Other Receivables and Loans to Customer and Supplier

9 Months Ended

Sep. 30, 2013

Accounts Receivable, Net and Other Receivables and Loans to Customer and Supplier [Abstract]

OTHER RECEIVABLES AND LOANS TO CUSTOMER AND SUPPLIER

5. OTHER RECEIVABLES AND LOANS TO CUSTOMER AND SUPPLIER

Other receivables consisted of the following:

	September 30,		December 31,
	2013		2012
	(Unaudited)

Deposit and others	$	37,406	$	30,401
Business advance to staff		134,178		166,451
Business advance to directors		567,146		287,032
	$	738,730	$	483,884

Advance to staff and directors represented advance payments made to directors for business development activities and to staff for business travel purposes. These outstanding amounts are expected to be utilized within a year.

The following is a summary of outstanding loans to customers and suppliers.

	September 30,		December 31,
	2013		2012
	(Unaudited)

Loans to customer and supplier	$	2,963,158	$	2,892,868

Loans to customer and supplier represent 8% interest bearing notes to one of the Company’s customers and one supplier, both of which were issued in December 2011. Additional amounts were advanced in first quarter of 2012 based on the same terms. The amounts are expected to be repaid within a year of December 31, 2012. The customer is a longtime customer of ours in the aquaculture business, and has been our business partner in other projects. There is no concern of the collectability of the loans based on our assessment of their financial condition, and they have been making the required interest payments. The interest payments for the first six months of 2013 were collected in August 2013. We are in the process of collecting the loan principals in the fourth quarter of 2013 and it is likely that new loans of reduced amounts for the customer will be issued for another 12 months.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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Tanke Biosciences Corp 10-Q