XML 68 R20.htm IDEA: XBRL DOCUMENT
v3.20.1

Commitments and Contingencies | 3 Months Ended
--- | ---
Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies Disclosure [Text Block] | (14) Commitments and Contingencies Operating Lease The Company leases 32.95 acres of land from a local government in Xushui District, Baoding City, Hebei, China through a real estate lease with a 30-year term, which expires on December 31, 2031. The lease requires an annual rental payment of approximately $17,160 (RMB 120,000). This operating lease is renewable at the end of the 30-year term. As mentioned in Note (8) Related Party Transactions, in connection with the sale of Industrial Buildings to Hebei Fangsheng, Hebei Fangsheng agrees to lease the Industrial Buildings back to the Company at an annual rental of $142,998 (RMB 1,000,000), for a total term of up to five years. Future minimum lease payments of all operating leases are as follows:
March 31, |  | Amount |
2021 |  |  | 158,078 |
2022 |  |  | 158,078 |
2023 |  |  | 13,811 |
2024 |  |  | 16,937 |
2025 |  |  | 16,937 |
Thereafter |  |  | 114,324 |
Total operating lease payments |  | $ | 478,166 |
Capital commitment As of March 31, 2020, the Company has signed several contracts for improvement of Industrial Buildings. Total outstanding commitments under these contracts were $882,019 and $1,101,989 as of March 31, 2020 and December 31, 2019, respectively. The Company expected to pay off all the balances within 1 year. On June 25, 2019, Dongfang Paper entered into an acquisition agreement with shareholder of Hebei Tengsheng Paper Co., Ltd.(“Hebei Tengsheng”), a limited liability company organized under the laws of the PRC, pursuant to which Dongfang Paper will acquire Hebei Tengsheng. The consideration for the acquisition is RMB 320 million (approximately $45 million), of which $1.4 million was paid by the Company, and the balance consideration of $43.6 million is payable by December 31, 2021. Guarantees and Indemnities The Company agreed with Baoding Huanrun Trading Co., a major supplier of raw materials, to guarantee certain obligations of this third party, and as of March 31, 2020 and December 31, 2019, the Company guaranteed its long-term loan from financial institutions amounting to $4,375,379 (RMB31,000,000) that matured at various times in 2020-2023. If Huanrun Trading Co., were to become insolvent, the Company could be materially adversely affected.

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration