | |||||||||||||
Total warrants outstanding at December 31, 2014 are summarized as follows (in thousands): | |||||||||||||
Number of | Exercise | Expiration | |||||||||||
Warrants | Price | Dates | |||||||||||
$0.50 Warrants-Restricted | 18,000 | 0.5 | 8/6/15 | ||||||||||
$0.50 Warrants-Restricted | 20,000 | 0.5 | 8/12/15 | ||||||||||
38,000 | |||||||||||||
2014 ISSUANCES | |||||||||||||
Cathaya Operations Management Limited and China Electric Vehicle Corp have elected to convert the amounts recorded as due to related parties to common stock. The amount of $967,543 due to Cathaya Operations Management Limited have been converted into 17,819,783 shares of common stock at 30% below market price based on the average trading prices of the previous 120 days after notification. The 17,819,783 shares of common stock have been issued in April 2014. In December, 2014, the company issued 4,513,163 shares to settle the cash advance of $410,800 from Cathaya Operations Management Limited. | |||||||||||||
China Electric Vehicle Corporation (CEVC) has elected to convert the interest of $639,068 due on the $20.7 million convertible note to 6,439,552 shares of common stock at the average of the closing prices for each trading day during such fiscal quarter ended on (and including) the last trading day of such fiscal quarter. The 6,439,552 shares of common stock have been issued in April 2014. In December 2014, the company issued 8,727,099 shares to settle the interest of $1,237,345 due on the convertible note. | |||||||||||||
In March 2014, Jonway Group agreed to pay all of the outstanding mold expenses of the Minivan that is currently still outstanding, and in return ZAP will share half of the asset value and share the IPR (50%) of the Minivan with Jonway Auto. The Minivan was purchased by ZAP from a prior agreement between ZAP and Jonway Group which was signed on January 18, 2012. In return for ZAP receiving worldwide exclusivity for the sales, distribution, and product IPR rights for all current and future models of the compressed natural gas (“CNG”) versions of Jonway Auto's Products, including, but not limited to, SUV, minivan, and all other models, the Company's Board of Directors authorized on March 28, 2014 to issue 61,000,000 shares of common stock to the companies owned by the Co-CEO and shareholder Alex Wang, including 20,000,000 shares to Major Management Limited, 20,000,000 shares to Max Reliance Management Limited and 21,000,000 shares to New Dragon Management Limited. The 61,000,000 shares of common stock have been issued in April 2014. | |||||||||||||
In May 2014, ZAP issued 62,500 shares of common stock to Jeffery and Karen Bank, who paid $5,000 in cash on behalf of ZAP to address a lawsuit from Jackson Long. | |||||||||||||
On February 26, 2014, a binding letter of commitment in equity investment in ZAP was signed between the Company and four individual investors. The four individual investors are the representatives of the employees of Jonway Auto and Jonway Group in China and they will hold the issued stocks on behalf of these employees. The shares were issued at discounted share price based on averaged price over the last 60 days from the date of signing the agreement. As of December 31, 2014, $1.9 million was received by ZAP. The number of stock issued on August 14, 2014 was 31,666,668 shares. | |||||||||||||
On December 31, 2014, the company issued 10,915,748 shares and 2,666,666 shares at $0.06 per share to Alex Wang, the CO-CEO of the company and an individual for the cash advance of $654,945 and 160,000 respectively. The cash advance provided working capital to finance the operations of the company. | |||||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||
RELATED PARTY TRANSACTIONS | NOTE 16 – RELATED PARTY TRANSACTIONS | ||||||||
Due from (to) related parties | |||||||||
Amount due from related parties are principally for advances in the normal course of business for parts and suppliers used in manufacturing. | |||||||||
Amount due from related parties are as follows (in thousands): | |||||||||
31-Dec-14 | December 31, 2013 | ||||||||
Sanmen Branch of Zhejiang UFO Automobile Manufacturing Co., Ltd | $ | 1,427 | $ | 4,973 | |||||
JAZ | 1,311 | 961 | |||||||
Jonway Motor Cycle | 53 | - | |||||||
ZAP Hangzhou | - | 127 | |||||||
Total | $ | 2,791 | $ | 6,061 | |||||
Amount due to related parties are follows (in thousands): | |||||||||
31-Dec-14 | December 31, 2013 | ||||||||
Jonway Group | $ | 2,648 | $ | 303 | |||||
Jonway Motor Cycle | 64 | 113 | |||||||
Taizhou Huadu | 652 | 631 | |||||||
Shanghai Zapple | 37 | 36 | |||||||
Ms. Lu | - | 30 | |||||||
Mr. Wang | 146 | - | |||||||
Betterworld | 149 | 149 | |||||||
Taizhou Jonway Electric Vehicle Selling Co | 2,306 | - | |||||||
Zhejiang Jonway Painting Co. Ltd. | 472 | 372 | |||||||
Cathaya Operations Management Ltd. | 297 | 797 | |||||||
Cathaya Management Ltd. | 350 | 350 | |||||||
Total | $ | 7,121 | $ | 2,781 | |||||
Promissory notes and Down Payment Convertible Note from Jonway Group | |||||||||
On December 11, 2011, ZAP entered into a Down Payment Convertible Note agreement with Jonway Group pursuant to which ZAP may borrow $3 million for the production of seventy-five Alias electric vehicles to be delivered and sold in 2012. The unpaid principal amount of the note bears interest at a rate per annum equal to 8%, calculated on the basis of a 365 day year and the actual number of days lapsed. Upon the completion of selling seventy-five Alias vehicles, ZAP will repay the unpaid principal, together with any then unpaid and accrued interest, on or before December 31, 2012. Repayment shall be made at the option of Jonway Group in the form of either cash or ZAP's Common Stock priced as of the date the principal was deposited into Jonway's bank account on behalf of ZAP. As of December 31, 2014, no advance has been made to ZAP from Jonway Group. | |||||||||
Transactions with Jonway Group | |||||||||
Jonway Group is considered as a related party as the Wang Family, one of the principal shareholders of the Company, has controlling interests in Jonway Group. Jonway Group supplies some of plastics spare parts to Jonway and gave guarantees on Jonway short term bank facilities from China-based banks. Jonway made such purchase from Jonway Group for a total of $2.9 million and $1.4 million for the years ended December 31, 2014 and 2013, respectively. | |||||||||
Jonway Agreement with Zhejiang UFO | |||||||||
Based on a contract by and among the Zhejiang UFO, Jonway Group and Jonway dated as of January 1, 2006, Zhejiang UFO has authorized Jonway to operate its Sanmen Branch to assemble and sell UFO branded SUVs for a period of 10 years starting from January 1, 2006. | |||||||||
According to the contract, Jonway shall pay Zhejiang UFO a variable contractual fee which is calculated based on the number of SUVs that Jonway assembles in the Sanmen Branch every year, at the following rates (historical exchange rate): | |||||||||
The first 3,000 vehicles | $44 per vehicle | ||||||||
Vehicles from 3,001 to 5,000 | $30 per vehicle | ||||||||
Vehicles over 5,000 | $22 per vehicle | ||||||||
Zhejiang UFO is considered a related party because the Wang Family, who are shareholders of Jonway, has certain non-controlling equity interests in Zhejiang UFO. For the years ended December 31, 2014 and 2013, $281,000and $706,000 were recorded as assembling fees, respectively. Also during 2014, Jonway sold SUVs in the amount of $52,000 and spare parts in the amount of $1,379,000 to Zhejiang UFO. During 2013, Jonway sold SUVs in the amount of $95,000 and spare parts in the amount of $8,255,000 to Zhejiang UFO. | |||||||||
Other Related Party Transactions | |||||||||
During 2014, Jonway purchased spare parts in the amount of $18,000 and $352,000 from Jonway Motor Cycle and Taizhou Huadu, respectively. During 2013, Jonway purchased spare parts in the amount of $55,000 and $1,214,000 from Jonway Motor Cycle and Taizhou Huadu, respectively. In 2014, Jonway commenced business of Urbee and it sold Urbee in the amount of $8,755,000 to Taizhou Jonway Electric Vehicle Selling Company. | |||||||||
Cathaya Operations Management Limited and China Electric Vehicle Corp have elected to convert the amounts recorded as due to related parties to common stock. The amount of $967,543 due to Cathaya Operations Management Limited have been converted into 17,819,783 shares of common stock at 30% below market price based on the average trading prices of the previous 120 days after notification. The 17,819,783 shares of common stock have been issued in April 2014. In December, 2014, the company issued 4,513,163 shares to settle the cash advance of $410,800 from Cathaya Operations Management Limited. | |||||||||
China Electric Vehicle Corporation (CEVC) has elected to convert the interest of $639,068 due on the $20.7 million convertible note to 6,439,552 shares of common stock at the average of the closing prices for each trading day during such fiscal quarter ended on (and including) the last trading day of such fiscal quarter. The 6,439,552 shares of common stock have been issued in April 2014. In December 2014, the company issued 8,727,099 shares to settle the interest of $1,237,345 due on the convertible note. | |||||||||
In March 2014, Jonway Group agreed to pay all of the outstanding mold expenses of the Minivan that is currently still outstanding, and in return ZAP will share half of the asset value and share the IPR (50%) of the Minivan with Jonway Auto. The Minivan was purchased by ZAP from a prior agreement between ZAP and Jonway Group which was signed on January 18, 2012. In return for ZAP receiving worldwide exclusivity for the sales, distribution, and product IPR rights for all current and future models of the compressed natural gas (“CNG”) versions of Jonway Auto's Products, including, but not limited to, SUV, minivan, and all other models, the Company's Board of Directors authorized on March 28, 2014 to issue 61,000,000 shares of common stock to the companies owned by the Co-CEO and shareholder Alex Wang, including 20,000,000 shares to Major Management Limited, 20,000,000 shares to Max Reliance Management Limited and 21,000,000 shares to New Dragon Management Limited. The 61,000,000 shares of common stock have been issued in April 2014. | |||||||||
LITIGATION
LITIGATION | 12 Months Ended |
Dec. 31, 2014 | |
LITIGATION [Abstract] | |
LITIGATION | NOTE 17– LITIGATION |
1. On January 11, 2013, Cathaya Capital, L.P., a ZAP shareholder (“Cathaya”), and Priscilla Lu, Chairman of the ZAP Board of Directors (“Lu”) (collectively “Plaintiffs”), filed a lawsuit in the Superior Court of California, County of Los Angeles, styled Cathaya Capital, L.P. et al. v. ZAP, et al., Case No. BC499106 (the “Cathaya Lawsuit”). By the Cathaya Lawsuit, Plaintiffs, derivatively on behalf of the nominally-named defendant ZAP, asserted claims for breach of fiduciary duty and conversion against the following three members of the ZAP Board of Directors: Mark Abdou (“Abdou”), Steven Schneider (“Schneider”) and Wang Gang a/k/a Alex Wang (the “Minority Board Member Defendants”). In addition, Plaintiffs, derivatively on ZAP's behalf, sought declaratory and injunctive relief against the Minority Board Member Defendants for their alleged tortious misconduct and breaches of fiduciary duty. Plaintiffs also asserted causes of action on their own behalf pursuant to California Corporations Code sections 304 and 709, for a judgment as to the rightful composition of the Board and to remove the Minority Board Member Defendants from the Board. On November 12, 2013, Abdou and Schneider filed their operative Second Amended Cross-Complaint against ZAP, Cathaya and Lu (the “Defendant Cross-Complaint”). Wang Gang a/k/a Alex Wang dismissed his claims in the Cathaya lawsuit. | |
Lu and ZAP filed a Demurrer to the Second Amended Cross-Complaint's first, fifth, sixth, seventh and eighth claims. On March 3, 2014, the Court granted the Demurrer in its entirety and dismissed all claims asserted by Abdou and Schneider against Lu, without leave to amend. In addition, the Court dismissed all tort claims against ZAP. However, the Court's ruling does not dismiss all claims against ZAP regarding unpaid employee compensation. The Abdou/Schneider claims against ZAP for unpaid compensation were not before the Court and therefore were not affected by the Court's ruling and have not been dismissed. These contract-based claims are against ZAP only and do not allow for punitive damages. | |
On March 13, 2014, ZAP filed its own operative First Amended Cross-Complaint in the Cathaya Lawsuit (the “ZAP Cross-Complaint”) against Abdou and Schneider, alleging causes of action for (1) breach of fiduciary duty; (2) conversion; (3) imposition of a constructive trust; and (4) an accounting. By the ZAP Cross-Complaint, the Company is, among other things, pursuing Schneider and Abdou for return of inventory and assets that were removed from the Company's warehouse, as well as cash that was redirected to another account. | |
On May 15, 2014, Abdou's and Schneider's counsel filed a motion to be relieved as counsel in the Cathaya Lawsuit, which was granted on August 4, 2014. Consequently, Abdou and Schneider were unrepresented in the Cathaya Law suit as of August 4, 2014 | |
