Contents - MiTAC

10) LONG-TERM DEBTS
a) Long-term loans
December 31,
2003 2002
Long-term unsecured loans-from bank $ 500,000 $ 13,985
Long-term secured loans-from bank 293,194 -
$ 793,194 $ 13,985
Interest rates 1.55~1.98% 5.58%
As of December 31, 2003, long-term loans are payable in installments with final
payment due in 2008.
b) Bonds payable
December 31,
2003 2002
Convertible bonds payable $ - $ 1,246,000
Add: Compensation interest payable - 535,739
- 1,781,739
Secured bonds payable 2,500,000 2,500,000
2,500,000 4,281,739
Current portion - ( 1,781,739 )
$ 2,500,000 $ 2,500,000
A. On May 13, 1998, the Company issued unsecured convertible bonds. The main
terms of the issue are as follows:
(a) Total amount: $2,000,000
(b) Interest rate: zero
(c) Maturity date: May 12, 2005
(d) Conversion terms: The convertible bonds converted into common stock any
time during the period starting 1 month after the bond issuance date and
ending 10 days before maturity date.
(e) Redemption at the option of the Company: The Company may redeem the
bonds at any time beginning 2 years after the issue date in accordance with
the agreement.
(f) Redemption at the option of the bondholders: Bondholders may request the
Company to redeem the bonds in cash equal to par value of the bond plus
interest of 23.36% and 46.93% of the par value on May 12, 2002 and May 12,
2003, respectively. In May, 2003, the bondholders had requested the
Company to redeem the bonds in $1,830,748 which is 146.93% of the bond’s
par value.
B. On November 27, 2000, the Company issued secured bonds. The main terms of
the issue are as follows:
(a) Total amount: $2,500,000
(b) Interest rate: 5.28% per annum net of witholding tax
(c) Maturity date: November 27, 2005~December 13, 2005.
(d) Collateral: buildings and land.
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