Accrued Expenses

3 Months Ended

Mar. 31, 2016

Accrued Expenses [Abstract]

ACCRUED EXPENSES

NOTE 9 – ACCRUED EXPENSES

At March 31, 2016 and December 31, 2015, accrued expenses consisted of the following:

	March 31, 2016		December 31, 2015
Accrued liability for claimed sale contract dispute (1)	$	5,599,287	$	5,562,365
Accrued salaries and related benefits		85,657		465,514
Accrued professional fees		36,517		171,433
Other payables		93,308		161,767
	$	5,814,769	$	6,361,079

(1) In December 2015, the Company received a notice of contract termination in writing from its largest customer, which was a customer in the petroleum and chemical equipment segment, 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 ($5,599,287 and $5,562,365 at March 31, 2016 and December 31, 2015, respectively) which has been included in accrued expenses.