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Bank Loans | 3 Months Ended
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Mar. 31, 2017
Bank Loans [Text Block] |
11. | Bank Loans
| Bank borrowings as of December 31, 2016 and March 31, 2017 consisted of the followings
|  |  | December 31, |  |  | March 31, |
|  |  | 2016 |  |  | 2017 |
| Short-term bank borrowings | $ | 1,439,947 |  | $ | 1,451,653 |
| Long-term bank borrowings |  | 18,258,528 |  |  | 18,406,956 |
|  | $ | 19,698,475 |  | $ | 19,858,609 |
On June 10 and 15, 2016, the Company repaid Bank of Dandong the one-year short term loans of RMB30 million and RMB50 million, respectively, obtained under its banking facilities in June 2015. On June 14, 2016, the Company renewed its banking facilities from Bank of Dandong to provide a maximum amount of RMB130 million (approximately $18.9 million), including three-year long-term loans and three-year revolving bank acceptance and letters of credit bills for the period from June 13, 2016 to June 12, 2019. Under the banking facilities, from June to September 2016, the Company borrowed various three-year bank loans that totaled RMB126.8 million (approximately $18.4 million), bearing fixed interest at 7.2% per annum. The banking facilities were guaranteed by Mr. Xianqian Li, our former CEO, Ms. Xiaoqiu Yu, the wife of the Company’s former CEO, Shenzhen BAK, Mr. Yunfei Li, the Company’s CEO, and Ms. Qinghui Yuan, Mr. Yunfei Li’s wife. On July 6, 2016, the Company obtained new banking facilities from Bank of Dalian to provide a maximum loan amount of RMB10 million (approximately $1.5 million) and bank acceptance of RMB40 million (approximately $5.8 million) to July 2017. The banking facilities were guaranteed by Shenzhen BAK, Mr. Yunfei Li, our CEO, and Ms. Qinghui Yuan, Mr. Yunfei Li’s wife. On July 6, 2016, the Company borrowed a one-year term bank loan of RMB10 million (approximately $1.5 million), bearing fixed interest at 6.525% per annum.
| The facilities were also secured by the Company’s assets with the following carrying amounts:
|  |  | December 31, |  |  | March 31, |
|  |  | 2016 |  |  | 2017 |
| Pledged deposits (note 2) | $ | 3,064,155 |  | $ | 2,955,293 |
| Prepaid land use rights (note 9) |  | 7,698,523 |  |  | 7,720,331 |
| Buildings |  | 11,729,172 |  |  | 11,740,821 |
| Machinery and equipment |  | 2,598,882 |  |  | 2,920,192 |
| Construction in progress |  | 6,156,488 |  |  | 6,185,395 |
|  | $ | 31,247,220 |  | $ | 31,522,032 |
| As of March 31, 2017, the Company had unutilized committed banking facilities of $0.4 million.
| During the three months ended March 31, 2016 and 2017, interest of $242,338 and $358,960, respectively, was incurred on the Company's bank borrowings.

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- Definition The entire disclosure for short-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.16) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.13) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 + Details
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