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CONSTRUCTION LOAN FACILITY | 12 Months Ended
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Dec. 31, 2015
CONSTRUCTION LOAN FACILITY |
CONSTRUCTION LOAN FACILITY | NOTE 8 – CONSTRUCTION LOAN FACILITY The Company obtained a construction loan facility in the amount of RMB80,000,000 (approximately $12.3 and $13.0 million as of December 31, 2015 and 2014, respectively) from a construction loan facility dated June 21, 2013. The loan facility is for an eight-year term, which commenced on July 11, 2013, the initial draw-down date. The total loan facility amount is RMB 80,000,000 (approximately $13 million) and is from the same bank that currently provides the line of credit as discussed in Note 7. The proceeds of the loan were used for and are collateralized by the construction of the Company's new production facility and the included production line equipment and machinery. The loan currently bears weighted interest at 5.73%, based upon 110% of the PRC government's eight-year term rate effective on the actual draw-down date, subject to annual adjustments based on 110% of the floating rate for the same type of loan on the anniversary from the draw-down date and its subsequent anniversary dates. On July 10, 2015 the interest rate was adjusted to 5.94%. The loan requires interest only payments for the first two years. Beginning July 11, 2015, the balance of the principal will be due in at least two (2) annual installments with the first annual payment being due within six month period after July 10, 2015 and the second annual payment being due July 10, 2016 and each following year over the next five years through July 11, 2022 on the identical terms as described above for 2015. In January 2016, the Company made a principal payment in the amount of approximately $309,000 (RMB2,000,000) with the remaining annual principal payment of $1,320,000 (8,000,000 RMB) being due in July 2016. As of December 31, 2015, the Company had no additional amounts available to it under this facility. Principal payments required for the next five years as of December 31, 2015 are as follows:
Year |  | Amount |
2016 |  |  | 1,540,666 |
2017 |  |  | 1,540,666 |
2018 |  |  | 2,310,999 |
2019 |  |  | 2,310,999 |
2020 |  |  | 2,310,999 |
2021 |  |  | 2,310,999 |
|  | $ | 12,325,327 |
Fair Value of Construction Loan Facility – Based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities, the carrying amounts of the construction loan facility outstanding as of December 31, 2015 approximated its fair value because the underlying instrument bears an interest rate that approximated current market rates.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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