LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES (Tables)

12 Months Ended

Dec. 31, 2015

LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES [Abstract]

		December 31, 2015		December 31, 2014
Loan from CITIC bank	(a)	$	3,081	$	976
Loan from ICBC	(b)		4,621		6,484
Loan from Taizhou Bank	(c)		-		1,139
Loan from China Everbright Bank	(d)		-		1,220
Loan from Pay-Ins Prem			-		30
		$	7,702	$	9,849

(a)

In October 2015, Jonway Auto borrowed a half year short-term loan of $3.0 million at annual interest rate of 5.9%. The loan is due on April 28, 2016. The loans are secured by a Maximum Amount Mortgage Contract between Jonway Auto and CITIC dated November 3, 2014, in which a land use right and a building with a total carrying amount of $4.9 million as of December 31, 2015 has been pledged as security for this loan. The shareholder and CEO Alex Wang also personally guaranteed these loans.

(b)

In April 2014, the Company borrowed a one year short-term loan from ICBC of $0.8 million with 100% cash deposited as collateral for the loans. The annual interest rate is 6%. The loan was repaid when due in April 2015. In June 2014, the company borrowed a one year short-term loan from ICBC of $1.1 million at the annual interest rate of 6.26%. The loan was repaid when due in June 2015. In August 2014, the company borrowed a one year short-term loan from ICBC of $1.1 million at the annual interest rate of 6.92%, the loan has been fully repaid in July 2015. In September 2014, the company borrowed a 6-month short-term loan from ICBC of $0.8 million at the annual interest rate of 5.04%. The loan of $0.8 million has been paid when due in March, 2015. In October 2014, the company borrowed $1.5 million of a short term loan from ICBC. The loan will expire in October 2015 with the annual interest rate is 6.6% and the loan was repaid subsequent to September 30, 2015. The company borrowed a one year short term loan of $1.1 million in November 2014 at an annual interest of 6.6% and the loan was fully repaid when it was due in November 2015. In March 2015, the company borrowed a one year short-term loan of $0.8 million from ICBC at an annual interest of 5.4%. In June 2015, the company borrowed a one year short-term loan of $0.3 million from ICBC at an annual interest rate of 5.92%. In July 2015, the Company borrowed a one year short-term loan of $1.1 million from ICBC at an annual interest rate of 6.7%. In October 2015, the Company borrowed a one year short-term loan of $1.4 million at an annual interest of 6.4%. In November 2015, the Company borrowed a one year short-term loan of $1.1 million at an annual interest rate of 6.1%. These loans were guaranteed by related parties including Jonway Group, the shareholder Wang Huaiyi and the shareholder and Co-CEO Alex Wang. The Company also pledged buildings and a land use right with a carrying value of $3.2 million with ICBC and $0.8 million of restricted cash was deposited of December 31,2015.

(c)

In July 2014, the Company borrowed an 11 months short-term loan of $1.2 million from China Everbright Bank at the annual interest rate of 7.2%. The loans were guaranteed by the shareholder Wang Huaiyi, as well as a building and land use right with a carrying value of $2.0 million. The loan has been fully repaid in June 2015 upon maturity.

(d)

In August 2014, the Company borrowed a short-term loan from Taizhou Bank of $0.3 million at the annual interest rate of 8.93% which is due in February 2015. The loan was repaid when due. In October 2014, the company borrowed $0.81 million of a short term loan from Taizhou Bank. The loan expired in April 2015 and the annual interest rate is 8.496%.The loan was settled early in February 2015.

Schedule of Bank Acceptance Notes

		(In thousands)
		December 31, 2015		December 31, 2014
a) Bank acceptance notes payable to China Everbright bank	(a)	$	7,086	$	11,372
b) Bank acceptance notes payable to Taizhou bank	(b)		-		651
c) Bank acceptance notes payable to CITIC bank	(c)		6,428		5,724
d) Bank acceptance notes payable to Shanghai Pudong Development bank	(d)		852		-
		$	14,366	$	17,747

a. Notes payable to China Everbright bank have various maturity dates in June 2016. The notes payable are guaranteed by a land use right and a building with a total carrying value of $2.0 million. The Company is also required to maintain cash deposits at 50% of the notes payable with the bank, in order to ensure future credit availability. All the note payable balance as of December 31, 2014 was repaid upon due.

b. 2014 Notes payable to Taizhou bank have various maturity dates in February, 2015. The Company is required to maintain cash deposits at 50% to 100% of the notes payable with the bank, in order to ensure future credit availability. The note payable was repaid when due.

c. Notes payable to CITIC bank will be due in March 2016. Except for the note payable utilizing credit exposure of $2.6 million, the Company is required to maintain cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability.

d. Notes payable to Shanghai Pudong Development Bank will be due in March 2016. The company is required to maintain cash deposits at 100% of the notes payable with the bank.