XML 48 R23.htm IDEA: XBRL DOCUMENT
v3.7.0.1

SHARE BASED COMPENSATION | 12 Months Ended
--- | ---
Dec. 31, 2016
SHARE BASED COMPENSATION [Abstract] |
SHARE BASED COMPENSATION | 15. SHARE BASED COMPENSATION In December 2014, The Company’s shareholders adopted the 2014 share incentive plan. The Company’s shareholders have authorized the issuance of up to 21,000,000 ordinary shares underlying all options (including incentive share options, or ISOs), restricted shares and restricted share units granted to a participant under the plan, or the awards. During the years ended December 31, 2014 and 2015, the Company granted 6,274,166 and 8,134,375 share options respectively to its officers, directors and employees. No options were granted during the year ended December 31, 2016. The Company utilized the Binomial option pricing model to evaluate the fair value of the stock options with reference to the closing price of the Company on the measurement dates. The following assumptions were used in the Binomial option pricing model:
|  | Year Ended December 31, 2014 |
|  | Average |  |  |  |  |  |  |  | Post- |
|  | risk-free |  |  |  |  |  |  |  | vesting |
Options |  | rate of |  | Exercise |  | Volatility |  | Dividend |  | forfeiture |
granted |  | return |  | multiple |  | rate |  | yield |  | rate |
January 28, 2014 |  | 2.77% |  | 3.0-3.5 times |  | 93.0% |  | 0% |  | 3-9.5% |
|  | Year Ended December 31, 2015
|  | Average |  |  |  |  |  |  |  | Post- |
|  | risk-free |  |  |  |  |  |  |  | vesting |
Options |  | rate of |  | Exercise |  | Volatility |  | Dividend |  | forfeiture |
granted |  | return |  | multiple |  | rate |  | yield |  | rate |
January 12, 2015 |  | 2.82% |  | 1.8-3 times |  | 93.0% |  | 0% |  | 5%-8% |
July 06, 2015 |  | 3.20% |  | 3 times |  | 91.0% |  | 0% |  | 5% |
September 09, 2015 |  | 2.94%-3.08% |  | 1.8-3 times |  | 91.0%-92.0% |  | 0% |  | 5%-8% |
The risk-free rate of return is based on the yield curve of China USD sovereign bond commensurate with the same maturity at the respective grant dates. The exercise multiple is estimated by reference to the proprietary research and empirical studies. The expected volatility is based on the average of historical daily annualized share price volatility of 6 comparable companies over a normalized period that commensurate with the option life of 10 years. The post-vesting forfeiture rate is based on the historical data and management’s best Estimation. A summary of the aggregate option activity and information regarding options outstanding as of December 31, 2016 is as follows:
|  |  |  | Weighted |  | Weighted |  |  |
|  |  |  | Average |  | Average |  | Aggregate |
|  | Number of |  | Exercise |  | Remaining |  | Intrinsic |
|  | Options |  | Price |  | Contract Life |  | Value |
Options outstanding on January 1, 2016 |  |  | 17,528,541 |  |  | 0.50 |  |  |  |  |  |  |
Granted |  |  | — |  |  | — |  |  |  |  |  |  |
Forfeited |  |  | (147,235) |  |  | 0.59 |  |  |  |  |  |  |
Expired |  |  | (2,465) |  |  | 0.15 |  |  |  |  |  |  |
Exercised |  |  | (2,119,700) |  |  | 0.50 |  |  |  |  |  |  |
Options outstanding on December 31, 2016 |  |  | 15,259,141 |  |  | 0.50 |  |  | 6.46 |  |  | 4,304,907 |
Options vested or expected to vest on December 31, 2016 |  |  | 17,037,682 |  |  | 0.44 |  |  | 5.79 |  |  | 5,691,147 |
Options exercisable on December 31, 2016 |  |  | 11,902,422 |  |  | 0.47 |  |  | 6.05 |  |  | 3,691,299 |
The share-based compensation expenses related to share options of approximately $1,792,819, $3,687,951 and $2,702,089 were recognized by the Group for the years ended December 31, 2014, 2015 and 2016, respectively. The weighted average grant date fair value of options granted during the year ended December 31, 2014, and 2015 was $0.98 and $0.59 respectively. No options were granted during the year ended December 31, 2016. As of December 31, 2016, there was $ 2,268,104 in total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of 1.75 years.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration