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NOTES PAYABLE
 9 Months Ended
Sep. 30, 2015
NOTES PAYABLES  
NOTES PAYABLES

NOTE 8 – NOTES PAYABLE

 

In November 2014, the Company entered into a line of credit with a bank in the amount of RMB 30,000,000.  The amounts advanced under the line of credit are due November 24, 2015. Advances on the line of credit are due one year from the date of the advance and are collateralized by certain land use rights, buildings and accounts receivable and bear interest at an annual rate of 6.16% (based upon 110% of the PRC government’s current short term rate of 5.6%). In addition, the Company’s Chief Executive Officer and Chair of the board of directors personally guaranteed the line of credit.

 

The outstanding balance due under the revolving line of credit was RMB 30,000,000 as of September 30, 2015 and December 31, 2014 ($4,721,984 as of September 30, 2015 and $4,887,187 as of December 31, 2014).  The Company has no additional amounts available to it under this line of credit.  This amount has been classified as short-term notes payable in the accompanying condensed consolidated balance sheets at September 30, 2015 and December 31, 2014.  Subsequent to September 30, 2015 the line of credit was renewed as discussed in Note 15.