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Loans | 9 Months Ended
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Sep. 30, 2022
Debt Disclosure [Abstract] |
Loans | 14. Loans Bank loans: Bank borrowings as of December 31, 2021 and September 30, 2022 consisted of the followings
|  | December 31, |  |  | September 30, |
|  | 2021 |  |  | 2022 |
Short-term bank borrowings |  | $ | 8,811,820 |  |  | $ | 17,573,866 |
On June 4, 2018, the Company obtained banking facilities from China Everbright Bank Dalian Branch with a maximum amount of RMB200 million (approximately $30.63 million) bearing interest at 130% of benchmark rate of the People’s Bank of China (“PBOC”) for three-year long-term loans with the term from June 12, 2018 to June 10, 2021, at current rate 6.175% per annum. The facilities were secured by the Company’s land use rights, buildings, machinery and equipment. According to the original repayment schedule, the loans are repayable in six installments of RMB0.8 million ($0.12 million) on December 10, 2018, RMB24.3 million ($3.72 million) on June 10, 2019, RMB0.8 million ($0.12 million) on December 10, 2019, RMB74.7 million ($11.44 million) on June 10, 2020, RMB0.8 million ($0.12 million) on December 10, 2020 and RMB66.3 million ($10.16 million) on June 10, 2021. The Company repaid the bank loan of RMB0.8 million ($0.12 million), RMB24.3 million ($3.72 million) and RMB0.8 million ($0.12 million) in December 2018, June 2019 and December 2019, respectively. On June 28, 2020, the Company entered into a supplemental agreement with China Everbright Bank Dalian Branch to change the repayment schedule. According to the modification agreement, the remaining RMB141.8 million (approximately $21.72 million) loans are repayable in eight instalments consisting of RMB1.09 million ($0.17 million) on June 10, 2020, RMB1 million ($0.15 million) on December 10, 2020, RMB2 million ($0.31 million) on January 10, 2021, RMB2 million ($0.31 million) on February 10, 2021, RMB2 million ($0.31 million) on March 10, 2021, RMB2 million ($0.31 million) on April 10, 2021, RMB2 million ($0.31 million) on May 10, 2021, and RMB129.7 million ($19.9 million) on June 10, 2021, respectively. As of June 30, 2021, the Company repaid all the bank loan. On November 16, 2021, the Company obtained banking facilities from Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB120.1 million (approximately $16.9 million) with the term from November 18, 2021 to November 18, 2026. The facility was secured by the Company’s land use rights and buildings. Under the facility, the Company has borrowed a total of RMB56.0 million (approximately $8.8 million) and RMB76.1 million (approximately $10.7 million) as of December 31, 2021 and September 30, 2022, respectively, for varying terms ending between November 16, 2022 and May 16, 2023, bearing interest at 4.15% - 4.35% per annum. Subsequent to September 30, 2022, the Company has repaid RMB56 million (approximately $7.9 million) and drawn down another RMB56 million (approximately $7.9 million) under the same facility for an annual interest rate at 4.15%, repayable by May 16, 2023. In October to December 2020, the Company borrowed a series of acceptance bills from China Merchants Bank totaled RMB13.5 million (approximately $2.07 million) for various terms through April to June 2021, which was secured by the Company’s cash totaled RMB13.5 million (approximately $2.07 million). The Company repaid the bills through April to June 2021. On April 19, 2021, the Company obtained five-year acceptance bills facilities from Bank of Ningbo Co., Ltd with a maximum amount of RMB84.4 million (approximately $13.2 million). Any amount drawn under the facilities requires security in the form of cash or bank acceptance bills receivable of at least the same amount. Under the facilities, as of December 31, 2021, the Company borrowed a total of RMB10 million (approximately $1.6 million) from Bank of Ningbo Co., Ltd in the form of bills payable for a various term expiring from January to February 2022, which was secured by the Company’s cash totaled RMB10 million (approximately $1.6 million). The Company repaid the bills in January to February 2022. On March 21, 2022, the Company renewed the above acceptance bills facilities from Bank of Ningbo Co., Ltd with a maximum amount of RMB71.6 million ($10.1 million) with other terms remain the same. Under the facilities, as of September 30, 2022, the Company borrowed a total of RMB11.5 million (approximately $1.6 million) in the form of bills payable for various terms expiring from November 2022 to March 2023, which was secured by the Company’s cash totaling RMB11.5 million (approximately $1.6 million) (Note 2). On January 17, 2022, the Company obtained a one-year term facility from Agricultural Bank of China with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 105% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 3.85% per annum. The facility was guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB10 million (approximately $1.4 million) on the same date for a term until January 16, 2023. On February 9, 2022, the Company obtained a one-year term facility from Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 124% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 4.94% per annum. The facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment and the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB10 million (approximately $1.4 million) on the same date for a term until January 28, 2023. On March 8, 2022, the Company obtained a one-year term facility from China Zheshang Bank Co., Ltd. Shangyu Branch with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 5.5% per annum. The facility was guaranteed by 100% equity in CBAK Power held by BAK Asia and the Company’s CEO, Mr. Yunfei Li. The Company borrowed RMB10 million (approximately $1.4 million) on the same date. On May 17, 2022, the Company early repaid the loan principal and related loan interests. On April 28, 2022, the Company obtained a three-year term facility from Industrial and Commercial Bank of China Nanjing Gaochun branch, with a maximum amount of RMB12 million (approximately $1.7 million) with the term from April 21, 2022 to April 21, 2025. The facilities were guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Under the facility, the Company borrowed RMB10 million (approximately $1.4 million) on April 29, 2022, bearing interest at 3.95% per annum for a term until April 29, 2023. On June 22, 2022, the Company obtained another one-year term facility from China Zheshang Bank Co., Ltd. Shangyu Branch with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 4.5% per annum. The facility was guaranteed by 100% equity in CBAK Power held by BAK Asia and the Company’s CEO, Mr. Yunfei Li. The Company borrowed RMB10 million (approximately $1.4 million) on the same date for a term until June 21, 2023. On September 25, 2022, the Company entered into a new one-year term facility with Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB9 million (approximately $1.3 million) bearing interest rate at 4.81% per annum. The facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment and the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB9 million (approximately $1.3 million) on September 27, 2022 for a term until September 24, 2023. The Company borrowed a series of acceptance bills from Agricultural Bank of China totaling RMB80.0 million (approximately $11.2 million) for various terms through October 2022 to March 2023, which was secured by the Company’s cash totaling RMB80.0 million (approximately $11.2 million) (Note 2). The Company borrowed a series of acceptance bills from China Zheshang Bank Co. Ltd Shangyu Branch totaling RMB55.8 million (approximately $7.8 million) for various terms through October 2022 to March 2023, which was secured by the Company’s cash totaling RMB53.3 million (approximately $7.5 million) (Note 2) and the Company’s bills receivable totaled RMB4.0 million (approximately $0.6 million) (Note 3). The Company borrowed a series of acceptance bills from China Zheshang Bank Co. Ltd Shenyang Branch totaling RMB28.8 million (approximately $4.0 million) for various terms through October to November 2022, which was secured by the Company’s cash totaling RMB28.8 million (approximately $4.0 million) (Note 2). The Company borrowed a series of acceptance bills from Shaoxing Branch of Bank of Communications Co., Ltd totaling RMB5.5 million (approximately $0.8 million) for various terms ending in March 2023, which was secured by the Company’s cash totaling RMB5.5 million (approximately $0.8 million) (Note 2). The Company borrowed a series of acceptance bills from China Merchants Bank Dalian Branch totaling RMB91.2 million (approximately $12.8 million) for various terms through November 2022 to March 2023, which was secured by the Company’s cash totaling RMB91.2 million (approximately $12.8 million) (Note 2). The facilities were also secured by the Company’s assets with the following carrying amounts:
|  | December 31, |  |  | September 30, |
|  | 2021 |  |  | 2022 |
Pledged deposits (note 2) |  | $ | 18,996,749 |  |  | $ | 37,591,281 |
Bills receivable (note 3) |  |  | 4,446,553 |  |  |  | 562,121 |
Prepaid land use rights (note 9) |  |  | 6,268,473 |  |  |  | 5,476,575 |
Buildings |  |  | 8,565,837 |  |  |  | 5,442,571 |
|  | $ | 38,277,612 |  |  | $ | 49,072,548 |
As of September 30, 2022, the Company had unutilized committed banking facilities totaled $6.2 million. During the three months ended September 30, 2021 and 2022, interest of $19 and $183,291, respectively, was incurred on the Company’s bank borrowings. During the nine months ended September 30, 2021 and 2022, interest of $306,514 and $469,402, respectively, was incurred on the Company’s bank borrowings. Other Short-term Loans Other short-term loans as of December 31, 2021 and September 30, 2022 consisted of the following:
|  |  |  | December 31, |  |  | September 30, |
|  | Note |  | 2021 |  |  | 2022 |
Advance from related parties |  |  |  |  |  |  |  |
– Mr. Xiangqian Li, the Company’s Former CEO |  | (a) |  |  | 100,000 |  |  |  | 100,000 |
– Mr. Yunfei Li |  | (b) |  |  | 153,300 |  |  |  | 132,601 |
– Ms. Xiangyu Pei |  | (c) |  |  | - |  |  |  | 1,405,304 |
– Shareholders |  | (d) |  |  | 94,971 |  |  |  | 84,817 |
– Mr. Junnan Ye (note 11) |  |  |  |  | 3,933,848 |  |  |  | - |
|  |  |  |  | 4,282,119 |  |  |  | 1,722,722 |
Advances from unrelated third party |  |  |  |  |  |  |  |  |  |
– Mr. Wenwu Yu |  | (e) |  |  | 17,282 |  |  |  | 15,434 |
– Mr. Longqian Peng |  | (e) |  |  | 301,044 |  |  |  | 268,858 |
– Ms. Xia Liu |  | (e) |  |  | - |  |  |  | 702,652 |
– Ms. Xiaojuan Liu |  | (e) |  |  | - |  |  |  | 702,652 |
– Suzhou Zhengyuanwei Needle Ce Co., Ltd |  | (f) |  |  | 78,677 |  |  |  | 70,265 |
|  |  |  |  | 397,003 |  |  |  | 1,759,861 |
|  |  |  | $ | 4,679,122 |  |  | $ | 3,482,583 |
| (a) | Advances from Mr. Xiangqian Li, the Company’s former CEO, was unsecured, non-interest bearing and repayable on demand.
| (b) | Advances from Mr. Yunfei Li, the Company’s CEO, was unsecured, non-interest bearing and repayable on demand.
| (c) | Advances from Ms. Xiangyu Pei, the Company’s Interim CFO, was unsecured, non-interest bearing and repayable on demand.
| (d) | The earnest money paid by certain shareholders in relation to share purchase (note 1) were unsecured, non-interest bearing and repayable on demand.
| (e) | Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand.
| (f) | In 2019, the Company entered into a short term loan agreement with Suzhou Zhengyuanwei Needle Ce Co., Ltd, an unrelated party to loan RMB0.6 million (approximately $0.1 million), bearing annual interest rate of 12%. As of September 30, 2022, loan amount of RMB0.5 million ($0.1 million) remained outstanding.
During the three months ended September 30, 2021 and 2022, interest of $2,370 and $2,238 were incurred on the Company’s borrowings from unrelated parties, respectively. During the nine months ended September 30, 2021 and 2022, interest of $7,031 and $6,896 were incurred on the Company’s borrowings from unrelated parties, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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