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Loans

6 Months Ended

Mar. 31, 2022

Note 9 — Loans

Short-term and long-term loans from the Company’s continuing operations consist of the following:


		As of			As of
		March 31,			September 30,
		2022			2021
		(unaudited)
Short-term loan
Zhejiang Mintai Commercial Bank (Hangzhou Branch) (1)		$	2,208,446		$	2,172,766
Total short-term loan			2,208,446			2,172,766

Long-term loan
China Resources Shenzhen Investment Trust Co., Ltd. (2)			97,652			142,264
Total short-term and long-term loans		$	2,306,098		$	2,315,030

(1)

The loan in the amount of RMB14 million ($2.2 million) from Zhejiang Mintai Commercial Bank (Hangzhou Branch), was facilitated on August 5, 2021 through Nongyuan, a subsidiary of the Company, as working capital for nine months, with the original maturity of July 5, 2022 at an annual effective interest rate of 7.056%.

The loan is guaranteed by Ci Ge Ma Holdings (Hangzhou) Co., Ltd., and Aijiang Wang and is secured by a real property owned by Xinyang Wang, the 100% shareholder of Nongyuan Network.

(2)

The revolving loan in the amount of RMB1 million ($157,746) from China Resources Shenzhen Investment Trust Co., Ltd., was facilitated on April 30, 2021 through Farmmi Food, a subsidiary of the Company, as working capital for two years, with the original maturity of April 28, 2023 at an annual effective interest rate of 10.8%. As of March 31, 2022, the outstanding amount of the revolving loan was RMB0.6 million (approximately $97,652).

This revolving loan is guaranteed by a related party, Mr. Dehong Zhang, a legal representative of Farmmi Food.

Interest expenses amounted to $85,125 and $46,922 for the six months ended March 31, 2022 and 2021, respectively.

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.

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