Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 22, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 001-38273 | ||
Entity Registrant Name | ACM Research, Inc. | ||
Entity Central Index Key | 0001680062 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 739 | ||
Auditor Firm ID | 32 | ||
Auditor Name | Armanino LLP | ||
Auditor Location | San Ramon, California | ||
BDO China Shu Lun Pan Certified Public Accountants LLP [Member] | |||
Document Information [Line Items] | |||
Auditor Firm ID | 1818 | ||
Auditor Name | BDO China Shu Lun Pan Certified Public Accountants LLP | ||
Auditor Location | Shenzhen, China | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 54,681,261 | ||
Class B Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 5,021,811 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 247,951 | $ 562,548 | |
Restricted cash | 500 | 519 | |
Short-term time deposits (note 2) | 70,492 | 0 | |
Trading securities (note 16) | 20,209 | 29,498 | |
Accounts receivable (note 4) | 182,936 | 105,553 | |
Income tax receivable | 0 | 1,082 | |
Other receivables | 29,617 | 18,979 | |
Inventories (note 5) | 393,172 | 218,116 | |
Advances to related party (note 17) | 3,322 | 2,383 | |
Prepaid expenses | 15,607 | 14,256 | |
Total current assets | 963,806 | 952,934 | |
Property, plant and equipment, net (note 6) | 82,875 | 14,042 | |
Land use right, net (note 7) | 8,692 | 9,667 | |
Operating lease right-of-use assets, net (note 11) | 2,489 | 4,182 | |
Intangible assets, net | 1,255 | 477 | |
Long-term time deposits (note 2) | 101,956 | 0 | |
Deferred tax assets (note 20) | 6,703 | 13,166 | |
Long-term investments (note 14) | 17,459 | 12,694 | |
Other long-term assets (note 8) | 50,265 | 45,017 | |
Total assets | 1,235,500 | 1,052,179 | |
Current liabilities: | |||
Short-term borrowings (note 9) | 56,004 | 9,591 | |
Current portion of long-term borrowings (note 12) | 2,322 | 2,410 | |
Related party accounts payable (note 17) | 14,468 | 7,899 | |
Accounts payable | 101,735 | 93,451 | |
Advances from customers | 153,773 | 52,824 | |
Deferred revenue | 4,174 | 3,180 | |
Income taxes payable (note 20) | 3,469 | 254 | |
FIN-48 payable (note 20) | 6,686 | 2,282 | |
Other payables and accrued expenses (note 10) | 52,201 | 31,735 | |
Current portion of operating lease liability (note 11) | 1,382 | 2,313 | |
Total current liabilities | 396,214 | 205,939 | |
Long-term borrowings (note 12) | 18,687 | 22,957 | |
Long-term operating lease liability (note 11) | 1,107 | 1,869 | |
Deferred tax liability (note 20) | 0 | 1,302 | |
Other long-term liabilities (note 13) | 7,321 | 8,447 | |
Total liabilities | 423,329 | 240,514 | |
Commitments and contingencies (note 21) | |||
Stockholders' equity: | |||
Additional paid-in capital | 604,089 | 595,045 | |
Retained earnings | 94,426 | 63,732 | |
Statutory surplus reserve (note 23) | 16,881 | 8,312 | |
Accumulated other comprehensive income (loss) | (40,546) | 9,109 | |
Total ACM Research, Inc. stockholders' equity | 674,856 | 676,204 | |
Non-controlling interests | 137,315 | 135,461 | |
Total equity | 812,171 | 811,665 | |
Total liabilities and equity | 1,235,500 | 1,052,179 | |
Class A Common Stock [Member] | |||
Stockholders' equity: | |||
Common stock (1) (note 18) | [1] | 5 | 5 |
Class B Common Stock [Member] | |||
Stockholders' equity: | |||
Common stock (1) (note 18) | [1] | $ 1 | $ 1 |
[1]Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in March 2022. See Note 2 for details. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2022 | |
Stock split ratio | 3 | |
Class A Common Stock [Member] | ||
Stock split ratio | 3 | 3 |
Class B Common Stock [Member] | ||
Stock split ratio | 3 | 3 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Consolidated Statements of Operations and Comprehensive Income (Loss) [Abstract] | ||||
Revenue (note 3) | $ 388,832 | $ 259,751 | $ 156,624 | |
Cost of revenue | 205,217 | 144,895 | 87,025 | |
Gross profit | 183,615 | 114,856 | 69,599 | |
Operating expenses: | ||||
Sales and marketing | 39,889 | 26,733 | 16,773 | |
Research and development | 62,226 | 34,207 | 19,119 | |
General and administrative | 22,465 | 15,214 | 12,215 | |
Total operating expenses | 124,580 | 76,154 | 48,107 | |
Income from operations | 59,035 | 38,702 | 21,492 | |
Interest income | 8,740 | 505 | 897 | |
Interest expense | (1,655) | (765) | (982) | |
Change in fair value of financial liability | 0 | 0 | (11,964) | |
Realized gain from sale of trading securities | 1,116 | 0 | 0 | |
Unrealized gain (loss) on trading securities | (7,855) | 607 | 12,574 | |
Other income (expense), net | 3,315 | (631) | (3,377) | |
Equity income in net income of affiliates | 4,666 | 4,637 | 655 | |
Income before income taxes | 67,362 | 43,055 | 19,295 | |
Income tax benefit (expense) (note 20) | (16,798) | (134) | 2,382 | |
Net income | 50,564 | 42,921 | 21,677 | |
Less: Net income attributable to non-controlling interests | 11,301 | 5,164 | 2,897 | |
Net income attributable to ACM Research, Inc. | 39,263 | 37,757 | 18,780 | |
Comprehensive income (loss): | ||||
Net income | 50,564 | 42,921 | 21,677 | |
Foreign currency translation adjustment, net of tax | (59,102) | 4,695 | 10,493 | |
Comprehensive income (loss) | (8,538) | 47,616 | 32,170 | |
Less: Comprehensive income (loss) attributable to non-controlling interests | 1,854 | 5,607 | 6,858 | |
Comprehensive income (loss) attributable to ACM Research, Inc. | $ (10,392) | $ 42,009 | $ 25,312 | |
Net income attributable to ACM Research, Inc. per common share (note 2): | ||||
Basic (in dollars per share) | $ 0.66 | $ 0.65 | $ 0.34 | |
Diluted (in dollars per share) | $ 0.59 | $ 0.58 | $ 0.3 | |
Weighted average common shares outstanding used in computing per share amounts (note 2): | ||||
