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Pledged deposits

3 Months Ended

Mar. 31, 2017

2.	Pledged deposits

	Pledged deposits as of December 31, 2016 and March 31, 2017 consisted of the following:

		December 31,		March 31,
		2016		2017
Pledged deposits for:
Bills payable	$	3,064,155	$	2,955,293
Others *		1,213,989		1,223,858
	$	4,278,144	$	4,179,151

On July 7, 2016, Shenzhen Huijie Purification System Engineering Co., Ltd (“Shenzhen Huijie”), one of the Company’s contractors, filed a lawsuit against Dalian BAK Power in the Peoples’ Court of Zhuanghe City, Dalian for the failure to pay pursuant to the terms of the contract and entrusted part of the project of the contract to a third party without their prior consent. The plaintiff sought a total amount of $1,223,858 (RMB8,430,792), including construction costs of $0.9 million (RMB6.3 million), interest of $0.03 million (RMB0.2 million) and compensation of $0.3 million (RMB1.9 million), which we already accrued for As of March 31, 2017. On September 7, 2016, upon the request of Shenzhen Huijie, the Court froze Dalian BAK Power’s bank deposits totaling $1,223,858 (RMB8,430,792) for a period of one year.