Long-Term Borrowings

9 Months Ended

Sep. 30, 2013

Convertible Notes Payable and Long-Term Borrowings [Abstract]

12. LONG-TERM BORROWINGS

The details of the Company’s long-term borrowings are as follows:

	September 30,		December 31,
	2013		2012
	(Unaudited)

Bank loans bearing interest at 7.36% and 6.15% per annum, maturing on June 20, 2014 and March 19, 2015.	$	1,872,325	$	2,060,673

Less: Current portion		1,139,676		1,268,106
	$	732,649	$	792,567

The loans are uncollateralized and consist of $1,275,120 (RMB 8,000,000) and $956,340 (RMB 6,000,000), bearing interest at 7.36% and 6.15% per annum, maturing on June 20, 2014 and March 19, 2015, respectively. Interest is calculated and paid on the 20th of each month. Principal payments are made on a quarterly basis on the $1,275,120 loan and on a semi-annual basis on the $956,340 loan.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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