Basic (in shares) | [1] | 59,235,975 | 57,654,708 | 54,700,083 |
Diluted (in shares) | [1] | 65,341,771 | 65,356,716 | 63,550,407 |
[1]Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in March 2022. See Note 2 for details. |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) | 1 Months Ended |
Mar. 31, 2022 | |
Consolidated Statements of Operations and Comprehensive Income (Loss) [Abstract] | |
Stock split ratio | 3 |
Consolidated Statement of Chang
Consolidated Statement 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] | Retained Earnings [Member] | Statutory Surplus Reserve [Member] | Accumulated Other Comprehensive Income [Member] | Non-controlling Interest [Member] | Total | |
Beginning balance at Dec. 31, 2019 | $ 5 | $ 1 | $ 83,483 | $ 14,436 | $ 1,071 | $ (1,675) | $ 0 | $ 97,321 | |
Beginning balance (in shares) at Dec. 31, 2019 | [1] | 48,546,453 | 5,587,824 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 21,677 | ||||||||
Net income | $ 0 | $ 0 | 0 | 18,780 | 0 | 0 | 2,254 | 21,034 | |
Appropriation to statutory surplus reserves | 0 | 0 | 0 | (3,317) | 3,317 | 0 | 0 | 0 | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 0 | 6,532 | 4,808 | 11,340 | |
Exercise of stock options | $ 0 | $ 0 | 2,745 | 0 | 0 | 0 | 0 | 2,745 | |
Exercise of stock options (in shares) | [1] | 2,497,512 | 0 | ||||||
Stock-based compensation | $ 0 | $ 0 | 5,628 | 0 | 0 | 0 | 0 | 5,628 | |
Conversion of Class B common stock to Class A common stock | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock (in shares) | [1] | 180,006 | (180,006) | ||||||
Share cancellation | $ 0 | $ 0 | (9,715) | 0 | 0 | 0 | 0 | (9,715) | |
Share cancellation (in shares) | [1] | (728,043) | 0 | ||||||
Issuance of warrants (note 15) | $ 0 | $ 0 | 19,859 | 0 | 0 | 0 | 0 | 19,859 | |
Exercise of warrants | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Exercise of warrants (in shares) | [1] | 194,151 | 0 | ||||||
Reclassification of redeemable non-controlling interest | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 59,958 | 59,958 | |
Ending balance at Dec. 31, 2020 | $ 5 | $ 1 | 102,000 | 29,899 | 4,388 | 4,857 | 67,020 | 208,170 | |
Ending balance (in shares) at Dec. 31, 2020 | [1] | 50,690,079 | 5,407,818 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | $ 0 | $ 0 | 0 | 37,757 | 0 | 0 | 5,164 | 42,921 | |
Appropriation to statutory surplus reserves | 0 | 0 | 0 | (3,924) | 3,924 | 0 | 0 | 0 | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 0 | 4,252 | 443 | 4,695 | |
Exercise of stock options | $ 0 | $ 0 | 3,430 | 0 | 0 | 0 | 0 | 3,430 | |
Exercise of stock options (in shares) | [1] | 1,870,803 | 0 | ||||||
Stock-based compensation | $ 0 | $ 0 | 5,117 | 0 | 0 | 0 | 0 | 5,117 | |
Conversion of Class B common stock to Class A common stock | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock (in shares) | [1] | 320,004 | (320,004) | ||||||
Exercise of warrants | $ 0 | $ 0 | 1,820 | 0 | 0 | 0 | 0 | 1,820 | |
Exercise of warrants (in shares) | [1] | 728,043 | 0 | ||||||
Proceeds from a subsidiary equity issuance, net of issuance costs | $ 0 | $ 0 | 482,678 | 0 | 0 | 0 | 62,834 | 545,512 | |
Proceeds from a subsidiary equity issuance, net of issuance costs (in shares) | [1] | 0 | 0 | ||||||
Ending balance at Dec. 31, 2021 | $ 5 | $ 1 | 595,045 | 63,732 | 8,312 | 9,109 | 135,461 | 811,665 | |
Ending balance (in shares) at Dec. 31, 2021 | [1] | 53,608,929 | 5,087,814 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | $ 0 | $ 0 | 0 | 39,263 | 0 | 0 | 11,301 | 50,564 | |
Appropriation to statutory surplus reserves | 0 | 0 | 0 | (8,569) | 8,569 | 0 | 0 | 0 | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 0 | (49,655) | (9,447) | (59,102) | |
Exercise of stock options | $ 0 | $ 0 | 1,314 | 0 | 0 | 0 | 0 | 1,314 | |
Exercise of stock options (in shares) | [1] | 980,354 | 0 | ||||||
Stock-based compensation | $ 0 | $ 0 | 7,730 | 0 | 0 | 0 | 0 | 7,730 | |
Conversion of Class B common stock to Class A common stock | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Conversion of Class B common stock to Class A common stock (in shares) | [1] | 66,003 | (66,003) | ||||||
Ending balance at Dec. 31, 2022 | $ 5 | $ 1 | $ 604,089 | $ 94,426 | $ 16,881 | $ (40,546) | $ 137,315 | $ 812,171 | |
Ending balance (in shares) at Dec. 31, 2022 | [1] | 54,655,286 | 5,021,811 | ||||||
[1]Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in March 2022. See Note 2 for details. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Stock split ratio | 3 | |
Common Stock Class A [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Stock split ratio | 3 | 3 |
Common Stock Class B [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Stock split ratio | 3 | 3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 50,564 | $ 42,921 | $ 21,677 |
Adjustments to reconcile net income from operations to net cash used in operating activities | |||
Depreciation and amortization | 5,366 | 2,353 | 1,055 |
Loss on disposals of property, plant and equipment | (12) | 0 | 25 |
Realized gain on trading securities | (1,116) | 0 | 0 |
Equity income in net income of affiliates | (4,666) | (4,637) | (655) |
Unrealized loss (gain) on trading securities | 7,855 | (607) | (12,574) |
Deferred income taxes | 4,027 | (1,840) | (4,085) |
Stock-based compensation | 7,730 | 5,117 | 5,628 |
Change in fair value of financial liability | 0 | 0 | 11,964 |
Net changes in operating assets and liabilities: | |||
Accounts receivable | (88,655) | (47,624) | (22,085) |
Income tax recoverable | 0 | (1,082) | 0 |
Other receivables | (7,331) | (8,420) | (6,882) |
Inventories | (193,314) | (127,656) | (40,768) |
Advances to related party (note 17) | (939) | (776) | (1,259) |
Prepaid expenses | (3,695) | (9,830) | (2,259) |
