LONG-TERM DEBT

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

LONG-TERM DEBT

NOTE 7 - LONG-TERM DEBT

Long-term debt at September 30, 2018 and December 31, 2017 is as follows:

Bank name	Maturity	Interest rate at December 31, 2017			As of September 30, 2018				As of December 31, 2017
East West Bank – (b)	June 2022 - August 2027		4.25% - 4.75	%	$	$	5,095,693		$	5,220,809
Capital Bank – (c)	October 2027		3.85	%			5,199,680			5,333,677
Bank of America – (d)	February 2023		4.2095	%			1,689,248			2,262,500
Bank of Montreal – (a)	April 2022 - June 2023		5.99% - 6.87	%			2,278,756			1,071,398
GE Capital – (a)	October 2019		5.94	%			—			36,359
Other finance companies – (e)	September 2018 - December 2023		3.99% - 6.69	%			457,745			1,696,961
Total debt							14,721,122			15,621,704
Less: current portion							(1,339,548	)		(1,372,125	)
Long-term debt					$		13,381,574		$	14,249,579

The terms of the various loan agreements related to long-term bank borrowings contain certain restrictive financial covenants which, among other things, require the Company to maintain specified levels of debt to tangible net worth and debt service coverage. As of September 30, 2018 and December 31, 2017, the Company was in compliance with such covenants.

The loans outstanding were guaranteed by the following properties, entities or individuals:

(a) Not collateralized or guaranteed.

(b) Guaranteed by two shareholders of the Company, as well as five subsidiaries of the Company, Han Feng, TT, MFD, R&N Holding and R&N Lexington. Also secured by assets of Han Feng and R&N Lexington and R&N Holding, two real properties of R&N Holding, and a real property of R&N Lexington. Balloon payment of these long-term debts is $3,642,215.

(c) Guaranteed by two shareholders, as well as Han Feng, one subsidiary of the Company. Also secured by a real property owned by HG Realty. Balloon payment of this debt is $3,116,687.

(d) Guaranteed by two shareholders, as well as two subsidiaries of the Company, NSF and BB. Secured by a real property, equipment and fixtures, inventories, receivables and all other personal property owned by NSF. Balloon payment of this long-term debt is $1,684,898.

(e) Secured by vehicles.

The future maturities of long-term debt at September 30,2018 are as follows:

Twelve months ending September
2019	$	1,339,548
2020		1,210,870
2021		952,844
2022		839,745
2023		724,014
Thereafter		9,654,102
Total	$	14,721,122