Commitments As of June 30, 2013, the Company had entered into capital commitments for the manufacturing facilities under construction in the PRC. The capital commitments were $36,585,847 that are due within one year and $6,948,709 due after one year but within three years. In addition, the Company had research and development commitments of $5,611,002 within one year and $698,103 after one year but within three years, and purchase commitments for Millettia of $2,398,626 within one year and $2,141,172 after one year but within three years. The Company also has an unconditional purchase commitment in connection with the Millettia long-term supply contracts, which is not expected to be harvested until after 2018 (See Note 5). The purchase amount will be based on fair value discounted at a pre-determined rate pursuant to the long-term supply contracts. At June 30, 2013, the Company had a commitment to pay maintenance fees of approximately $111,000 (RMB 700,000) per year from 2013 to 2019 related to the XSB long-term supply contract. Legal proceedings On June 23, 2010, Haining Zhang asserted breach of contract, fraudulent dealing, and breach of fiduciary duty claims against the Company and its Chief Executive Officer, Shu Jun Liu (together ?Defendants?). Zhang?s claims arose out of an alleged 2003 investment banking advisory and consultant agreement, whereby Zhang allegedly arranged for the Company to receive an equity line of credit and was allegedly given the exclusive right to arrange financing transactions for the Company for a period of one year. Zhang sought damages for allegedly unpaid financing commission and advisory compensation in the amount of $2,410,000, plus interest and expenses. On September 12, 2011, the District Court granted a motion by Defendants to dismiss Zhang?s claims as either barred by the applicable statute of limitations or as failing to state a claim. Zhang filed a notice of appeal on October 11, 2011. On April 23, 2013, the Second Circuit Court of Appeals affirmed the District Court?s dis