Other long-term assets | 3,986 | (4,521) | (99) |
Related party accounts payable (note 17) | 6,569 | 3,806 | 2,878 |
Accounts payable | 17,501 | 61,405 | 18,397 |
Advances from customers | 104,258 | 34,831 | 8,578 |
Deferred revenue | 994 | 226 | (3,137) |
Income taxes payable | 3,236 | 2,200 | (83) |
FIN-48 payable | 4,404 | 10,551 | 5,236 |
Other payables and accrued expenses | 23,406 | 3,180 | 1,343 |
Other long-term liabilities | (2,362) | 310 | 3,558 |
Net cash used in operating activities | (62,194) | (40,093) | (13,547) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (91,094) | (9,153) | (5,211) |
Purchase of intangible assets | (1,426) | (559) | (324) |
Purchase of land-use-right | 0 | 0 | (9,744) |
Purchase of trading securities | (4,279) | 0 | (15,020) |
Prepayment for property | 0 | 0 | (40,206) |
Increase of time deposits | (172,448) | 0 | 0 |
Proceeds from selling trading securities | 4,577 | 0 | 0 |
Investments in affiliates | (1,000) | (1,568) | 0 |
Dividends from unconsolidated affiliates | 0 | 0 | 555 |
Net cash used in investing activities | (265,670) | (11,280) | (69,950) |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings | 56,004 | 22,884 | 32,573 |
Repayments of short-term borrowings | (9,224) | (39,809) | (20,234) |
Proceeds from long-term borrowings | 0 | 7,056 | 19,699 |
Repayments of long-term borrowings | (2,223) | (2,127) | (129) |
Repayments of notes payable | 0 | 0 | (1,820) |
Proceeds from exercise of stock options | 1,314 | 3,430 | 2,745 |
Proceeds from a subsidiary equity issuance, net of issuance costs | 0 | 545,512 | 0 |
Proceeds from warrant exercise to common stock | 0 | 1,820 | 0 |
Net cash provided by financing activities | 45,871 | 538,766 | 32,834 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (32,623) | 3,908 | 4,570 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (314,616) | 491,301 | (46,093) |
Cash, cash equivalents and restricted cash at beginning of period | 563,067 | 71,766 | 117,859 |
Cash, cash equivalents and restricted cash at end of period | 248,451 | 563,067 | 71,766 |
Supplemental disclosure of cash flow information: | |||
Interest paid, net of capitalized interest | 1,655 | 765 | 982 |
Cash paid for income taxes | 3,586 | 1,132 | 4,971 |
Reconciliation of cash, cash equivalents and restricted cash in consolidated statements of cash flows: | |||
Cash and cash equivalents | 247,951 | 562,548 | 71,766 |
Restricted cash | 500 | 519 | 0 |
Non-cash financing activities: | |||
Warrant conversion to common stock | 0 | 0 | 399 |
Share cancellation | 0 | 0 | 9,715 |
Cashless exercise of stock options | 221 | 137 | 0 |
Issuance of warrant for settlement of financial liability and cancellation of note receivable | 0 | 0 | 19,859 |
Non-cash investing activities: | |||
Transfer of prepayment for property to property, plant and equipment | $ 41,497 | $ 0 | $ 0 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
DESCRIPTION OF BUSINESS [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1 – DESCRIPTION OF BUSINESS ACM Research, Inc. (“ACM”) and its subsidiaries (collectively with ACM, the “Company”) develop, manufacture and sell single-wafer wet cleaning equipment used to improve the manufacturing process and yield for advanced integrated chips. The Company markets and sells its single-wafer wet-cleaning equipment, under the brand name “Ultra C,” based on the Company’s proprietary Space Alternated Phase Shift (“SAPS”) and Timely Energized Bubble Oscillation (“TEBO”) 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, the Company introduced in March 2019 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 re-domesticated 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 18.77% of ACM Shanghai’s equity interests held by Shanghai Science and Technology Venture Capital Co., Ltd. On November 8, 2017, ACM purchased the remaining 18.36% 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 the 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 the 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 next 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. In 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 for $3,500. The reorganization and sale had no impact on ACM’s consolidated financial statements. In August 2021, ACM formed a wholly owned subsidiary in Singapore, ACM research (Singapore) PTE, Ltd. to perform sales, marketing, and other business development activities. In November 2021, ACM’s operating subsidiary ACM Shanghai, completed its STAR IPO and its shares began trading on the STAR Market. In the STAR IPO, ACM Shanghai issued 43,355,753 shares, representing 10% of the total 433,557,100 shares outstanding after the issuance. The shares were issued at a public offering price of RMB 85.00 per share, and the net proceeds of the STAR IPO, after issuance costs, totaled $545,512. Upon completion of the STAR IPO, ACM owned 82.5% of the outstanding ACM Shanghai shares. In February 2022, ACM Shanghai formed a wholly owned subsidiary in China, ACM Research (Beijing), Inc. (“ACM Beijing”), to perform sales, marketing and other business development activities. In March 2022, ACM formed a wholly owned subsidiary in South Korea, Hanguk ACM CO., LTD, to perform business development and other related activities. In March 2022, the Board of Directors of ACM declared a 3-for-1 stock split of Class A and Class B common stock effected in the form of a stock dividend (the “Stock Split”). Each stockholder of record at the close of business on March 16, 2022, received a dividend of two additional shares of Class A common stock for each then-held share of Class A common stock and two additional shares of Class B common stock for each then-held share of Class B common stock, which were distributed after the close of trading on March 23, 2022. 