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Pledged deposits

9 Months Ended

Sep. 30, 2017

2.	Pledged deposits

Pledged deposits as of December 31, 2016 and September 30, 2017consisted of the following:

		December 31,		September 30,
		2016		2017
Pledged deposits for:
Bills payable	$	3,064,155	$	692,419
Others *		1,213,989		1,266,855
	$	4,278,144	$	1,959,274

*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 $1,266,850 (RMB8,430,792), including construction costs of $0.9 million (RMB6.3 million), interest of $30,766 (RMB0.2 million) and compensation of $0.3 million (RMB1.9 million). On September 7, 2016, upon the request of Shenzhen Huijie, the Court froze Dalian BAK Power’s bank deposits totaling $1,266,855 (RMB8,430,792) for a period of one year. Further on September 1, 2017, upon the request of Shenzhen Huijie, the Court froze the bank deposits for another one year until August 31, 2018.