Note 10 – Credit Facilities

Short term loans – banks

Outstanding balances on short-term bank loans consisted of the following:


		Weighted
		average
Lenders	Maturities	interest rate		Collateral/Guarantee	June 30, 2019		June 30, 2018

Shanghai Pudong Development (“SPD”) Bank Chongqing Nanbing Road Branch	April 22, 2020	6.09	%	A security deposit of $109,221 and guaranteed by the CEO and certain members of the family and affiliate	$	1,456,187	$	1,510,004
Chongqing Rural Commercial Bank	December 6, 2019	6.74	%	Guaranteed by the CEO and certain members of the family and affiliate		2,694,122		3,020,007
Chongqing Beibei Chouzhou Bank Co., Ltd.	January 20, 2020	6.96	%	Guaranteed by GA Yongpeng’s properties recorded at RMB 36,626,600 (approximately $5.3 million) and Zeshu Dai’s 6.25% of stock right of GA Yongpeng recorded at RMB 1,250,000 (approximately $0.2 million)		364,071		—
Total					$	4,514,380	$	4,530,011

Loans from third parties

Outstanding balances of short term third-party loans consisted of the following:


		Weighted
		average
Lenders	Maturities	interest rate		Collateral/Guarantee	June 30, 2019		June 30, 2018

Sichuan Toucu Financial Information Services Co., Ltd	Various amounts due between November 2018 and December 2018 ($145,628 was repaid in August 2019, and the balance was extended to be due between November 2019 and December 2019)	9.0	%	None	$	407,758	$	302,001
Chongqing Puluosi Small Mortgage Co., Ltd.	Various amounts due between November 2018 and January 2019 (Reached new repayment terms upon private settlement)*	12.0	%	Guaranteed by the CEO and certain members of the family and affiliate		4,805,734		4,530,011
Chongqing Zhouyang Shipping Co., Ltd	December 28, 2019	18.0	%	None		72,814		75,500
Mei Yang	October 10, 2019 (Renewed and to be due on October 10, 2020)	18.0	%	None		43,688		—
Ping Wang	January 10, 2020	9.89	%	None		48,057		—
Yuzhu Hu	November 30, 2019	14.4	%	None		160,191		—
Yixuan Liu	September 11, 2019 (Renewed and to be due on March 11, 2020)	12.0	%	None		87,377		—
Shuming Yang	September 20, 2019 (Renewed and to be due on March 20, 2020)	12.0	%	None		174,754		—
Qin Cao	October 22, 2019 (Renewed and to be due on October 22, 2020)	24.0	%	None		72,814		—
Maohua Xia	Various amounts due between August 2019 and September 2019 (Renewed and various amounts to be due between August 2020 and September 2020)	24.0	%	None		223,848		—
Bangwei Zhu	May 2, 2020	12.0	%	None		36,407		—
Mei Zhang	April 9, 2019 (Renewed and to be due on April 9, 2020)	24.0	%	None		72,814		—
Total loans from third parties					$	6,206,256	$	4,907,512
Total non-current loans from a third party						(3,131,007)		—
Total current loans from third parties					$	3,075,249	$	4,907,512

*The Company settled the renewal terms of these past-due loans with the lender in September 2019. According to the renewal terms, the Company repaid $116,503 (RMB 800,000) in September 2019. Among the remaining balance, $101,940 (RMB 700,000) will be due by the end of October 2019, $728,141 (RMB 5,000,000) will be due on December 1, 2019, $728,141 (RMB 5,000,000) will be due on March 31, 2020, and $3,131,007 (RMB 21,500,000) with interests will be due on August 30, 2020.

Short term loans – related parties

See Note 9.

Long-term loan - bank

The outstanding balance of long term bank loan consisted of the following:

Weighted

average

Lender

Maturity

interest rate

Collateral/Guarantee

June 30, 2019

June 30, 2018

Chongqing Dadukou Rongxing Village & Township Bank

September 20, 2020

12.0

Guaranteed by CQ Penglin, CQ Pengmei, GA Yongpeng, CQ Mingwen, the CEO and certain members of the family

866,231

981,502

Interest expense pertaining to the above loans for the years ended June 30, 2019, 2018 and 2017 amounted to $823,551 ($11,403 was for interest expense of loans – related parties), $1,243,708 and $632,160, respectively.