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 Stock Split. The Company has direct or indirect interests in the following subsidiaries: Effective interest held as at Place and date of December 31, Name of subsidiaries incorporation 2022 2021 ACM Research (Shanghai), Inc. PRC, May 2005 82.5% 82.5% ACM Research (Wuxi), Inc. PRC, July 2011 82.5% 82.5% CleanChip Technologies Limited Hong Kong, June 2017 82.5% 82.5% ACM Research Korea CO., LTD. Korea, December 2017 82.5% 82.5% Shengwei Research (Shanghai), Inc. PRC, March 2019 82.5% 82.5% ACM Research (CA), Inc. USA, April 2019 82.5% 82.5% ACM Research (Cayman), Inc. Cayman Islands, April 2019 100.0% 100.0% ACM Research (Singapore) PTE. Ltd. Singapore, August 2021 100.0% 100.0% ACM Research (Beijing), Inc. PRC, February 2022 82.5% - Hanguk ACM CO., LTD Korea, March 2022 100.0% - 1. ACM Research (Lingang) Inc., or ACM Lingang, is the English name referred to by its Chinese language name Shengwei Research (Shanghai), Inc. in prior filings |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
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 consolidated financial statements include the accounts of ACM and its subsidiaries, including ACM Shanghai and its subsidiaries, which include ACM Wuxi, ACM Shengwei, ACM Beijing and CleanChip (the subsidiaries of which include ACM California and ACM Korea). ACM’s subsidiaries are those entities in which ACM, directly and indirectly, controls more than one half of the voting power. All significant intercompany transactions and balances have been eliminated upon consolidation. COVID-19 Assessment The worldwide COVID-19 health pandemic and related government and private sector responsive actions have adversely affected the economies and financial markets of many countries and specifically have negatively impacted the Company’s business operations, including in the PRC and the United States. The continuation of the COVID-19 pandemic could continue to result in economic uncertainty and global economic policies 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. The Company conducts substantially all of its product development, manufacturing, support and services in the PRC, and those activities have been directly impacted by COVID-19 and related restrictions on transportation and public appearances. • In March 2022, several regions in China began to experience elevated levels of COVID-19 infections, and the PRC government instituted policies to restrict the spread of the virus. The policies began with an increase of “spot quarantines,” under which a positive polymerase chain reaction (PCR) or other test would result in the quarantining of individual buildings, groups of buildings, or even full neighborhoods. The policies were later expanded to full-city quarantines, including in the City of Shanghai, where substantially all of ACM Shanghai’s operations are located. COVID-19 related restrictions in Shanghai began to limit employee access to, and logistics activities of, ACM Shanghai’s offices and production facilities in the Pudong district of Shanghai in March 2022, and therefore limited ACM Shanghai’s ability to ship finished products to customers and to produce new products. Spot quarantines in mid-March 2022 began to impact a number of ACM Shanghai’s employees and led to a closure of ACM Shanghai’s administrative and R&D offices in Zhangjiang in the Pudong district. A subsequent quarantine of the entire Pudong region of Shanghai was imposed in late March 2022 and impacted the operation of ACM Shanghai’s Chuansha production facility. Although the facility remained partially operational with a number of personnel staying on-site for a prolonged period, the level of production declined significantly versus more normal levels. Furthermore, a number of the Company’s customers have substantial operations based in operations areas of the PRC, including in the City of Shanghai, subject to full-city restrictions, which began limiting the operations of those customers since the first quarter of 2022, including inhibiting their ability to receive, implement and operate new tools for their manufacturing facilities. As a result, in some cases, ACM Shanghai was required to defer shipments of finished products to these customers because of operational and logistical limitations affecting customers other than, or in addition to, ACM Shanghai. • In late April 2022, ACM Shanghai began to increase the level of its operations at the Chuansha manufacturing site using the “closed loop method,” in which a limited collection of workers remain together as a group between a single hotel, the ACM Shanghai facility, and a dedicated bus transportation route, also referred to as “two spots and one line,” and had resumed substantially all of its Chuansha manufacturing site operations by the end of the second quarter of 2022. On July 1, 2022, the Company transitioned operations at the Chuansha facility to a more normal production process, in which workers were able to return home following their factory shifts. • In mid-June 2022, substantially all of ACM Shanghai’s R&D and administrative employees were allowed to return to work at the ZhangJiang facility following a 6–8-week period of restricted access during which many employees had continued to work from home. ACM Shanghai established several policies to help avoid or limit future outbreaks among employees and aimed at protecting employee safety and limiting the possibility of a facility reclosing. The effects of the PRC restrictions continued for several months, with a gradual return of PRC operations, production capacity, and global logistics as Shanghai and other areas in the PRC began to reopen. The Company