On June 6, 2014, the Court entered an Order Granting Plaintiff's Motion for Sanctions due to Violations of Court's Discovery Order, which imposed certain monetary and evidentiary sanctions against Abdou and Schneider, including, among other things, precluding Abdou and Schneider from calling certain witnesses and offering evidence of or relating to certain issues at trial. | |
On January 12, 2015, a Settlement Agreement and Mutual Release was entered into between Cathaya, Lu Lu and ZAP, on the one hand, and Schneider, Abdou, and Libertas Law Group, Inc. (“Libertas”) on the other hand (the “Settlement Agreement”). On January 15, 2015, in accordance with the terms of the Settlement Agreement, dismissals were filed with respect to the Cathaya lawsuit and all related actions, including the Defendant Cross-Complaint and the ZAP Cross-Complaint, with prejudice. Further, under the terms of the Settlement Agreement, (i) ZAP agreed to pay a total of $167,000 to Abdou, (ii) Abdou, Schneider and Libertas released ZAP, Cathaya and Lu from any and all claims relating to events occurring prior to January 12, 2015 and (iii) ZAP, Cathaya and Lu released Abdou, Schneider and Libertas from any and all claims relating to events occurring prior to January 12, 2015. | |
2. A letter was received in May 2012 from a shareholder regarding various prior transactions of the Company which the Company is working to address and clarify. A tolling agreement was reached between the Company and shareholder on October 22, 2012 whereas the company, through its legal counsel shall provide a written summary of the actions taken during the preceding month with respect to the matters regarding the prior transactions in question by the shareholder. These transactions include, but are not limited to, a) ZAP, Jonway Group, Jonway Auto and Cathaya Capital shall each in all respects comply with their executory obligations with respect to the continued funding of ZAP, b) resolve the litigation regarding the former contracted employee, c) use reasonable efforts to defend, compromise and/or settle any pending and future litigations and ZAP shall use all reasonable efforts to cause all officers, directors and such other individuals who are or were employees, agents or representatives of ZAP to fully cooperate in the defense of future arbitrations or litigations. This agreement is binding through December 31, 2015. | |
Other Regulatory Compliance Matters | |
ZAP has filed with the National Highway Transportation Safety Agency (NHTSA) that it is in non- compliance with Department of Transportation (DOT) requirements potential hazard may exist because the Model -Year 2008 XEBRA sedan and pickup does not stop in the required distance at 30 miles per hour and the master cylinder does not have separate brake fluid reservoirs with proper labeling and other miscellaneous non- compliance issues. | |
ZAP and the United States reached a settlement that is incorporated into a Consent Decree that was entered and approved by the U.S. District Court on July 17, 2013. Pursuant to the Consent Decree, ZAP agreed to initiate a buy-back program whereby it will offer to provide a refund of $3,100 to each eligible MY 2008 ZAP Xebra owner. The Consent Decree also contains notification and reporting requirements and requires ZAP to take specified actions regarding the disposition of repurchased vehicles and MY 2008 Xebras that remain in ZAP's possession. In accordance with the Consent Decree, the Company mailed the required notification letters to registered vehicle owners and ZAP Xebra dealers, along with a Refund Request Form. The repurchase offer extends to 686 vehicles that have been sold by ZAP. | |
As of December 31, 2014 the Company had deemed 316 vehicle owners eligible for a refund and picked up 315 of the vehicles. The Company had paid out $1,081,159 to owners of the recalled 2008 Xebras as of December 31, 2014. This amount includes refunds, cost to transport and destroy vehicles, salaries, and other expenses related to the repurchase program. The period for vehicle owners to qualify for refunds has expired and ZAP believes it has no obligation to issue further refunds. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18– COMMITMENTS AND CONTIGENCIES |
Guarantees | |
Jonway Auto guaranteed certain financial obligations of outside third parties including suppliers and customers to support our business and economic growth. Guarantees will terminate on payment and/or cancellation of the obligation once it is repaid. A payment by us would be triggered by failure of the guaranteed party to fulfill its obligation covered by the guarantee. Maximum potential payments under guarantees total $2.4 million at December 31, 2014. The guarantee expires at variance dates from December 2014 to December 2015. Our performance risk under these guarantees is reviewed regularly, and has resulted in no changes to our initial valuations. | |
Jonway Auto pledged a land use right and a building to Shanghai Pu Dong Development Bank to secure a bank loan of $1.8 million offered to a related company, Taizhou Jonway Jing Mao Trading Ltd., which is a subsidiary of Jonway Group. The period of guarantee was five years from 2014 to 2019. The net value of the land use right and the building pledged as at December 31, 2014 was $526,000. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 19 – SUBSEQUENT EVENTS |
On January 7, 2015, a partial repayment representing a principal reduction of $100,000 and $8,433 of interest, was paid on the Company's outstanding convertible bond held by Yung. The balance of the outstanding note was paid off with the issuance of 5,912,786 ZAP shares to Yung in February, 2015. Yung is allowed to engage in open market sales of the shares through June 30, 2015. In the event the gross proceeds realized from the sale of the shares by Yung is greater than the principal and interest due on the bond as of the maturity date, Yung will be entitled to retain all proceeds. If the proceeds from the sale of shares is less than the principal and interest due on the bond as of the maturity date, ZAP will pay the shortfall to Yung in cash within five business days of written notice from Yung, In the event that on June 30, 2015, Yung holds unsold shares and there is an unpaid balance remaining on the bond, ZAP will repurchase from Yung all of the unsold shares at the price they were issued to Yung.. | |
On April 10, 2015, ZAP received notification from USPS that ZAP has been selected as one of the pre-qualified companies to participate in the USPS Federal Business Opportunity (FBO) RFP. In January 2015, USPS had issued a new request for response to its FBO for its Next Generation Delivery Vehicle (NGDV) Program. ZAP submitted a new proposal based on new guidelines for a complete new USPS delivery truck designed to use clean energy and environmentally friendly technologies. ZAP's proposal submitted for this new USPS NGDV Program has been accepted for consideration. As one of the pre-qualified companies, ZAP will proceed with detailed response to the RFP, and undergo trial for the product proposed. This trial is anticipated to last for more than one year. | |
As of January 9th, 2015 ZAP has settled all disputes with Steve Schneider and Mark Abdou. | |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||||||||
The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. The more significant estimates relate to revenue recognition, contractual allowances and uncollectible accounts, intangible assets, accrued liabilities, warranty costs, stock based compensation, income taxes, litigation and contingencies. Estimates are based on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances, the results of which form the basis for judgments about results and the carrying values of assets and liabilities. Actual results and values may differ significantly from these estimates. | |||||||||||||||||||
Concentration of Credit Risk | Concentration of Credit Risk | ||||||||||||||||||
The Company's operations are substantially carried out in the PRC. Accordingly, the Company's business, financial condition and results of operations maybe substantially influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy. The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. | |||||||||||||||||||
Financial instruments which subject the Company to potential credit risk consist of its cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with one high credit quality financial institution. As of December 31, 2014, deposits exceeded the amount of insurance provided by $161,000; however, these deposits typically are redeemable upon demand and, therefore, the Company believes the financial risks associated with these financial instruments are minimal. The Company has not experienced any losses to date on its deposits. | |||||||||||||||||||
The Company performs ongoing credit evaluations of its customers, and generally does not require collateral on its accounts receivable. The Company estimates the need for allowances for potential credit losses based on historical collection activity and the facts and circumstances relevant to specific customers and records a provision for uncollectible accounts when collection is uncertain. The Company has not experienced significant credit related losses to date. | |||||||||||||||||||
The Company currently relies on various outside contract manufacturers in China to supply electric vehicles and products for its customers. Although management believes that other contract manufactures could provide similar services and intends to transition its manufacturing to Jonway's facilities in Sanmen, China, but, if these Chinese companies are unable to supply electric vehicles and the Company is unable to transition manufacturing to Jonway's facilities or find alternative sources for these product and services, the Company might not be able to fill existing backorders and/or sell more electric vehicles. Any significant manufacturing interruption could have a material adverse effect on the Company's business, financial condition and results of operations. | |||||||||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||||||||
The Company records revenues for non-Jonway sales when all of the following criteria have been met: | |||||||||||||||||||
- | Persuasive evidence of an arrangement exists. The Company generally relies upon sales contracts or agreements, and customer purchase orders to determine the existence of an arrangement. | ||||||||||||||||||
- | Sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment. | ||||||||||||||||||
- | Delivery has occurred. The Company uses shipping terms and related documents, or written evidence of customer acceptance, when applicable, to verify delivery or performance. The Company's customary shipping terms are FOB shipping point. | ||||||||||||||||||
- | Collectability is reasonably assured. The Company assesses collectability based on creditworthiness of customers as determined by our credit checks and their payment histories. The Company records accounts receivable net of allowance for doubtful accounts and estimated customer returns. | ||||||||||||||||||
The Company records revenues for Jonway sales only upon the occurrence of all of the following conditions: | |||||||||||||||||||
- | The Company has received a binding purchase order from the customer or distributor authorized by a representative empowered to commit the purchaser (evidence of a sale); | ||||||||||||||||||
- | The purchase price has been fixed, based on the terms of the purchase order; | ||||||||||||||||||
- | The Company has delivered the product from its factory to a common carrier acceptable to the customer; and | ||||||||||||||||||
- | The Company deems the collection of the amount invoiced probable. | ||||||||||||||||||
The Company provides no price protection. Sales are recognized net of sale discounts, rebates and return allowances. | |||||||||||||||||||
Stock-based compensation | Stock-based compensation | ||||||||||||||||||
The Company accounts for stock-based compensation which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes-Merton option pricing model (the “Black-Scholes model”). The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. We estimate forfeitures at the time of grant and revise our estimate in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||||||||
The Company accounts for stock-based compensation awards and warrants granted to non-employees by determining the fair value of the warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either (1) the date at which commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. | |||||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires the Company to use the assets and liability method of accounting for income taxes. Under the assets and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forward. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. | |||||||||||||||||||
ASC 740-10, Accounting for Uncertainty in Income Taxes defines uncertainty in income taxes and the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. | |||||||||||||||||||
United States federal, state and local income tax returns prior to 2010 are not subject to examination by tax authority. | |||||||||||||||||||
