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Loans | 9 Months Ended
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Sep. 30, 2017
Loans [Text Block] |
12. | Loans
Bank loans: Bank borrowings as of December 31, 2016 and September 30, 2017 consisted of the followings
|  |  | December 31, |  |  | September 30, |
|  |  | 2016 |  |  | 2017 |
| Short-term bank borrowings | $ | 1,439,947 |  | $ | - |
| Long-term bank borrowings |  | 18,258,528 |  |  | 19,053,630 |
|  | $ | 19,698,475 |  | $ | 19,053,630 |
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 $19.5 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 $19.1 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 $6.0 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. On July 5, 2017, the Company repaid the loan of RMB10 million (approximately $1.5 million) and the Company was still in progress to renew the bank facilities. The bank loans were also secured by the Company’s assets with the following carrying amounts:
|  |  | December 31, |  |  | September 30, |
|  |  | 2016 |  |  | 2017 |
| Pledged deposits (note 2) | $ | 3,064,155 |  | $ | 692,419 |
| Prepaid land use rights (note 9) |  | 7,698,523 |  |  | 7,907,143 |
| Buildings |  | 11,729,172 |  |  | 18,252,861 |
| Machinery and equipment |  | 2,598,882 |  |  | 2,754,734 |
| Construction in progress |  | 6,156,488 |  |  | 94,231 |
|  | $ | 31,247,220 |  | $ | 29,701,388 |
As of September 30, 2017, the Company had unutilized committed banking facilities of $10.3 million (Note 1). During the three months ended September 30, 2016 and 2017, interest of $314,220 and $346,962, respectively, was incurred on the Company's bank borrowings. During the nine months ended September 30, 2016 and 2017, interest of $798,210 and $1,050,474, respectively, was incurred on the Company's bank borrowings. Other Short-term Loans Other short-term loans as of December 31, 2016 and September 30, 2017 consisted of the following:
|  |  |  |  |  | December 31, |  |  | September 30, |
|  |  | Note |  |  | 2016 |  |  | 2017 |
| Advance from related parties |  |  |  |  |  |  |  |  |
| – Tianjin BAK New Energy Research Institute Co., Ltd (“Tianjin New Energy”) |  | (a) |  | $ | 9,252,127 |  | $ | 10,228,290 |
| – Mr. Xiangqian Li, the Company’s Former CEO |  | (b) |  |  | 100,000 |  |  | 100,000 |
| –Shareholders |  | (c) |  |  | - |  |  | 2,103,714 |
|  |  |  |  |  | 9,352,127 |  |  | 12,432,004 |
| Advances from unrelated third party |  |  |  |  |  |  |  |  |
| – Mr. Guozhu Liang |  | (d) |  | $ | 14,399 |  |  | - |
| – Mr. Wenwu Yu |  | (d) |  |  | 145,410 |  |  | 151,742 |
| – Mr. Mingzhe Li |  | (d) |  |  | 796,850 |  |  | 43,278 |
| – Ms. Longqian Peng |  | (d) |  |  | 215,992 |  |  | 676,193 |
|  |  |  |  |  | 1,172,651 |  |  | 871,213 |
|  |  |  |  | $ | 10,524,778 |  | $ | 13,303,217 |
| (a) | The Company received advances from Tianjin New Energy, a related company under the control of Mr. Xiangqian Li, the Company’s former CEO, which was unsecured, non-interest bearing and repayable on demand. On November 1, 2016, Mr. Xiangqian Li ceased to be a shareholder but remained as a general manager of Tianjin New Energy. As of December 31, 2016 and September 30, 2017, the payable to Tianjin New Energy of $20,384 and nil, respectively, was included in trade accounts and bills payable.
| (b) | Advances from Mr. Xiangqian Li, the Company’s former CEO, was unsecured, non-interest bearing and repayable on demand.
| (c) | The refundable deposits paid by certain shareholders in relation to share purchase (note 1) were unsecured, non-interest bearing and repayable on demand.
| (d) | Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand.

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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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