SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2013

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

NOTE 20 - SUBSEQUENT EVENTS

In January and February 2014, Jonway repaid $0.65 million and $0.65 million of short term loans respectively to Taizhou Bank when they became due. In February and March 2014, Jonway repaid $0.82 million and $0.65 million of short term loans respectively to Industrial and Commercial Bank of China (ICBC) when due.

In February 2014, Jonway borrowed $0.33 million of short term loan from Taizhou Bank. The loan expires in August 2014 and the annual interest rate is 8.89%.

In March 2014, Jonway borrowed $0.79 million of short term loan from Industrial and Commercial Bank of China (ICBC). The loan expires in September 2014 and the annual interest rate is 5.6%. Restricted cash of the same amount was deposited with the bank.

In March 2014, Jonway borrowed $0.98 million from CITIC Bank. The loan expires in March 2015 and the annual interest rate is 7.08%. The Company pledged a building and land use right at an aggregate carrying value of $0.5 million to the bank.

From January to March 2014, approximately $9.71 million of notes payable matured.

From January to March 2014, approximately $6.61 million of notes payable were issued. The Company is required to main cash deposits of 50% of the notes payable with the bank. These notes payable expire at variance maturity dates from July 2014 to September 2014.