Foreign Currency Translation | Foreign Currency Translation | ||||||||||||||||||
The Company and its wholly owned subsidiary/investments, maintain their accounting records in United States Dollars (“US$”) whereas Jonway Auto maintains its accounting records in the currency of Renminbi (“RMB”), being the primary currency of the economic environment in which their operations are conducted. | |||||||||||||||||||
Jonway Auto's principal country of operations is the PRC. The financial position and results of our operations are determined using RMB, the local currency, as the functional currency. The results of operations and the statement of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Due to the fact that cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholder's equity as “Accumulated Other Comprehensive Income.” | |||||||||||||||||||
The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in China's political and economic conditions, any significant revaluation of RMB may materially affect our financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: | |||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||
Balance sheet items, except for share capital, additional | $1=B 6.1460 | $1=B 6.1122 | |||||||||||||||||
paid in capital and retained earnings, as of year end | |||||||||||||||||||
Amounts included in the statements of operations | $1=B 6.1457 | $1=B6.1171 | |||||||||||||||||
and cash flows for the year | |||||||||||||||||||
Loss per Share | Loss per Share | ||||||||||||||||||
Basic and diluted net loss per share is computed by dividing consolidated net loss by the weighted-average number of common shares outstanding during the period. The Company's potentially dilutive shares, which include outstanding common stock options convertible debt and warrants, have not been included in the computation of diluted net loss per share for all periods presented as the result would be anti-dilutive. Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share. | |||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | ||||||||||||||||||
The Company invests its excess cash in short-term investments with various banks and financial institutions. Short-term investments are cash equivalents, as they are part of the cash management activities of the company and are comprised of investments having maturities of three months or less when purchased. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. | |||||||||||||||||||
Restricted Cash | Restricted Cash | ||||||||||||||||||
The Company has cash restricted in connection with the issuance of bank acceptance notes to various suppliers of spare parts which were issued through Jonway's banks. To issue these bank acceptance notes to Jonway's suppliers, the banks require a deposit of 50% or 100% of the full amount of such notes which are payable within 6 months from issuance. Upon the maturity date, restricted funds will be used to settle the bank acceptance notes. | |||||||||||||||||||
Fair value of financial instruments | Fair value of financial instruments | ||||||||||||||||||
The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. Accounting standards establish a three level valuation hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair values. For certain of the Company's financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, the carrying amount approximates fair value because of the short maturities. It was impracticable to determinate the fair value of the receivable from a related party and the obligation for distribution fee because there is no market for such instruments. The three levels of inputs are defined as follows: | |||||||||||||||||||
Level 1: Observable inputs such as quoted prices in active markets; | |||||||||||||||||||
Level 2: Inputs other than quoted prices in active markets that is directly or indirectly observable; | |||||||||||||||||||
Level 3: Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions and methodologies that result in management's best estimate of fair value. | |||||||||||||||||||
The Company records certain assets and liabilities at fair value on a nonrecurring basis as required by accounting principles generally accepted in the United States. Generally assets are measured at fair value on a nonrecurring basis as a result of impairment changes. Fair value was estimated based on discounted cash flows (Level 3 inputs).Assets measured at fair value on a nonrecurring basis for the years ended December 31, 2014 are summarized below (in thousands): | |||||||||||||||||||
31-Dec-14 | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Measurements | |||||||||||||||
CNG distribution right | (1 | ) | - | - | $ | 1,000 | $ | 1,000 | |||||||||||
Trade name | (2 | ) | - | - | 1,600 | 1,600 | |||||||||||||
31-Dec-13 | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Measurements | |||||||||||||||
Trade name | (1 | ) | - | - | $ | 2,239 | $ | 2,239 | |||||||||||
Impairment loss | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Impairment loss on Distribution rights | (1 | ) | $ | 4,969 | $ | 0 | |||||||||||||
Impairment loss on Intangible assets | (2 | ) | $ | 627 | $ | 0 | |||||||||||||
-1 | The CNG distribution right was acquired in the fiscal year of 2014 at $5.96 million by issuing 61 million shares. In March 2014, Jonway Group agreed to pay all of the outstanding mold expenses of the Minivan that is currently still outstanding, and in return ZAP will share half of the asset value and share the IPR (50%) of the Minivan with Jonway Auto. The Minivan was purchased by ZAP from a prior agreement between ZAP and Jonway Group which was signed on January 18, 2012. In return for ZAP receiving worldwide exclusivity for the sales, distribution, and product IPR rights for all current and future models of the compressed natural gas (“CNG”) versions of Jonway Auto's Products, including, but not limited to, SUV, minivan, and all other models, the Company's Board of Directors authorized on March 28, 2014 to issue 61,000,000 shares of common stock to the companies owned by the Co-CEO and shareholder Alex Wang. The 61,000,000 shares of common stock have been issued in April 2014.The Company recognized impairment charges of $4.96 million for the years ended December 31, 2014. | ||||||||||||||||||
-2 | The Company recognized impairment loss for Trade name in the year ended December 31, 2014. | ||||||||||||||||||
Accounts Receivable and Notes Receivable | Accounts Receivable and Notes Receivable | ||||||||||||||||||
Accounts and note receivable consist mainly of receivables from our established dealer network. A credit review is performed by the Company before the dealer is approved to purchase vehicles form the Company. The Company performs ongoing credit evaluations of its dealers, and generally does not require collateral on its accounts receivable. The Company estimates the need for allowances for potential credit losses based on historical collection activity and the facts and circumstances relevant to specific customers and records a provision for uncollectible accounts when collection is uncertain. The allowance for doubtful accounts was $439,284 and $696,000 on December 31, 2014 and 2013, respectively. | |||||||||||||||||||
Inventories | Inventories | ||||||||||||||||||
ZAP Inventories consist primarily of vehicles, both gas and electric, parts and supplies, and finished goods and are carried at the lesser of lower of cost (first-in, first-out basis for ZAP and moving average basis for Jonway) or market (net realizable value or replacement cost). The Company maintains reserves for estimated excess, obsolete and damaged inventory based on projected future shipments using historical selling rates, and taking into account market conditions, inventory on-hand, purchase commitments, product development plans and life expectancy, and competitive factors. If markets for the Company's products and corresponding demand were to decline, then additional reserves may be deemed necessary. Any changes to the Company's estimates of its reserves are reflected in cost of goods sold within the statement of operations during the period in which such changes are determined by management. | |||||||||||||||||||
As of December 31, 2014 and 2013 respectively, the company has reserved $1,380,000 and 1,981,000 of its inventory for obsolescence.. | |||||||||||||||||||
Property and equipment | Property and equipment | ||||||||||||||||||
Property and equipment consists of land, building and improvements, machinery and equipment, office furniture and equipment, vehicles, and leasehold improvements. Property and equipment is stated at cost, net of accumulated depreciation and amortization, and is depreciated or amortized using straight-line method over the asset's estimated useful life. Costs of maintenance and repairs are charged to expense as incurred; significant renewals and betterments are capitalized. Estimated useful lives are as follows: | |||||||||||||||||||
Machinery and equipment | 5-10 years (Jonway 10 years) | ||||||||||||||||||
Computer equipment and software | 3-5 years | ||||||||||||||||||
Office furniture and equipment | 5 years | ||||||||||||||||||
Vehicles | 5 years | ||||||||||||||||||
Leasehold improvements | 10 years or life of lease, | ||||||||||||||||||
whichever is shorter | |||||||||||||||||||
Building and improvements | 20-30 years (Jonway 20 years) | ||||||||||||||||||
Land use Rights | Land use rights | ||||||||||||||||||
Under PRC law, all land in the PRC is permanently owned by the government and cannot be sold to an individual or company but companies can purchase the land use rights for the specified period of time, as in our industry the industrial purpose has a useful life of 50 years. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership”. Land use rights are stated at cost less accumulated amortization. Amortization is provided over the respective useful lives, using the straight –line method. Estimated useful life is 50 years, and is determined in the connection with the term of the land use right. | |||||||||||||||||||
Long-lived Assets | Long-lived assets | ||||||||||||||||||
Long-lived assets are comprised of property and equipment and intangible assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An estimate of undiscounted future cash flows produced by the asset, or by the appropriate grouping of assets, is compared to the carrying value to determine whether impairment exists. If an asset is determined to be impaired, the loss is measured based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including a discounted value of estimated future cash flow and fundamental analysis. The Company reports an asset to be disposed of at the lower of its carrying value or its estimated net realizable value. | |||||||||||||||||||
Intangible Assets-Finite | Intangible Assets-Finite | ||||||||||||||||||
Intangible assets consist of patents, trademarks, land use rights, government approvals and customer relationships (including client contracts). For financial statement purposes, identifiable intangible assets with a defined life are being amortized using the straight-line method over the estimated useful lives of seven years for the EPA license and 8.5 years for the customer relationships. Costs incurred by the Company in connection with patent, trademark applications and approvals from governmental agencies such as the Environmental Protection Agency, including legal fees, patent and trademark fees and specific testing costs, are expensed as incurred. Purchased intangible costs of completed developments are capitalized and amortized over an estimated economic life of the asset, generally seven years, commencing on the acquisition date. Costs subsequent to the acquisition date are expensed as incurred. As of December 31, 2014, the company recognized an impairment loss of $627,000 for the Trade name. The impairment charge was based on the fair value which was the estimation of discounted cash flow. | |||||||||||||||||||
Goodwill and Intangible Assets-Indefinite | Goodwill and Intangible Assets – Indefinite | ||||||||||||||||||
Goodwill and intangible assets determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance applicable accounting principles. The Company assesses annually whether there is an indication that goodwill is impaired, or more frequently if events and circumstances indicate that the asset might be impaired during the year. The Company performs its annual impairment test in the fourth quarter of each year. Calculating the fair value of the reporting units requires significant estimates and assumptions by management. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, there is an indication that the reporting unit goodwill may be impaired and a second step of the impairment test is performed to determine the amount of the impairment to be recognized, if any. | |||||||||||||||||||
Product warranty costs | Product warranty costs | ||||||||||||||||||
Jonway provides a 3-year or 60,000 kilometer warranty for its SUV and minivan products. Jonway records the estimated cost of the product warranties at the time of sale using the estimated cost of product warranties based on historical results. The estimated cost of warranties has not been significant to date. Should actual failure rates and material usage differ from our estimates, revisions to the warranty obligation may be required. | |||||||||||||||||||
