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Loans Payable | 6 Months Ended
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Jun. 30, 2018
Loans Payable [Abstract] |
Loans Payable | (7) Loans Payable Short-term bank loans
|  |  |  | June 30, |  |  | December 31, |
|  |  |  | 2018 |  |  | 2017 |
Industrial and Commercial Bank of China (“ICBC”) Loan 1 |  | (a) |  | $ | - |  |  | $ | 4,285,145 |
ICBC Loan 2 |  | (b) |  |  | 2,871,565 |  |  |  | 2,907,778 |
Bank of Cangzhou |  | (c) |  |  | 5,289,726 |  |  |  | - |
ICBC Loan 3 |  | (d) |  |  | 4,231,781 |  |  |  | - |
Total short-term bank loans |  |  |  | $ | 12,393,072 |  |  | $ | 7,192,923 |
(a) | On January 10, 2017, the Company entered into a working capital loan agreement with the ICBC, with a balance of $4,285,145 as of December 31, 2017. The working capital loan was guaranteed by Hebei Tengsheng with its land use right pledged as collateral for the benefit of the bank. The loan bears a fixed interest rate of 4.5675% per annum. The loan was due and repaid on January 8, 2018.
(b) | On October 18, 2017, the Company entered into a working capital loan agreement with the ICBC, with a balance of $2,871,565 and $2,907,778 as of June 30, 2018 and December 31, 2017, respectively. The working capital loan is secured by the Company’s land use right as collateral for the benefit of the bank. The loan bears a fixed interest rate of 4.945% per annum. The loan will be due on October 12, 2018.
(c) | On January 2, 2018, the Company entered into a working capital loan agreement with the Bank of Cangzhou. The loan was withdrawn on January 4, 2018, with a balance of $5,289,726 as of June 30, 2018. The loan bears a fixed interest rate of 6.09% per annum. The working capital loan is secured by the Company’s land use right and guaranteed by the Company’s CEO and Baoding Shengde with its production equipment as collateral for the benefit of the bank. The loan will be due on January 3, 2019.
(d) | On February 6, 2018, the Company entered into a working capital loan agreement with the ICBC, with a balance of $4,231,781 as of June 30, 2018. The working capital loan was guaranteed by Hebei Tengsheng with its land use right pledged as collateral for the benefit of the bank. The loan bears a fixed interest rate of 5.4% per annum. The loan will be due on February 9, 2019.
As of June 30, 2018, there were guaranteed short-term borrowings of $12,393,072 and unsecured bank loans of $nil. As of December 31, 2017, there were guaranteed short-term borrowings of $7,192,923 and unsecured bank loans of $nil. The average short-term borrowing rates for the three months ended June 30, 2018 and 2017 were approximately 5.59% and 5.25%, respectively. The average short-term borrowing rates for the six months ended June 30, 2018 and 2017 were approximately 5.58% and 5.27%, respectively. Long-term loans from credit union As of June 30, 2018 and December 31, 2017, loans payable to Rural Credit Union of Xushui County, amounted to $7,466,070 and $7,560,221, respectively.
|  | June 30, |  |  | December 31, |
|  | 2018 |  |  | 2017 |
Rural Credit Union of Xushui County Loan 1 |  | $ | 1,299,761 |  |  | $ | 1,316,152 |
Rural Credit Union of Xushui County Loan 2 |  |  | 3,778,376 |  |  |  | 3,826,022 |
Rural Credit Union of Xushui County Loan 3 |  |  | 2,387,933 |  |  |  | 2,418,047 |
Total |  |  | 7,466,070 |  |  |  | 7,560,221 |
Less: Current portion of long-term loans from credit union |  |  | (7,466,070 | ) |  |  | (6,366,502 | )
Long-term loans from credit union |  | $ | - |  |  | $ | 1,193,719 |
As of June 30, 2018, the Company’s long-term debt repayments for the next five years were as follows:
|  | Amount |
Fiscal year |  |  |  |
Remainder of 2018 |  | $ | 6,287,217 |
2019 |  |  | 1,178,853 |
2020 |  |  | - |
2021 |  |  | - |
2022 |  |  | - |
2023 |  |  | - |
Total |  |  | 7,466,070 |
On April 16, 2014, the Company entered into a loan agreement with the Rural Credit Union of Xushui County for a term of 5 years, which is payable in various installments from June 21, 2014 to November 18, 2018. The loan is guaranteed by an independent third party. Interest payment is due quarterly and bears the rate of 0.72% per month. In August 2015, after giving the required notice to the Rural Credit Union of Xushui County in accordance with the terms on the agreement, the Company prepaid a portion of the loan in an amount of $188,919, of which $52,897 was paid ahead of its original repayment schedule. As of June 30, 2018 and December 31, 2017, total outstanding loan balance was $1,299,761 and $1,316,152, respectively, which is presented as current liabilities in the consolidated balance sheet. On July 15, 2013, the Company entered into a loan agreement with the Rural Credit Union of Xushui County for a term of 5 years, which is due and payable in various installments from December 21, 2013 to July 26, 2018. The loan is secured by certain of the Company’s manufacturing equipment with net book value of $6,927,618 and $7,963,285 as of June 30, 2018 and December 31, 2017, respectively. Interest payment is due quarterly and bears a fixed rate of 0.72% per month. In August 2015, after giving the required notice to the Rural Credit Union of Xushui County in accordance with the terms on the agreement, the Company prepaid a portion of the loan in an amount of $196,476, of which $45,341 was paid ahead of its original repayment schedule. As of June 30, 2018 and December 31, 2017, the total outstanding loan balance was $3,778,376 and $3,826,022, respectively, which is presented as current liabilities in the consolidated balance sheet. On April 20, 2017, the Company entered into a loan agreement with the Rural Credit Union of Xushui County for a term of 2 years, which is due and payable in various installments from August 26, 2017 to April 19, 2019. The loan is guaranteed by Hebei Tengsheng with its land use right pledged as collateral for the benefit of the bank. Interest payment is due quarterly and bears a fixed rate of 0.6% per month. As of June 30, 2018 and December 31, 2017, the total outstanding loan balance was $2,387,933 and $2,418,047, respectively. Out of the total outstanding loan balance, current portion amounted were $2,387,933 and $1,224,328 as of June 30, 2018 and December 31, 2017, respectively, which are presented as current liabilities in the consolidated balance sheet and the remaining balance of $nil and $1,193,719 are presented as non-current liabilities in the consolidated balance sheet as of June 30, 2018 and December 31, 2017, respectively. Total interest expenses for the short-term bank loans and long-term loans for the three months ended June 30, 2018 and 2017 were $328,955 and $324,929, respectively. Total interest expenses for the short-term bank loans and long-term loans for the six months ended June 30, 2018 and 2017 were $620,294 and $587,708, 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 http://asc.fasb.org/topic&trid=2208564 + Details
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