BANK LOANS

6 Months Ended

Jun. 30, 2012

12. BANK LOANS

(a) Short-term bank loans

		June 30,		December 31,
		2012		2011
		(Unaudited)
Secured short-term loans ⁽¹⁾	$	47,653,436	$	39,177,186
Unsecured short-term loan		1,585,000		-
Add: amounts due within one year under long-term loan contracts		629,951		1,806,271
Total short-term bank loans	$	49,868,387	$	40,983,457

⁽¹⁾ Detailed information of secured short-term loan balances as of June 30, 2012 and December 31, 2011 were as follows:

		June 30,		December 31,
		2012		2011
		(Unaudited)
Secured by IST, Zhongtian, iASPEC, Mr. Lin and guaranteed by plants	$	15,850,000	$	-
Guaranteed by iASPEC		6,435,100		6,390,440
Collateralized by land and office buildings		4,913,500		14,260,441
Secured by iASPEC’s trade receivables		4,596,500		2,990,600
Guaranteed by IST		4,121,000		4,092,400
Secured by Huipu’s trade receivables and guaranteed by IST		4,045,767		4,372,404
Secured by Huipu’s trade receivables and guaranteed by the Company and Huipu		3,367,765		2,623,691
Guaranteed by Huipu		2,377,500		2,361,000
Guaranteed by the Company, CITH and Bocom		334,838		1,030,028
Secured by Zhongtian’s trade receivables		561,090		-
Secured by Geo's trade receivables and bank deposits		792,500		-
Secured by Bocom’s trade receivables and guaranteed by the Company		257,876		1,056,182
Total	$	47,653,436	$	39,177,186

(b) Long-term bank loans

		June 30,			December 31,
		2012			2011
		(Unaudited)
Secured long-term loans	$	721,857		$	1,915,795
Less: amounts due within one year under long-term loan contracts		(629,951	)		(1,806,271	)
Total long-term bank loans	$	91,906		$	109,524

As of June 30, 2012, the Company has borrowings from banks, expiring at various dates from July 3, 2012 to February 21, 2016, primarily used to finance working capital requirements. The bank borrowings are in the form of credit facilities. Amounts available to the Company from the banks are based on the amount of collateral pledged or the amount guaranteed by our subsidiaries. These borrowings bear interest rates ranging from 3.34% to 10% per annum. The weighted average interest rate on short term debt is approximately 7.37% and 6.64% for the six months ended June 30, 2012 and 2011, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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