12. Subsequent Events

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the condensed consolidated financial statements were issued for potential recognition or disclosure. Other than as described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the consolidated financial statements.

Stock-Based Compensation

On April 19, 2018 (the “Effective Date”), the Company granted 75,000 options to each of the two co-executive chairmen of the Board, Mr. Jim Kirsch and Mr. James Song, 70,000 options to the CEO, Mr. Michael Wang, and 30,000 options plus 5,000 shares of restricted stock (the “Restricted Stock”) to the CFO, Mr. Gary Xiao, in each case pursuant to the 2013 Plan of the Company. The options issued to the executives will vest in accordance with the following schedule: (i) 1/3 of the shares underlying the option will vest immediately on the Effective Date, (ii) 1/3 of the shares underlying the option will vest on the one-year anniversary of the Effective Date, and (iii) 1/3 of the shares underlying the option will vest on the two-year anniversary of the Effective Date. The options are exercisable at an exercise price of $2.82 per share. Restricted stock to Mr. Xiao will vest on April 19, 2019.

On April 19, 2018, the Company granted 8,865 restricted stock units (“RSUs”) to its non-employee directors, including Mr. Michael Belsky, Xin He, Hao Zhang and Xianfang Liu. The RSUs will vest on April 19, 2019. The RSUs have no voting or dividend rights. The fair value of the common stock on the date of grant was $2.82 per share.