Question-and-Answer Session
Operator
Thank you. (Operator instructions) Okay, and we will take our first question from Kun Tao of Roth Capital Partners.
Kun Tao - Roth Capital Partners
Hey, good morning everyone, congratulations on the quarter. My first question is regarding what you have announced. What’s the status with the term seed with Citadel? So you have signed the total amount of payments, or you have -- you don’t know at the current stage and what’s the $25 million including percentage of cash or equities? And how much are you valuing those equities right now?
Terence Yap
At this point in time, it’s really a ten feet level. Nevertheless, it’s actually a common on both sides to work towards a real position to actually resolve the Citadel notes. We have committed ourselves to conquer an agreement sometime this quarter. And that’s our position right now. We are looking at stocking acquisition, that’s all.
There’d be zero coupon and a note will actually be extended or to tend to a series of installment payments within three years. By this point in time, I will not be able to provide any further details, and until we finally have finally defended the agreement. And after which we are going to provide full details in terms of the impact et cetera.
Kun Tao - Roth Capital Partners
So when do you expect probably when you can sign the agreement?
Terence Yap
We hope to complete everything within Q3.
Kun Tao - Roth Capital Partners
Within Q3?
Terence Yap
Yes.
Kun Tao - Roth Capital Partners
Okay, thanks. My second question regarding your financing vehicles. You signed roughly based on your backlog and your commission. That seems like pretty large contracts. Have you ever assigned any accounts receivable to any bank in the quarter and what’s your status with other financing vehicles like IBM, et cetera?
Terence Yap
We’re still getting a lot of support especially from a local Chinese bank, given that we are dealing a lot with the government sector and we’re a new specialist in this company and we do get lots of support. And in manufacturing, we have not sold anything in Q2 though we sold one in Q1 mainly because a lot of large projects have not been completed. Q3, Q4, and that’s when most of the large projects do kick in and finish off as well. From our perspective, we are always mindful of our cash flow position and that’s why we are tapping the bank and facilities in China.
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