ZAP was incorporated under the laws of the State of California, on September 23, 1994, as "ZAP Power Systems." The name of the Company was changed to "ZAPWORLD.COM" on May 16, 1999 in order to increase our visibility in the world of electronic commerce. We subsequently changed our name to ZAP on June 18, 2001 in order to reflect our growth and entry into larger, more traditional markets. Our principal executive offices are located at 501 Fourth Street Santa Rosa, California, 95401. Our telephone number is (707) 525-8658. Our website is www.zapworld.com.
Today, ZAP is renewing its focus as a pioneer at the forefront of advanced transportation technologies. The Company has established an automotive portal to distribute vehicles to offer consumers, fleet and other stakeholders product that better address social responsibility and environmental sustainability than is being offered by the traditional automobile manufacturers. Through this portal, and the continued establishment of partnerships with select manufacturers, ZAP intends to play a small part in building awareness of the evolving technologies available for automotive transportation and in reducing our nation's dependency on foreign oil. To complement the efforts of its automotive portal, ZAP is also aggressively upgrading and expanding its traditional consumer products, incorporating new motor, drive control and battery technologies and solidifying its advance energy solutions through a new portable energy line of products. We market many forms of advanced transportation vehicles, including electric automobiles, fuel-efficient vehicles, motorcycles, bicycles, scooters, neighborhood electric vehicles and all terrain vehicles. We market products designed solely by us, as well as products we design together with other companies. Most of our products are manufactured in China. Our automobiles are assembled outside of the United States, but made to comply with United States laws. The Smart Car Americanized by ZAP is manufactured and made compliant for sale in the United States by a registered importer. As of September 30, 2006, the company no longer distributes the Smart Car Americanized by ZAP due to the unavailability of Smart Cars. In June 2006 we began delivery of our Xebra, the only full production electric vehicle available in the United States capable of speeds in excess of 40 miles per hour. Our automobile products require registration with state vehicle registration departments and must be sold through licensed dealers, while our consumer vehicles can be sold directly to consumers without registration.
Our automobile vehicles are subject to environmental and safety compliance with various Federal and State governmental regulations, including regulations promulgated by the Environmental Protection Agency, National Highway Traffic Safety Administration and Air Resource Board of the State of California (CARB). The costs of these compliance activities can be substantial.
In summary, ZAP is a one-stop portal for quality, affordable advanced automotive technologies, and our goal is to become the largest and most complete distribution portal in the United States for advanced technology vehicles. We are focused on creating a distribution channel for our automobile and consumer products by establishing qualified automobile-dealers and developing relationships with specialty dealers throughout the United States. We currently market and sell our automobile products through qualified automotive dealers, including our subsidiary, Voltage Vehicles. We currently market and sell our consumer products directly to consumers through our Internet Web site, independent dealers and representatives, retail outlets, as well as through our qualified automobile dealers. We continue to develop new products independently and through development and acquisition agreements with companies and manufacturers, and by the purchase of products manufactured to our specifications. We have grown from a single product line to a full product line of electric vehicle and advanced transportation products.
Subsidiaries
We have the following wholly owned subsidiaries: Voltage Vehicles, a Nevada company ("Voltage Vehicles"), ZAP Rental Outlet, a Nevada company ("ZAP Rentals"), ZAP Stores, Inc., a California company ("ZAP Stores"), ZAP Manufacturing, Inc., a Nevada company ("ZAP Manufacturing") and ZAP World Outlet, Inc., a California company ("ZAP World"). Voltage Vehicles is engaged primarily in the distribution and sale of advanced technology through Voltage Vehicles dealers. The Company also operates a retail vehicle outlet in Santa Rosa to distribute advanced technology vehicles and some conventional gas automobiles. ZAP Stores is engaged primarily in consumer sales of ZAP products and ZAP Manufacturing is engaged primarily in the distribution of ZAP products. ZAP World Outlet and ZAP Rental Outlet are not currently operating subsidiaries.
