25.

Share-based compensation expenses

The Company granted

75,000

and

20,000

shares of the Company’s restricted common stock to its investor relations services provider, in exchange for its services to the Company for the year ended

December 31, 2017

and

2016,

respectively. These shares were valued at

US$1.02

and

US$3.00

per share, the closing bid price of the Company’s common stock on the earlier of the performance commitment date or the date service was completed, respectively. Total compensation expense recognized for the service was

US$57,380

and

US$19,130

for the

nine

and

three

months ended

September 30, 2017,

respectively. Total compensation expense recognized for the service was

US$45,000

and

US$15,000

for the

nine

and

three

months ended

September 30, 2016,

respectively.

July 2017,

the Company issued

75,000

shares of the Company’s restricted common stock to

two

management consulting service providers in exchange for its services to the Company for a

-month period commencing on

July 1, 2017.

These shares were valued at

US$1.00

per share, the closing bid price of the Company’s common stock on the earlier of the performance commitment date or the date service was completed. Total compensation expense recognized for the

nine

and

three

months ended

September 30, 2017

was approximately

US$18,750,

respectively.

February 2017,

the Company granted

20,000

shares of the Company’s restricted common stock to

one

of its independent directors in exchange for his services provided to the Company. These shares were valued at

US$1.12

per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expense recognized for the

nine

and

three

months ended

September 30, 2017

was

US$22,400

and US$nil, respectively.

April 1, 2016,

the Company granted

16,000

shares of the Company’s restricted common stock in aggregate to

two

marketing service providers in exchange for their services to the Company for a

-month period commencing on

April 1, 2016.

These shares were valued at

US$1.73

per share, the closing bid price of the Company’s common stock on the earlier of the performance commitment date or the date service was completed. Total compensation expense recognized for the

nine

and

three

months ended

September 30, 2017

was approximately

US$6,900

and US$nil, respectively. Total compensation expense recognized for the

nine

and

three

months ended

September 30, 2016

was approximately

US$13,800

and

US$6,900,

respectively.

September 14, 2015,

under its

2015

Omnibus Securities and Incentive Plan, the Company granted its employees in the aggregate of

266,238

shares of the Company’s restricted common stock, which will be vested on the

third

anniversary of the date of the grant. These shares were valued at

US$2.10

per share, the closing bid price of the Company’s common stock on the date of grant. The Company adopted a

forfeiture rate for recognition of the related compensation expenses of these unvested shares. Total compensation expenses recognized for the

nine

and

three

months ended

September 30, 2017

was approximately

US$132,300

and

US$44,600

respectively. Total compensation expenses recognized for the

nine

and

three

months ended

September 30, 2016

was approximately

US$132,790

and

US$44,600,

respectively.

September 14, 2015,

under its

2015

Omnibus Securities and Incentive Plan, the Company also granted

-year common stock purchase options to its employees, in the aggregate, to purchase up to

477,240

shares of the Company’s restricted common stock at an exercise price of

US$2.10

per share, of which

159,080

options vested upon the date of grant,

159,080

options vested on

September 14, 2016

and the remaining

159,080

options vested on

September 14, 2017.

These options were valuated at

US$1.03

US$1.39

per option. Total compensation expenses recognized for these options for the

nine

and

three

months ended

September 30, 2017

was approximately

US$155,000

and

US$53,100,

respectively. Total compensation expenses recognized for these options for the

nine

and

three

months ended

September 30, 2016

was approximately

US$150,000

and

US$57,500,

respectively.

The Company granted

140,000

shares of the Company’s restricted common stock to a management consulting service provider in exchange for its services to the Company for a

-month period commencing on

May 1, 2015.

These shares were valued at

US$3.93

per share, the closing bid price of the Company’s common stock on the earlier of the performance commitment date or the date service was completed. Total compensation expense recognized for the

nine

and

three

months ended

September 30, 2017

was approximately

US$91,580

and US$nil, respectively. Total compensation expense recognized for the

nine

and

three

months ended

September 30, 2016

was approximately

US$206,100

and

US$68,700,

respectively.

December 30, 2014,

the Company issued

1,680,000

shares of the Company’s restricted common stock to its executive officers, of which

613,334

restricted shares vested upon issuance,

533,333

restricted shares vested on

December 30, 2015

and the remaining

533,333

restricted shares vested on

December 30, 2016.

The restricted stock was valued at

$2.93

per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expenses recognized for the

nine

and

three

months ended

September 30, 2016

was

US$1,170,000

and

US$390,000,

respectively.

**The number of restricted common stocks, common stock purchase options and the related stock price discussed in the above paragraphs, which related transactions occurred before

August 19, 2016,

have been retroactively restated to reflect the Company’s

for

2.5

reverse stock split, which was effective on

August 19, 2016.

Options issued and outstanding at

September 30, 2017

and their movements during the

nine

months then ended are as follows:

	Option Outstanding						Option Exercisable
	Number of underlying shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number of underlying shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price

Balance, December 31, 2016		835,216		4.04	$	2.49		676,136		4.11	$	2.59
Granted/Vested		-						159,080		2.95	$	2.10
Forfeited		-						-
Exercised		-						-
Balance, September 30, 2017 (unaudited)		835,216		3.29	$	2.49		835,216		3.29	$	2.49

The aggregate unrecognized share-based compensation expenses as of

September 30, 2017

and

2016

is approximately

US$233,000

and

US$1,111,000,

respectively.