COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE—14 COMMITMENTS AND CONTINGENCIES

(a) Legal proceedings

Robert E. Dawley v. NF Energy Corp. of America, M.D. Fla. Case no. 6:10-cv-0115-Orl-22DAB. Robert Dawley commenced this action in the United States District Court for the Middle District of Florida against the Company, Mr. Gang Li and counsel on October 1, 2010. The allegations in this action were identical to those that Dawley raised in a prior proceeding in which the United States Court of Appeals for the Eleventh Circuit entered judgment against him and in favor of the Company.

The District Court, upon motion by the Defendants, dismissed all of Dawley’s claims in this second action with prejudice. That dismissal has been affirmed by the 11th Circuit Court of Appeal. Judgment has been entered in favor of the Defendants on all of Dawley’s claims. Dawley attempted to petition for Writ of Certiorari with the United States Supreme Court. However, the Supreme Court has apparently rejected the petition.

The Company is considering the write-back of accrued liability of $200,000 in 2014 fiscal year. 

(b) Unused line of credit

At June 30, 2014, the Company had $6.06 million in unused lines of credit available for their future use.