Jonway | 2014 | 2013 | |||||||||||||||||
Balance as of January 1 | $ | 631 | $ | 964 | |||||||||||||||
Provision for warranties | 483 | 732 | |||||||||||||||||
Charges against warranties | (633 | ) | (858 | ) | |||||||||||||||
Balance December 31 | 481 | 838 | |||||||||||||||||
Less: long term portion | (188 | ) | (207 | ) | |||||||||||||||
Current portion | $ | 293 | $ | 631 | |||||||||||||||
$188,000 was included in “accrued liabilities and others- long term” on the consolidated balance sheets. $293,000 was included in short-term “accrued liabilities” on the consolidated balance sheets. | |||||||||||||||||||
Comprehensive loss | Comprehensive loss | ||||||||||||||||||
Comprehensive loss represents the net loss for the period plus the results of certain changes to shareholders' equity that are not reflected in the consolidated statements of operations. The Company's comprehensive loss consists of net losses, foreign currency translation adjustments and unrealized net losses on investments. | |||||||||||||||||||
Risks and Uncertainties | Risks and Uncertainties | ||||||||||||||||||
A substantial portion of the Company's operations are located in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The company's results may be adversely affected by interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | |||||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||||||||
In April 2014, the FASB has issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a significant impact on the Company's condensed consolidated financial statements. | |||||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers: Topic 606. This Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this Update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to illustrate the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a cohesive set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization's contracts with customers. This ASU is effective retrospectively for fiscal years, and interim periods within those years beginning after December 15, 2016 for public companies and 2017 for non-public entities. Management is evaluating the impact, if any, of this ASU on the Company's financial position, results of operations and cash flows. | |||||||||||||||||||
In June 2014, FASB issued Accounting Standards Update (ASU) No. 2014-12 Compensation – Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments stipulate that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation — Stock Compensation. As a result, the target is not reflected in the estimation of the award's grant date fair value. Compensation cost should be recognized over the required service period, if it is probable that the performance condition would be achieved. The amendments in this Accounting Standards Update are effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-12 to have a material impact on the Company's condensed consolidated financial statements. | |||||||||||||||||||
In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity's liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity's liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements-Liquidation Basis of Accounting. Even when an entity's liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity's ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Accounting Standards Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company does not expect the adoption of ASU 2014-15 to have material impact on the Company's condensed consolidated financial statements, although there may be additional disclosures upon adoption. | |||||||||||||||||||
In November 2014, FASB issued Accounting Standards Update No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). The amendments permit the use of the Fed Funds Effective Swap Rate (also referred to as the Overnight Index Swap Rate, or OIS) as a benchmark interest rate for hedge accounting purposes. Public business entities are required to implement the new requirements in fiscal years (and interim periods within those fiscal years) beginning after December 15, 2015. All other types of entities are required to implement the new requirements in fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. The Company does not expect the adoption of ASU 2014-16 to have material impact on the Company's consolidated financial statement. | |||||||||||||||||||
In January 2015, FASB issued ASU No. 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This Update is issued as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The effective date is the same for both public business entities and all other entities. The Company does not expect the adoption of ASU 2015-01 to have material impact on the Company's consolidated financial statements. | |||||||||||||||||||
In February 2015, FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. This Update focuses on the consolidation evaluation for reporting organizations that are required to evaluate consolidation of certain legal entities by reducing the number of consolidation models from four to two and is intended to improve current GAAP. The amendments in the ASU are effective beginning after December 15, 2016. We do not expect the adoption of ASU 2015-02 to have material impact on our consolidated financial statements. | |||||||||||||||||||
In April 2015, FASB issued ASU 2015-03, interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments in the ASU are effective beginning after December 15, 2015. We do not expect the adoption of ASU 2015-03 to have material impact on our consolidated financial statements. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||
Schedule of Foreign Currency Exchange Balance | 31-Dec-14 | December 31, 2013 | |||||||||||||||||
Balance sheet items, except for share capital, additional | $1=B 6.1460 | $1=B 6.1122 | |||||||||||||||||
paid in capital and retained earnings, as of year end | |||||||||||||||||||
Amounts included in the statements of operations | $1=B 6.1457 | $1=B6.1171 | |||||||||||||||||
and cash flows for the year | |||||||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value | 31-Dec-14 | ||||||||||||||||||
Fair Value | |||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Measurements | |||||||||||||||
CNG distribution right | (1 | ) | - | - | $ | 1,000 | $ | 1,000 | |||||||||||
Trade name | (2 | ) | - | - | 1,600 | 1,600 | |||||||||||||
31-Dec-13 | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Measurements | |||||||||||||||
Trade name | (1 | ) | - | - | $ | 2,239 | $ | 2,239 | |||||||||||
Impairment loss | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Impairment loss on Distribution rights | (1 | ) | $ | 4,969 | $ | 0 | |||||||||||||
Impairment loss on Intangible assets | (2 | ) | $ | 627 | $ | 0 | |||||||||||||
-1 | The CNG distribution right was acquired in the fiscal year of 2014 at $5.96 million by issuing 61 million shares. In March 2014, Jonway Group agreed to pay all of the outstanding mold expenses of the Minivan that is currently still outstanding, and in return ZAP will share half of the asset value and share the IPR (50%) of the Minivan with Jonway Auto. The Minivan was purchased by ZAP from a prior agreement between ZAP and Jonway Group which was signed on January 18, 2012. In return for ZAP receiving worldwide exclusivity for the sales, distribution, and product IPR rights for all current and future models of the compressed natural gas (“CNG”) versions of Jonway Auto's Products, including, but not limited to, SUV, minivan, and all other models, the Company's Board of Directors authorized on March 28, 2014 to issue 61,000,000 shares of common stock to the companies owned by the Co-CEO and shareholder Alex Wang. The 61,000,000 shares of common stock have been issued in April 2014.The Company recognized impairment charges of $4.96 million for the years ended December 31, 2014. | ||||||||||||||||||
-2 | The Company recognized impairment loss for Trade name in the year ended December 31, 2014. | ||||||||||||||||||
Schedule of Estimated Useful Lives of Property and Equipment | Machinery and equipment | 5-10 years (Jonway 10 years) | |||||||||||||||||
Computer equipment and software | 3-5 years | ||||||||||||||||||
Office furniture and equipment | 5 years | ||||||||||||||||||
Vehicles | 5 years | ||||||||||||||||||
Leasehold improvements | 10 years or life of lease, | ||||||||||||||||||
whichever is shorter | |||||||||||||||||||
Building and improvements | 20-30 years (Jonway 20 years) | ||||||||||||||||||
Summary of Changes in the Product Warranty Accrual | Jonway | 2014 | 2013 | ||||||||||||||||
Balance as of January 1 | $ | 631 | $ | 964 | |||||||||||||||
Provision for warranties | 483 | 732 | |||||||||||||||||
Charges against warranties | (633 | ) | (858 | ) | |||||||||||||||
Balance December 31 | 481 | 838 | |||||||||||||||||
Less: long term portion | (188 | ) | (207 | ) | |||||||||||||||
Current portion | $ | 293 | $ | 631 |
INVENTORIES_NET_Tables
INVENTORIES, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
INVENTORIES, NET [Abstract] | |||||||||
Schedule of Inventories | 31-Dec-14 | 31-Dec-13 | |||||||
Work in Process | $ | 3,054 | $ | 2,228 | |||||
Parts and supplies | 3,601 | 2,906 | |||||||
Finished goods | 3,105 | 4,881 | |||||||
9,760 | 10,015 | ||||||||
Less - inventory reserve | (1,380 | ) | (1,981 | ) | |||||
Inventories, net | $ | 8,380 | $ | 8,034 | |||||
Schedule of Inventory Reserve | 31-Dec-14 | 31-Dec-13 | |||||||
Balance opening period | $ | 1,981 | $ | 2,325 | |||||
Current provision for Jonway Auto | 251 | (529 | ) | ||||||
Current provision for inventory ZAP-net | (852 | ) | 185 | ||||||
Balance end of period | $ | 1,380 | $ | 1,981 |
PROPERTY_PLANT_AND_EQUIPMENT_N1
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PROPERTY, PLANT AND EQUIPMENT, NET, AND LAND USE RIGHTS [Abstract] | |||||||||
Schedule of Property, Plant and Equipment | December 31, 2014 | December 31, 2013 | |||||||
Buildings and improvements | $ | 21,381 | $ | 21,473 | |||||
Machinery and equipment | 48,914 | 48,572 | |||||||
Office furniture and equipment | 889 | 518 | |||||||
Vehicles | 817 | 865 | |||||||
72,001 | 71,428 | ||||||||
Less: accumulated depreciation | |||||||||
and amortization | (29,406 | ) | (23,424 | ) | |||||
$ | 42,595 | $ | 48,004 | ||||||
Schedule of Intangible Assets | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Land use right | $ | 10,978 | $ | 10,855 | |||||
Software | 109 | 109 | |||||||
11,087 | 10,964 | ||||||||
Less: accumulated amortization | (1,146 | ) | (912 | ) | |||||
Less: accumulated Translation Adjustments | (230 | ) | (44 | ) | |||||
$ | 9,711 | $ | 10,008 | ||||||
Schedule of Future Amortization Expense | Amortization | ||||||||
Year | Expense | ||||||||
2015 | $ | 226 | |||||||
2016 | 207 | ||||||||
2017 | 207 | ||||||||
2018 | 205 | ||||||||
2019 | 205 | ||||||||
Thereafter | 8,661 | ||||||||
$ | 9,711 |
INTANGIBLE_ASSETS_NET_AND_GOOD
INTANGIBLE ASSETS, NET AND GOODWILL (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
INTANGIBLE ASSETS, NET & GOODWILL [Abstract] | ||||||||||||||||
Schedule of Goodwill and Other Intangible Assets | Impairment provision, | |||||||||||||||
Amortization and accumulated | ||||||||||||||||
Net Book | translation adjustments (“ATA”) | Net Book | ||||||||||||||
Useful Life | Value | for the six months ended | Value | |||||||||||||
(In Years) | December 31, 2013 | December 31, 2014 | December 31, 2014 | |||||||||||||
Patents and Trademarks | 7 | $ | 30 | $ | (23 | ) | $ | 7 | ||||||||
Customer Relationships | 8.5 | 525 | (97 | ) | 428 | |||||||||||
Developed Technology | 7 | 1,297 | (325 | ) | 972 | |||||||||||
In Process Technology | (a | ) | 189 | (1 | ) | 188 | ||||||||||
Trade name | (a | ) | 2,239 | (639 | ) | 1,600 | ||||||||||
Intangible assets | $ | 4,280 | $ | (1,085 | ) | $ | 3,195 | |||||||||
Goodwill | $ | 334 | $ | (2 | ) | $ | 332 | |||||||||
(a) | The in process technology and trade name have been determined to have an indefinite life. | |||||||||||||||
Schedule of Estimated Future Amortization Expense Related to Intangible Assets | Year ended December 31, | Amortization Expense | ||||||||||||||
2015 | $ | 429 | ||||||||||||||
2016 | 422 | |||||||||||||||
2017 | 419 | |||||||||||||||
Thereafter | 137 | |||||||||||||||
$ | 1,407 |
DISTRIBUTION_AGREEMENTS_Tables
DISTRIBUTION AGREEMENTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
DISTRIBUTION AGREEMENTS [Abstract] | |||||||||
Schedule of Distribution Agreements | December 31, 2014 | December 31, 2013 | |||||||
Better World Products-related party | $ | 2,160 | $ | 2,160 | |||||
CNG Products | 1,000 | - | |||||||
Jonway Products | 14,400 | 14,400 | |||||||
17,560 | 16,560 | ||||||||
Less amortization and impairment | (8,161 | ) | (6,721 | ) | |||||
$ | 9,399 | $ | 9,839 | ||||||
Schedule of Estimated Future Amortization Expense Related to Agreements | Year ended December 31, | ||||||||
2015 | $ | 1,540 | |||||||
2016 | 1,540 | ||||||||
2017 | 1,540 | ||||||||
2018 | 1,540 | ||||||||
2019 | 1,540 | ||||||||
Thereafter | 1,699 | ||||||||
Total | $ | 9,399 |
INVESTMENT_IN_JOINT_VENTURES_T
INVESTMENT IN JOINT VENTURES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
