Quarterly report pursuant to Section 13 or 15(d)

SHORT-TERM BORROWINGS FROM THIRD PARTIES

v3.7.0.1
SHORT-TERM BORROWINGS FROM THIRD PARTIES
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Short-term Debt [Text Block]
8. SHORT-TERM BORROWINGS FROM THIRD PARTIES
 
The following table sets forth a summary of the loan agreements in loan receivables balance:
 
 
 
 
 
 
 
 
 
 
 
December
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
31,
 
 
 
 
 
 
 
 
 
 
Original Amount
 
2017
 
2016
 
Annual
 
Repayment
Date
 
Borrower
 
Lender
 
(HKD)
 
(USD)
 
(USD)
 
Interest Rate
 
Due Date
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
7/15/2016
 
Hong Kong Takung
 
Merit Crown
Limited
 
 
11,700,000
 
$
1,498,943
 
$
1,509,015
 
 
8
%
12/31/2017
8/24/2016
 
Hong Kong Takung
 
Merit Crown
Limited
 
 
15,596,100
 
$
1,998,091
 
$
2,011,518
 
 
8
%
12/31/2017
11/18/2016
 
Hong Kong Takung
 
Merit Crown
Limited
 
 
11,479,102
 
$
1,470,643
 
$
1,480,525
 
 
8
%
10/31/2017
12/9/2016
 
Hong Kong Takung
 
Merit Crown
Limited
 
 
11,787,600
 
$
1,510,166
 
$
1,520,314
 
 
8
%
11/30/2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: Discount loan payable
 
 
 
 
 
 
$
233,032
 
$
212,859
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
6,244,811
 
$
6,308,513
 
 
 
 
 
  
The US Dollar Loans are to provide Hong Kong Takung with sufficient US Dollar-denominated currency to meet its working capital requirements. It is “secured” by the aforementioned RMB Loans (See Note 5) of equivalent amount by its subsidiary to an individual and guarantor affiliated with the lender of the US Dollar Loans. It is the understanding between the parties that when the US Dollar Loans are repaid, the RMB Loans will similarly be repaid.
 
The weighted average interest rate of outstanding short-term borrowings was 8% per annum as of June 30, 2017 and December 31, 2016. The fair values of the short-term borrowings approximate their carrying amounts. The weighted average short-term borrowing was $6,244,811 and $1,678,803 for the six months period ended June 30, 2017 and year ended December 31, 2016, respectively. The interest expenses for the short-term borrowings were $131,564 and $0 for the three months ended June 30, 2017 and 2016, respectively and $261,121 and $0 for the six months ended June 30, 2017 and 2016, respectively.