Recent Developments
Some of the noteworthy events for the Company that occurred during 2007 and through the date of this report are as follows:
1. In November we received $5 million from the issuance of common stock in a private placement to a qualified investor.
2. We signed a joint venture agreement with Youngman Automotive Group, China's number one luxury motor coach and high-quality commercial truck manufacturer, to manufacture, market and distribute electric and hybrid vehicles for the passenger car, truck and bus markets. See Note 12, "China Joint Venture" of the notes to the interim unaudited condensed consolidated financial statements for further description of this agreement.
3. During the third quarter we received orders for over 50,000 units of our Recharge-It-All line of rechargeable lithium battery storage devices. ZAP's Recharge-It-All line is a unique rechargeable battery system that can provide a portable power source for almost any kind of mobile electronic device, from cell phones, to digital cameras, to laptops. More than just a battery, Recharge-It-All can automatically sense and deliver the appropriate voltage for a range of power settings.
4. We also signed an agreement for the purchase of an advanced wheel motor from PML FlightLink Limited for the PML wheel motor technology, which we expect to play a key role in the development of next generation electric vehicles being developed with Lotus Engineering. See Note 12 "Distribution Agreement" of the notes to the interim unaudited condensed consolidated financial statements for further description of this agreement.
5. We signed an agreement with Coca-Cola's Latin America subsidiary, Montevideo Refrescos Sociedad SA (Monresa). The contract is a purchase and service agreement for ZAP XEBRA® trucks. The first container of ZAP trucks is in transit from China and more details are expected to be announced with the rollout of the business model between ZAP and Coca-Cola.
6. We are now developing a new electric vehicle that is affordable for consumers. With a targeted price of $30,000, the technology for the new vehicle is similar to that of an electric SUV concept announced earlier this year called ZAP-Alias, but will be available sooner.
7. We have been allowed a patent and trademark for the ZAP XEBRA® city-speed electric car and truck from the United States Patent and Trademark Office. Over 500 Xebra trucks and sedans have been delivered through September 30, 2007.
8. To help mitigate pollution and traffic congestion, Chile's largest power company, CHILECTRA, will allow its customers to use their monthly utility bill to finance the purchase of electric bicycles, scooters, mopeds and other vehicles from us. As part of the program, CHILECTRA has signed an exclusive agreement with ZAP to distribute its full-line of electric transportation in Chile.
Today, ZAP is renewing its focus as a pioneer at the forefront of advanced transportation technologies. The Company has established an automotive portal to distribute vehicles to offer consumers, fleet and other stakeholders product that better address social responsibility and environmental sustainability than is being offered by the traditional automobile manufacturers. Through this portal, and the continued establishment of partnerships with select manufacturers, ZAP intends to play a small part in building awareness of the evolving technologies available for automotive transportation and in reducing our nation's dependency on foreign oil. To complement the efforts of its automotive portal, ZAP is also aggressively upgrading and expanding its traditional consumer products, incorporating new motor, drive control and battery technologies and solidifying its advance energy solutions through a new portable energy line of products. We market many forms of advanced transportation vehicles, including electric automobiles, fuel-efficient vehicles, motorcycles, bicycles, scooters, neighborhood electric vehicles and all terrain vehicles. We market products designed solely by us, as well as products we design together with other companies. Most of our products are manufactured in China. Our automobiles are assembled outside of the United States, but made to comply with United States laws. The Smart Car Americanized by ZAP is manufactured and made compliant for sale in the United States by a registered importer. As of September 30, 2006, the company no longer distributes the Smart Car Americanized by ZAP due to the unavailability of Smart Cars. In June 2006 we began delivery of our Xebra, the only full production electric vehicle available in the United States capable of speeds in excess of 40 miles per hour. Our automobile products require registration with state vehicle registration departments and must be sold through licensed dealers, while our consumer vehicles can be sold directly to consumers without registration.
Our automobile vehicles are subject to environmental and safety compliance with various Federal and State governmental regulations, including regulations promulgated by the Environmental Protection Agency, National Highway Traffic Safety Administration and Air Resource Board of the State of California (CARB). The costs of these compliance activities can be substantial.