INVESTMENT IN JOINT VENTURES [Abstract] | ||||||||||||
Schedule Of Losses From Joint Ventures | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Hangzhou ZAP | ||||||||||||
Total assets | 1,079 | 1,346 | ||||||||||
Total liabilities | 429 | 359 | ||||||||||
Revenue | $ | 152 | $ | 83 |
LINE_OF_CREDIT_SHORT_TERM_DEBT1
LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES [Abstract] | |||||||||
Schedule of Short-Term Debt | Short term debt (in thousands) | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Loan from CITIC bank | $ | 976 | $ | 6,381 | |||||
Loan from ICBC | 6,484 | 6,381 | |||||||
Loan from Taizhou Bank | 1,139 | 2,127 | |||||||
Loan from China Everbright Bank | 1,220 | 0 | |||||||
Loan from Pay-Ins Prem | 30 | 72 | |||||||
$ | 9,849 | $ | 14,961 | ||||||
Schedule of Bank Acceptance Notes | (In thousands) | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
a) Bank acceptance notes payable to China Everbright bank | $ | 11,372 | $ | 8,891 | |||||
b) Bank acceptance notes payable to Taizhou bank | 651 | 3,927 | |||||||
c) Bank acceptance notes payable to CITIC bank | 5,724 | 2,700 | |||||||
d) Bank acceptance notes payable to ICBC | - | 177 | |||||||
$ | 17,747 | $ | 15,695 | ||||||
a. Notes payable to China Everbright bank have various maturity dates from January 2015 to June 2015. The notes payable are guaranteed by a land use right and a building with a total carrying value of $2.1 million. The Company is also required to maintain cash deposits at 50% of the notes payable with the bank, in order to ensure future credit availability. In January 2015, the company repaid the note payable when it became due. | |||||||||
b. Notes payable to Taizhou bank have various maturity dates in February, 2015. The Company is required to maintain cash deposits at 50% to 100% of the notes payable with the bank, in order to ensure future credit availability. The note payable was repaid when due. | |||||||||
c. Notes payable to CITIC bank will be due from March 2015 to November 2015. Except for the note payable utilizing credit exposure of $5.04 million, the Company is required to maintain cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. In January 2015, the company issued $4.9 million of notes payable with 100% cash deposits. | |||||||||
d. There is no notes payable due to ICBC at the year ended December 31, 2014. The Company is required to maintain cash deposits at 50% to 100% of the notes payable with the bank, in order to ensure future credit availability. | |||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Schedule of Income (Loss) before Provision for Income Taxes | 2014 | 2013 | |||||||||
United States | $ | (10,515 | ) | $ | (7,759 | ) | |||||
China | (13,557 | ) | (14,244 | ) | |||||||
$ | (24,072 | ) | $ | (22,003 | ) | ||||||
Schedule of Income Tax Provision (Benefit) | 2014 | 2013 | |||||||||
Current provision: | |||||||||||
US | $ | - | $ | - | |||||||
China | - | - | |||||||||
Total current provision | - | - | |||||||||
Deferred provision (benefit): | |||||||||||
US | - | - | |||||||||
China | 301 | (54 | ) | ||||||||
Total Deferred provision (benefit) | 301 | (54 | ) | ||||||||
Total provision (benefit ) for income taxes | $ | 301 | $ | (54 | ) | ||||||
Schedule of Effective Income Tax Rate Reconciliation | December 31, | ||||||||||
2014 | 2013 | ||||||||||
U.S. statutory rate | 34 | % | 34 | % | |||||||
U.S. permanent differences | -34 | % | -34 | % | |||||||
China income tax rate | 25 | % | 25 | % | |||||||
Changes in DTA valuation allowance | -25.2 | % | -25.2 | % | |||||||
Effective tax rate | -0.2 | % | -0.2 | % | |||||||
US [Member] | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Schedule of Deferred Tax Assets | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Net operating loss carryovers - US | $ | 51,415 | $ | 49,824 | |||||||
Temporary differences, including | |||||||||||
Stock based compensation | (6,532 | ) | (6,456 | ) | |||||||
Fixed assets, due to differences in depreciation | (288 | ) | (288 | ) | |||||||
Non-qualified options and warrants | (6,728 | ) | (6,728 | ) | |||||||
Reserves on investments | (2,069 | ) | (2,026 | ) | |||||||
Intangible assets, due to impairment | (2,002 | ) | (99 | ) | |||||||
R&D credit | 138 | 138 | |||||||||
Amortization of debt discount | (1,865 | ) | (1,691 | ) | |||||||
Total gross deferred tax assets - US | $ | 32,069 | $ | 32,674 | |||||||
Valuation allowance - US | (32,069 | ) | (32,674 | ) | |||||||
Net deferred tax assets | $ | - | $ | - | |||||||
CHINA [Member] | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Schedule of Deferred Tax Assets | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets - PRC: | |||||||||||
Property and equipment, | |||||||||||
due to differences in depreciation | $ | 447 | $ | 303 | |||||||
Inventories, due to impairment | 427 | 236 | |||||||||
Accrued liabilities | 597 | 217 | |||||||||
Net operating loss Carry forward | 8,223 | 7,395 | |||||||||
Total deferred tax assets, gross - PRC | 9,694 | 8,151 | |||||||||
Valuation allowance - PRC | (9,694 | ) | (7,848 | ) | |||||||
Deferred tax assets, net of valuation allowance | - | 303 | |||||||||
Less: current portion - PRC | - | - | |||||||||
Non-current portion - PRC | $ | - | $ | 303 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | |||||||||||||||||
Schedule of Option Activity | Weighted | Aggregate | |||||||||||||||
Number of | Weighted | Average | Intrinsic | ||||||||||||||
Shares | Average | Remaining | Value | ||||||||||||||
Exercise | Contractual | ||||||||||||||||
Price | Term | ||||||||||||||||
(in years) | |||||||||||||||||
Options exercisable and outstanding at | 28,691 | $ | 0.44 | 5 | -- | ||||||||||||
31-Dec-12 | |||||||||||||||||
Options forfeited and expired | (16,643 | ) | - | -- | |||||||||||||
Options exercisable and outstanding at | 12,048 | $ | 0.4 | 4 | -- | ||||||||||||
31-Dec-13 | |||||||||||||||||
Options forfeited and expired | (200 | ) | |||||||||||||||
31-Dec-14 | 11,848 | $ | 0.38 | 3 |
LOSS_PER_SHARE_Tables
LOSS PER SHARE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
LOSS PER SHARE [Abstract] | |||||||||
Schedule of Computation of Basic and Diluted Loss per Share | December 31, | ||||||||
2014 | 2013 | ||||||||
Net loss used in computing basic and diluted earnings per share | $ | (17,583 | ) | $ | (14,996 | ) | |||
Basic and diluted loss per share | $ | (0.05 | ) | $ | (0.05 | ) | |||
Basic weighted average shares outstanding | 377,547 | 302,518 | |||||||
Anti-dilutive shares as of December 31: | |||||||||
Warrants outstanding | 38,000 | 38,000 | |||||||
Options outstanding | 12,048 | 12,048 |
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
SEGMENT REPORTING [Abstract] | |||||||||||||||||||||||||
Schedule of Segment Results | Jonway Auto | ZAP | Voltage | Advanced | ZAP Hong Kong | Totals | |||||||||||||||||||
Vehicles Car Lot | Technology Vehicles | ||||||||||||||||||||||||
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 | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||
Net sales | $ | 50,631 | $ | 871 | $ | - | $ | 45 | $ | - | $ | 51,547 | |||||||||||||
Gross profit (loss) | $ | 797 | $ | 188 | $ | - | $ | (33 | ) | $ | - | $ | 952 | ||||||||||||
Depreciation and amortization | $ | 5,541 | $ | 2,628 | $ | - | $ | - | $ | - | $ | 8,169 | |||||||||||||
Net loss | $ | (14,190 | ) | $ | (7,516 | ) | $ | (174 | ) | $ | (68 | ) | $ | (1 | ) | $ | (21,949) | ||||||||
Total assets | $ | 86,971 | $ | 19,991 | $ | - | $ | - | $ | 71 | $ | 107,033 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||
Schedule of Warrants Outstanding | Number of | Exercise | Expiration | ||||||||||
Warrants | Price | Dates | |||||||||||
$0.50 Warrants-Restricted | 18,000 | 0.5 | 8/6/15 | ||||||||||
$0.50 Warrants-Restricted | 20,000 | 0.5 | 8/12/15 | ||||||||||
38,000 |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||
Schedule of Amount Due To/From Related Parties | 31-Dec-14 | December 31, 2013 | |||||||
Sanmen Branch of Zhejiang UFO Automobile Manufacturing Co., Ltd | $ | 1,427 | $ | 4,973 | |||||
JAZ | 1,311 | 961 | |||||||
Jonway Motor Cycle | 53 | - | |||||||
ZAP Hangzhou | - | 127 | |||||||
Total | $ | 2,791 | $ | 6,061 | |||||
Schedule of Contract Rates | The first 3,000 vehicles | $44 per vehicle | |||||||
Vehicles from 3,001 to 5,000 | $30 per vehicle | ||||||||
Vehicles over 5,000 | $22 per vehicle |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Basis Of Presentation) (Details) | 12 Months Ended | ||||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | CNY | USD ($) | ZAP Hangzhou [Member] | Shanghai Zapple [Member] | |
ORGANIZATION AND BASIS OF PRESENTATION [Abstract] | |||||
Percentage ownership in Jonway | 51.00% | 51.00% | |||
Acquisition purchase price | $31,750,000 | ||||
Cash for acquisition | 29,030,000 | ||||
Shares issued for acquisition | 8 | ||||
Value of shares issued for acquisition | 2,720,000 | ||||
Per electric vehicle incentive | $11,390 | 70,000 | |||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 37.50% | 50.00% |
ORGANIZATION_AND_BASIS_OF_PRES2
ORGANIZATION AND BASIS OF PRESENTATION (Liquidity and Capital Resources) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2014 | Mar. 31, 2014 | Nov. 30, 2013 | Dec. 31, 2012 | |
Line of Credit Facility [Line Items] | ||||||
Current liabilities exceeded current assets | $69,500,000 | |||||
Equity Deficiency | 1,881,000 | |||||
CITIC [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 24,300,000 | 24,300,000 | ||||
Credit exposure | 6,020,000 | 6,020,000 | 7,300,000 | 6,300,000 | ||
Required cash deposit | 50.00% | |||||
Taizhou Bank [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 2,400,000 | 4,100,000 | ||||
Credit exposure | 1,460,000 | |||||
Everbright Bank [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 9,200,000 | |||||
Credit exposure | 4,600,000 | 4,600,000 | ||||
Required cash deposit | 50.00% | |||||
ICBC [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 5,400,000 | |||||
Credit exposure | 4,900,000 | |||||
Required cash deposit | 100.00% | |||||
Available borrowing capacity | $500,000 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
CNY | CNY | USD ($) | USD ($) | Bank Acceptance Notes [Member] | Minimum [Member] | Maximum [Member] | EPA License [Member] | Customer Relationships [Member] | Developed Technology [Member] | |
Bank Acceptance Notes [Member] | Bank Acceptance Notes [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||
Excess deposits amount over insurance provided | $161,000 | |||||||||
Currency exchange rate | 6.146 | 6.1122 | ||||||||
Average currency exchange rate | 6.1457 | 6.1171 | ||||||||
Allowance for doubtful accounts | 439,284 | 696,000 | ||||||||
Inventory reserves for obsolescence | $1,380,000 | $1,981,000 | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Estimated useful life | 7 years | 8 years 6 months | 7 years | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||||||
Required cash deposit | 50.00% | 100.00% | ||||||||
Term | 6 months |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Summary of Assets and Liabilities Measured at Fair Value) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||
Impairment loss of long-lived assets | $5,596,000 | $2,640,000 | ||
Impairment loss on Distribution rights | 4,969,000 | [1] | 0 | [1] |
Impairment loss on Intangible assets | 627,000 | [2] | 0 | [2] |
Assets | ||||
CNG distribution right | 10,978,000 | 10,855,000 | ||
Issue 61 million shares of common stock for acquisition of IPR and Distribution rights for Minivan and CNG products | 5,969,000 | |||
Stock issued for acquisition of IPR and Distribution rights for Minivan and CNG products, shares | 61,000,000 | |||
Nonrecurring [Member] | ||||
Assets | ||||
CNG distribution right | 1,000,000 | [1] | ||
Trade name | 1,600,000 | [2] | 2,239,000 | [1] |
Level 1 [Member] | Nonrecurring [Member] | ||||
Assets | ||||
CNG distribution right | [1] | |||
Trade name | [2] | [1] | ||
Level 2 [Member] | Nonrecurring [Member] | ||||
Assets | ||||
CNG distribution right | [1] | |||
Trade name | [2] | [1] | ||
Level 3 [Member] | Nonrecurring [Member] | ||||
Assets | ||||
CNG distribution right | 1,000,000 | [1] | ||
Trade name | $1,600,000 | [2] | $2,239,000 | [1] |
[1] | The CNG distribution right was acquired in the fiscal year of 2014 at $5.96 million by issuing 61 million shares. In March 2014, Jonway Group agreed to pay all of the outstanding mold expenses of the Minivan that is currently still outstanding, and in return ZAP will share half of the asset value and share the IPR (50%) of the Minivan with Jonway Auto. The Minivan was purchased by ZAP from a prior agreement between ZAP and Jonway Group which was signed on January 18, 2012. In return for ZAP receiving worldwide exclusivity for the sales, distribution, and product IPR rights for all current and future models of the compressed natural gas (bCNGb) versions of Jonway Auto's Products, including, but not limited to, SUV, minivan, and all other models, the Company's Board of Directors authorized on March 28, 2014 to issue 61,000,000 shares of common stock to the companies owned by the Co-CEO and shareholder Alex Wang. The 61,000,000 shares of common stock have been issued in April 2014.The Company recognized impairment charges of $4.96 million for the years ended December 31, 2014. | |||
