Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 04, 2021 | |
Document Information [Line Items] | ||
Entity Registrant Name | ACM Research, Inc. | |
Entity Central Index Key | 0001680062 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 001-38273 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3290283 | |
Entity Address, Address Line One | 42307 Osgood Road, Suite I | |
Entity Address, City or Town | Fremont | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94539 | |
City Area Code | 510 | |
Local Phone Number | 445-3700 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value | |
Trading Symbol | ACMR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 17,268,562 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,714,272 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 78,796 | $ 71,766 |
Trading securities (note 15) | 27,003 | 28,239 |
Accounts receivable, less allowance for doubtful accounts of $0 as of March 31, 2021 and December 31, 2020 (note 4) | 60,394 | 56,441 |
Other receivables | 11,216 | 9,679 |
Inventories (note 5) | 103,226 | 88,639 |
Prepaid expenses | 5,917 | 5,892 |
Total current assets | 286,552 | 260,656 |
Property, plant and equipment, net (note 6) | 8,772 | 8,192 |
Land use right, net (note 7) | 9,529 | 9,646 |
Operating lease right-of-use assets, net (note 11) | 5,349 | 4,297 |
Intangible assets, net | 602 | 554 |
Deferred tax assets (note 20) | 13,908 | 11,076 |
Long-term investments (note 14) | 6,632 | 6,340 |
Other long-term assets (note 8) | 40,475 | 40,496 |
Total assets | 371,819 | 341,257 |
Current liabilities: | ||
Short-term borrowings (note 9) | 23,490 | 26,147 |
Current portion of long-term borrowings (note 12) | 1,598 | 1,591 |
Accounts payable | 44,721 | 35,603 |
Advances from customers | 32,668 | 17,888 |
Deferred revenue | 1,315 | 1,343 |
Income taxes payable (note 20) | 105 | 31 |
FIN-48 payable (note 20) | 82 | 83 |
Other payables and accrued expenses (note 10) | 21,885 | 18,805 |
Current portion of operating lease liability (note 11) | 2,171 | 1,417 |
Total current liabilities | 128,035 | 102,908 |
Long-term borrowings (note 12) | 17,444 | 17,979 |
Long-term operating lease liability (note 11) | 3,178 | 2,880 |
Deferred tax liability (note 20) | 1,276 | 1,286 |
Other long-term liabilities (note 13) | 6,639 | 8,034 |
Total liabilities | 156,572 | 133,087 |
Commitments and contingencies (note 21) | ||
Stockholders' equity: | ||
Additional paid in capital | 104,591 | 102,004 |
Accumulated surplus | 39,757 | 34,287 |
Accumulated other comprehensive income | 3,961 | 4,857 |
Total ACM Research, Inc. stockholders' equity | 148,311 | 141,150 |
Non-controlling interests | 66,936 | 67,020 |
Total stockholders' equity | 215,247 | 208,170 |
Total liabilities and stockholders' equity | 371,819 | 341,257 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 2 | 2 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 0 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 17,239,967 | 16,896,693 |
Common stock, shares outstanding (in shares) | 17,239,967 | 16,896,693 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 2,409,738 | 2,409,738 |
Common stock, shares issued (in shares) | 1,769,272 | 1,802,606 |
Common stock, shares outstanding (in shares) | 1,769,272 | 1,802,606 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Consolidated Statements of Operations and Comprehensive Income [Abstract] | ||
Revenue (note 3) | $ 43,732 | $ 24,348 |
Cost of revenue | 25,687 | 14,120 |
Gross profit | 18,045 | 10,228 |
Operating expenses: | ||
Sales and marketing | 5,308 | 3,005 |
Research and development | 5,504 | 3,677 |
General and administrative | 3,783 | 2,328 |
Total operating expenses, net | 14,595 | 9,010 |
Income from operations | 3,450 | 1,218 |
Interest income | 49 | 335 |
Interest expense | (189) | (111) |
Unrealized loss on trading securities | (1,047) | 0 |
Other income, net | 469 | 677 |
Equity income in net income of affiliates | 320 | 148 |
Income before income taxes | 3,052 | 2,267 |
Income tax benefit (expense) (note 20) | 2,770 | (304) |
Net income | 5,822 | 1,963 |
Less: Net income attributable to non-controlling interests and redeemable non-controlling interests | 352 | 258 |
Net income attributable to ACM Research, Inc. | 5,470 | 1,705 |
Comprehensive income: | ||
Net income | 5,822 | 1,963 |
Foreign currency translation adjustment | (1,332) | (1,900) |
Comprehensive Income | 4,490 | 63 |
Less: Comprehensive income attributable to non-controlling interests and redeemable non-controlling interests | (83) | (694) |
Comprehensive income attributable to ACM Research, Inc. | $ 4,573 | $ 757 |
Net income attributable to ACM Research, Inc. per common share (note 2): | ||
Basic (in dollars per share) | $ 0.29 | $ 0.09 |
Diluted (in dollars per share) | $ 0.25 | $ 0.08 |
Weighted average common shares outstanding used in computing per share amounts (note 2): | ||
Basic (in shares) | 18,786,870 | 18,120,363 |
Diluted (in shares) | 21,868,280 | 21,066,636 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member]Common Stock Class A [Member] | Common Stock [Member]Common Stock Class B [Member] | Additional Paid-In Capital [Member] | Accumulated Surplus (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance at Dec. 31, 2019 | $ 2 | $ 0 | $ 83,487 | $ 15,507 | $ (1,675) | $ 97,321 | |
Beginning balance (in shares) at Dec. 31, 2019 | 16,182,151 | 1,862,608 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 0 | $ 0 | 0 | 1,705 | 0 | 1,705 | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (948) | (948) | |
Exercise of stock options | $ 0 | $ 0 | 175 | 0 | 0 | 175 | |
Exercise of stock options (in shares) | 70,478 | 0 | |||||
Stock-based compensation | $ 0 | $ 0 | 689 | 0 | 0 | 689 | |
Exercise of stock warrant | $ 0 | $ 0 | 0 | 0 | 0 | 0 | |
Exercise of stock warrant (in shares) | 64,717 | 0 | |||||
Ending balance at Mar. 31, 2020 | $ 2 | $ 0 | 84,351 | 17,212 | (2,623) | 98,942 | |
Ending balance (in shares) at Mar. 31, 2020 | 16,317,346 | 1,862,608 | |||||
Beginning balance at Dec. 31, 2020 | $ 2 | $ 0 | 102,004 | 34,287 | 4,857 | $ 67,020 | 208,170 |
Beginning balance (in shares) at Dec. 31, 2020 | 16,896,693 | 1,802,606 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 5,470 | ||||||
Net income | $ 0 | $ 0 | 0 | 5,470 | 0 | 352 | 5,822 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (896) | (436) | (1,332) |
Exercise of stock options | $ 0 | $ 0 | 1,377 | 0 | 0 | 0 | 1,377 |
Exercise of stock options (in shares) | 309,940 | 0 | |||||
Stock-based compensation | $ 0 | $ 0 | 1,210 | 0 | 0 | 0 | 1,210 |
Conversion of class B common stock to Class A common stock | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 |
Conversion of class B common stock to Class A common stock (in shares) | 33,334 | (33,334) | |||||
Ending balance at Mar. 31, 2021 | $ 2 | $ 0 | $ 104,591 | $ 39,757 | $ 3,961 | $ 66,936 | $ 215,247 |
Ending balance (in shares) at Mar. 31, 2021 | 17,239,967 | 1,769,272 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 5,822 | $ 1,963 |
Adjustments to reconcile net income from operations to net cash used in operating activities | ||
Depreciation and amortization | 546 | 212 |
Loss on disposals of property, plant and equipment | 26 | 0 |
Equity income in net income of affiliates | (320) | (148) |
Unrealized loss on trading securities | 1,047 | 0 |
Deferred income taxes | (2,929) | 35 |
Stock-based compensation | 1,210 | 689 |
Net changes in operating assets and liabilities: | ||
Accounts receivable | (4,602) | (6,902) |
Other receivables | (1,850) | (683) |
Inventory | (15,276) | (931) |
Prepaid expenses | (83) | (11) |
Other long-term assets | 21 | 36 |
Accounts payable | 9,492 | 5,617 |
Advances from customers | 14,932 | 195 |
Income tax payable | 75 | 263 |
Other payables and accrued expenses | 3,181 | 1,779 |
Deferred revenue | 1,315 | 0 |
Other long-term liabilities | (1,865) | 1,715 |
Net cash provided by operating activities | 10,742 | 3,829 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (1,466) | (118) |
Purchase of intangible assets | (112) | 0 |
Net cash used in investing activities | (1,578) | (118) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings | 4,211 | 2,681 |
Repayments of short-term borrowings | (6,744) | (12,415) |
Repayments of long-term borrowings | (224) | 0 |
Proceeds from stock option exercise to common stock | 1,377 | 175 |
Net cash used in financing activities | (1,380) | (9,559) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (754) | (1,002) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 7,030 | (6,850) |
Cash, cash equivalents and restricted cash at beginning of period | 71,766 | 117,859 |
Cash, cash equivalents and restricted cash at end of period | 78,796 | 111,009 |
Supplemental disclosure of cash flow information: | ||
Interest paid, net of capitalized interest | 189 | 111 |
Cash paid for income taxes | 63 | 0 |
Reconciliation of cash, cash equivalents and restricted cash in condensed consolidated statements of cash flows: | ||
Cash and cash equivalents | 78,796 | 52,283 |
Restricted cash | 0 | 58,726 |
Non-cash used in financing activities: | ||
Warrant conversion to common stock | 0 | 399 |
Cashless exercise of stock options | $ 83 | $ 0 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2021 | |
DESCRIPTION OF BUSINESS [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1 – DESCRIPTION OF BUSINESS A CM Research, Inc. (“ACM”) and its subsidiaries (collectively with ACM, the “Company”) develop, manufacture and sell wet cleaning and other equipment used to improve the manufacturing process and yield for advanced integrated chips. The Company markets and sells its wet-cleaning equipment under the brand name “Ultra C,” based on the Company’s proprietary Space Alternated Phase Shift (“SAPS”), Timely Energized Bubble Oscillation (“TEBO”), and Tahoe technologies. These tools are designed to remove random defects from a wafer surface efficiently, without damaging the wafer or its features, even at increasingly advanced process nodes. ACM was incorporated in California in 1998, and it initially focused on developing tools for manufacturing process steps involving the integration of ultra low-K materials and copper. The Company’s early efforts focused on stress-free copper-polishing technology, and it sold tools based on that technology in the early 2000s. In 2006 the Company established its operational center in Shanghai in the People’s Republic of China (the “PRC”), where it operates through ACM’s subsidiary ACM Research (Shanghai), Inc. (“ACM Shanghai”). ACM Shanghai was formed to help establish and build relationships with integrated circuit manufacturers in the PRC, and the Company initially financed its Shanghai operations in part through sales of non-controlling equity interests in ACM Shanghai. In 2007 the Company began to focus its development efforts on single-wafer wet-cleaning solutions for the front-end chip fabrication process. The Company introduced its SAPS megasonic technology, which can be applied in wet wafer cleaning at numerous steps during the chip fabrication process, in 2009. It introduced its TEBO technology, which can be applied at numerous steps during the fabrication of small node two-dimensional conventional and three-dimensional patterned wafers, in March 2016. The Company has designed its equipment models for SAPS and TEBO solutions using a modular configuration that enables it to create a wet-cleaning tool meeting the specific requirements of a customer, while using pre-existing designs for chamber, electrical, chemical delivery and other modules. In August 2018, the Company introduced its Ultra-C Tahoe wafer cleaning tool, which can deliver high cleaning performance with significantly less sulfuric acid than typically consumed by conventional high-temperature single-wafer cleaning tools. Based on its electro-chemical plating (“ECP”) technology, in 2019 the Company introduced its Ultra ECP ap, or “Advanced Packaging,” tool for bumping, or applying copper, tin and nickel to semiconductor wafers at the die-level, and its Ultra ECP map, or “Multi-Anode Partial Plating,” tool to deliver advanced electrochemical copper plating for copper interconnect applications in front-end wafer fabrication processes. The Company also offers a range of custom-made equipment, including cleaners, coaters and developers, to back-end wafer assembly and packaging factories, principally in the PRC. In 2011 ACM Shanghai formed a wholly owned subsidiary in the PRC, ACM Research (Wuxi), Inc. (“ACM Wuxi”), to manage sales and service operations. In November 2016 ACM redomesticated from California to Delaware pursuant to a merger in which ACM Research, Inc., a California corporation, was merged into a newly formed, wholly owned Delaware subsidiary, also named ACM Research, Inc. In June 2017 ACM formed a wholly owned subsidiary in Hong Kong, CleanChip Technologies Limited (“CleanChip”), to act on the Company’s behalf in Asian markets outside the PRC by, for example, serving as a trading partner between ACM Shanghai and its customers, procuring raw materials and components, performing sales and marketing activities, and making strategic investments. In August 2017 ACM purchased of ACM Shanghai’s equity interests held by Shanghai Science and Technology Venture Capital Co., Ltd. On November 8, 2017, ACM purchased the remaining of ACM Shanghai’s equity interest held by third parties, Shanghai Pudong High-Tech Investment Co., Ltd. (“PDHTI”) and Shanghai Zhangjiang Science & Technology Venture Capital Co., Ltd. (“ZSTVC”). At December 31, 2017, ACM owned all of the outstanding equity interests of ACM Shanghai, and indirectly through ACM Shanghai, owned all of the outstanding equity interests of ACM Wuxi. On September 13, 2017, ACM effectuated a 1-for-3 reverse stock split of Class A and Class B common stock. Unless otherwise indicated, all share numbers, per share amount, share prices, exercise prices and conversion rates set forth in these notes and the accompanying consolidated financial statements have been adjusted retrospectively to reflect the reverse stock split. On November 2, 2017, the Registration Statement on Form S-1 (File No. 333- 220451) for ACM’s initial public offering of Class A common stock (the “IPO”) was declared effective by the U.S. Securities and Exchange Commission. Shares