NOTE 9 – SHORT-TERM BANK LOANS

Short-term bank loans represent amounts due to various banks that are due within one year. These loans can be renewed with these banks upon maturities. At September 30, 2018 and December 31, 2017, short-term bank loans consisted of the following:

	September 30, 2018		December 31, 2017
Loan from Bank of China, due on December 4, 2018 with annual interest rate of 6.09%, secured by certain assets of the Company	$	363,282	$	384,172
Loan from Bank of China, due on December 6, 2018 with annual interest rate of 6.09%, secured by certain assets of the Company		363,282		384,172
Loan from Bank of Wuxi Nongshuang, due on April 25, 2018 with annual interest rate of 5.87%, secured by certain assets of the Company		-		691,510
Loan from Bank of Wuxi Nongshuang, due on February 22, 2019 with annual interest rate of 5.87%, secured by certain assets of the Company		653,909		-
Loan from Bank of Communication, due on September 20, 2019 with annual interest rate of 5.85%, secured by certain assets of the Company		-		614,675
Loan from Bank of Communication, due on September 25, 2018 with annual interest rate of 5.85%, secured by certain assets of the Company		581,252
Loan from Zhongli International Finance Corporation, credit line of RMB4,500,000 (approximately $653,908), with a security deposit of RMB900,000 (approximately $130,782) which will be returned in 36 months, monthly installment of RMB210,000 (approximately $30,516) in the 1^st – 12^th month; RMB138,000 (approximately $20,053) in the 13^th - 24^th month; RMB98,000 (approximately $14,241) in the 25^st – 36^th month; secured by certain assets of the Company *		240,521		-
Total short-term bank loans	$	2,202,246	$	2,074,529

* Long-term bank loans represent amounts due to various banks that are due more than one year. Long-term portion of loan from Zhongli International Finance Corporation is $282,605 as of September 30, 2018.

Minimum 36-month installments under the loan agreement are as follows:

12-month periods ending September 30,	Amount
2019	$	366,189
2020		240,638
2021		170,888
Total minimum loan payments		777,715
Less: amount representing interest		(123,807	)
Less: security deposit due		(130,782	)
Present value of net minimum loan payment		523,127
Less: current portion		240,521
Long-term portion	$	282,605

Interest related to the short-term bank loans, which was $26,892 and $33,125 for the three months ended September 30, 2018 and 2017, and $88,372 and $107,991 for the nine months ended September 30, 2018 and 2017, respectively, is included in interest expense on the accompanying unaudited condensed consolidated statements of operations and comprehensive loss.