[2] | The Company recognized impairment loss for Trade name in the year ended December 31, 2014. |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Summary of Property, Equipment and Land Use Rights) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Office furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Buildings and improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Land use rights [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 50 years |
Minimum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Minimum [Member] | Computer equipment and software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum [Member] | Buildings and improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Maximum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Maximum [Member] | Computer equipment and software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Maximum [Member] | Buildings and improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES (Summary of Product Warranty Costs) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Beginning balance | $631 | $964 |
Provision for warranties | 483 | 732 |
Charges against warranties | -633 | -858 |
Ending balance | 481 | 631 |
Less: long term portion | -188 | -207 |
Current portion | $293 | $631 |
INVENTORIES_NET_Schedule_of_In
INVENTORIES, NET (Schedule of Inventories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
INVENTORIES, NET [Abstract] | |||
Work in Process | $3,054 | $2,228 | |
Parts and supplies | 3,601 | 2,906 | |
Finished goods | 3,105 | 4,881 | |
Inventories | 9,760 | 10,015 | |
Less - inventory reserve | -1,380 | -1,981 | -2,325 |
Inventories, net | $8,380 | $8,034 |
INVENTORIES_NET_Schedule_of_In1
INVENTORIES, NET (Schedule of Inventory Reserve) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
INVENTORIES, NET [Abstract] | ||
Beginning balance | $1,981 | $2,325 |
Current provision for Jonway Auto | 251 | -529 |
Current provision for inventory ZAP-net | -852 | 185 |
Ending balance | $1,380 | $1,981 |
PROPERTY_PLANT_AND_EQUIPMENT_N2
PROPERTY, PLANT AND EQUIPMENT, NET (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $8,284,000 | $8,169,000 |
Property, plant and equipment, as well as land use rights and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $6,800,000 | $6,700,000 |
Land use rights [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 50 years |
PROPERTY_PLANT_AND_EQUIPMENT_N3
PROPERTY, PLANT AND EQUIPMENT, NET (Schedule Of Property, Plant And Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $72,001 | $71,428 |
Less: accumulated depreciation and amortization | -29,406 | -23,424 |
Property, plant and equipment, net | 42,595 | 48,004 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 21,381 | 21,473 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 48,914 | 48,572 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 889 | 518 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $817 | $865 |
PROPERTY_PLANT_AND_EQUIPMENT_N4
PROPERTY, PLANT AND EQUIPMENT, NET (Schedule of Capitalized Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
PROPERTY, PLANT AND EQUIPMENT, NET, AND LAND USE RIGHTS [Abstract] | ||
Land use right | $10,978 | $10,855 |
Software | 109 | 109 |
Intangible assets | 11,087 | 10,964 |
Less: accumulated amortization | -1,146 | -912 |
Less: accumulated Translation Adjustments | -230 | -44 |
Intangible assets, net | $9,711 | $10,008 |
PROPERTY_PLANT_AND_EQUIPMENT_N5
PROPERTY, PLANT AND EQUIPMENT, NET (Schedule of Future Amortization Expense) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Estimated future amortization expense: | ||
Intangible assets, net | $9,711 | $10,008 |
Land Use Rights and Software [Member] | ||
Estimated future amortization expense: | ||
2015 | 226 | |
2016 | 207 | |
2017 | 207 | |
2018 | 205 | |
2019 | 205 | |
Thereafter | 8,661 | |
Intangible assets, net | $9,711 |
INTANGIBLE_ASSETS_NET_AND_GOOD1
INTANGIBLE ASSETS, NET AND GOODWILL (Summary of Intangible Assets) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
INTANGIBLE ASSETS, NET & GOODWILL [Abstract] | ||||
Goodwill, beginning balance | $334,000 | |||
Amortization and accumulated translation adjustments ("ATA") | -2,000 | |||
Goodwill, ending balance | 332,000 | 334,000 | ||
Intangible Assets [Line Items] | ||||
Beginning balance | 4,280,000 | |||
Amortization and accumulated translation adjustments ("ATA") | -1,085,000 | |||
Ending balance | 3,195,000 | 4,280,000 | ||
Impairment loss on Intangible assets | 627,000 | [1] | 0 | [1] |
Patents and Trademarks [Member] | ||||
Intangible Assets [Line Items] | ||||
Useful life | 7 years | |||
Beginning balance | 30,000 | |||
Amortization and accumulated translation adjustments ("ATA") | -23,000 | |||
Ending balance | 7,000 | |||
Customer Relationships [Member] | ||||
Intangible Assets [Line Items] | ||||
Useful life | 8 years 6 months | |||
Beginning balance | 525,000 | |||
Amortization and accumulated translation adjustments ("ATA") | -97,000 | |||
Ending balance | 428,000 | |||
Developed Technology [Member] | ||||
Intangible Assets [Line Items] | ||||
Useful life | 7 years | |||
Beginning balance | 1,297,000 | |||
Amortization and accumulated translation adjustments ("ATA") | -325,000 | |||
Ending balance | 972,000 | |||
Technology [Member] | ||||
Intangible Assets [Line Items] | ||||
Useful life | [2] | |||
Beginning balance | 189,000 | |||
Amortization and accumulated translation adjustments ("ATA") | -1,000 | |||
Ending balance | 188,000 | |||
Trade name [Member] | ||||
Intangible Assets [Line Items] | ||||
Useful life | [2] | |||
Beginning balance | 2,239,000 | |||
Amortization and accumulated translation adjustments ("ATA") | -639,000 | |||
Ending balance | 1,600,000 | |||
Impairment loss on Intangible assets | $627,000 | |||
[1] | The Company recognized impairment loss for Trade name in the year ended December 31, 2014. | |||
[2] | The in process technology and trade name have been determined to have an indefinite life. |
INTANGIBLE_ASSETS_NET_AND_GOOD2
INTANGIBLE ASSETS, NET AND GOODWILL (Schedule of Future Amortization Expense) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Estimated future amortization expense: | ||
Intangible assets, net | $9,711 | $10,008 |
Patents, Trademarks, Customer Relationships and Developed Technology [Member] | ||
Estimated future amortization expense: | ||
2015 | 429 | |
2016 | 422 | |
2017 | 419 | |
Thereafter | 137 | |
Intangible assets, net | $1,407 |
DISTRIBUTION_AGREEMENTS_Narrat
DISTRIBUTION AGREEMENTS (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 26, 2014 | Dec. 31, 2010 | |||
Distribution Agreements [Line Items] | ||||||
Depreciation and amortization | $8,284,000 | $8,169,000 | ||||
Impairment loss on Distribution rights | 4,969,000 | [1] | 0 | [1] | ||
Purchase of fixed assets and intangibles, shares | 61,000,000 | |||||
Purchase of fixed assets and intangibles | 5,969,000 | |||||
Percentage ownership in Jonway | 51.00% | |||||
Value of common stock issued in relation to distribution agreement for CNG products | 1,900,000 | |||||
Jonway Group [Member] | ||||||
Distribution Agreements [Line Items] | ||||||
Common stock issued in relation to distribution agreement for CNG products (in shares) | 61,000,000 | |||||
Value of common stock issued in relation to distribution agreement for CNG products | 6,000,000 | |||||
Better World [Member] | ||||||
Distribution Agreements [Line Items] | ||||||
Purchase of fixed assets and intangibles, shares | 6,000,000 | |||||
Purchase of fixed assets and intangibles | 2,160,000 | |||||
Goldenstone Worldwide [Member] | ||||||
Distribution Agreements [Line Items] | ||||||
Purchase of fixed assets and intangibles, shares | 30,000,000 | |||||
Purchase of fixed assets and intangibles | 14,400,000 | |||||
CNG Products [Member] | ||||||
Distribution Agreements [Line Items] | ||||||
Impairment loss on Distribution rights | 5,000,000 | |||||
CNG Products [Member] | Jonway Group [Member] | ||||||
Distribution Agreements [Line Items] | ||||||
Impairment loss on Distribution rights | 5,000,000 | |||||
Distribution Agreements [Member] | ||||||
Distribution Agreements [Line Items] | ||||||
Depreciation and amortization | $1,440,000 | $1,440,000 | ||||
[1] | The CNG distribution right was acquired in the fiscal year of 2014 at $5.96 million by issuing 61 million shares. In March 2014, Jonway Group agreed to pay all of the outstanding mold expenses of the Minivan that is currently still outstanding, and in return ZAP will share half of the asset value and share the IPR (50%) of the Minivan with Jonway Auto. The Minivan was purchased by ZAP from a prior agreement between ZAP and Jonway Group which was signed on January 18, 2012. In return for ZAP receiving worldwide exclusivity for the sales, distribution, and product IPR rights for all current and future models of the compressed natural gas (bCNGb) versions of Jonway Auto's Products, including, but not limited to, SUV, minivan, and all other models, the Company's Board of Directors authorized on March 28, 2014 to issue 61,000,000 shares of common stock to the companies owned by the Co-CEO and shareholder Alex Wang. The 61,000,000 shares of common stock have been issued in April 2014.The Company recognized impairment charges of $4.96 million for the years ended December 31, 2014. |
DISTRIBUTION_AGREEMENTS_Schedu
DISTRIBUTION AGREEMENTS (Schedule of Distribution Agreements) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Distribution Agreements [Line Items] | ||
Distribution agreements | $17,560 | $16,560 |
Less amortization | -8,161 | -6,721 |
Distribution agreements, net | 9,399 | 9,839 |
Better World Products [Member] | ||
Distribution Agreements [Line Items] | ||
Distribution agreements | 2,160 | 2,160 |
CNG Products [Member] | ||
Distribution Agreements [Line Items] | ||
Distribution agreements | 1,000 | |
Jonway Products [Member] | ||
Distribution Agreements [Line Items] | ||
Distribution agreements | $14,400 | $14,400 |
DISTRIBUTION_AGREEMENTS_Schedu1
DISTRIBUTION AGREEMENTS (Schedule of Future Amortization Expense) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Estimated future amortization expense: | ||
Intangible assets, net | $9,711 | $10,008 |
Distribution Agreements [Member] | ||
Estimated future amortization expense: | ||
2015 | 1,540 | |
2016 | 1,540 | |
2017 | 1,540 | |
2018 | 1,540 | |
2019 | 1,540 | |
Thereafter | 1,699 | |
Intangible assets, net | $9,399 |
INVESTMENT_IN_JOINT_VENTURES_N
INVESTMENT IN JOINT VENTURES (Narrative) (Details) | 12 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | ZAP Hangzhou [Member] | ZAP Hangzhou [Member] | ZAP Hangzhou [Member] | Shanghai Zapple [Member] | Shanghai Zapple [Member] | Shanghai Zapple [Member] | Shanghai Zapple [Member] | |
USD ($) | USD ($) | Jonway Auto [Member] | USD ($) | USD ($) | CNY | ZAP Hangzhou [Member] | |||
CNY | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 37.50% | 25.00% | 50.00% | 50.00% | |||||
Original registered capital of joint venture | $3,000,000 | 20,000,000 | |||||||
Joint venture, capital investment | 1,100,000 | 5,000,000 | 3,000,000 | ||||||
Equity method investment losses | $899,000 | $0 | $438,000 | $0 | $461,000 |
INVESTMENT_IN_JOINT_VENTURES_S
INVESTMENT IN JOINT VENTURES (Summary of Financial Information) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | $90,996 | $107,033 |
Liabilities | 92,877 | 97,682 |
ZAP Hangzhou [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | 1,079 | 1,346 |
Liabilities | 429 | 359 |
Revenues | $152 | $83 |
LINE_OF_CREDIT_SHORT_TERM_DEBT2
LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES (Line of Credit) (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Nov. 30, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Nov. 30, 2013 | Dec. 31, 2012 | |
Line of Credit Facility [Line Items] | ||||||||||
Repayment of short-term loans | $18,297,000 | $16,940,000 | ||||||||
CITIC [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | 24,300,000 | 24,300,000 | ||||||||
Credit exposure | 6,020,000 | 6,020,000 | 6,020,000 | 7,300,000 | 6,300,000 | |||||
Amount outstanding | 5,040,000 | 5,040,000 | 6,300,000 | |||||||
Interest rate | 6.60% | 6.60% | 7.08% | 6.60% | ||||||
Restricted cash deposit | 5,700,000 | 5,700,000 | ||||||||
Required cash deposit | 50.00% | |||||||||
Expiration | 30-Nov-15 | |||||||||
Beginning maturity date | 1-Mar-15 | |||||||||
Ending maturity date | 30-Nov-15 | |||||||||
Increase in credit exposure | 1,000,000 | |||||||||
Repayment of short-term loans | 560,000 | |||||||||
Debt instrument maturity period | 1 year | 1 year | 1 year | |||||||
Face amount | 1,000,000 | |||||||||
Taizhou Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | 2,400,000 | 2,400,000 | 4,100,000 | |||||||
Credit exposure | 1,460,000 | 1,460,000 | ||||||||
Amount outstanding | 1,100,000 | 1,100,000 | ||||||||
Restricted cash deposit | 330,000 | 330,000 | 330,000 | |||||||
Beginning maturity date | 1-Feb-15 | |||||||||
Ending maturity date | 30-Apr-15 | |||||||||
Taizhou Bank [Member] | Loan Due in February 2015 [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Interest rate | 8.89% | 8.89% | ||||||||
Taizhou Bank [Member] | Loan Due in April 2015 [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Interest rate | 8.93% | 8.93% | ||||||||
