Construction Loan Facility

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

CONSTRUCTION LOAN FACILITY

NOTE 8 – CONSTRUCTION LOAN FACILITY

The Company obtained a construction loan facility, dated June 21, 2013, in the aggregate amount of RMB 80,000,000 (approximately $13 million). The loan facility is for an eight-year term, which commenced on July 11, 2013, the initial draw-down date. 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 bears interest 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.  The interest rate has remained at 5.39% on the anniversary dates which were July 10, 2017, 2018 and 2019, respectively.  The loan required interest only payments for the first two years. Beginning July 11, 2015, the principal was 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, 2021 on the identical terms as described above for 2015. The Company has made all required payments due under the loan. As of March 31, 2020, the Company had no additional amounts available to it under this facility. During the three months ended March 31, 2020, the Company made principal payments in the amount of $143,286 (RMB 1,000,000).

Principal payments required for the remaining term of the loan facility as of March 31, 2020 are as follows:

Year	Amount
2020	$	1,975,978
2021		2,117,119
	$	4,093,097

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 March 31, 2020 and December 31, 2019 approximated its fair value because the underlying instrument bears an interest rate that approximated current market rates.