Accrued Liabilities

6 Months Ended

Jun. 30, 2016

Accrued Liabilities [Abstract]

ACCRUED LIABILITIES

NOTE 9 – ACCRUED LIABILITIES

At June 30, 2016 and December 31, 2015, accrued liabilities consisted of the following:

	June 30, 2016		December 31, 2015
Accrued liability for claimed sale contract dispute (1)	$	5,434,512	$	5,562,365
Accrued salaries and related benefits		85,956		465,514
Accrued professional fees		32,336		171,433
Other payables		85,649		161,767
	$	5,638,453	$	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 ($5,434,512 and $5,562,365 at June 30, 2016 and December 31, 2015, respectively).