Everbright Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | 9,200,000 | |||||||||
Credit exposure | 4,600,000 | 4,600,000 | 4,600,000 | |||||||
Amount outstanding | 11,400,000 | 11,400,000 | ||||||||
Interest rate | 7.20% | 7.28% | ||||||||
Collateral amount | 2,100,000 | |||||||||
Restricted cash deposit | 8,000,000 | 8,000,000 | ||||||||
Required cash deposit | 50.00% | |||||||||
Expiration | 31-Dec-14 | |||||||||
Debt instrument maturity period | 11 months | 6 months | ||||||||
Face amount | 1,200,000 | 310,000 | ||||||||
ICBC [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | 5,400,000 | |||||||||
Credit exposure | 4,900,000 | 4,900,000 | ||||||||
Amount outstanding | 6,500,000 | 6,500,000 | ||||||||
Interest rate, minimum | 5.00% | |||||||||
Interest rate, maximum | 6.60% | |||||||||
Available borrowing capacity | 500,000 | 500,000 | ||||||||
Restricted cash deposit | $1,600,000 | $1,600,000 | ||||||||
Required cash deposit | 100.00% | |||||||||
Expiration | 31-Dec-14 | |||||||||
Beginning maturity date | 1-Mar-15 | |||||||||
Ending maturity date | 30-Nov-15 |
LINE_OF_CREDIT_SHORT_TERM_DEBT3
LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES (Schedule of Short-Term Debt) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 2 Months Ended | 1 Months Ended | |||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Aug. 30, 2013 | Oct. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Jul. 31, 2014 | |
Short-term Debt [Line Items] | |||||||||||||||||
Short term debt | $9,849,000 | $14,961,000 | $14,961,000 | ||||||||||||||
Weighted average interest rate | 7.00% | 7.04% | 7.04% | ||||||||||||||
Repayment of short term loans | 18,297,000 | 16,940,000 | |||||||||||||||
CITIC [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Short term debt | 976,000 | 6,381,000 | 6,381,000 | ||||||||||||||
Face amount | 980,000 | 6,300,000 | 980,000 | ||||||||||||||
Term | 1 year | 1 year | |||||||||||||||
Interest rate | 6.60% | 6.60% | 7.08% | ||||||||||||||
Collateral amount | 5,500,000 | ||||||||||||||||
Repayment of short term loans | 560,000 | ||||||||||||||||
ICBC [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Short term debt | 6,484,000 | 6,381,000 | 6,381,000 | ||||||||||||||
Face amount | 1,100,000 | 800,000 | 1,500,000 | 1,100,000 | 800,000 | 1,100,000 | 1,100,000 | 800,000 | 1,100,000 | 700,000 | 1,100,000 | 1,460,000 | |||||
Term | 1 year | 1 year | 1 year | 6 months | 1 year | 1 year | 6 months | 1 year | 6 months | 1 year | |||||||
Interest rate | 7.20% | 6.00% | 7.20% | 6.60% | 5.04% | 6.92% | 6.26% | 5.60% | 7.20% | 5.60% | 6.90% | 6.60% | |||||
Collateral amount | 3,540,000 | ||||||||||||||||
Restricted cash deposit | 1,600,000 | ||||||||||||||||
Required cash deposit | 100.00% | 100.00% | |||||||||||||||
Transaction One [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Face amount | 800,000 | ||||||||||||||||
Term | 6 months | ||||||||||||||||
Interest rate | 5.60% | ||||||||||||||||
Transaction Two [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Face amount | 1,100,000 | ||||||||||||||||
Term | 1 year | ||||||||||||||||
Interest rate | 6.90% | ||||||||||||||||
Taizhou Bank [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Short term debt | 1,139,000 | 2,127,000 | 2,127,000 | ||||||||||||||
Face amount | 2,100,000 | 300,000 | 810,000 | 800,000 | 300,000 | ||||||||||||
Interest rate | 8.93% | 8.50% | 8.89% | 8.89% | |||||||||||||
Interest rate, minimum | 8.46% | ||||||||||||||||
Interest rate, maximum | 8.89% | ||||||||||||||||
Repayment of short term loans | 810,000 | 800,000 | 1,300,000 | ||||||||||||||
China Everbright Bank | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Short term debt | 1,220,000 | 0 | 0 | ||||||||||||||
Face amount | 310,000 | 1,200,000 | |||||||||||||||
Term | 6 months | 11 months | |||||||||||||||
Interest rate | 7.28% | 7.20% | |||||||||||||||
Collateral amount | 2,100,000 | ||||||||||||||||
Insurance Premiums [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Short term debt | $30,000 | $72,000 | $72,000 |
LINE_OF_CREDIT_SHORT_TERM_DEBT4
LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES (Schedule of Bank Acceptance Notes) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||
Apr. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Jan. 31, 2015 | Dec. 31, 2013 | Jul. 31, 2014 | Jun. 30, 2014 | Oct. 31, 2014 | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | |
Short-term Debt [Line Items] | ||||||||||||||||
Bank acceptance notes payable | 17,747,000 | $15,695,000 | ||||||||||||||
Everbright Bank [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Collateral amount | 2,100,000 | |||||||||||||||
Face amount | 1,200,000 | 310,000 | ||||||||||||||
Taizhou Bank [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Face amount | 2,100,000 | 810,000 | 300,000 | 800,000 | 300,000 | |||||||||||
CITIC [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Collateral amount | 5,500,000 | |||||||||||||||
Face amount | 980,000 | 980,000 | 6,300,000 | |||||||||||||
ICBC [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Collateral amount | 3,540,000 | |||||||||||||||
Required cash deposit | 100.00% | 100.00% | ||||||||||||||
Restricted cash deposit | 1,600,000 | |||||||||||||||
Face amount | 800,000 | 800,000 | 1,100,000 | 1,100,000 | 1,460,000 | 1,100,000 | 1,500,000 | 1,100,000 | 800,000 | 700,000 | 1,100,000 | |||||
Bank acceptance notes [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Bank acceptance notes payable | 17,747,000 | 15,695,000 | ||||||||||||||
Restricted cash deposit | 9,000,000 | |||||||||||||||
Bank acceptance notes [Member] | Minimum [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Required cash deposit | 50.00% | |||||||||||||||
Bank acceptance notes [Member] | Maximum [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Required cash deposit | 100.00% | |||||||||||||||
Bank acceptance notes [Member] | Everbright Bank [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Bank acceptance notes payable | 11,372,000 | 8,891,000 | ||||||||||||||
Beginning maturity date | 1-Jan-15 | |||||||||||||||
Ending maturity date | 1-Jun-15 | |||||||||||||||
Collateral amount | 2,100,000 | |||||||||||||||
Required cash deposit | 50.00% | |||||||||||||||
Bank acceptance notes [Member] | Taizhou Bank [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Bank acceptance notes payable | 651,000 | 3,927,000 | ||||||||||||||
Ending maturity date | 1-Feb-15 | |||||||||||||||
Bank acceptance notes [Member] | Taizhou Bank [Member] | Minimum [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Required cash deposit | 50.00% | |||||||||||||||
Bank acceptance notes [Member] | Taizhou Bank [Member] | Maximum [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Required cash deposit | 100.00% | |||||||||||||||
Bank acceptance notes [Member] | CITIC [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Bank acceptance notes payable | 5,724,000 | 2,700,000 | ||||||||||||||
Beginning maturity date | 1-Mar-15 | |||||||||||||||
Ending maturity date | 1-Nov-15 | |||||||||||||||
Required cash deposit | 100.00% | 100.00% | ||||||||||||||
Credit exposure | 5,040,000 | |||||||||||||||
Face amount | 4,900,000 | |||||||||||||||
Bank acceptance notes [Member] | ICBC [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Bank acceptance notes payable | $177,000 | |||||||||||||||
Bank acceptance notes [Member] | ICBC [Member] | Minimum [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Required cash deposit | 50.00% | |||||||||||||||
Bank acceptance notes [Member] | ICBC [Member] | Maximum [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Required cash deposit | 100.00% |
SENIOR_CONVERTIBLE_DEBT_Detail
SENIOR CONVERTIBLE DEBT (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Feb. 12, 2012 | Jan. 12, 2011 | Dec. 31, 2011 | |
Debt Instrument [Line Items] | |||||
Amortization of debt discount | $513,000 | $1,167,000 | |||
Senior Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | 19,000,000 | ||||
Shares called by warrant | 20,000,000 | ||||
Term | 2 years | ||||
Exercise price | $0.50 | ||||
Accrued interest payable | 1,700,000 | ||||
Amount outstanding | 20,700,000 | 20,700,000 | |||
Conversion ratio | 0.003743 | ||||
Number of shares | 4,435 | ||||
Beneficial conversion feature | 19,000,000 | ||||
Amortization of debt discount | 16,900,000 | ||||
Equity component | $2,100,000 | ||||
Interest rate | 8.00% |
CONVERTIBLE_BOND_Details
CONVERTIBLE BOND (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 16, 2014 | Apr. 23, 2014 | 31-May-14 | Oct. 27, 2014 | |
Short-term Debt [Line Items] | ||||||
Proceeds from convertible bond | $1,496,000 | |||||
Amortization of debt discount | 513,000 | 1,167,000 | ||||
Convertible bond | 1,153,000 | |||||
Bond discount | 547,000 | |||||
Korea Yung [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Number of stock issued to settle the remaining balance of convertible bond | 7,095,344 | |||||
Convertible Bond [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Face amount | 2,000,000 | |||||
Percentage of stock price | 30.00% | |||||
Interest rate | 12.00% | |||||
Proceeds from convertible bond | 1,700,000 | |||||
Amortization of debt discount | 180,000 | |||||
Equity component | 550,000 | |||||
Remaining receivable | 300,000 | |||||
Conversion of debt | 300,000 | 300,000 | ||||
Conversion of debt, shares issued | 3,108,747 | 4,862,237 | ||||
Convertible Bond [Member] | Korea Yung [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Repayment of principal and interest of convertible note | 528,500 | |||||
Repayment of principal amount of convertible note | 500,000 | |||||
Interest expense | $28,500 |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES (Schedule of Income Tax Provision (Benefit)) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income (loss) before provision for income taxes: | ||
United States | ($10,515) | ($7,759) |
China | -13,557 | -14,244 |
Loss before income taxes | -24,072 | -22,003 |
Current provision: | ||
US | ||
China | ||
Total current provision | ||
Deferred | ||
US | ||
China | 301 | -54 |
Total Deferred provision (benefit) | 301 | -54 |
Total provision (benefit) for income taxes | $301 | ($54) |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
US [Member] | ||
Income Tax [Line Items] | ||
Net operating loss carryovers | $51,415 | $49,824 |
Temporary differences, including Stock based compensation | -6,532 | -6,456 |
Fixed assets, due to differences in depreciation | -288 | -288 |
Non qualified options and warrants | -6,728 | -6,728 |
Reserves on investments | -2,069 | -2,026 |
Intangible assets, due to impairment | -2,002 | -99 |
R&D credit | 138 | 138 |
Amortization of debt discount | -1,865 | -1,691 |
Total gross deferred tax assets | 32,069 | 32,674 |
Valuation allowance | -32,069 | -32,674 |
Net deferred tax assets | ||
CHINA [Member] | ||
Income Tax [Line Items] | ||
Property and equipment, due to differences in depreciation | 447 | 303 |
Inventories, due to impairment | 427 | 236 |
Accrued liabilities | 597 | 217 |
Net operating loss carryovers | 8,223 | 7,395 |
Total gross deferred tax assets | 9,694 | 8,151 |
Valuation allowance | -9,694 | -7,848 |
Net deferred tax assets | 303 | |
Less: current portion - PRC | ||
Non-current portion - PRC | $303 |
INCOME_TAXES_Reconciliation_of
INCOME TAXES (Reconciliation of Effective Tax Rate) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAXES [Abstract] | ||
U.S. statutory rate | 34.00% | 34.00% |
U.S. permanent differences | -34.00% | -34.00% |
China income tax rate | 25.00% | 25.00% |
Changes in DTA valuation allowance | -25.20% | -25.20% |
Effective tax rate | -0.20% | -0.20% |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | ||
Accrued interest and penalties related to uncertain tax positions | $0 | $0 |
Recognized interest and penalties related to uncertain tax positions | 0 | 0 |
USA [Member] | ||
Income Tax [Line Items] | ||
Net change in the valuation allowance | -600,000 | 1,100,000 |
Net operating loss carry forwards | 151,000,000 | |
Expiration date of operating loss carry forward | 31-Dec-30 | |
Open tax years | 2010 | |
CHINA [Member] | ||
Income Tax [Line Items] | ||
Net change in the valuation allowance | 1,800,000 | 1,800,000 |
Net operating loss carry forwards | $32,900,000 | |
Expiration date of operating loss carry forward | 31-Dec-19 | |
State [Member] | ||
Income Tax [Line Items] | ||
Open tax years | 2008 |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
STOCK-BASED COMPENSATION [Abstract] | ||
Unrecognized compensation cost of unvested stock options | $224,000 | |
Tax benefit recognized for stock- based compensation expense | $0 | $0 |
STOCKBASED_COMPENSATION_Schedu
STOCK-BASED COMPENSATION (Schedule of Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Shares | |||
Options outstanding | 12,048 | 28,691 | |
Options forfeited and expired | -200 | -16,643 | |
Options outstanding | 11,848 | 12,048 | 28,691 |
Options exercisable | 12,048 | 28,691 | |
Weighted Average Exercise Price | |||
Options outstanding | $0.40 | $0.44 | |
Options forfeited and expired | |||
Options outstanding | $0.38 | $0.40 | $0.44 |
Options exercisable | $0.40 | $0.44 | |
Aggregate Intrinsic Value | |||
Options outstanding | |||
Options forfeited and expired | |||
Options outstanding | |||