of Class A common stock began trading on the Nasdaq Global Market on November 3, 2017, and the closing for the IPO was held on November 7, 2017. In December 2017 ACM formed a wholly owned subsidiary in the Republic of Korea, ACM Research Korea CO., LTD. (“ACM Korea”), to serve customers based in Republic of Korea and perform sales, marketing, research and development activities for new products and solutions. In March 2019 ACM Shanghai formed a wholly owned subsidiary in the PRC, Shengwei Research (Shanghai), Inc. (“ACM Shengwei”), to manage activities related to addition of future long-term production capacity. In June 2019 Cleanchip formed a wholly owned subsidiary in California, ACM Research (CA), Inc. (“ACM California”), to provide procurement services on behalf of ACM Shanghai In June 2019 ACM announced plans to complete, over the following three years, a listing (the “STAR Listing”) of shares of ACM Shanghai on the Shanghai Stock Exchange’s new Sci-Tech innovAtion boaRd, known as the STAR Market, and a concurrent initial public offering (the “STAR IPO”) of ACM Shanghai shares in the PRC. ACM Shanghai is currently ACM’s primary operating subsidiary, and at the time of announcement, was wholly owned by ACM. To meet a STAR Listing requirement that it have multiple independent stockholders in the PRC, ACM Shanghai completed private placements of its shares in June and November 2019, following which, as of September 30, 2020, the private placement investors held a total of 8.3% of the outstanding shares of ACM Shanghai and ACM Research held the remaining 91.7%. As part of the STAR Listing process, in June 2020 the ownership interests held by the private investors were reclassified from redeemable non-controlling interests to non-controlling interests as the redemption feature was terminated (note 18). I n preparation for the STAR IPO, ACM completed a reorganization in December 2019 that included the sale of all of the shares of Cleanchip by ACM to ACM Shanghai impact on ACM’s c The Company has direct or indirect interests in the following subsidiaries: Effective interest held as at Name of subsidiaries Place and date of incorporation March 31, 2021 December 31, 2020 ACM Research (Shanghai), Inc. PRC, May 2005 91.7 % 91.7 % ACM Research (Wuxi), Inc. PRC, July 2011 91.7 % 91.7 % CleanChip Technologies Limited Hong Kong, June 2017 91.7 % 91.7 % ACM Research Korea CO., LTD. Korea, December 2017 91.7 % 91.7 % Shengwei Research (Shanghai), Inc. PRC, March 2019 91.7 % 91.7 % ACM Research (CA), Inc. USA, June 2019 91.7 % 91.7 % ACM Research (Cayman), Inc. Cayman Islands, April 2019 100.0 % 100.0 % |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The Company’s condensed consolidated financial statements include the accounts of ACM and its subsidiaries, including ACM Shanghai and its subsidiaries, which include ACM Wuxi, ACM Shengwei and CleanChip (the subsidiaries of which include ACM California and ACM Korea). ACM’s subsidiaries are those entities in which ACM, directly or indirectly, controls a majority of the voting power. All significant intercompany transactions and balances have been eliminated upon consolidation. The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the historical consolidated financial statements of the Company for the year ended December 31, 2020 included in ACM’s Annual Report on Form 10-K for the year ended December 31, 2020. The accompanying condensed consolidated balance sheet as of March 31, 2021, condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2021 and 2020, condensed consolidated statements of changes in stockholders’ equity for the three months ended March 31, 2021 and 2020, and condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2020 are unaudited. In the opinion of management, these unaudited condensed consolidated financial statements of the Company reflect all adjustments that are necessary for a fair presentation of the Company’s financial position and results of operations. Such adjustments are of a normal recurring nature, unless otherwise noted. The balance sheet as of March 31, 2021 and the results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for any future period. COVID-19 Assessment The outbreak of COVID-19, the coronavirus, has grown both in the United States and globally, and related government and private sector responsive actions have adversely affected the Company’s business operations. In December 2019 a series of emergency quarantine measures taken by the PRC government disrupted domestic business activities during the weeks after the initial outbreak of COVID-19. Since that time, an increasing number of countries, including the United States, have imposed restrictions on travel to and from the PRC and elsewhere, as well as general movement restrictions, business closures and other measures imposed to slow the spread of COVID-19. The situation continues to develop, and it is impossible to predict the effect and ultimate impact of the COVID-19 outbreak on the Company’s business operations and results. While the quarantine, social distancing and other regulatory measures instituted or recommended in response to COVID-19 are expected to be temporary, the duration of the business disruptions, and related financial impact, cannot be estimated at this time. The COVID-19 outbreak has been declared a worldwide health pandemic that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn and changes in global economic policy that could reduce demand for the Company’s products and its customers’ chips and have a material adverse impact on the Company’s business, operating results and financial condition. Through March 31, 2021 the Company had not experienced a significant negative impact of COVID-19 on its operations, capital and financial resources, including overall liquidity position. The Company conducts substantially all of its product development, manufacturing, support and services in the PRC, and those activities have been directly impacted by the COVID-19 outbreak and related restrictions on transportation and public appearances. In February 2020 ACM Shanghai’s headquarters were closed for an additional six days beyond the normal Lunar New Year Holiday in accordance with Shanghai government restrictions related to the outbreak. The Company cannot assure that further closures or reductions of its PRC operations or production may not be necessary in upcoming months as the result of business interruptions arising from protective measures being taken by the PRC and other governmental agencies or of other consequences of the COVID-19 outbreak. The Company’s corporate headquarters are located in Alameda County in the San Francisco Bay Area of California. In order to attempt to mitigate the COVID-19 pandemic, in March 2020 (a) the State of California declared a state of emergency related to the spread of COVID-19, (b) the San Francisco Department of Public Health announced aggressive recommendations to reduce the spread of the virus, (c) the health officers of six San Francisco Bay Area counties, including Alameda County, issued shelter-in-place orders, which (i) direct all individuals living in those counties to shelter at their places of residence (subject to limited exceptions), (ii) direct all businesses and governmental agencies to cease non-essential operations at physical locations in those counties, (iii) prohibit all non-essential gatherings of any number of individuals, (iv) order cessation of all non-essential travel, and (d) the Governor of California and the State Public Health Officer and Director of the California Department of Public Health ordered all individuals living in the State of California to stay at their place of residence for an indefinite period of time (subject to limited exceptions). The effects of these types of actions in the future may negatively impact productivity, disrupt the business of the Company and delay timelines, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on the Company’s ability to conduct its business in the ordinary course. The prolonged and broad-based shift to a remote working environment continues to create inherent productivity, connectivity, and oversight challenges and could affect our ability to enhance, develop and support existing products and services, detect and prevent spam and problematic content, hold product sales and marketing events, and generate new sales leads, among others. In addition, the changed environment under which the Company is operating could have an effect on its internal controls over financial reporting as well as the Company’s ability to meet a number of its compliance requirements in a timely or quality manner. Additional and/or extended, governmental lockdowns, restrictions or new regulations could significantly impact the ability of our employees and vendors to work productively. Governmental restrictions have been globally inconsistent and it remains unclear when a return to worksite locations or travel will be permitted or what restrictions will be in place in those environments. As the Company continues to return its workforce in more office locations in 2021, it may experience increased costs as it prepares its facilities for a safe return to work environment and experiment with hybrid work models, in addition to potential effects on its ability to compete effectively and maintain its corporate culture. Extended periods of interruption to the Company’s corporate, development or manufacturing facilities due to the COVID-19 outbreak could cause the Company to lose revenue and market share, which would depress its financial performance and could be difficult to recapture. The Company’s business may also be harmed if travel to or from the PRC or the United States continues to be restricted or inadvisable or if members of management and other employees are absent because they contract the coronavirus, they elect not to come to work due to the illness affecting others in the Company’s office or laboratory facilities, or they are subject to quarantines or other governmentally imposed restrictions. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. The Company’s significant accounting estimates and assumptions include, but are not limited to, those used for the valuation and recognition of fair value of trading securities, stock-based compensation arrangements and warrant liability, realization of deferred tax assets, assessment for impairment of long-lived assets, allowance for doubtful accounts, inventory valuation for excess and obsolete inventories, lower of cost and market value or net realizable value of inventories, depreciable lives of property and equipment and useful life of intangible assets. Management evaluates these estimates and assumptions on a regular basis. Actual results could differ from those estimates and assumptions. Basic and Diluted Net Income per Common Share Basic and diluted net income per common share are calculated as follows: Three Months Ended March 31, 2021 2020 Numerator: Net income $ 5,822 $ 1,963 Net income attributable to non-controlling interests and redeemable non-controlling interests 352 258 Net income available to common stockholders, basic and diluted $ 5,470 $ 1,705 Weighted average shares outstanding, basic 18,786,870 18,120,363 Effect of dilutive securities 3,081,410 2,946,273 Weighted average shares outstanding, diluted 21,868,280 21,066,636 Net income per common share: Basic 0.29 0.09 Diluted $ 0.25 $ 0.08 ACM has been authorized to issue Class A and Class B common stock since redomesticating in Delaware in November 2016. The two classes of common stock are substantially identical in all material respects, except for voting rights. Since ACM did not declare any dividends during the three months ended March 31, 2021 and 2020, the net income per common share attributable to each class is the same under the “two-class” method. As such, the two classes of common stock have been presented on a combined basis in the consolidated statements of operations and comprehensive income and in the above computation of net income per common share. Diluted net income per common share reflects the potential dilution from securities, including stock options and issued warrants, that could share in ACM’s earnings. Certain potential dilutive securities were excluded from the net income per share calculation because the impact would be anti-dilutive. ACM’s potential dilutive securities consist of warrants and stock options for the three months ended March 31, 2021 and 2020. Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents, restricted cash and accounts receivable. The Company deposits and invests its cash with financial institutions that management believes are creditworthy. The Company is potentially subject to concentrations of credit risks in its accounts receivable. For the three months ended March 31, 2021 and 2020, the Company’s three largest customers accounted for 60.1% and 97.4%, respectively, of revenue. As of March 31, 2021 and December 31, 2020, the Company’s three largest customers accounted for 77.3% and 76.1%, respectively, of the Company’s accounts receivables. The Company believes that the receivable balances from these largest customers do not represent a significant credit risk based on past collection experience. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. It also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company adopted ASU 2019-12 on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s condensed consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The Company adopted ASU 2020-04 on January 1, 2021. The adoption of ASU 2020-04 did not have a material impact on the Company’s condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In October 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842) |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 3 – REVENUE FROM CONTRACTS WITH CUSTOMERS The Company assesses revenues based upon the nature or type of goods or services it provides and the geographic location of the related businesses. The following tables present disaggregated revenue information: Three Months Ended , 2021 2020 Single Wafer Cleaning, Tahoe and Semi-Critical Cleaning Equipment $ 32,413 $ 22,784 ECP (front-end and packaging), Furnace and Other Technologies 5,550 - Advanced Packaging (excluding ECP), Services & Spares 5,769 1,564 Total Revenue By Product Category 43,732 24,348 Wet cleaning and other front-end processing tools 31,900 22,784 Advanced packaging, other back-end processing tools, services and spares 11,832 1,564 Total Revenue Fron t-end $ 43,732 $ 24,348 Three Months Ended , 2021 2020 Mainland China $ 43,696 $ 24,289 Other Regions 36 59 $ 43,732 $ 24,348 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 3 Months Ended |
