Note 9. Debt:

KSCP had outstanding debt obligations with the Agricultural Bank of China at the time of our acquisition of the remaining 50% equity interest in KSCP. KSCP originally entered into two credit facilities in the amount of RMB 37,000 ($5,987) and RMB 83,000 ($13,431) in June 2011 and August 2010, respectively, each with a five year term. Both credit facilities are secured by the property, plant and equipment of our KSCP subsidiary. Amounts outstanding under the credit facilities bear an interest rate equal to the benchmark lending interest rate published by the People’s Bank of China. During the term of the loan, the rate is subject to adjustment every three months. As of the acquisition date, RMB 118,000 ($19,095) was outstanding under these credit facilities, at an interest rate of 6.00% per annum. As the interest rate resets on a quarterly basis, the fair value of our long-term debt approximates its carrying value. Repayment will be accelerated if the liabilities to assets ratio exceed 70% and 80% during the term of the RMB 37,000 and RMB 83,000 credit facilities, respectively, or if our KSCP subsidiary is unable to achieve 50% of its projected revenues when it commences commercial activities.

Principal payments due on the credit facility draws as of June 30, 2013 were as follows:


For the year ending:
June 30, 2014	$	4,855
June 30, 2015		4,855
June 30, 2016		9,385