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Short-term Bank Loans
 9 Months Ended
Jun. 30, 2014
Short-term Bank Loans [Text Block]

9. Short-term Bank Loans

As of September 30, 2013 and June 30, 2014, the Company had several short-term bank loans with aggregate outstanding balances of $151,404,677 and nil. The loans were primarily obtained for general working capital, carried at interest rates ranging from 5.88% to 15.00% per annum, and had maturity dates ranging from 9 to 12 months. The loans are guaranteed by Mr. Li, the Company's CEO, BAK International (TJ) Ltd and BAK International Ltd. These facilities were also secured by the Company's assets with the following carrying values:

 

   September 30, 2013     June 30, 2014  

Inventories

 $ 24,505,399   $   -  

Accounts receivable, net

   31,392,774     -  

Machinery and equipment, net

   12,211,038     -  

Land use rights, buildings and construction in progress of BAK Industrial Park

   87,763,440     -  

Land use rights and buildings of Research and Development Test Centre

   43,143,525     -  

Land use rights #1 and buildings of Tianjin Industrial Park Zone

   17,857,940     -  

 

 $ 216,874,116   $   -  

During the three months ended June 30, 2013 and 2014, interest expenses of $3,786,211 and $1,101,889, respectively, were incurred on the Company’s short-term bank borrowings.

During the nine months ended June 30, 2013 and 2014, interest expenses of $9,502,769 and $5,693,738, respectively, were incurred on the Company’s short-term bank borrowings.