Mar. 31, 2021 | |
ACCOUNTS RECEIVABLE [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4 – ACCOUNTS RECEIVABLE A t March 31, 2021 and December 31, 2020 accounts receivable consisted of the followin March 31, 2021 December 31, 2020 Accounts receivable $ 60,394 $ 56,441 Less: Allowance for doubtful accounts - - Total $ 60,394 $ 56,441 T he Company reviews accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. No allowance for doubtful accounts was considered necessary at March 31, 2021 and December 31, 2020 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2021 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 5 – INVENTORIES At March March 31, 2021 December 31, 2020 Raw materials $ 34,631 $ 32,391 Work in process 21,461 23,871 Finished goods 47,134 32,377 Total inventory $ 103,226 $ 88,639 At March 31, 2021 and December 31, 2020, the Company held an inventory reserve of $1,124 and $1,140, respectively. System shipments of first-tools to an existing or prospective customer, for which ownership does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until ownership is transferred. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET At March 31, 2021 and December 31, 2020, property, plant and equipment consisted of the following: March 31, 2021 December 31, 2020 Manufacturing equipment $ 5,924 $ 5,966 Office equipment 1,260 1,047 Transportation equipment 213 216 Leasehold improvement 2,551 2,398 Total cost 9,948 9,627 Less: Total accumulated depreciation (4,049 ) (3,745 ) Construction in progress 2,873 2,310 Total property, plant and equipment, net $ 8,772 $ 8,192 Depreciation expense was $439 and $185 for the three months ended March 31, 2021 and 2020, respectively. |
LAND USE RIGHT, NET
LAND USE RIGHT, NET | 3 Months Ended |
Mar. 31, 2021 | |
LAND USE RIGHT, NET [Abstract] | |
LAND USE RIGHT, NET | NOTE 7 – LAND USE RIGHT, NET A summary of land use right is as follows: March 31, 2021 December 31, 2020 Land use right purchase amount $ 9,674 $ 9,744 Less: Accumulated amortization (145 ) (98 ) Land use right, net $ 9,529 $ 9,646 In 2020 ACM Shanghai, through its wholly owned subsidiary ACM Shengwei, entered into an agreement for a 50-year land use right in the Lingang region of Shanghai. In July 2020 ACM Shengwei began a multi-year construction project for a new 1,000,000 square foot development and production center that will incorporate new manufacturing systems and automation technologies, and will provide floor space to support significantly increase production capacity and related research and development activities. The amortization for the three months ended March 31, 2020 was $49. The annual amortization of land use right for each of the five succeeding years is as follows: Year ending December 31, 2021 $ 196 2022 196 2023 196 2024 196 2025 196 |
OTHER LONG-TERM ASSETS
OTHER LONG-TERM ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
OTHER LONG-TERM ASSETS [Abstract] | |
OTHER LONG-TERM ASSETS | NOTE 8 – OTHER LONG-TERM ASSETS At March 31, 2021 and December 31, 2020, other long-term assets consisted of the following: March 31, 2021 December 31, 2020 Prepayment for property $ 39,474 $ 39,450 Security deposit for land use right 750 756 Others 251 290 Total other long-term assets $ 40,475 $ 40,496 The prepayment for property is for the housing in Lingang, Shanghai, which consists of (1) the contractual amount to acquire the property and (2) capitalized interest charges on the long-term loan related to acquisition of the property, which amounted to $ as of March 31, 2021. The property is pledged for a long-term loan from China Merchants Bank (note 12). |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 3 Months Ended |
Mar. 31, 2021 | |
SHORT-TERM BORROWINGS [Abstract] | |
SHORT-TERM BORROWINGS | NOTE 9 – SHORT-TERM BORROWINGS At March 31, 2021 and December 31, 2020, short-term and long-term borrowings consisted of the following: March 31, 2021 December 31, 2020 Line of credit up to RMB 80,000 1)due on April 1, 2021 with an annual interest rate of 4.70 March 23, 2021 - 4,599 2)due on June 27, 2021 4.25 1,370 1,380 3)due on April 29, 2021 with an annual interest rate of 2.80 March 23, 2021 - 820 4)due on June 27, 2021 2.70 2,080 2,080 5)due on September 30, 2021 2.50 2,855 - Line of credit up to RMB 20,000 1)due on April 12, 2021 with an annual interest rate of 4.65%. 1,522 1,533 2)due on May 24, 2021 with an annual interest rate of 3.65%. 1,522 1,533 Line of credit up to RMB 70,000 from Bank of Shanghai Pudong Branch, 1)due on May 27, 2021 with an annual interest rate of 4.68%. *2 2,557 2,575 2)due on June 27, 2021 with an annual interest rate of 4.68%. *2 and fully repaid on March 29, 2021. - 1,380 3)due on May 28, 2021 with an annual interest rate of 3.48%. *2 2,442 2,442 4)due on June 7, 2021 with an annual interest rate of 3.50%. *2 1,521 1,521 5)due on June 16, 2021 with an annual interest rate of 3.50%. *2 1,837 1,838 Line of credit up to RMB 80,000 from China Merchants Bank, 1)due on August 10, 2021 with annual interest rate of 3.85%. 1,370 1,380 2)due on August 25, 2021 with annual interest rate of 3.85%. 3,044 3,066 3)due on February 1, 2022 with annual interest rate of 3.85%. 1,370 - Total $ 23,490 $ 26,147 *1 Guaranteed by ACM’s Chief Executive Officer *2 Guaranteed by ACM’s Chief Executive Officer and CleanChip For the three months ended March and , |
OTHER PAYABLE AND ACCRUED EXPEN
OTHER PAYABLE AND ACCRUED EXPENSES | 3 Months Ended |
Mar. 31, 2021 | |
OTHER PAYABLE AND ACCRUED EXPENSES [Abstract] | |
OTHER PAYABLE AND ACCRUED EXPENSES | NOTE 10 – OTHER PAYABLE AND ACCRUED EXPENSES At March 31, 2021 and December 31, 2020, other payable and accrued expenses consisted of the following: March 31, 2021 December 31, 2020 Accrued commissions $ 7,838 $ 7,127 Accrued warranty 4,196 3,975 Accrued payroll 4,422 3,068 Accrued professional fees 211 384 Accrued machine testing fees 1,632 1,595 Others 3,586 2,656 Total $ 21,885 $ 18,805 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2021 | |
LEASES [Abstract] | |
LEASES | NOTE 11 – LEASES The Company leases space under non-cancelable operating leases for several office and manufacturing locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Most leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company has a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, it applies a portfolio approach for determining the incremental borrowing rate. The components of lease expense were as follows: Three Months Ended March 31, 2021 2020 Operating lease cost $ 515 $ 377 Short-term lease cost 79 50 Lease cost $ 594 $ 427 Supplemental cash flow information related to operating leases was as follows for the months ended March and : Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 594 $ 427 Maturities of lease liabilities for all operating leases were as follows as of March 31, 2021: December 31, 2021 $ 1,834 2022 2,439 2023 978 2024 876 2025 22 Total lease payments 6,149 Less: Interest (800 ) Present value of lease liabilities $ 5,349 The weighted average remaining lease terms and discount rates for all operating leases were as follows as of March and December : March 31, 2021 December 31, 2020 Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.93 2.11 Weighted average discount rate 4.87 % 5.14 % |
LONG-TERM BORROWINGS
LONG-TERM BORROWINGS | 3 Months Ended |
Mar. 31, 2021 | |
LONG-TERM BORROWINGS [Abstract] | |
LONG-TERM BORROWINGS | NOTE 12 – LONG-TERM BORROWINGS At March and December long-term borrowings consisted of the following: March 31, 2021 December 31, 2020 Loan from China Merchants Bank $ 19,042 $ 19,570 Less: Current portion (1,598 ) (1,591 ) $ 17,444 $ 17,979 The loan from China Merchants Bank is for the purpose of purchasing property in Lingang, Shanghai. The loan is repayable in installments with the last installment due in November 2030 with an annual interest rate of . The loan is pledged by the property of ACM Shengwei and guaranteed by ACM Shanghai. As of March the right certificate of the pledged property has not been obtained and the procedures of the formal pledge registration in the bank had not been completed. Scheduled principal payments for the outstanding long-term loan as of March are as follows: Year ending December 31, 2021 $ 1,191 2022 1,654 2023 1,733 2024 1,815 2025 and onwards 12,649 $ 19,042 For the months ended March interest related to long-term borrowings of was incurred, of which was charged to interest expenses and $ was capitalized as other long-term assets. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 3 Months Ended |
Mar. 31, 2021 | |
OTHER LONG-TERM LIABILITIES [Abstract] | |
OTHER LONG-TERM LIABILITIES | NOTE 13 – OTHER LONG-TERM LIABILITIES Other long-term liabilities represent government subsidies received from PRC governmental authorities for development and commercialization of certain technology but not yet recognized. As of March and December other long-term liabilities consisted of the following unearned government subsidies: March 31, 2021 December 31, 2020 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 1,221 $ 1,266 Subsidies to Electro Copper Plating project, commenced in 2014 2,016 2,156 Subsidies to Polytetrafluoroethylene, commenced in 2018 51 130 Subsidies to Tahoe-Single Bench Clean, commenced in 2020 1,005 1,544 Subsidies to Backside Clean-YMTC National Project, commenced in 2020 1,941 2,591 Other 405 347 Total $ 6,639 $ 8,034 |
LONG TERM INVESTMENT
LONG TERM INVESTMENT | 3 Months Ended |
Mar. 31, 2021 | |
LONG TERM INVESTMENT [Abstract] | |
LONG TERM INVESTMENT | NOTE 14 – LONG-TERM INVESTMENT On September ACM and Ninebell Co., Ltd. (“Ninebell”), a Korean company that is of the Company’s principal material suppliers, entered into an ordinary share purchase agreement, effective as of September pursuant to which Ninebell issued to ACM ordinary shares representing of Ninebell’s post-closing equity for a purchase price of and a common stock purchase agreement, effective as of September pursuant to which ACM issued shares of Class A common stock to Ninebell for a purchase price of at per share. The investment in Ninebell is accounted for under the equity method. On June ACM Shanghai and Shengyi Semiconductor Technology Co., Ltd. (“Shengyi”), a company based in Wuxi, China that is of the Company’s component suppliers, entered into an agreement pursuant to which Shengyi issued to ACM Shanghai shares representing of Shengyi’s post-closing equity for a purchase price of The investment in Shengyi is accounted for under the equity method. On September ACM Shanghai, entered into a Partnership Agreement with other investors, as limited partners, and Beijing Shixi Qingliu Investment Co., Ltd., as general partner and manager, with respect to the formation of Hefei Shixi Chanheng Integrated Circuit Industry Venture Capital Fund Partnership (LP), a Chinese limited partnership based in Hefei, China. Pursuant to such Partnership Agreement, on September ACM Shanghai invested RMB ( , which represented of the partnership’s total subscribed capital. The investment in Hefei Shixi Chanheng Integrated Circuit Industry Venture Capital Fund Partnership (LP) is accounted for under the equity method in accordance with ASC - -S - The Company treats the equity investment in the consolidated financial statements under the equity method. Under the equity method, the investment is initially recorded at cost, adjusted for any excess of the Company’s share of the incorporated-date fair values of the investee’s identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post incorporation change in the Company’s share of the investee’s net assets and any impairment loss relating to the investment. March 31, 2021 December 31, 2020 Ninebell $ 1,988 $ 1,666 Shengyi 157 134 Hefei Shixi 4,487 4,540 Total $ 6,632 $ 6,340 For the months ended March and the Company’s share of equity investees’ net income was and respectively, which amounts were included in equity income in net income of affiliates in the accompanying condensed consolidated statements of operations and comprehensive income. |
TRADING SECURITIES
TRADING SECURITIES | 3 Months Ended |
Mar. 31, 2021 | |
TRADING SECURITIES [Abstract] | |
TRADING SECURITIES | NOTE 15 – TRADING SECURITIES Pursuant to a Partnership Agreement dated (the “Partnership Agreement”) and a Supplementary Agreement thereto dated (the “Supplementary Agreement”), ACM Shanghai became a limited partner of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.), a Chinese limited partnership based in Shanghai, China (the “Partnership”) of which China Fortune-Tech Capital Co., Ltd serves as general partner and unaffiliated entities serve, with ACM Shanghai, as limited partners. The Partnership was formed to establish a special fund that would purchase, in a strategic placement, shares of Semiconductor Manufacturing International Corporation, (“SMIC”) to be listed on the STAR Market. SMIC is a Shanghai-based foundry that has been a customer of the Company’s single-wafer wet-cleaning tools. The limited partners of the Partnership contributed to the fund a total of RMB billion ($ ), of which ACM Shanghai contributed RMB million ($ million), or of the total contribution, on . Upon the closing of the SMIC offering in , the initial number of SMIC shares owned by the Partnership was apportioned to all of the limited partners in proportion to their respective capital contributions ( in the case of ACM Shanghai). All of the SMIC shares acquired by the Partnership are subject, under applicable Chinese laws, to lock-up restrictions that prevent sales of the shares for year after the shares were acquired. Thereafter an individual limited partner will be able to instruct the general partner to sell, on behalf of the limited partner, all or a portion of the limited partner’s apportioned shares, subject to compliance with all laws, regulations, trading rules, the Partnership Agreement and the Supplementary Agreement. Alternatively, following the lock-up period, limited partners holding at least of the total SMIC shares held by the Partnership will be able, pursuant to a call auction in accordance with the Supplementary Agreement, to cause the general partner to arrange to sell all of the shares desired to be offered by each of the limited partners that complies with procedural requirements provided in the Supplementary Agreement. As SMIC was listed on the STAR Market in July 2020, ACM Shanghai’s investment is accounted for as trading securities and is stated at fair market value, which is classified as Level of the hierarchy established under ASC with valuations based on quoted prices for identical securities in active markets, less a discount applied to reflect the remaining lock-up period. The components of trading securities were as follows: March 31, 2021 December 31, 2020 Trading securities listed in Shanghai Stock Exchange Cost $ 14,912 $ 15,020 Market value $ 27,003 $ 28,239 Unrealized loss on trading securities, net of exchange difference |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 3 Months Ended |
