Accounts Receivable

12 Months Ended

Dec. 31, 2015

Accounts Receivable and Restricted Net Assets [Abstract]

ACCOUNTS RECEIVABLE

NOTE 2 – ACCOUNTS RECEIVABLE

At December 31, 2015 and 2014, accounts receivable consisted of the following:

	December 31, 2015			December 31, 2014
Accounts receivable	$	19,042,451		$	21,637,365
Less: allowance for doubtful accounts		(3,218,592	)		(1,321,328	)
	$	15,823,859		$	20,316,037

The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. After evaluating the collectability of individual receivable balances, the Company increased the allowance for doubtful accounts in the amount of approximately $2,062,000 and $522,000 for the years ended December 31, 2015 and 2014, respectively. In December 2015, based on a notice of contract termination received by the Company from its largest petroleum and chemical equipment segment customer, the customer requested some relief and has not paid the remaining outstanding accounts receivable balance of approximately $1,759,000. Accordingly, in addition to general changes in the allowance for doubtful accounts balance, the Company increased its allowance for doubtful accounts by approximately $1,759,000 which represents this customer’s full amount of outstanding accounts receivable. The Company is currently discussing this issue with the customer and the Company is unable to determine if the accounts receivable balance will be collected.