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Lines of Credit
12 Months Ended
Dec. 31, 2025
Lines of Credit [Abstract]  
LINES OF CREDIT

NOTE 8 – LINES OF CREDIT

 

On February 24, 2023 the Company received an advance on the line in the amount of RMB 3,500,000 (approximately $0.51 million). The Company has no further availability on this line of credit.  The line of credit was paid in full on December 15, 2023, five days before the due date of December 20, 2023. On December 20, 2023, the Company received a new line of credit in the amount of RMB 3,800,000 with an interest rate of 3.9% and is due December 15, 2024. The loan was fully paid on November 7, 2024. The loan was obtained on identical terms and an advance was made in the amount of RMB3,800,000 on November 11, 2024 with the balance maturing on June 21, 2025. On December 21, 2024, the Company entered into a new line of credit in the amount of RMB 3,500,000 with an interest rate of 3.9% and is due on June 22, 2025. On December 2, 2024 the Company renewed the line on identical terms. The RMB 3,500,000 was advanced on the same date, with the due date of the loan maturing on June 21, 2025. On June 17, 2025, the Company repaid the loan balances of RMB 7,300,000 (approximately $1.0 million). On June 25, 2025 the Company obtained a new line of credit facility in the amount of RMB 5,000,000 and received proceeds of RMB 5,000,000 (approximately $0.7 million). The new facility has an interest rate of 3.6%. The loan is due on June 20, 2026In addition, the Company’s Chief Executive Officer and Chair of the Board personally guaranteed the new line of credit and pledged personal assets as collateral for the loan Total interest expense under this facility for years ended December 31, 2025 and 2024 was $32,237 and $39,347, respectively.

On September 25, 2023 the Company entered into a three-year revolving loan and received proceeds of RMB 10,000,000 (approximately $1.4 million). The interest rate for the loan was 3.35% for the first twelve-months of the loan and adjusted based on the latest one-year loan market quotation rate less 10 basis points as published by the China National Interbank Funding Center on the working day prior to each twelve-month anniversary of the loan. With the reduction of the Loan Prime Rate by the bank on September 20, 2024, the loan interest rate for this transaction was lowered to 3.25% effective September 21, 2024. Additionally, the company repaid RMB 1,102,500 (approximately $153,000) through December 31, 2025, the loan interest rate for this transaction was lowered to 2.9% effective September 21, 2025. The loan is due on September 20, 2026. The loan is collateralized by the Company’s production facility and the included production line equipment and machinery. As of December 31, 2025, the net carrying amount of property, plant and equipment pledged as collateral amounted to $3,351,250 (2024: $3,712,190).In addition, the Company’s Chief Executive Officer and Chair of the Board personally guaranteed the new line of credit. Total interest expense under this facility for years ended December 31, 2025 and 2024 was $42,528 and $47,418, respectively. 

 

Principal payments on the above lines of credit are all due within one year of the balance sheet date.

 

Fair Value of Lines of Credit – The carrying amounts of the Company’s fixed-rate borrowings, which are due within 12 months, approximate their fair values due to the short-term nature of these instruments.