NOTE 8 – OTHER DEBT

Short-Term Bank Loan

Effective August 1, 2013, the China Operations entered into a loan with the Bank of China (the Short-Term Bank Loan). The Short-Term Bank Loan provides for a loan in the amount of $3,195,000. The proceeds from the Short-Term Bank Loan were used to repay the outstanding Short-Term Bank Loan as of April 30, 2013, of $2,432,205. The Short-Term Bank Loan has an interest rate of 7.38%, and interest is due on a quarterly basis. The Short-Term Bank Loan matures on August 1, 2014, and is secured by the assets of TGG.

Due Related Party

As of April 30, 2014, the China Operations had outstanding payables due a related party, TGG, totaling $778,573 due on demand, representing interest accrued on former working capital loans from TGG to the China Operations.

Loans Payable and Secured Promissory Note

The Company’s long-term debt also consists of notes issued by the Company or assumed in acquisitions related to the purchase of property and equipment in the ordinary course of business. At April 30, 2014 and 2013, secured promissory note and assets under loans payable obligations totaled $588,217 and $90,663, with interest rates ranging from 3.22% to 8.99%, and 0% to 8.99% respectively. Of the Company’s total loan payable and secured promissory note as of April 30, 2014, $88,217 relate to long-term debt assumed in acquisitions for the purchase of property and equipment in the ordinary course of business, and $500,000 relates to the BTX Note.

The aggregate maturities of long-term debt, including short-term term loan, loans payable and secured promissory note are as follows:

Year ending April 30,
	Loans Payable and Secured Promissory Note
2015	$	31,680
2016		29,377
2017		21,238
2018		5,922
Thereafter		500,000
Less short-term debt		(31,680)
Total long-term debt	$	556,537