I. Background

This case brought by Tongtai Machine and Tool Co., Ltd. (“Plaintiff”) against Nano System, Inc. (“Nano”) and its CEO Xiangzhen Qi a/k/a Elaine Qi (“Qi”) (collectively, “Defendants”) arises from Defendants’ alleged failure to pay Plaintiff for goods.

According to the first amended complaint (“FAC”), Plaintiff and Nano entered into a written agreement (“the Agreement”) whereby Nano was granted the right to purchase and resell Plaintiff’s products.1 Nano agreed to pay Plaintiff set prices, with 20 percent paid upon placement of the order and the remaining 80 percent within 150 days of shipment or a correct invoice.

Nano placed a purchase order with Plaintiff for four machines for a total price of $298,140 and paid 20 percent of the total price up front. The machines were shipped and invoiced correctly, but Nano did not pay the remaining 80 percent. Nano also submitted a purchase order for two spindles priced at $2,000 each, but........