cannot assure you that closures or reductions of PRC operations or production, whether of ACM Shanghai or of some of its key customers, may not be extended in the future as the result of business interruptions arising from protective measures being taken by the PRC and other governmental agencies or of other consequences of COVID-19. • In December 2022, the PRC government relaxed its zero-COVID policies, which resulted in large scale COVID-19 infections throughout China, including Shanghai. A significant number of ACM Shanghai employees were also infected, and in many cases missed work for one or several weeks, which caused administrative and operational challenges in late 2022 and early 2023. The Company cannot assure you that illnesses of ACM Shanghai employees, or of its customers, suppliers or other third parties, may not result in closures, reductions of PRC operations or production, or additional administrative inefficiencies in the upcoming months or quarters. During the first six months of 2022, the Company experienced a negative impact to revenue and shipments as a result of restricted access and logistics to its Shanghai-based production and administrative facilities. Thirteen tools amounting to $13 million in revenue and $24 million in shipments that could not be shipped to customers in the three-months ended March 31, 2022 were subsequently shipped in the three months ended June 30, 2022. As a result of the restrictions, the Company experienced a modest increase to operational costs due to increased logistics costs and inefficiencies that resulted from the restrictions, and an increase in cash used in operations due in part to an increase in accounts receivables that resulted from a shift of shipments towards the latter part of the period . During the year ended December 31, 2022, the Company experienced general inefficiencies in administrative, research and development and other activities due to some employees who were required to quarantine ‘in place’ at their residence due presumably to the detected possible exposure to COVID infections. In many cases, the employees were able to work remotely to mitigate the effects. With the relaxation of the PRC’s zero-COVID policies in December 2022, and the subsequent widespread infections of China’s population, the Company anticipates potential impacts to its PRC operations for the foreseeable future . The Company’s corporate headquarters are located in Fremont, California. The effects of actions taken by local governmental agencies 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. To date, the Company’s operations in South Korea, including the R&D center and production facilities of ACM Korea and the business development activities of Hanguk ACM CO., LTD, have been largely unaffected directly by government restrictions relating to the COVID-19 pandemic. The worldwide prolonged and broad-based shift to remote working environments resulting from COVID-19 continues to create inherent productivity, connectivity, and oversight challenges and could affect the Company’s 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. 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 its ability to comply with a number of timing and quality requirements. Additional or extended governmental quarantines, restrictions or regulations could significantly impact the ability of the Company’s employees and vendors to work productively. Governmental restrictions have been inconsistent globally 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. 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, 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. Common Stock Split All prior period share and per share amounts, common stock, other capital, and retained earnings information presented in the accompanying financial statements and these notes thereto has been retroactively adjusted to reflect the impact of the Stock Split. Proportional adjustments were also made to outstanding awards under the Company’s stock-based compensation plans. Reclassifications Certain prior year amounts in the notes to the Consolidated Financial Statements have been reclassified to conform with the current year presentation. These classifications within the statements had no impact on the Company’s results of operations. Restrictions by the U.S. Department of Commerce on PRC-Based Semiconductor Producers In early October 2022 the U.S. government enacted new rules aimed at restricting U.S. support for the PRC’s ability to manufacture advanced semiconductors. The rules include new export license requirements for exports, re-exports or transfers to or within the PRC of additional types of semiconductor manufacturing items, items for use in manufacturing designated types of semiconductor manufacturing equipment in the PRC, and semiconductor manufacturing equipment for use at certain IC manufacturing and development facilities in the PRC. In addition, the U.S. government imposed new restrictions by which U.S. persons anywhere in the world are effectively barred from engaging in certain activities related to the development and production of certain semiconductors at PRC fabrication facilities meeting specified criteria, even if no items subject to the EAR are involved. ACM Shanghai has determined that several of its customers have PRC-based facilities that meet the restricted criteria, and has also determined that several of its products may meet the parameters of export control classification numbers, or ECCNs, affected by the restrictions. Accordingly, depending on the details of the final implementation of these new restrictions and associates licensing policies, ACM may not be able to import, or may face substantial restrictions in importing, parts from