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Loans Payable | 12 Months Ended
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Dec. 31, 2018
Debt Disclosure [Abstract] |
Loans Payable | (7) Loans Payable Short-term bank loans
|  |  |  | December 31, |  |  | December 31, |
|  |  |  | 2018 |  |  | 2017 |
Industrial and Commercial Bank of China (“ICBC”) Loan 1 |  | (a) |  | $ | - |  |  | $ | 4,285,145 |
ICBC Loan 2 |  | (b) |  |  | - |  |  |  | 2,907,778 |
Bank of Cangzhou |  | (c) |  |  | 5,099,662 |  |  |  | - |
ICBC Loan 3 |  | (d) |  |  | 4,079,730 |  |  |  | - |
ICBC Loan 4 |  | (e) |  |  | 2,622,683 |  |  |  | - |
Total short-term bank loans |  |  |  | $ | 11,802,075 |  |  | $ | 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 $- and $2,907,778 as of December 31, 2018 and December 31, 2017. 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 was due and repaid 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 The loan was withdrawn on January 4, 2018, with a balance of $5,099,662 as of December 31, 2018.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 was due and repaid 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 $4,079,730 as of December 31, 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 was due and repaid on January 28, 2019.
(e) | On November 22, 2018, the Company entered into a working capital loan agreement with the ICBC, with a balance of $2,622,683 as of December 31, 2018. 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 4.741% per annum. The loan will be due on November 26, 2019.
As of December 31, 2018, there were guaranteed short-term borrowings of $11,802,075 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 years ended December 31, 2018 and 2017 were approximately 5.66% and 5.27%, respectively. Long-term loans from credit union As of December 31, 2018 and 2017, loans payable to Rural Credit Union of Xushui County, amounted to $7,197,808 and $7,560,221, respectively.
|  | December 31, |  |  | December 31, |
|  | 2018 |  |  | 2017 |
Rural Credit Union of Xushui District Loan 1 |  | $ | 1,253,060 |  |  | $ | 1,316,152 |
Rural Credit Union of Xushui District Loan 2 |  |  | 3,642,615 |  |  |  | 3,826,022 |
Rural Credit Union of Xushui District Loan 3 |  |  | 2,302,133 |  |  |  | 2,418,047 |
Total |  |  | 7,197,808 |  |  |  | 7,560,221 |
Less: Current portion of long-term loans from credit union |  |  | (2,491,549 | ) |  |  | (6,366,502 | )
Long-term loans from credit union |  | $ | 4,706,259 |  |  | $ | 1,193,719 |
As of December 31, 2018, the Company’s long-term debt repayments for the next five years were as follows:
Fiscal year |  | Amount |
2019 |  | $ | 2,491,549 |
2020 |  |  | 131,134 |
2021 |  |  | 203,986 |
2022 |  |  | 1,602,751 |
2023 |  |  | 2,768,388 |
Total |  |  | 7,197,808 |
On April 16, 2014, the Company entered into a loan agreement with the Rural Credit Union of Xushui District 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 0.64% per month. On November 6, 2018, the loan was renewed for additional 5 years and will be due and payable in various installments from December 21, 2018 to November 5, 2023. As of December 31, 2018 and 2017, total outstanding loan balance was $1,253,060 and $1,316,152, respectively, Out of the total outstanding loan balance, current portion amounted were $nil and $1,316,152 as of December 31, 2018 and 2017, respectively, which are presented as current liabilities in the consolidated balance sheet and the remaining balance of $1,253,060 and $nil are presented as non-current liabilities in the consolidated balance sheet as of December 31, 2018 and 2017, respectively. On July 15, 2013, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 5 years, which was originally due and payable in various installments from December 21, 2013 to July 26, 2018. On June 21, 2018, the loan was extended for additional 5 years and will be due and payable in various installments from December 21, 2018 to June 20, 2023. The loan is secured by certain of the Company’s manufacturing equipment with net book value of $5,782,640 and $7,963,285 as of December 31, 2018 and 2017, respectively. Interest payment is due quarterly and bears a fixed rate of 0.64% per month. As of December 31, 2018 and 2017, the total outstanding loan balance was $3,642,615 and $3,826,022, respectively. Out of the total outstanding loan balance, current portion amounted were $nil and $3,826,022 as of December 31, 2018 and 2017, respectively, which are presented as current liabilities in the consolidated balance sheet and the remaining balance of $3,642,615 and $nil are presented as non-current liabilities in the consolidated balance sheet as of December 31, 2018 and 2017, respectively. On April 20, 2017, the Company entered into a loan agreement with the Rural Credit Union of Xushui District 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 December 31, 2018 and December 31, 2017, the total outstanding loan balance was $2,302,133 and $2,418,047, respectively. Out of the total outstanding loan balance, current portion amounted were $2,302,133 and $1,224,328 as of December 31, 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 September 30, 2018 and December 31, 2017, respectively. Total interest expenses for the short-term bank loans and long-term loans for the years ended December 31, 2018 and 2017 were $1,214,708 and $1,196,814, 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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