Mar. 31, 2021 | |
RELATED PARTY BALANCES AND TRANSACTIONS [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 16 – RELATED PARTY BALANCES AND TRANSACTIONS Prepaid expenses March 31, 2021 December 31, 2020 Ninebell $ 1,778 $ 1,607 Accounts payable March 31, 2021 December 31, 2020 Ninebell $ 2,925 $ 2,898 Shengyi 1,585 1,195 Total $ 4,510 $ 4,093 Three Months Ended Purchase of materials 2021 2020 Ninebell $ 6,882 $ 2,153 Shengyi 358 58 Total $ 7,240 $ 2,211 Three Months Ended March 31 Service fee charged by 2021 2020 Shengyi $ 142 $ 46 Ninebell - - Total $ 142 $ 46 |
COMMON STOCK
COMMON STOCK | 3 Months Ended |
Mar. 31, 2021 | |
COMMON STOCK [Abstract] | |
COMMON STOCK | NOTE 17 – COMMON STOCK ACM is authorized to issue 50,000,000 shares of Class A common stock and 2,409,738 shares of Class B common stock, each with a par value of $0.0001. Each share of Class A common stock is entitled to one vote, and each share of Class B common stock is entitled to twenty votes and is convertible at any time into one share of Class A common stock. Shares of Class A common stock and Class B common stock are treated equally, identically and ratably with respect to any dividends declared by the Board of Directors unless the Board of Directors declares different dividends to the Class A common stock and Class B common stock by getting approval from a majority of common stockholders. During the three months ended March 31, 2021, ACM issued 309,940 shares of Class A common stock upon option exercises by employees and non-employees and an additional 33,334 shares of Class A common stock upon conversion of an equal number of shares of Class B common stock. During the three months ended March 31, 2020, ACM issued 70,478 shares of Class A common stock upon option exercises by employees and non-employees, and an additional 64,717 shares of Class A common stock upon a cashless warrant exercise by a non-employee. At March 31, 2021 and December 31, 2020 the number of shares of Class A common stock issued and outstanding was 17,239,967, and 16,896,693, respectively. At March 31, 2021 and December 31, 2020, the number of shares of Class B common stock issued and outstanding was 1,769,272 and 1,802,606, respectively. |
REDEEMABLE NON-CONTROLLING INTE
REDEEMABLE NON-CONTROLLING INTERESTS | 3 Months Ended |
Mar. 31, 2021 | |
REDEEMABLE NON-CONTROLLING INTERESTS [Abstract] | |
REDEEMABLE NON-CONTROLLING INTERESTS | NOTE 18 – REDEEMABLE NON-CONTROLLING INTERESTS During the second quarter of 2020, the redemption feature of the private placement funding terminated and the aggregate proceeds of the funding therefore were reclassified from redeemable non-controlling interests to non-controlling interests. At March 31, 2020, the balance of redeemable non-controlling interest was nil The components of the change in the redeemable non-controlling interests for the three months ended March 31, 2020 are presented in the following table: Balance at December 31, 2019 $ 60,162 Net income attributable to redeemable non-controlling interests 258 Effect of foreign currency translation gain attributable to redeemable non-controlling interests (953 ) Balance at March 31 2020 $ 59,467 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2021 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 19 – STOCK-BASED COMPENSATION In January 2020 ACM Shanghai adopted a 2019 Stock Option Incentive Plan (the “Subsidiary Stock Option Plan”) that provides for, among other incentives, the granting to officers, directors, employees of options to purchase shares of ACM Shanghai’s common stock. The fair value of the stock options granted is estimated at the date of grant based on the Black-Scholes option pricing model using assumptions generally consistent with those used for ACM’s stock options. Because ACM Shanghai shares are not publicly traded, the expected volatility is estimated with reference to the average historical volatility of a group of publicly traded companies that are believed to have similar characteristics to ACM Shanghai. ACM’s stock-based compensation consists of employee and non-employee awards issued under its 1998 Stock Option Plan, its 2016 Omnibus Incentive Plan, and as standalone options. ACM granted stock options to employees under the 2016 Omnibus Incentive Plan during the three months ended March 31, 2021. The vesting condition may consist of a service period determined by the Board of Directors for a grant or certain performance conditions determined by the Board of Directors for a grant. The fair value of the stock options granted with service period based condition is estimated at the date of grant using the Black-Scholes option pricing model. The fair value of the stock options granted with market based condition is estimated at the date of grant using the Monte Carlo simulation model. The following table summarizes the components of stock-based compensation expense included in the consolidated statements of operations: Three Months Ended March 31, 2021 2020 Stock-Based Compensation Expense: Cost of revenue $ 71 $ 45 Sales and marketing expense 505 94 Research and development expense 229 187 General and administrative expense 405 363 $ 1,210 $ 689 Three Months Ended March 31, 2021 2020 Stock-based compensation expense by type: Employee stock purchase plan $ 1,085 $ 431 Non-employee stock purchase plan 40 172 Subsidiary option grants 85 86 $ 1,210 $ 689 The following table summarizes the Company’s employee share option activities during the three-months ended March 31, 2021: Number of Option Share Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2020 3,191,411 $ 5.13 $ 12.73 7.13 years Granted 106,400 50.67 111.98 Exercised (255,582) 1.78 4.55 Forfeited/cancelled (11,989) 27.45 62.58 Outstanding at March 31, 2021 3,030,240 6.93 $ 16.70 7.22 years Vested and exercisable at March 31, 2021 1,809,322 As of March 31, 2021 and December 31, 2020 and respectively, of total unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to stock-based awards for ACM were expected to be recognized over a weighted-average period of years and years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. The fair value of options granted to employee with a service period based condition is estimated on the grant date using the Black-Scholes valuation. Three months ended March 31, 2021 Fair value of common share $48.25 - Expected term in years 5.50-6.25 Volatility 48.53% Risk-free interest rate 1.00% Expected dividend 0% (1) Equal to closing value on the grant date. (2) Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to Staff Accounting Bulletin 110. (3) Volatility is calculated based on the historical volatility of ACM’s comparable companies in the period equal to the expected term of each grant. (4) Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant. (5) Expected dividend is assumed to be % as ACM has no history or expectation of paying a dividend on its common stock. Non-employee Awards The following table summarizes the Company’s non-employee share option activities during the three months ended March 31, 2021: Number of Weighted Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2020 836,038 $ 1.02 $ 3.07 4.92 Granted - - - Exercised (54,358) 1.51 5.44 Expired - - - Forfeited/cancelled (76) 0.30 0.75 Outstanding at March 31, 2021 781,604 $ 0.99 $ 2.91 4.64 Vested and exercisable at March 31, 2021 773,139 As of March 31, 2021 and December 31, 2020, $155 and $195, respectively, of total unrecognized non-employee stock-based compensation expense, net of estimated forfeitures, related to stock-based awards were expected to be recognized over a weighted-average period of 0.08 years and 0.09 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. ACM Shanghai Option Grants The following table summarizes the ACM Shanghai employee stock option activities during the three months ended March 31, 2021: Number of Weighted Weighted Average Exercise Price Weighted Average Outstanding at December 31, 2020 5,423,654 $ 0.23 $ 1.89 3.50 Granted - - - Exercised - - - Expired - - - Forfeited/cancelled (46,154) 0.24 2.00 Outstanding at March 31, 2021 5,377,500 $ 0.24 $ 2.00 3.26 years Vested and exercisable at March 31, 2021 - During the three months ended March 31, 2021 and 2020, the Company recognized stock-based compensation expense of $85 and $86, respectively, related to stock option grants of ACM Shanghai. As of March 31, 2021 and 2020, $779 and $822, respectively, of total unrecognized non-employee stock-based compensation expense, net of estimated forfeitures, related to ACM Shanghai stock-based awards were expected to be recognized over a weighted-average period of 2.3 years and 2.5 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 20 – INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted. The Company considers all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carry-forward periods) and projected taxable income in assessing the realizability of deferred tax assets. In making such judgments, significant weight is given to evidence that can be objectively verified. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. Prior to September 30, 2019, the Company had recorded a valuation allowance for the full amount of net deferred tax assets in the United States, as the realization of deferred tax assets was uncertain. Since September 30, 2019, the Company has not maintained a valuation allowance except for a partial valuation allowance on certain U.S. deferred tax assets. In order to recognize the remaining U.S. deferred tax assets that continue to be subject to a valuation allowance, the Company will need to generate sufficient U.S. taxable income in future periods before the expiration of the deferred tax assets governed by the tax code. ACM Shanghai has shown a three-year historical cumulative profit and has projections of future income. As a result, the Company does not maintain a valuation allowance. The Company accounts for uncertain tax positions in accordance with the authoritative guidance on income taxes under which the Company may only recognize or continue to recognize tax positions that meet a more likely than not threshold. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. The Company’s effective tax rate differs from statutory rates of 21% for U.S. federal income tax purposes and 15% to 25% for Chinese income tax purposes due to the effects of the valuation allowance and certain permanent differences from book-tax differences. As a result, the Company recorded income tax benefit (expense) of $2,770 and $(304) during the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the Company’s total unrecognized tax benefits were $570 of which $422 would affect the effective tax rate if recognized. The Company will recognize interest and penalties, when they occur, related to uncertain tax provisions as a component of tax expense. No interest or penalties were recognized for the three months ended March 31, 2021. The Company files income tax returns in the United States and state and foreign jurisdictions. The federal, state and foreign income tax returns are under the statute of limitations subject to tax examinations for the tax years ended December 31, 2010 through December 31, 2020. To the extent the Company has tax attribute carry-forwards, the tax years in which the attribute was generated may still be adjusted upon examination by the U.S. Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period. The Company’s effective tax rate differs from statutory rates of 21% for U.S. federal income tax purposes and 15% to 25% for Chinese income tax purposes due to the effects of the valuation allowance and certain permanent differences as it pertains to book-tax differences in the treatment of stock-based compensation and non-US research expenses. The Company’s three PRC subsidiaries, ACM Shanghai, ACM Wuxi and ACM Shengwei, are liable for PRC corporate income taxes at the rates of 15%, 25% and 25%, respectively. Pursuant to the Corporate Income Tax Law of the PRC, ACM’s PRC subsidiaries generally would be liable for PRC corporate income taxes as a rate of 25%. According to Guoshuihan 2009 No. 203, an entity certified as an “advanced and new technology enterprise” is entitled to a preferential income tax rate of 15%. ACM Shanghai was certified as an “advanced and new technology enterprise” in 2012 and again in 2016 and 2018, with an effective period of three years. ACM files income tax returns in the United States and state and foreign jurisdictions. Those federal, state and foreign income tax returns are under the statute of limitations subject to tax examinations for 2009 through 2020. To the extent ACM has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the U.S. Internal Revenue Service or state or foreign tax authorities to the extent utilized in a future period. The U.S. Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020. It contains several provisions that may have financial statement effects. Key aspects of the CARES Act include the following: • repealed the 80% taxable income limitation for 2018, 2019 and 2020, and allows those years to be carried back up to five years; • allows corporations to claim 100% of AMT credits in 2019, and provides for an election to take the entire refundable credit amount in 2018; • raised the Section 163(j) ATI limit from 30% to 50% for businesses; and • made technical corrections to TCJA for Qualified Improvement Property (“QIP”) and designates QIP as 15-year property for depreciation purposes, which makes QIP a category eligible for 100% bonus depreciation The CARES Act has not had a material impact on income taxes in the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as the elimination of exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, the recognition of deferred tax liabilities for outside basis differences, ownership changes in investments, and tax basis step-up in goodwill obtained in a transaction that is not a business combination. The guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The impact of the adoption by the Company on its condensed consolidated financial statements and disclosures is immaterial. Income tax benefit (expense) was as follows: Three Months Ended March 31, 2021 2020 Total income tax benefit (expense) $ 2,770 $ (304 ) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 21 – COMMITMENTS AND CONTINGENCIES The Company leases offices under non-cancelable operating lease agreements. See note for future minimum lease payments under non-cancelable operating lease agreements with initial terms of year or more. As of March the Company had of open capital commitments. Covenants in ACM Shengwei’s Grant Contract for State-owned Construction Land Use Right in Shanghai City with the China (Shanghai) Pilot Free Trade Zone Lingang Special Area Administration require, among other things, that ACM Shengwei pay liquidated damages in the event that (a) it does not make a total investment (including the costs of construction, fixtures, equipment and grant fees) of at least RMB 450.0 million ($63,400) or (b) within six years after the land use right is obtained, the Company does not (i) generate a minimum specified amount of annual sales of products manufactured on the granted land or (ii) pay to the PRC at least RMB 157.6 million ($22,000) in annual total taxes (including value-added taxes, corporate income tax, personal income taxes, urban maintenance and construction taxes, education surcharges, stamp taxes, and vehicle and shipping taxes) as a result of operations in connection with the granted land. As of March 31, 2021, the Company had paid in total $10,328 for its Lingang-related investments. In the normal course of business, the Company is subject to contingencies, including legal proceedings and environmental claims arising out of the normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. Some of these contingencies involve claims that are subject to substantial uncertainties and unascertainable damages. The Company’s management has evaluated all such proceedings and claims that existed as of March 31, 2021 and December 31, 2020. In the opinion of management, no provision for liability nor disclosure was required as of March 31, 2021 related to any claim against the Company because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. As of March 31, 2021, the Company had one outstanding legal proceeding. On December 21, 2020, a putative class action lawsuit against ACM and three of its officers was filed in the U.S. District Court for the Northern District of California under the caption Kain v. ACM Research, Inc., et al. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The Company’s condensed consolidated financial statements include the accounts of ACM and its subsidiaries, including ACM Shanghai and its subsidiaries, which include ACM Wuxi, ACM Shengwei and CleanChip (the subsidiaries of which include ACM California and ACM Korea). ACM’s subsidiaries are those entities in which ACM, directly or indirectly, controls a majority of the voting power. All significant intercompany transactions and balances have been eliminated upon consolidation. The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the historical consolidated financial statements of the Company for the year ended December 31, 2020 included in ACM’s Annual Report on Form 10-K for the year ended December 31, 2020. The accompanying condensed consolidated balance sheet as of March 31, 2021, condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2021 and 2020, condensed consolidated statements of changes in stockholders’ equity for the three months ended March 31, 2021 and 2020, and condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2020 are unaudited. In the opinion of management, these unaudited condensed consolidated financial statements of the Company reflect all adjustments that are necessary for a fair presentation of the Company’s financial position and results of operations. Such adjustments are of a normal recurring nature, unless otherwise noted. The balance sheet as of March 31, 2021 and the results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for any future period. |
COVID-19 Assessment | COVID-19 Assessment The outbreak of COVID-19, the coronavirus, has grown both in the United States and globally, and related government and private sector responsive actions have adversely affected the Company’s business operations. In December 2019 a series of emergency quarantine measures taken by the PRC government disrupted domestic business activities during the weeks after the initial outbreak of COVID-19. Since that time, an increasing number of countries, including the United States, have imposed restrictions on travel to and from the PRC and elsewhere, as well as general movement restrictions, business closures and other measures imposed to slow the spread of COVID-19. The situation continues to develop, and it is impossible to predict the effect and ultimate impact of the COVID-19 outbreak on the Company’s business operations and results. While the quarantine, social distancing and other regulatory measures instituted or recommended in response to COVID-19 are expected to be temporary, the duration of the business disruptions, and related financial impact, cannot be estimated at this time. The COVID-19 outbreak has been declared a worldwide health pandemic that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn and changes in global economic policy that could reduce demand for the Company’s products and its customers’ chips and have a material adverse impact on the Company’s business, operating results and financial condition. Through March 31, 2021 the Company had not experienced a significant negative impact of COVID-19 on its operations, capital and financial resources, including overall liquidity position. The Company conducts substantially all of its product development, manufacturing, support and services in the PRC, and those activities have been directly impacted by the COVID-19 outbreak and related restrictions on transportation and public appearances. In February 2020 ACM Shanghai’s headquarters were closed for an additional six days beyond the normal Lunar New Year Holiday in accordance with Shanghai government restrictions related to the outbreak. The Company cannot assure that further closures or reductions of its PRC operations or production may not be necessary in upcoming months as the result of business interruptions arising from protective measures being taken by the PRC and other governmental agencies or of other consequences of the COVID-19 outbreak. The Company’s corporate headquarters are located in Alameda County in the San Francisco Bay Area of California. In order to attempt to mitigate the COVID-19 pandemic, in March 2020 (a) the State of California declared a state of emergency related to the spread of COVID-19, (b) the San Francisco Department of Public Health announced aggressive recommendations to reduce the spread of the virus, (c) the health officers of six San Francisco Bay Area counties, including Alameda County, issued shelter-in-place orders, which (i) direct all individuals living in those counties to shelter at their places of residence (subject to limited exceptions), (ii) direct all businesses and governmental agencies to cease non-essential operations at physical locations in those counties, (iii) prohibit all non-essential gatherings of any number of individuals, (iv) order cessation of all non-essential travel, and (d) the Governor of California and the State Public Health Officer and Director of the California Department of Public Health ordered all individuals living in the State of California to stay at their place of residence for an indefinite period of time (subject to limited exceptions). The effects of these types of actions in the future may negatively impact productivity, disrupt the business of the Company and delay timelines, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on the Company’s ability to conduct its business in the ordinary course. The prolonged and broad-based shift to a remote working environment continues to create inherent productivity, connectivity, and oversight challenges and could affect our ability to enhance, develop and support existing products and services, detect and prevent spam and problematic content, hold product sales and marketing events, and generate new sales leads, among others. In addition, the changed environment under which the Company is operating could have an effect on its internal controls over financial reporting as well as the Company’s ability to meet a number of its compliance requirements in a timely or quality manner. Additional and/or extended, governmental lockdowns, restrictions or new regulations could significantly impact the ability of our employees and vendors to work productively. Governmental restrictions have been globally inconsistent and it remains unclear when a return to worksite locations or travel will be permitted or what restrictions will be in place in those environments. As the Company continues to return its workforce in more office locations in 2021, it may experience increased costs as it prepares its facilities for a safe return to work environment and experiment with hybrid work models, in addition to potential effects on its ability to compete effectively and maintain its corporate culture. Extended periods of interruption to the Company’s corporate, development or manufacturing facilities due to the COVID-19 outbreak could cause the Company to lose revenue and market share, which would depress its financial performance and could be difficult to recapture. The Company’s business may also be harmed if travel to or from the PRC or the United States continues to be restricted or inadvisable or if members of management and other employees are absent because they contract the coronavirus, they elect not to come to work due to the illness affecting others in the Company’s office or laboratory facilities, or they are subject to quarantines or other governmentally imposed restrictions. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. The Company’s significant accounting estimates and assumptions include, but are not limited to, those used for the valuation and recognition of fair value of trading securities, stock-based compensation arrangements and warrant liability, realization of deferred tax assets, assessment for impairment of long-lived assets, allowance for doubtful accounts, inventory valuation for excess and obsolete inventories, lower of cost and market value or net realizable value of inventories, depreciable lives of property and equipment and useful life of intangible assets. Management evaluates these estimates and assumptions on a regular basis. Actual results could differ from those estimates and assumptions. |
Basic and Diluted Net Income per Common Share | Basic and Diluted Net Income per Common Share Basic and diluted net income per common share are calculated as follows: Three Months Ended March 31, 2021 2020 Numerator: Net income $ 5,822 $ 1,963 Net income attributable to non-controlling interests and redeemable non-controlling interests 352 258 Net income available to common stockholders, basic and diluted $ 5,470 $ 1,705 Weighted average shares outstanding, basic 18,786,870 18,120,363 Effect of dilutive securities 3,081,410 2,946,273 Weighted average shares outstanding, diluted 21,868,280 21,066,636 Net income per common share: Basic 0.29 0.09 Diluted $ 0.25 $ 0.08 ACM has been authorized to issue Class A and Class B common stock since redomesticating in Delaware in November 2016. The two classes of common stock are substantially identical in all material respects, except for voting rights. Since ACM did not declare any dividends during the three months ended March 31, 2021 and 2020, the net income per common share attributable to each class is the same under the “two-class” method. As such, the two classes of common stock have been presented on a combined basis in the consolidated statements of operations and comprehensive income and in the above computation of net income per common share. Diluted net income per common share reflects the potential dilution from securities, including stock options and issued warrants, that could share in ACM’s earnings. Certain potential dilutive securities were excluded from the net income per share calculation because the impact would be anti-dilutive. ACM’s potential dilutive securities consist of warrants and stock options for the three months ended March 31, 2021 and 2020. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents, restricted cash and accounts receivable. The Company deposits and invests its cash with financial institutions that management believes are creditworthy. The Company is potentially subject to concentrations of credit risks in its accounts receivable. For the three months ended March 31, 2021 and 2020, the Company’s three largest customers accounted for 60.1% and 97.4%, respectively, of revenue. As of March 31, 2021 and December 31, 2020, the Company’s three largest customers accounted for 77.3% and 76.1%, respectively, of the Company’s accounts receivables. The Company believes that the receivable balances from these largest customers do not represent a significant credit risk based on past collection experience. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. It also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company adopted ASU 2019-12 on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s condensed consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The Company adopted ASU 2020-04 on January 1, 2021. The adoption of ASU 2020-04 did not have a material impact on the Company’s condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In October 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842) |