the United States to support tool shipments to such facilities, or to be embedded into tools defined by affected ECCNs. ACM and ACM Shanghai have implemented modifications to their existing business policies and practices in response to the new restrictions, including by imposing limitations on the activities of their U.S. persons and their supply chains more broadly to comply with the new regulations. ACM and ACM Shanghai believe that as a result of the new restrictions, several ACM Shanghai customers have significantly reduced production and related capital spending at facilities meeting the restricted advanced node capabilities. In addition, ACM Shanghai has experienced challenges as the companies in its supply chain adapt their policies to the new regulations. These factors had an adverse impact on ACM Shanghai’s shipments and sales in the three months ended December 31, 2022. ACM and ACM Shanghai anticipate these factors will continue to have an adverse impact on ACM Shanghai’s shipments and sales in future periods. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and bank deposits that are unrestricted as to withdrawal and use, and highly liquid investments with an original maturity date of three months or less at the date of purchase. At times, cash deposits may exceed government-insured limits. The following table presents cash and cash equivalents, according to jurisdiction as of December 31, 2022 and December 31, 2021: December 31, 2022 2021 United States $ 25,011 $ 34,852 Mainland China 129,695 469,494 China Hong Kong 89,187 52,527 South Korea 4,007 5,675 Singapore 51 - Total $ 247,951 $ 562,548 The amounts in mainland China do not include short-term and long-term time deposits which totaled $172,448 and $0 at December 31, 2022 and 2021, respectively. Cash held in the U.S. exceeds the Federal Deposit Insurance Corporation (“FDIC”) insurance limits and is subject to risk of loss. No losses have been experienced to date. Cash amounts held by ACM Shanghai at PRC banks in mainland China are subject to a series of risk control regulatory standards from PRC bank regulatory authorities. ACM Shanghai is required to obtain approval from the State Administration of Foreign Exchange (“SAFE”) to transfer funds into or out of the PRC. SAFE requires a valid agreement to approve the transfers, which are processed through a bank. Other than these PRC foreign exchange restrictions, ACM Shanghai is not subject to any PRC restrictions and limitations on its ability to transfer funds to ACM Research or among our other subsidiaries. However, cash held by ACM Shanghai in mainland China does exceed applicable insurance limits and is subject to risk of loss, although no such losses have been experienced to date. ACM California periodically procures goods and services on behalf of ACM Shanghai. For these transactions, ACM Shanghai makes cash payments to ACM California in accordance with applicable transfer pricing arrangements. For the year ended December 31, 2022, cash payments from ACM Shanghai to ACM California for the procurement of goods was $37.0 million and for services was $3.3 million. ACM California periodically borrows funds for working capital advances from its direct parent, CleanChip. ACM California repays or renews these intercompany loans in accordance with their terms. For sales through CleanChip and ACM Research, a certain amount of sales or advance payments from customer proceeds is repatriated back to ACM Shanghai, a subsidiary, in accordance with applicable transfer pricing arrangements in the ordinary course of business. ACM Research provides services to certain customers located in the U.S., Europe and other regions outside of mainland China to support the evaluation of first tools and provide support for tools under warranty on behalf of ACM Shanghai. For these transactions, ACM Shanghai makes cash payments to ACM Research, Inc. in accordance with applicable transfer pricing arrangements. Subsequent to June 30, 2020, with the exception of sales and services-related transfer-pricing payments in the ordinary course of business, no cash transfers, dividends or other payments or distributions have been made between ACM Research and ACM Shanghai. The Company intends to retain any future earnings to finance the operations and expenses of the business, and do not expect to distribute earnings or declare or pay any dividends in the foreseeable future. Amounts held in South Korea exceed the Korea Deposit Insurance Corporation (“KDIC”) insurance limits and are subject to risk of loss. No losses have been experienced to date. There is no additional restriction for the transfer of cash from bank accounts in the U.S., South Korea, and Hong Kong. For the years ended December 31, 2022 and 2021, with the exception of sales and services-related transfer-pricing payments in the ordinary course of business, no transfers, dividends, or distributions have been made between ACM Research and its subsidiaries, including ACM Shanghai, or to holders of ACM Research Class A common stock. Time Deposits Time deposits are deposited with banks in mainland China with fixed terms and interest rates which cannot be withdrawn before maturity. They are also subject to the risk control regulatory standards described above upon maturity. Time deposits consisted of the following: December 31, 2022 2021 Deposit in China Merchant Bank which matures on January 29, 2023 2.25 $ 38,772 $ - Deposit in China Everbright Bank which matures on January 29, 2023 2.25 14,360 - Deposit in China Everbright Bank which matures on May 22, 2023 5.07 3,000 - Deposit in China Industrial Bank which matures on January 30, 2023 2.15 14,360 - Deposit in China Merchant Bank which matures on January 29, 2024 2.85 