Accrued Expenses

12 Months Ended

Dec. 31, 2015

Accrued Expenses [Abstract]

ACCRUED EXPENSES

NOTE 9 – ACCRUED EXPENSES

At December 31, 2015 and 2014, accrued expenses consisted of the following:

	December 31, 2015		December 31, 2014
Accrued liability for claimed sale contract dispute (1)	$	5,562,365	$	-
Accrued salaries and related benefits		465,514		693,700
Accrued professional fees		171,433		110,921
Other payables		161,767		254,958
	$	6,361,079	$	1,059,579

(1) In December 2015, the Company received a notice of contract termination in writing from its largest petroleum and chemical equipment segment customer alleging breach of contract for late delivery of product and for delivery of product with quality defects. Pursuant to the sales contract, the customer demanded payment of a penalty of 20% of the contract price plus penalties for late delivery and damages in the amounts of 36,103,640 RMB ($5,562,365 at December 31, 2015) which has been included in accrued expenses. In connection with this contingent liability, the Company recorded a loss from sales contract dispute of $5,806,778 which has been reflected in operating expenses on the accompanying statements of operations.