DESCRIPTION OF BUSINESS (Tables
DESCRIPTION OF BUSINESS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
DESCRIPTION OF BUSINESS [Abstract] | |
Direct or Indirect Interests of Subsidiaries | The Company has direct or indirect interests in the following subsidiaries: Effective interest held as at Name of subsidiaries Place and date of incorporation March 31, 2021 December 31, 2020 ACM Research (Shanghai), Inc. PRC, May 2005 91.7 % 91.7 % ACM Research (Wuxi), Inc. PRC, July 2011 91.7 % 91.7 % CleanChip Technologies Limited Hong Kong, June 2017 91.7 % 91.7 % ACM Research Korea CO., LTD. Korea, December 2017 91.7 % 91.7 % Shengwei Research (Shanghai), Inc. PRC, March 2019 91.7 % 91.7 % ACM Research (CA), Inc. USA, June 2019 91.7 % 91.7 % ACM Research (Cayman), Inc. Cayman Islands, April 2019 100.0 % 100.0 % |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basic and Diluted Net Income per Common Share | Basic and diluted net income per common share are calculated as follows: Three Months Ended March 31, 2021 2020 Numerator: Net income $ 5,822 $ 1,963 Net income attributable to non-controlling interests and redeemable non-controlling interests 352 258 Net income available to common stockholders, basic and diluted $ 5,470 $ 1,705 Weighted average shares outstanding, basic 18,786,870 18,120,363 Effect of dilutive securities 3,081,410 2,946,273 Weighted average shares outstanding, diluted 21,868,280 21,066,636 Net income per common share: Basic 0.29 0.09 Diluted $ 0.25 $ 0.08 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract] | |
Disaggregated Revenue Information | The Company assesses revenues based upon the nature or type of goods or services it provides and the geographic location of the related businesses. The following tables present disaggregated revenue information: Three Months Ended , 2021 2020 Single Wafer Cleaning, Tahoe and Semi-Critical Cleaning Equipment $ 32,413 $ 22,784 ECP (front-end and packaging), Furnace and Other Technologies 5,550 - Advanced Packaging (excluding ECP), Services & Spares 5,769 1,564 Total Revenue By Product Category 43,732 24,348 Wet cleaning and other front-end processing tools 31,900 22,784 Advanced packaging, other back-end processing tools, services and spares 11,832 1,564 Total Revenue Fron t-end $ 43,732 $ 24,348 Three Months Ended , 2021 2020 Mainland China $ 43,696 $ 24,289 Other Regions 36 59 $ 43,732 $ 24,348 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
ACCOUNTS RECEIVABLE [Abstract] | |
Accounts Receivable | A t March 31, 2021 and December 31, 2020 accounts receivable consisted of the followin March 31, 2021 December 31, 2020 Accounts receivable $ 60,394 $ 56,441 Less: Allowance for doubtful accounts - - Total $ 60,394 $ 56,441 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
INVENTORIES [Abstract] | |
Inventory | At March March 31, 2021 December 31, 2020 Raw materials $ 34,631 $ 32,391 Work in process 21,461 23,871 Finished goods 47,134 32,377 Total inventory $ 103,226 $ 88,639 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
Property, Plant and Equipment | At March 31, 2021 and December 31, 2020, property, plant and equipment consisted of the following: March 31, 2021 December 31, 2020 Manufacturing equipment $ 5,924 $ 5,966 Office equipment 1,260 1,047 Transportation equipment 213 216 Leasehold improvement 2,551 2,398 Total cost 9,948 9,627 Less: Total accumulated depreciation (4,049 ) (3,745 ) Construction in progress 2,873 2,310 Total property, plant and equipment, net $ 8,772 $ 8,192 |
LAND USE RIGHT, NET (Tables)
LAND USE RIGHT, NET (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
LAND USE RIGHT, NET [Abstract] | |
Land Use Rights | A summary of land use right is as follows: March 31, 2021 December 31, 2020 Land use right purchase amount $ 9,674 $ 9,744 Less: Accumulated amortization (145 ) (98 ) Land use right, net $ 9,529 $ 9,646 |
Annual Amortization of Land Use Right | The annual amortization of land use right for each of the five succeeding years is as follows: Year ending December 31, 2021 $ 196 2022 196 2023 196 2024 196 2025 196 |
OTHER LONG-TERM ASSETS (Tables)
OTHER LONG-TERM ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
OTHER LONG-TERM ASSETS [Abstract] | |
Other Long-term Assets | At March 31, 2021 and December 31, 2020, other long-term assets consisted of the following: March 31, 2021 December 31, 2020 Prepayment for property $ 39,474 $ 39,450 Security deposit for land use right 750 756 Others 251 290 Total other long-term assets $ 40,475 $ 40,496 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
SHORT-TERM BORROWINGS [Abstract] | |
Short-Term Borrowings | At March 31, 2021 and December 31, 2020, short-term and long-term borrowings consisted of the following: March 31, 2021 December 31, 2020 Line of credit up to RMB 80,000 1)due on April 1, 2021 with an annual interest rate of 4.70 March 23, 2021 - 4,599 2)due on June 27, 2021 4.25 1,370 1,380 3)due on April 29, 2021 with an annual interest rate of 2.80 March 23, 2021 - 820 4)due on June 27, 2021 2.70 2,080 2,080 5)due on September 30, 2021 2.50 2,855 - Line of credit up to RMB 20,000 1)due on April 12, 2021 with an annual interest rate of 4.65%. 1,522 1,533 2)due on May 24, 2021 with an annual interest rate of 3.65%. 1,522 1,533 Line of credit up to RMB 70,000 from Bank of Shanghai Pudong Branch, 1)due on May 27, 2021 with an annual interest rate of 4.68%. *2 2,557 2,575 2)due on June 27, 2021 with an annual interest rate of 4.68%. *2 and fully repaid on March 29, 2021. - 1,380 3)due on May 28, 2021 with an annual interest rate of 3.48%. *2 2,442 2,442 4)due on June 7, 2021 with an annual interest rate of 3.50%. *2 1,521 1,521 5)due on June 16, 2021 with an annual interest rate of 3.50%. *2 1,837 1,838 Line of credit up to RMB 80,000 from China Merchants Bank, 1)due on August 10, 2021 with annual interest rate of 3.85%. 1,370 1,380 2)due on August 25, 2021 with annual interest rate of 3.85%. 3,044 3,066 3)due on February 1, 2022 with annual interest rate of 3.85%. 1,370 - Total $ 23,490 $ 26,147 *1 Guaranteed by ACM’s Chief Executive Officer *2 Guaranteed by ACM’s Chief Executive Officer and CleanChip |
OTHER PAYABLE AND ACCRUED EXP_2
OTHER PAYABLE AND ACCRUED EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
OTHER PAYABLE AND ACCRUED EXPENSES [Abstract] | |
Other Payable and Accrued Expenses | At March 31, 2021 and December 31, 2020, other payable and accrued expenses consisted of the following: March 31, 2021 December 31, 2020 Accrued commissions $ 7,838 $ 7,127 Accrued warranty 4,196 3,975 Accrued payroll 4,422 3,068 Accrued professional fees 211 384 Accrued machine testing fees 1,632 1,595 Others 3,586 2,656 Total $ 21,885 $ 18,805 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
LEASES [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended March 31, 2021 2020 Operating lease cost $ 515 $ 377 Short-term lease cost 79 50 Lease cost $ 594 $ 427 |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases was as follows for the months ended March and : Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 594 $ 427 |
Maturities of Lease Liabilities for Operating Leases | Maturities of lease liabilities for all operating leases were as follows as of March 31, 2021: December 31, 2021 $ 1,834 2022 2,439 2023 978 2024 876 2025 22 Total lease payments 6,149 Less: Interest (800 ) Present value of lease liabilities $ 5,349 |
Weighted Average Remaining Lease Terms and Discount Rates for Operating Leases | The weighted average remaining lease terms and discount rates for all operating leases were as follows as of March and December : March 31, 2021 December 31, 2020 Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.93 2.11 Weighted average discount rate 4.87 % 5.14 % |
LONG-TERM BORROWINGS (Tables)
LONG-TERM BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
LONG-TERM BORROWINGS [Abstract] | |
Long-Term Borrowings | At March and December long-term borrowings consisted of the following: March 31, 2021 December 31, 2020 Loan from China Merchants Bank $ 19,042 $ 19,570 Less: Current portion (1,598 ) (1,591 ) $ 17,444 $ 17,979 |
Principal Payments for Outstanding Long-Term Loan | Scheduled principal payments for the outstanding long-term loan as of March are as follows: Year ending December 31, 2021 $ 1,191 2022 1,654 2023 1,733 2024 1,815 2025 and onwards 12,649 $ 19,042 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
OTHER LONG-TERM LIABILITIES [Abstract] | |
Other Long-Term Liabilities | Other long-term liabilities represent government subsidies received from PRC governmental authorities for development and commercialization of certain technology but not yet recognized. As of March and December other long-term liabilities consisted of the following unearned government subsidies: March 31, 2021 December 31, 2020 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 1,221 $ 1,266 Subsidies to Electro Copper Plating project, commenced in 2014 2,016 2,156 Subsidies to Polytetrafluoroethylene, commenced in 2018 51 130 Subsidies to Tahoe-Single Bench Clean, commenced in 2020 1,005 1,544 Subsidies to Backside Clean-YMTC National Project, commenced in 2020 1,941 2,591 Other 405 347 Total $ 6,639 $ 8,034 |
LONG TERM INVESTMENT (Tables)
LONG TERM INVESTMENT (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
LONG TERM INVESTMENT [Abstract] | |
Components of Long-Term Investment | The Company treats the equity investment in the consolidated financial statements under the equity method. Under the equity method, the investment is initially recorded at cost, adjusted for any excess of the Company’s share of the incorporated-date fair values of the investee’s identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post incorporation change in the Company’s share of the investee’s net assets and any impairment loss relating to the investment. March 31, 2021 December 31, 2020 Ninebell $ 1,988 $ 1,666 Shengyi 157 134 Hefei Shixi 4,487 4,540 Total $ 6,632 $ 6,340 |
TRADING SECURITIES (Tables)
TRADING SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
TRADING SECURITIES [Abstract] | |
Components of Trading Securities | The components of trading securities were as follows: March 31, 2021 December 31, 2020 Trading securities listed in Shanghai Stock Exchange Cost $ 14,912 $ 15,020 Market value $ 27,003 $ 28,239 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
RELATED PARTY BALANCES AND TRANSACTIONS [Abstract] | |
Related Party Balances and Transactions | Prepaid expenses March 31, 2021 December 31, 2020 Ninebell $ 1,778 $ 1,607 Accounts payable March 31, 2021 December 31, 2020 Ninebell $ 2,925 $ 2,898 Shengyi 1,585 1,195 Total $ 4,510 $ 4,093 Three Months Ended Purchase of materials 2021 2020 Ninebell $ 6,882 $ 2,153 Shengyi 358 58 Total $ 7,240 $ 2,211 Three Months Ended March 31 Service fee charged by 2021 2020 Shengyi $ 142 $ 46 Ninebell - - Total $ 142 $ 46 |
REDEEMABLE NON-CONTROLLING IN_2
REDEEMABLE NON-CONTROLLING INTERESTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
REDEEMABLE NON-CONTROLLING INTERESTS [Abstract] | |
Components of Change in Redeemable Non-controlling Interests | The components of the change in the redeemable non-controlling interests for the three months ended March 31, 2020 are presented in the following table: Balance at December 31, 2019 $ 60,162 Net income attributable to redeemable non-controlling interests 258 Effect of foreign currency translation gain attributable to redeemable non-controlling interests (953 ) Balance at March 31 2020 $ 59,467 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stock-Based Compensation [Abstract] | |
Components of Stock-based Compensation Expense | The following table summarizes the components of stock-based compensation expense included in the consolidated statements of operations: Three Months Ended March 31, 2021 2020 Stock-Based Compensation Expense: Cost of revenue $ 71 $ 45 Sales and marketing expense 505 94 Research and development expense 229 187 General and administrative expense 405 363 $ 1,210 $ 689 Three Months Ended March 31, 2021 2020 Stock-based compensation expense by type: Employee stock purchase plan $ 1,085 $ 431 Non-employee stock purchase plan 40 172 Subsidiary option grants 85 86 $ 1,210 $ 689 |
Assumptions Used to Determine Fair Value of Share Options Granted | The fair value of options granted to employee with a service period based condition is estimated on the grant date using the Black-Scholes valuation. Three months ended March 31, 2021 Fair value of common share $48.25 - Expected term in years 5.50-6.25 Volatility 48.53% Risk-free interest rate 1.00% Expected dividend 0% (1) Equal to closing value on the grant date. (2) Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to Staff Accounting Bulletin 110. (3) Volatility is calculated based on the historical volatility of ACM’s comparable companies in the period equal to the expected term of each grant. (4) Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant. (5) Expected dividend is assumed to be % as ACM has no history or expectation of paying a dividend on its common stock. |
Employee Share Option [Member] | |
Stock-Based Compensation [Abstract] | |
Summary of Share Option Activities | The following table summarizes the Company’s employee share option activities during the three-months ended March 31, 2021: Number of Option Share Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2020 3,191,411 $ 5.13 $ 12.73 7.13 years Granted 106,400 50.67 111.98 Exercised (255,582) 1.78 4.55 Forfeited/cancelled (11,989) 27.45 62.58 Outstanding at March 31, 2021 3,030,240 6.93 $ 16.70 7.22 years Vested and exercisable at March 31, 2021 1,809,322 |
Employee Share Option [Member] | ACM Shanghai [Member] | |
Stock-Based Compensation [Abstract] | |
