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:
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.
The entire disclosure for short-term debt.
Reference 1: http://www.xbrl.org/2003/role/presentationRef