26.

Share-based compensation expenses

December 2018,

the Company granted and issued

250,000

shares of the Company restricted common stock to a management

consulting and advisor service provider in exchange for its service for a

one

-year period. According to the service agreement, these shares are fully-vested upon issuance at the contract inception and shall

not

be subject to forfeiture upon termination of the agreement. The Company valued these shares at

US$1.43

per share, the closing bid price of the Company’s common stock on the grant date of these shares and recorded the related cost of approximately

US$358,000

as a prepayment asset in prepayment and deposit to suppliers upon grant and issuance of these fully-vested and nonforfeitable shares and amortized approximately

US$18,000

to share-based compensation expenses for the year ended

December 31, 2018

For the year ended

December 31, 2017,

the Company granted and issued in the aggregate of

1,650,000

fully-vested shares of the Company’s restricted common stock to its employees and directors for their services provided to the Company. These shares were valued at the closing bid price of the Company’s common stock on their respective grant dates, which ranged from

US$1.03

US$1.12

per share. Total compensation expenses recognized was approximately

US$1,705,000

for the year ended

December 31, 2017.

For the year ended

December 31, 2017,

the Company granted and issued in the aggregate of

174,000

shares of the Company’s restricted common stock to nonemployees in exchange for their services, which subject to forfeiture upon termination of the service contracts. These shares were valued at the closing bid price of the Company’s common stock on their respective earlier of the performance commitment date or the date service was completed, which ranged from

US$1.09

US$1.67

per share. Total compensation expenses recognized for share-based payment to nonemployee was approximately

US$63,000

and

US$234,000

for the years ended

December 31, 2018

and

2017,

respectively.

For the year ended

December 31, 2018

and

2017,

the Company also recognized approximately

US$152,000

and

US$332,000

share-based compensation expenses, respectively, relating to the Company’s restricted common stock and common stock purchase options granted to its employees in

September 2015.

Options issued and outstanding at

December 31, 2018

and their movements for the

two

years 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, January 1, 2017		835,216		4.04	$	2.49		676,136		4.11	$	2.59
Granted/Vested		-						159,080		2.70	$	2.10
Forfeited		-						-
Exercised		-						-
Balance, December 31, 2017		835,216		3.04	$	2.49		835,216		3.04	$	2.49
Granted/Vested		-						-
Forfeited		-						-
Exercised		-						-
Balance, December 31, 2018		835,216		2.04	$	2.49		835,216		2.04	$	2.49

The aggregate intrinsic value of the above options was

zero

as of

December 31, 2018

and

2017,

as their respective exercise prices were all lower than the Company’s closing stock price on the last trading day of each year.

The aggregate unrecognized share-based compensation expenses as of

December 31, 2018

and

2017

is approximately

US$340,000

and

US$154,000,

respectively. All unrecognized share-based compensation expenses as of

December 31, 2018

will be recognized for the year ending

December 31, 2019.

The table below summarized share-based compensation expenses recorded for the years ended

December 31, 2018

and

2017,

respectively:

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)

Sales and marketing expenses		47		86
General and administrative expenses		149		2,120
Research and development expenses		37		65
Total		233		2,271