In summary, ZAP is a one-stop portal for quality, affordable advanced automotive technologies, and our goal is to become the largest and most complete distribution portal in the United States for advanced technology vehicles. We are focused on creating a distribution channel for our automobile and consumer products by establishing qualified automobile-dealers and developing relationships with specialty dealers throughout the United States. We currently market and sell our automobile products through qualified automotive dealers, including our subsidiary, Voltage Vehicles. We currently market and sell our consumer products directly to consumers through our Internet Web site, independent dealers and representatives, retail outlets, as well as through our qualified automobile dealers. We continue to develop new products independently and through development and acquisition agreements with companies and manufacturers, and by the purchase of products manufactured to our specifications. We have grown from a single product line to a full product line of electric vehicle and advanced transportation products.
Subsidiaries
We have the following wholly owned subsidiaries: Voltage Vehicles, a Nevada company ("Voltage Vehicles"), ZAP Rental Outlet, a Nevada company ("ZAP Rentals"), ZAP Stores, Inc., a California company ("ZAP Stores"), ZAP Manufacturing, Inc., a Nevada company ("ZAP Manufacturing") and ZAP World Outlet, Inc., a California company ("ZAP World"). Voltage Vehicles is engaged primarily in the distribution and sale of advanced technology through Voltage Vehicles dealers. The Company also operates a retail vehicle outlet in Santa Rosa to distribute advanced technology vehicles and some conventional gas automobiles. ZAP Stores is engaged primarily in consumer sales of ZAP products and ZAP Manufacturing is engaged primarily in the distribution of ZAP products. ZAP World Outlet and ZAP Rental Outlet are not currently operating subsidiaries.
Recent Developments
Some of the noteworthy events for the Company that occurred during 2007 and through the date of this report are as follows:
1. In November we received $5 million from the issuance of common stock in a private placement to a qualified investor.
2. We signed a joint venture agreement with Youngman Automotive Group, China's number one luxury motor coach and high-quality commercial truck manufacturer, to manufacture, market and distribute electric and hybrid vehicles for the passenger car, truck and bus markets. See Note 12, "China Joint Venture" of the notes to the interim unaudited condensed consolidated financial statements for further description of this agreement.
3. During the third quarter we received orders for over 50,000 units of our Recharge-It-All line of rechargeable lithium battery storage devices. ZAP's Recharge-It-All line is a unique rechargeable battery system that can provide a portable power source for almost any kind of mobile electronic device, from cell phones, to digital cameras, to laptops. More than just a battery, Recharge-It-All can automatically sense and deliver the appropriate voltage for a range of power settings.
4. We also signed an agreement for the purchase of an advanced wheel motor from PML FlightLink Limited for the PML wheel motor technology, which we expect to play a key role in the development of next generation electric vehicles being developed with Lotus Engineering. See Note 12 "Distribution Agreement" of the notes to the interim unaudited condensed consolidated financial statements for further description of this agreement.
5. We signed an agreement with Coca-Cola's Latin America subsidiary, Montevideo Refrescos Sociedad SA (Monresa). The contract is a purchase and service agreement for ZAP XEBRA® trucks. The first container of ZAP trucks is in transit from China and more details are expected to be announced with the rollout of the business model between ZAP and Coca-Cola.
6. We are now developing a new electric vehicle that is affordable for consumers. With a targeted price of $30,000, the technology for the new vehicle is similar to that of an electric SUV concept announced earlier this year called ZAP-Alias, but will be available sooner.
7. We have been allowed a patent and trademark for the ZAP XEBRA® city-speed electric car and truck from the United States Patent and Trademark Office. Over 500 Xebra trucks and sedans have been delivered through September 30, 2007.
8. To help mitigate pollution and traffic congestion, Chile's largest power company, CHILECTRA, will allow its customers to use their monthly utility bill to finance the purchase of electric bicycles, scooters, mopeds and other vehicles from us. As part of the program, CHILECTRA has signed an exclusive agreement with ZAP to distribute its full-line of electric transportation in Chile.