Summary of Share Option Activities | The following table summarizes the ACM Shanghai employee stock option activities during the three months ended March 31, 2021: Number of Weighted Weighted Average Exercise Price Weighted Average Outstanding at December 31, 2020 5,423,654 $ 0.23 $ 1.89 3.50 Granted - - - Exercised - - - Expired - - - Forfeited/cancelled (46,154) 0.24 2.00 Outstanding at March 31, 2021 5,377,500 $ 0.24 $ 2.00 3.26 years Vested and exercisable at March 31, 2021 - |
Non-Employee Stock Option [Member] | |
Stock-Based Compensation [Abstract] | |
Summary of Share Option Activities | The following table summarizes the Company’s non-employee share option activities during the three months ended March 31, 2021: Number of Weighted Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2020 836,038 $ 1.02 $ 3.07 4.92 Granted - - - Exercised (54,358) 1.51 5.44 Expired - - - Forfeited/cancelled (76) 0.30 0.75 Outstanding at March 31, 2021 781,604 $ 0.99 $ 2.91 4.64 Vested and exercisable at March 31, 2021 773,139 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
INCOME TAXES [Abstract] | |
Income Tax Expense | Income tax benefit (expense) was as follows: Three Months Ended March 31, 2021 2020 Total income tax benefit (expense) $ 2,770 $ (304 ) |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) $ in Thousands | Sep. 13, 2017 | Mar. 31, 2021 | Dec. 31, 2019USD ($) | Dec. 31, 2020 | Nov. 08, 2017 | Aug. 31, 2017 |
Class A Common Stock [Member] | ||||||
Description of Business [Abstract] | ||||||
Reverse stock split | 0.33 | |||||
Class B Common Stock [Member] | ||||||
Description of Business [Abstract] | ||||||
Reverse stock split | 0.33 | |||||
ACM Research (Shanghai), Inc. [Member] | ||||||
Description of Business [Abstract] | ||||||
Purchase of equity interest percentage | 8.30% | 18.36% | 18.77% | |||
Name of subsidiaries | ACM Research (Shanghai), Inc. | |||||
Term to complete listing of shares | 3 years | |||||
Date and place of Incorporation | PRC, May 2005 | |||||
Effective interest held as at | 91.70% | 91.70% | ||||
ACM Research (Wuxi), Inc. [Member] | ||||||
Description of Business [Abstract] | ||||||
Name of subsidiaries | ACM Research (Wuxi), Inc. | |||||
Date and place of Incorporation | PRC, July 2011 | |||||
Effective interest held as at | 91.70% | 91.70% | ||||
CleanChip Technologies Limited [Member] | ||||||
Description of Business [Abstract] | ||||||
Proceeds from sale of interest in subsidiary | $ 3,500 | |||||
Name of subsidiaries | CleanChip Technologies Limited | |||||
Date and place of Incorporation | Hong Kong, June 2017 | |||||
Effective interest held as at | 91.70% | 91.70% | ||||
ACM Research Korea CO., LTD [Member] | ||||||
Description of Business [Abstract] | ||||||
Name of subsidiaries | ACM Research Korea CO., LTD. | |||||
Date and place of Incorporation | Korea, December 2017 | |||||
Effective interest held as at | 91.70% | 91.70% | ||||
Shengwei Research (Shanghai), Inc. [Member] | ||||||
Description of Business [Abstract] | ||||||
Purchase of equity interest percentage | 91.70% | |||||
Name of subsidiaries | Shengwei Research (Shanghai), Inc. | |||||
Date and place of Incorporation | PRC, March 2019 | |||||
Effective interest held as at | 91.70% | 91.70% | ||||
ACM Research (CA), Inc. [Member] | ||||||
Description of Business [Abstract] | ||||||
Name of subsidiaries | ACM Research (CA), Inc. | |||||
Date and place of Incorporation | USA, June 2019 | |||||
Effective interest held as at | 91.70% | 91.70% | ||||
ACM Research (Cayman), Inc. [Member] | ||||||
Description of Business [Abstract] | ||||||
Name of subsidiaries | ACM Research (Cayman), Inc. | |||||
Date and place of Incorporation | Cayman Islands, April 2019 | |||||
Effective interest held as at | 100.00% | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, COVID-19 Assessment (Details) - County | 1 Months Ended | |
Mar. 31, 2020 | Feb. 29, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Number of days headquarters closed | 6 days | |
Number of San Francisco Bay Area counties | 6 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Basic and Diluted Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator [Abstract] | ||
Net income | $ 5,822 | $ 1,963 |
Net income attributable to non-controlling interests and redeemable non-controlling interests | 352 | 258 |
Net income attributable to ACM Research, Inc. | $ 5,470 | $ 1,705 |
Weighted average shares outstanding, basic (in shares) | 18,786,870 | 18,120,363 |
Effect of dilutive securities (in shares) | 3,081,410 | 2,946,273 |
Weighted average shares outstanding, diluted (in shares) | 21,868,280 | 21,066,636 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.29 | $ 0.09 |
Diluted (in dollars per share) | $ 0.25 | $ 0.08 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] - Three Customers [Member] - Customer | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue Benchmark [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Number of major customers | 3 | 3 |
Concentration of credit risk | 60.10% | 97.40% |
Accounts Receivable [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Number of major customers | 3 | 3 |
Concentration of credit risk | 77.30% | 76.10% |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregated Revenue Information [Abstract] | ||
Revenue | $ 43,732 | $ 24,348 |
Mainland China [Member] | ||
Disaggregated Revenue Information [Abstract] | ||
Revenue | 43,696 | 24,289 |
Oher Regions [Member] | ||
Disaggregated Revenue Information [Abstract] | ||
Revenue | 36 | 59 |
Single Wafer Cleaning, Tahoe and Semi-Critical Cleaning Equipment [Member] | ||
Disaggregated Revenue Information [Abstract] | ||
Revenue | 32,413 | 22,784 |
ECP (Front-end and Packaging), Furnace and Other Technologies [Member] | ||
Disaggregated Revenue Information [Abstract] | ||
Revenue | 5,550 | 0 |
Advanced Packaging (Excluding ECP), Services & Spares [Member] | ||
Disaggregated Revenue Information [Abstract] | ||
Revenue | 5,769 | 1,564 |
Wet Cleaning and Other Front-end Processing Tools [Member] | ||
Disaggregated Revenue Information [Abstract] | ||
Revenue | 31,900 | 22,784 |
Advanced Packaging, Other Back-end Processing Tools, Services and Spares [Member] | ||
Disaggregated Revenue Information [Abstract] | ||
Revenue | $ 11,832 | $ 1,564 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts Receivable [Abstract] | ||
Accounts receivable | $ 60,394 | $ 56,441 |
Less: Allowance for doubtful accounts | 0 | 0 |
Total | $ 60,394 | $ 56,441 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory [Abstract] | ||
Raw materials | $ 34,631 | $ 32,391 |
Work in process | 21,461 | 23,871 |
Finished goods | 47,134 | 32,377 |
Total inventory | 103,226 | 88,639 |
Inventory reserve | $ 1,124 | $ 1,140 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Total cost | $ 9,948 | $ 9,627 | |
Less: Total accumulated depreciation | (4,049) | (3,745) | |
Construction in progress | 2,873 | 2,310 | |
Total property, plant and equipment, net | 8,772 | 8,192 | |
Depreciation expense | 439 | $ 185 | |
Manufacturing Equipment [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Total cost | 5,924 | 5,966 | |
Office Equipment [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Total cost | 1,260 | 1,047 | |
Transportation Equipment [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Total cost | 213 | 216 | |
Leasehold Improvement [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Total cost | $ 2,551 | $ 2,398 |
LAND USE RIGHT, NET (Details)
LAND USE RIGHT, NET (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jul. 31, 2020ft² | Mar. 31, 2020USD ($) | |
Land use Right [Abstract] | ||||
Land use right purchase amount | $ 9,674 | $ 9,744 | ||
Less: Accumulated amortization | (145) | (98) | $ (49) | |
Land use right, net | $ 9,529 | 9,646 | ||
Annual Amortization of Land use Right [Abstract] | ||||
2021 | 196 | |||
2022 | 196 | |||
2023 | 196 | |||
2024 | 196 | |||
2025 | $ 196 | |||
Shangwei Research (Shanghai), Inc. [Member] | ||||
Land use Right [Abstract] | ||||
Right to use land lease term | 50 years | |||
Area for development and production center | ft² | 1,000,000 |
OTHER LONG-TERM ASSETS (Details
OTHER LONG-TERM ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Other Long-term Assets [Abstract] | ||
Prepayment for property | $ 39,474 | $ 39,450 |
Security deposit for land use right | 750 | 756 |
Others | 251 | 290 |
Total other long-term assets | 40,475 | $ 40,496 |
Capitalized interest charges related to property | $ 317 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | ||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | $ 23,490 | $ 26,147 | |||
Interest expense related to short-term borrowings | 189 | $ 111 | |||
Line of Credit Due on April 1, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | [1] | $ 0 | 4,599 | ||
Maximum borrowing capacity | ¥ | ¥ 80,000 | ||||
Annual interest rate | 4.70% | ||||
Line of credit due date | Mar. 23, 2021 | ||||
Line of Credit Due on June 27, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | [1] | $ 1,370 | 1,380 | ||
Maximum borrowing capacity | ¥ | 80,000 | ||||
Annual interest rate | 4.25% | ||||
Line of credit due date | Jun. 27, 2021 | ||||
Line of Credit Due on April 29, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | [1] | $ 0 | 820 | ||
Maximum borrowing capacity | ¥ | 80,000 | ||||
Annual interest rate | 2.80% | ||||
Line of credit due date | Mar. 23, 2021 | ||||
Line of Credit Due on June 27, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | [1] | $ 2,080 | 2,080 | ||
Maximum borrowing capacity | ¥ | 80,000 | ||||
Annual interest rate | 2.70% | ||||
Line of credit due date | Jun. 27, 2021 | ||||
Line of Credit Due on September 30, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | [1] | $ 2,855 | 0 | ||
Maximum borrowing capacity | ¥ | 80,000 | ||||
Annual interest rate | 2.50% | ||||
Line of credit due date | Sep. 30, 2021 | ||||
Line of Credit Due on April 12, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,522 | 1,533 | |||
Maximum borrowing capacity | ¥ | 20,000 | ||||
Annual interest rate | 4.65% | ||||
Line of credit due date | Apr. 12, 2021 | ||||
Line of Credit Due on May 24, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,522 | 1,533 | |||
Maximum borrowing capacity | ¥ | 20,000 | ||||
Annual interest rate | 3.65% | ||||
Line of credit due date | May 24, 2021 | ||||
Line of Credit Due on May 27, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | [2] | $ 2,557 | 2,575 | ||
Maximum borrowing capacity | ¥ | 70,000 | ||||
Annual interest rate | 4.68% | ||||
Line of credit due date | May 27, 2021 | ||||
Line of Credit Due on June 27, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | [2] | $ 0 | 1,380 | ||
Maximum borrowing capacity | ¥ | 70,000 | ||||
Annual interest rate | 4.68% | ||||
Line of credit due date | Mar. 29, 2021 | ||||
Line of Credit Due on May 28, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | [2] | $ 2,442 | 2,442 | ||
Maximum borrowing capacity | ¥ | 70,000 | ||||
Annual interest rate | 3.48% | ||||
Line of credit due date | May 28, 2021 | ||||
Line of Credit Due on June 7, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | [2] | $ 1,521 | 1,521 | ||
Maximum borrowing capacity | ¥ | 70,000 | ||||
Annual interest rate | 3.50% | ||||
Line of credit due date | Jun. 7, 2021 | ||||
Line of Credit Due on June 16, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | [2] | $ 1,837 | 1,838 | ||
Maximum borrowing capacity | ¥ | 70,000 | ||||
Annual interest rate | 3.50% | ||||
Line of credit due date | Jun. 16, 2021 | ||||
Line of Credit Due on August 10, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,370 | 1,380 | |||
Maximum borrowing capacity | ¥ | 80,000 | ||||
Annual interest rate | 3.85% | ||||
Line of credit due date | Aug. 10, 2021 | ||||
Line of Credit Due on August 25, 2021 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | $ 3,044 | 3,066 | |||
Maximum borrowing capacity | ¥ | 80,000 | ||||
Annual interest rate | 3.85% | ||||
Line of credit due date | Aug. 25, 2021 | ||||
Line of Credit Due on February 1, 2022 [Member] | |||||
Short-Term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,370 | $ 0 | |||
Maximum borrowing capacity | ¥ | ¥ 80,000 | ||||
Annual interest rate | 3.85% | ||||
Line of credit due date | Feb. 1, 2022 | ||||
[1] | Guaranteed by ACM’s Chief Executive Officer | ||||
[2] | Guaranteed by ACM’s Chief Executive Officer and CleanChip |
OTHER PAYABLE AND ACCRUED EXP_3
OTHER PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
OTHER PAYABLE AND ACCRUED EXPENSES [Abstract] | ||
Accrued commissions | $ 7,838 | $ 7,127 |
Accrued warranty | 4,196 | 3,975 |
Accrued payroll | 4,422 | 3,068 |
Accrued professional fees | 211 | 384 |
Accrued machine testing fees | 1,632 | 1,595 |
Others | 3,586 | 2,656 |
Total | $ 21,885 | $ 18,805 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Components of lease expense [Abstract] | |||
Operating lease cost | $ 515 | $ 377 | |
Short-term lease cost | 79 | 50 | |
Lease cost | 594 | 427 | |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | |||
Operating cash outflow from operating leases | 594 | $ 427 | |
Maturities of lease liabilities [Abstract] | |||
2021 | 1,834 | ||
2022 | 2,439 | ||
2023 | 978 | ||
2024 | 876 | ||
2025 | 22 | ||
Total lease payments | 6,149 | ||
Less: Interest | (800) | ||
Present value of lease liabilities | $ 5,349 | ||
Weighted average remaining lease terms and discount rates [Abstract] | |||
Weighted average remaining lease term | 1 year 11 months 4 days | 2 years 1 month 9 days | |
Weighted average discount rate | 4.87% | 5.14% |
LONG-TERM BORROWINGS (Details)
LONG-TERM BORROWINGS (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)Intallment | Dec. 31, 2020USD ($) | |
Long-Term Borrowings [Abstract] | ||
Less: Current portion | $ (1,598) | $ (1,591) |
Long-term Borrowings | 17,444 | 17,979 |
Principal Payments of Long-Term Loan [Abstract] | ||
Interest expense related to long-term borrowings incurred | 317 | |
Interest expense charged to long-term borrowings | 0 | |
Capitalized interest charged as other long-term assets | 317 | |
China Merchants Bank [Member] | ||
Long-Term Borrowings [Abstract] | ||
Long-term debt | 19,042 | 19,570 |
Less: Current portion | (1,598) | (1,591) |
Long-term Borrowings | $ 17,444 | 17,979 |
Number of installments for loan repayable | Intallment | 120 | |
Last installment due date | Nov. 30, 2030 | |
Annual interest rate | 4.65% | |
Principal Payments of Long-Term Loan [Abstract] | ||
2021 | $ 1,191 | |
2022 | 1,654 | |
