5 - LONG-TERM DEBT FROM RELATED PARTY

9 Months Ended

Sep. 30, 2014

5 – LONG-TERM DEBT FROM RELATED PARTY

	September 30,			December 31,
	2014			2013
	(Unaudited)

Secured credit facility from related party	$	1,500,000		$	1,500,000
Less current portion		(500,000	)		-
Long-term debt, less current portion	$	1,000,000		$	1,500,000

Secured credit facility - On April 21, 2008 we entered into a $3,000,000 credit facility, collateralized by real property, from K.S. Best International Co. Ltd., a company controlled by the brother of our Chief Executive Officer. On April 12, 2013 we renewed and extended maturities to June 30, 2015 and beyond. Credit is available in $500,000 advances, each advance payable in monthly interest only installments, at the rate of Prime + 0.25% per annum. As of September 30, 2014 and December 31, 2013, the aggregate outstanding balance on this credit facility was $1,500,000. The advance history of the credit line is such that on June 3, 2008, we borrowed $500,000, on April 3, 2009, we borrowed $500,000 and on April 1, 2010, we borrowed $500,000. All advances are due from June 30, 2015 to June 30, 2017.

- 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+ Details