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Bank Loans
9 Months Ended
Sep. 30, 2018
Bank Loans  
Bank Loans

Note 16. Bank Loans

 

In September 2018, Tongmei entered into a credit facility with ICBC in China with a $2.9 million line of credit at an annual interest rate of approximately 0.04% over the current Loan Prime Rate by published by ICBC. Accrued interest is calculated and paid monthly. The annual interest rate was approximately 4.4% as of September 30, 2018. This credit line is secured by Tongmei’s land-use right and all of its buildings located at its facility in Beijing. The primary intended use of the credit facility is for general purposes, which may include working capital, capital expenditures and other corporate expenses.

 

On September 30, 2018, we borrowed $291,000 against this credit line. The repayment of the full amount is due in September 2019. As of September 30, 2018, $291,000 was included in “Bank loan” in our condensed consolidated balance sheets.