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Investment In Real Estate And Notes Payable
3 Months Ended
Nov. 30, 2011
Investment In Real Estate And Notes Payable [Abstract]  
Investment In Real Estate And Notes Payable

Investment in Real Estate and Notes Payable

In March 2010, the Company purchased an apartment in Hong Kong as an investment for $2,014,207. This apartment was used as a security to obtain an 18-year mortgage loan of $1,245,775 from a financial institution, with a variable interest rate at the lower of 3-month Hang Seng Interbank Offered Rates plus 0.7% or 2.9% below the Hong Kong Dollar best lending rate quoted by the financial institution. The effective interest rate at November 30, 2011 was 0.98%. The Company has paid down $16,074 and $15,725 during the fiscal quarter ended November 30, 2011 and 2010, respectively, and the current and long-term portions of the note payable as of November 30, 2011 are $64,653 and $1,075,002, respectively. For the fiscal quarter ended November 30, 2011 and 2010, depreciation expense associated with the apartment was $12,912 in each year.

In November 2011 and September 2010, the Company borrowed $116,339 and $65,000 as notes payable from a financial institution at an interest rate of 4.5% and 6%, which notes are to be repaid in 36 and 24 monthly installments, respectively, and are secured by specific equipments purchased at our Pasadena facility. The Company has paid down $11,282 during the fiscal quarter ended November 30, 2011, and the current and long-term portions of the notes payable as of November 30, 2011 are $65,053 and $76,154, respectively.