2023 | 1,733 | |
2024 | 1,815 | |
2025 and onwards | 12,649 | |
Long-term debt | $ 19,042 | $ 19,570 |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | $ 6,639 | $ 8,034 |
Subsidies to Stress Free Polishing Project, Commenced in 2008 and 2017 [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 1,221 | 1,266 |
Subsidies to Electro Copper Plating Project, Commenced in 2014 [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 2,016 | 2,156 |
Subsidies to Polytetrafluoroethylene, Commenced in 2018 [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 51 | 130 |
Subsidies to Tahoe-Single Bench Clean, Commenced in 2020 [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 1,005 | 1,544 |
Subsidies to Backside Clean-YMTC National Project, Commenced in 2020 | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 1,941 | 2,591 |
Other [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | $ 405 | $ 347 |
LONG TERM INVESTMENT (Details)
LONG TERM INVESTMENT (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Sep. 05, 2019shares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019CNY (¥) | Jun. 27, 2019USD ($) | Sep. 11, 2017USD ($)$ / sharesshares |
Classification of Investments [Abstract] | ||||||||
Total | $ 6,632 | $ 6,340 | ||||||
Equity income in net income of affiliates | 320 | $ 148 | ||||||
Ninebell [Member] | ||||||||
Investments [Abstract] | ||||||||
Percentage of ordinary shares issued | 20.00% | |||||||
Purchase price | $ 1,200 | |||||||
Classification of Investments [Abstract] | ||||||||
Total | 1,988 | 1,666 | ||||||
Ninebell [Member] | Class A Common Stock [Member] | ||||||||
Investments [Abstract] | ||||||||
Purchase price | $ 1,000 | |||||||
Shares issued (in shares) | shares | 133,334 | |||||||
Share price (in dollars per share) | $ / shares | $ 7.50 | |||||||
Shengyi [Member] | ||||||||
Investments [Abstract] | ||||||||
Percentage of ordinary shares issued | 15.00% | |||||||
Investment - equity method | $ 109 | |||||||
Number of investors with agreements entered | shares | 6 | |||||||
Classification of Investments [Abstract] | ||||||||
Total | 157 | 134 | ||||||
Hefei Shixi [Member] | ||||||||
Investments [Abstract] | ||||||||
Investment in partnership | $ 4,200 | ¥ 30,000 | ||||||
Ownership percentage in partnership | 10.00% | 10.00% | ||||||
Classification of Investments [Abstract] | ||||||||
Total | $ 4,487 | $ 4,540 |
TRADING SECURITIES (Details)
TRADING SECURITIES (Details) $ in Thousands, ¥ in Millions | 3 Months Ended | ||||
Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 18, 2020CNY (¥) | Jun. 18, 2020USD ($) | |
Trading securities listed in Shanghai Stock Exchange [Abstract] | |||||
Cost | $ 14,912 | $ 15,020 | |||
Market value | $ 27,003 | $ 28,239 | |||
Unrealized loss on trading securities | $ (1,047) | ||||
Qingdao LP [Member] | |||||
Investments [Abstract] | |||||
Total capital fund of limited partnership | ¥ 2,224 | $ 315,000 | |||
Investment in partnership | ¥ 100 | $ 14,200 | |||
Ownership percentage in partnership | 4.30% | 4.30% | |||
SMIC [Member] | Minimum [Member] | |||||
Investments [Abstract] | |||||
Ownership percentage in partnership | 30.00% |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Abstract] | |||
Accounts payable | $ 4,510 | $ 4,093 | |
Purchase of materials | 7,240 | $ 2,211 | |
Service fee charged by | 142 | 46 | |
Ninebell Co., Ltd [Member] | |||
Related Party Transaction [Abstract] | |||
Prepaid expenses | 1,778 | 1,607 | |
Accounts payable | 2,925 | 2,898 | |
Purchase of materials | 6,882 | 2,153 | |
Service fee charged by | 0 | 0 | |
Shengyi Semiconductor Technology Co., Ltd [Member] | |||
Related Party Transaction [Abstract] | |||
Accounts payable | 1,585 | $ 1,195 | |
Purchase of materials | 358 | 58 | |
Service fee charged by | $ 142 | $ 46 |
COMMON STOCK (Details)
COMMON STOCK (Details) | 3 Months Ended | ||
Mar. 31, 2021Vote$ / sharesshares | Mar. 31, 2020shares | Dec. 31, 2020$ / sharesshares | |
Common Class A [Member] | |||
Class of Stock [Abstract] | |||
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Number of votes for each share entitled | Vote | 1 | ||
Common stock, shares issued (in shares) | 17,239,967 | 16,896,693 | |
Common stock, shares outstanding (in shares) | 17,239,967 | 16,896,693 | |
Common Class B [Member] | |||
Class of Stock [Abstract] | |||
Common stock, shares authorized (in shares) | 2,409,738 | 2,409,738 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Number of votes for each share entitled | Vote | 20 | ||
Convertible shares in to Class A common stock (in shares) | 1 | ||
Common stock, shares issued (in shares) | 1,769,272 | 1,802,606 | |
Common stock, shares outstanding (in shares) | 1,769,272 | 1,802,606 | |
Common Stock [Member] | Common Class A [Member] | |||
Class of Stock [Abstract] | |||
Stock issued upon exercise of stock options (in shares) | 309,940 | 70,478 | |
Conversion of class B common stock to Class A common stock (in shares) | 33,334 | ||
Exercise of common stock warrant issued (in shares) | 64,717 | ||
Common Stock [Member] | Common Class B [Member] | |||
Class of Stock [Abstract] | |||
Stock issued upon exercise of stock options (in shares) | 0 | 0 | |
Conversion of class B common stock to Class A common stock (in shares) | (33,334) | ||
Exercise of common stock warrant issued (in shares) | 0 |
REDEEMABLE NON-CONTROLLING IN_3
REDEEMABLE NON-CONTROLLING INTERESTS (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
REDEEMABLE NON-CONTROLLING INTERESTS [Abstract] | |
Redeemable non-controlling interest | $ 0 |
Change in Redeemable Non-controlling Interests [Abstract] | |
Balance | 60,162 |
Net income attributable to redeemable non-controlling interests | 258 |
Effect of foreign currency translation gain attributable to redeemable non-controlling interests | (953) |
Balance | $ 59,467 |
STOCK-BASED COMPENSATION, Stock
STOCK-BASED COMPENSATION, Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | $ 1,210 | $ 689 |
Employee Stock Purchase Plan [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | 1,085 | 431 |
Employee Stock Purchase Plan [Member] | ACM Shanghai [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | 85 | 86 |
Non-Employee Stock Purchase Plan [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | 40 | 172 |
Cost of Revenue [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | 71 | 45 |
Sales and Marketing Expense [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | 505 | 94 |
Research and Development Expense [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | 229 | 187 |
General and Administrative Expense [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | $ 405 | $ 363 |
STOCK-BASED COMPENSATION, Share
STOCK-BASED COMPENSATION, Share Option Activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Weighed Average Remaining Contractual Term [Abstract] | |||
Stock-based compensation expense | $ 1,210 | $ 689 | |
Employee Share Option [Member] | |||
Number of Option Share [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 3,191,411 | ||
Granted (in shares) | 106,400 | ||
Exercised (in shares) | (255,582) | ||
Forfeited/cancelled (in shares) | (11,989) | ||
Outstanding, end of period (in shares) | 3,030,240 | 3,191,411 | |
Vested and exercisable (in shares) | 1,809,322 | ||
Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding at beginning of period (in dollars per share) | $ 5.13 | ||
Granted (in dollars per share) | 50.67 | ||
Exercised (in dollars per share) | 1.78 | ||
Forfeited/cancelled (in dollars per share) | 27.45 | ||
Outstanding at end of period (in dollars per share) | 6.93 | $ 5.13 | |
Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | 12.73 | ||
Granted (in dollars per share) | 111.98 | ||
Exercised (in dollars per share) | 4.55 | ||
Forfeited/cancelled (in dollars per share) | 62.58 | ||
Outstanding, end of period (in dollars per share) | $ 16.70 | $ 12.73 | |
Weighed Average Remaining Contractual Term [Abstract] | |||
Outstanding weighed average remaining contractual term | 7 years 2 months 19 days | 7 years 1 month 17 days | |
Stock-based compensation expense | $ 1,085 | 431 | |
Unrecognized employee stock-based compensation expense | $ 12,340 | $ 8,733 | |
Weighted-average period over which unrecognized compensation is expected to be recognized | 1 year 11 months 1 day | 1 year 10 months 20 days | |
Employee Share Option [Member] | ACM Shanghai [Member] | |||
Number of Option Share [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 5,423,654 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | 0 | ||
Expired (in shares) | 0 | ||
Forfeited/cancelled (in shares) | (46,154) | ||
Outstanding, end of period (in shares) | 5,377,500 | 5,423,654 | |
Vested and exercisable (in shares) | 0 | ||
Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding at beginning of period (in dollars per share) | $ 0.23 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 0 | ||
Expired (in dollars per share) | 0 | ||
Forfeited/cancelled (in dollars per share) | 0.24 | ||
Outstanding at end of period (in dollars per share) | 0.24 | $ 0.23 | |
Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | 1.89 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 0 | ||
Expired (in dollars per share) | 0 | ||
Forfeited/cancelled (in dollars per share) | 2 | ||
Outstanding, end of period (in dollars per share) | $ 2 | $ 1.89 | |
Weighed Average Remaining Contractual Term [Abstract] | |||
Outstanding weighed average remaining contractual term | 3 years 3 months 3 days | 3 years 6 months | |
Stock-based compensation expense | $ 85 | 86 | |
Non-Employee Stock Option [Member] | |||
Number of Option Share [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 836,038 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (54,358) | ||
Expired (in shares) | 0 | ||
Forfeited/cancelled (in shares) | (76) | ||
Outstanding, end of period (in shares) | 781,604 | 836,038 | |
Vested and exercisable (in shares) | 773,139 | ||
Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding at beginning of period (in dollars per share) | $ 1.02 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 1.51 | ||
Expired (in dollars per share) | 0 | ||
Forfeited/cancelled (in dollars per share) | 0.30 | ||
Outstanding at end of period (in dollars per share) | 0.99 | $ 1.02 | |
Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | 3.07 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 5.44 | ||
Expired (in dollars per share) | 0 | ||
Forfeited/cancelled (in dollars per share) | 0.75 | ||
Outstanding, end of period (in dollars per share) | $ 2.91 | $ 3.07 | |
Weighed Average Remaining Contractual Term [Abstract] | |||
Outstanding weighed average remaining contractual term | 4 years 7 months 20 days | 4 years 11 months 1 day | |
Stock-based compensation expense | $ 40 | 172 | |
Unrecognized employee stock-based compensation expense | $ 155 | $ 195 | |
Weighted-average period over which unrecognized compensation is expected to be recognized | 29 days | 1 month 2 days | |
Non-Employee Stock Option [Member] | ACM Shanghai [Member] | |||
Weighed Average Remaining Contractual Term [Abstract] | |||
Unrecognized employee stock-based compensation expense | $ 779 | $ 822 | |
Weighted-average period over which unrecognized compensation is expected to be recognized | 2 years 3 months 18 days | 2 years 6 months |
STOCK-BASED COMPENSATION, Assum
STOCK-BASED COMPENSATION, Assumptions Used to Determine Fair Value of Share Options Granted (Details) - Employee Share Option [Member] - Service Period Based [Member] | 3 Months Ended | |
Mar. 31, 2021$ / shares | ||
Fair Value of Options Granted [Abstract] | ||
Volatility | 48.53% | [1] |
Risk-free interest rate | 1.00% | [2] |
Expected dividend | 0.00% | [3] |
Minimum [Member] | ||
Fair Value of Options Granted [Abstract] | ||
Fair value of common share (in dollars per share) | $ 48.25 | [4] |
Expected term in years | 5 years 6 months | [5] |
Maximum [Member] | ||
Fair Value of Options Granted [Abstract] | ||
Fair value of common share (in dollars per share) | $ 51.07 | [4] |
Expected term in years | 6 years 3 months | [5] |
[1] | Volatility is calculated based on the historical volatility of ACM’s comparable companies in the period equal to the expected term of each grant. | |
[2] | Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant. | |
[3] | Expected dividend is assumed to be 0% as ACM has no history or expectation of paying a dividend on its common stock. | |
[4] | Equal to closing value on the grant date. | |
[5] | Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to Staff Accounting Bulletin 110. |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)Subsidiary | Mar. 31, 2020USD ($) | |
Income Taxes [Abstract] | ||
Statutory U.S federal income tax rate | 21.00% | |
Unrecognized tax benefits | $ 570 | |
Unrecognized tax benefits that would impact effective tax rate | 422 | |
Interest or penalties | 0 | |
Income Tax Benefit (Expense) [Abstract] | ||
Total income tax benefit (expense) | $ 2,770 | $ (304) |
PRC [Member] | ||
Income Taxes [Abstract] | ||
Number of subsidiaries | Subsidiary | 3 | |
Foreign corporate tax rate | 25.00% | |
Effective period of preferential income tax rate | 3 years | |
PRC [Member] | Minimum [Member] | ||
Income Taxes [Abstract] | ||
Foreign corporate tax rate | 15.00% | |
PRC [Member] | Maximum [Member] | ||
Income Taxes [Abstract] | ||
Foreign corporate tax rate | 25.00% | |
PRC [Member] | ACM Research (Shanghai), Inc. [Member] | ||
Income Taxes [Abstract] | ||
Foreign corporate tax rate | 15.00% | |
PRC [Member] | ACM Research (Wuxi), Inc. [Member] | ||
Income Taxes [Abstract] | ||
Foreign corporate tax rate | 25.00% | |
PRC [Member] | Shengwei Research (Shanghai), Inc. [Member] | ||
Income Taxes [Abstract] | ||
Foreign corporate tax rate | 25.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands, ¥ in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($)LegalProceeding | Mar. 31, 2021CNY (¥) | Dec. 21, 2020ExecutiveOfficers | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
Commitments | $ 3,429 | ||
Required liquidate damage value | $ 63,400 | ¥ 450 | |
Land use rights period | 6 years | 6 years | |
Annual total taxes | $ 22,000 | ¥ 157.6 | |
Investments | $ 10,328 | ||
Number of outstanding legal proceedings | LegalProceeding | 1 | ||
Number of executive officers against lawsuit filed | ExecutiveOfficers | 3 |