Options outstanding | 5 years | ||
Options exercisable | 3 years | 4 years |
LOSS_PER_SHARE_Details
LOSS PER SHARE (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
LOSS PER SHARE [Abstract] | ||
Net loss | ($17,583) | ($14,996) |
Basic and diluted earnings per share | ($0.05) | ($0.05) |
Basic weighted average shares outstanding | 377,547 | 302,518 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 12,048 | 12,048 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 38,000 | 38,000 |
SEGMENT_REPORTING_Narrative_De
SEGMENT REPORTING (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
item | ||
SEGMENT REPORTING [Abstract] | ||
Number of reportable segments | 4 | |
Concentration Risk [Line Items] | ||
Revenues | $28,689 | $51,547 |
Geographic Concentration Risk [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 97.20% | 98.20% |
Revenues | 27,900 | 50,600 |
Geographic Concentration Risk [Member] | Cost of Goods Sold [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 98.20% | 98.50% |
Revenues | $31,100 | $49,800 |
Customer Concentration Risk [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 11.00% | 11.00% |
Supplier Concentration Risk [Member] | Cost of Goods Sold [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 9.00% | 22.00% |
SEGMENT_REPORTING_Schedule_of_
SEGMENT REPORTING (Schedule of Segment Results) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||
Net sales | $28,689,000 | $51,547,000 |
Gross profit (loss) | -3,014,000 | 952,000 |
Depreciation and amortization | 8,284,000 | 8,169,000 |
Net Loss | -24,373,000 | -21,949,000 |
Total assets | 90,996,000 | 107,033,000 |
Jonway Auto [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 27,889,000 | 50,631,000 |
Gross profit (loss) | -3,239,000 | 797,000 |
Depreciation and amortization | 5,756,000 | 5,541,000 |
Net Loss | -13,858,000 | -14,190,000 |
Total assets | 73,168,000 | 86,971,000 |
ZAP [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 800,000 | 871,000 |
Gross profit (loss) | 225,000 | 188,000 |
Depreciation and amortization | 2,528,000 | 2,628,000 |
Net Loss | -10,515,000 | -7,516,000 |
Total assets | 17,754,000 | 19,991,000 |
Voltage Vehicles Car Lot [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | ||
Gross profit (loss) | ||
Depreciation and amortization | ||
Net Loss | -174,000 | |
Total assets | ||
Advanced Technology Vehicles [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 45,000 | |
Gross profit (loss) | -33,000 | |
Depreciation and amortization | ||
Net Loss | -68,000 | |
Total assets | ||
ZAP Hong Kong [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | ||
Gross profit (loss) | ||
Depreciation and amortization | ||
Net Loss | -1,000 | |
Total assets | $74,000 | $71,000 |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERS' EQUITY (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Aug. 14, 2014 | Dec. 31, 2014 | Apr. 30, 2014 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Stock issued for due to related parties | $2,194,000 | |||||
Stock issued for due to related parties, shares | 35,915,360 | |||||
Stock issued to pay interest | 1,876,000 | |||||
Stock issued to pay interest payable, shares | 15,166,651 | |||||
Stock issued for asset acquisition | 5,969,000 | |||||
Shares issued for asset acquisition, shares | 61,000,000 | |||||
Stock issued for addressing a lawsuit | 5,000 | |||||
Stock issued for addressing a lawsuit, shares | 62,500 | |||||
Proceeds from issuance of common stock | 1,900,000 | |||||
Share price (in dollars per share) | $0.06 | $0.06 | $0.06 | |||
Chief Executive Officer [Member] | ||||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Stock issued to settle the cash advance, shares | 10,915,748 | |||||
Stock issued to settle the cash advance | 654,945 | |||||
Individual [Member] | ||||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Stock issued to settle the cash advance, shares | 2,666,666 | |||||
Stock issued to settle the cash advance | 160,000 | |||||
Letter Of Commitment [Member] | ||||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Common stock to be issued, shares | 31,666,668 | |||||
Proceeds from issuance of common stock | 1,900,000 | |||||
Cathaya Operations [Member] | ||||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Stock issued for due to related parties | 967,543 | |||||
Stock issued for due to related parties, shares | 17,819,783 | |||||
Stock issued to settle the cash advance, shares | 4,513,163 | |||||
Stock issued to settle the cash advance | 410,800 | |||||
Conversion of debt, percentage below market price | 30.00% | |||||
CEVC [Member] | ||||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Stock issued to pay interest | 1,237,345 | 639,068 | ||||
Stock issued to pay interest payable, shares | 8,727,099 | 6,439,552 | ||||
Convertible notes payable | 20,700,000 | |||||
Jeffery And Karen Bank [Member] | ||||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Stock issued for addressing a lawsuit | 5,000 | |||||
Stock issued for addressing a lawsuit, shares | 62,500 | |||||
Major Management Limited [Member] | ||||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Shares issued for asset acquisition, shares | 20,000,000 | |||||
Max Reliance Management Limited [Member] | ||||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Shares issued for asset acquisition, shares | 20,000,000 | |||||
New Dragon Management Limited [Member] | ||||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Shares issued for asset acquisition, shares | 21,000,000 | |||||
Transaction Five [Member] | ||||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||||
Value of shares issued | $12,000 | |||||
Shares issued | 69,677 |
SHAREHOLDERS_EQUITY_Schedule_o
SHAREHOLDERS' EQUITY (Schedule of Warrants Outstanding) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Class of Warrant or Right [Line Items] | ||
Number of Warrants | 38,000 | 38,000 |
$0.50 Warrants-Restricted [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of Warrants | 18,000 | |
Exercise Price | $0.50 | |
Expiration Date | 1-Jun-14 | |
$0.50 Warrants-Restricted [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of Warrants | 20,000 | |
Exercise Price | $0.50 | |
Expiration Date | 12-Feb-15 | |
$0.50 Warrants-Restricted [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of Warrants | 18,000 | |
Exercise Price | $0.50 | |
Expiration Date | 6-Aug-15 | |
$0.50 Warrants-Restricted [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of Warrants | 20,000 | |
Exercise Price | $0.50 | |
Expiration Date | 12-Aug-15 |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Apr. 30, 2014 | |
Related Party Transaction [Line Items] | ||||
Stock issued for due to related parties | $2,194,000 | |||
Stock issued for due to related parties, shares | 35,915,360 | |||
Stock issued to pay interest | 1,876,000 | |||
Stock issued to pay interest payable, shares | 15,166,651 | |||
Shares issued for asset acquisition, shares | 61,000,000 | |||
Cathaya Operations [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stock issued for due to related parties | 967,543 | |||
Stock issued for due to related parties, shares | 17,819,783 | |||
Conversion of debt, percentage below market price | 30.00% | |||
Stock issued to settle the cash advance, shares | 4,513,163 | |||
Stock issued to settle the cash advance | 410,800 | |||
CEVC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stock issued to pay interest | 1,237,345 | 639,068 | ||
Convertible notes payable | 20,700,000 | |||
Stock issued to pay interest payable, shares | 8,727,099 | 6,439,552 | ||
Major Management Limited [Member] | ||||
Related Party Transaction [Line Items] | ||||
Shares issued for asset acquisition, shares | 20,000,000 | |||
Max Reliance Management Limited [Member] | ||||
Related Party Transaction [Line Items] | ||||
Shares issued for asset acquisition, shares | 20,000,000 | |||
New Dragon Management Limited [Member] | ||||
Related Party Transaction [Line Items] | ||||
Shares issued for asset acquisition, shares | 21,000,000 | |||
Jonway Group [Member] | ||||
Related Party Transaction [Line Items] | ||||
Transaction amount | 3,000,000 | |||
Interest rate | 8.00% | |||
Purchases | 2,900,000 | 1,400,000 | ||
Sanmen Branch [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses | 281,000 | 706,000 | ||
Sanmen Branch [Member] | Sport Utility Vehicles [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 52,000 | 95,000 | ||
Sanmen Branch [Member] | Spare Parts [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 1,379,000 | 8,255,000 | ||
Jonway Motor Cycle [Member] | Spare Parts [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases | 18,000 | 55,000 | ||
Taizhou Huadu [Member] | Spare Parts [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases | 352,000 | 1,214,000 | ||
Taizhou Jonway Electric Vehicle Selling Co [Member] | Urbee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue | $8,755,000 |
RELATED_PARTY_TRANSACTIONS_Sch
RELATED PARTY TRANSACTIONS (Schedule of Related Party Balances) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Amount due from related party | $2,791 | $6,061 |
Amount due to related party | 7,121 | 2,781 |
Sanmen Branch [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related party | 1,427 | 4,973 |
JAZ [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related party | 1,311 | 961 |
Jonway Group [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related party | 2,648 | 303 |
Jonway Motor Cycle [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related party | 53 | |
Amount due to related party | 64 | 113 |
Taizhou Huadu [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related party | 652 | 631 |
Shanghai Zapple [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related party | 37 | 36 |
ZAP Hangzhou [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due from related party | 127 | |
Ms. Lu [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related party | 30 | |
Mr. Wang [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related party | 146 | |
Better World [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related party | 149 | 149 |
Taizhou Jonway Electric Vehicle Selling Co [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related party | 2,306 | |
Zhejiang Jonway Painting Co. Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related party | 472 | 372 |
Cathaya Operations Management Ltd. | ||
Related Party Transaction [Line Items] | ||
Amount due to related party | 297 | 797 |
Cathaya Management Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amount due to related party | $350 | $350 |
RELATED_PARTY_TRANSACTIONS_Sch1
RELATED PARTY TRANSACTIONS (Schedule of Contract Fees) (Details) (Sanmen Branch [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
First 3,000 Vehicles [Member] | |
Related Party Transaction [Line Items] | |
Contractual fee per vehicle | $44 |
First 3,000 Vehicles [Member] | Maximum [Member] | |
Related Party Transaction [Line Items] | |
Number of vehicles assembled | 3,000 |
Vehicles 3,001 to 5,000 [Member] | |
Related Party Transaction [Line Items] | |
Contractual fee per vehicle | 30 |
Vehicles 3,001 to 5,000 [Member] | Minimum [Member] | |
Related Party Transaction [Line Items] | |
Number of vehicles assembled | 3,001 |
Vehicles 3,001 to 5,000 [Member] | Maximum [Member] | |
Related Party Transaction [Line Items] | |
Number of vehicles assembled | 5,000 |
Over 5,000 Vehicles [Member] | |
Related Party Transaction [Line Items] | |
Contractual fee per vehicle | $22 |
Over 5,000 Vehicles [Member] | Minimum [Member] | |
Related Party Transaction [Line Items] | |
Number of vehicles assembled | 5,000 |
LITIGATION_Details
LITIGATION (Details) (USD $) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Jan. 12, 2015 | |
item | ||
LITIGATION [Abstract] | ||
Potential loss contingency | $0 | |
Average market price of 2008 Xebra | 3,100 | |
Number of vehicles subject to remedy | 686 | |
Number of refunds granted | 316 | |
Maximum number of vehicles which are picked up | 315 | |
Payment for settlement | 1,081,159 | |
Abdou [Member] | Subsequent Event [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation payment | $167,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Shanghai PuDong Development Bank [Member] | Taizhou Jonway Jing Mao Trading Ltd. [Member] | |
Guarantees [Line Items] | |
Face amount | $1,800,000 |
Period of guarantee | 5 years |
Collateral amount | 526,000 |
Jonway Auto [Member] | |
Guarantees [Line Items] | |
Potential payments under guarantee | $2,400,000 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended |
Jan. 31, 2015 | Apr. 23, 2014 | 31-May-14 | Jan. 07, 2015 | Feb. 28, 2015 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Anticipated Period for Trial for Product Proposed | 1 year | ||||
Convertible Subordinated Debt [Member] | |||||
Subsequent Event [Line Items] | |||||
Shares issued upon conversion of debt | 3,108,747 | 4,862,237 | |||
Convertible Subordinated Debt [Member] | Korea Yung [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayment of principal amount | $100,000 | ||||
Repayment of interest amount | $8,433 | ||||
Shares issued upon conversion of debt | 5,912,786 | ||||
Number of maximum business days from written notice for payment | 5 days |