Bank Borrowings

6 Months Ended

Jun. 30, 2021

Bank Borrowings

Bank Borrowings

9.          Bank Borrowings

On November 3, 2020, Beijing Branch of China CITIC Bank Corporation Limited approved a guaranteed line of Credit (“Bank Borrowings) to the Company with maximum borrowings of RMB 10.0 million ($1.5 million).  The joint and several liability guarantee was provided by Beijing Capital Financing Guarantee Co, Ltd.  At December 31, 2020, the Company had outstanding borrowings under the Bank Borrowings of RMB 5.4 million ($826,000), which matures on November 7, 2021, and bears interest at a fixed rate of 3.35% per annum.  

On February 3, 2021, the Company had additional bank borrowings of RMB 4.6 million ($0.7 million), of which RMB 3.0 million ($0.5 million) matures on September 2, 2021 and the remainder balance matures on November 7, 2021.  These additional bank borrowings bear interest at a fixed rate of 3.72% per annum.

Interest expense of $14,000 and $25,000 was recorded in the three and six months ended June 30, 2021.