28,720 - Deposit in Bank of Ningbo which matures on February 17, 2024 2.85 43,080 - Deposit in Shanghai Pudong Development Bank which matures on October 20, 2025 3.10 7,180 - Deposit in Shanghai Pudong Development Bank which matures on November 14, 2025 3.10 7,180 - Deposit in Shanghai Pudong Development Bank which matures on December 8, 2025 3.10 4,308 - Deposit in Shanghai Pudong Development Bank which matures on December 15, 2025 3.10 4,308 - Deposit in Shanghai Pudong Development Bank which matures on December 30, 2025 3.10 7,180 - $ 172,448 $ - For the years ended December 31, 2022 and 2021, respectively, interest income related to time deposits was $3,472 and $0, respectively. Accounts Receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history and credit worthiness, current economic trends and reasonable and supportable forecasts. Accounts are written off after all collection efforts have been exhausted. At December 31, 2022, and 2021, the Company, based on a review of its outstanding balances and its customers, determined the allowance for doubtful accounts was both $0. Land Use Right, Net The land use right represents the cost to purchase a right to use state-owned land in the PRC with lease terms of 50 years expiring in 2070, for which an upfront lump-sum payment was made during the year ended December 31, 2020. The Company classifies the land use right as non-current assets on the consolidated balance sheets (note 7). The land use right is carried at cost less accumulated amortization and impairment losses, if any. Amortization is computed using the straight-line method over the term specified in the land use right certificate, which is 50 years. Inventory Inventory consists of raw materials and related goods, work-in-progress, finished goods, and other consumable materials such as spare parts. Finished goods typically are shipped from the Company’s warehouse within one month of completion. Inventory was recorded at the lower of cost or net realizable value at December 31, 2022 and 2021. ● The cost of a general inventory item is determined using the weighted moving average method. Under the weighted moving average method, the Company calculates the new average price of all items of a particular inventory stock each time one or more items of that stock are purchased. The then-current average price of the stock is used for purposes of determining cost of inventory or cost of revenue. The cost of an inventory item purchased specifically for a customized product is determined using the specific identification method. Low-cost consumable materials and packaging materials are expensed as incurred. ● Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete or dispose. The Company assesses the recoverability of all inventories quarterly to determine if any adjustments are required. Potential excess or obsolete inventory is written off based on management’s analysis of inventory levels and estimates of future 12-month demand and market conditions. Property, Plant and Equipment, Net Property, Plant and Equipment are recorded at cost less accumulated depreciation and any provision for impairment in value. Depreciation begins when the asset is placed in service and is calculated by using the straight-line method over the estimated useful life of an asset (or, if shorter, over the lease term). Betterments or renewals are capitalized when incurred. Property, plant, and equipment is reviewed each year to determine whether any events or circumstances indicate that the carrying amount of the assets may not be recoverable. There was no impairment charge that was recognized for the years ended December 31, 2022 and 2021. Estimated useful lives of assets are as follows: Buildings and Plants 30 years Computer and office equipment 3 to 5 years Furniture and fixtures 5 years Leasehold improvements shorter of lease term or estimated useful life Electronic equipment 3 to 5 years Manufacturing equipment for small to medium-sized equipment, 5 to 10 years; for large equipment, Transportation equipment 4 to 5 years Expenditures for maintenance and repairs that neither materially add to the value of the property nor appreciably prolong the life of the property are charged to expense as incurred. Upon retirement or sale of an asset, the cost of the asset and the related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is credited or charged to income. Intangible Assets, Net Intangible assets consist of capitalized software license and other related fees for items used for finance, manufacturing, and research and development purposes. Assets are valued at cost at the time of acquisition and are amortized over their beneficial periods. If a contract specifies a license period, then the intangible asset is amortized over a term not exceeding the license period. For those intangible assets with contracts that do not specify a license term or for which local law does not specify a license term, management estimates the amortization period based on the period over which the asset is expected to contribute directly or indirectly to the cash flows in accordance with ASC 350, Intangibles—Goodwill and Other Investments The Company uses the equity method of accounting for its investment in, and earning or loss of, companies that it does not control but over which it does exert significant influence. The Company considers whether the fair value of its equity method investment has declined below its carrying value whenever adverse events or changes in circumstances indicate that the recorded value may not be recoverable. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as current economic and market conditions, the operating performance of the entities including current earnings trends and forecasted cash flows, and other company and industry specific information. If the Company considers any decline to be other than temporary (based on various factors, including historical financial results and the overall health of the investee), then a write-down would be recorded to estimated fair value. See note 14 for discussion of equity method investment. The Company elects to measure its investments in other equity securities that the Company does not have control nor significant influence on the investee at cost minus impairment, if any for those equity securities without a readily determinable fair value. All marketable securities are classified as trading securities and trading securities and are stated at fair market value, less a discount applied to reflect the remaining lock-up period when the securities are subject to lock-up period. Fair market value is determined by the most recently traded price of the security at the balance sheet date. Net realized and unrealized gains and losses on trading securities are included in the consolidated statements of operations. The cost of investments sold is based on the average cost method. Interest and dividend income earned are included in other income (expense), net. Valuation of Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstance indicate that the carrying value of the assets may not be fully recoverable or that the useful life of the assets is shorter than the Company had originally estimated. When these events or changes occur, the Company evaluates the impairment of the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value over the fair value. No impairment charge was recognized for either of the periods presented. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities and operating lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the 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 commencement date in determining the present value of lease payments. It uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Revenue Recognition The Company derives revenue principally from the sale of semiconductor capital equipment. Revenue from contracts with customers is recognized using the following five steps pursuant ASC Topic 606, Revenue from Contracts with Customers 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied the guidance of ASC Topic 606 in order to verify which promises should be assessed for classification as distinct performance obligations. The Company’s performance obligations in connection with a sale of equipment generally include production, delivery, installation, training and software updates. Given that the Company’s products are customized based on specifications of its customers, the Company determines that the promise to the customer is to provide a customized product solution. The product and customization services are inputs into the combined item for which the customer has contracted and, as a result, the product and installation services are not separately identifiable and are combined into a single performance obligation. Delivery of goods to a customer is not a separate performance obligation since control of the goods normally does not transfer to the customer before shipment. The Company’s warranties provide assurance that its products will function as expected and in accordance with certain specifications. The Company’s warranties are intended to safeguard the customer against existing defects and do not provide any incremental service to the customer. They are not separate performance obligations and accounted for under ASC 460, Guarantees The transaction price is allocated to all the separate performance obligations in an arrangement. It reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services, which may include an estimate of variable consideration to the extent that it is probable of not being subject to significant reversals in the future based on the Company’s experience with similar arrangements. The transaction price excludes amounts collected on behalf of third parties, such as sales taxes. This is done on a relative selling price basis using stand-alone selling prices (“SSP”). The SSP represents the price at which the Company would sell that good or service on a stand-alone basis at the inception of the contract. Given the requirement for establishing SSP for all performance obligations, if the SSP is directly observable through standalone sales, then such sales should be considered in the establishment of the SSP for the performance obligation. For some sale contracts, in addition to the sale of semiconductor capital equipment, the Company also provides certain spare parts to the customers. The Company defers revenue associated with spare parts sold together with its tool products, including production, delivery, installation, training, and software updates which are accounted for as one performance obligation, based on stand-alone observable selling prices for which it receives payments in advance and recognizes the revenue upon the subsequent shipment of the spare parts, which is expected within one year. The deferr |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2022 | |
Revenue From Contracts With Customer [Abstract] | |
Revenue From Contracts With Customer | 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 customer facility. The following tables present disaggregated revenue information: Year Ended December 31, 2022 2021 2020 % Change 2022 v 2021 Single Wafer Cleaning, Tahoe and Semi-Critical Cleaning Equipment $ 272,939 $ 189,208 $ 131,248 44.3 % ECP (front-end and packaging), Furnace and Other Technologies 77,482 33,210 13,343 133.3 % Advanced Packaging (excluding ECP), Services & Spares 38,411 37,333 12,033 2.9 % Total Revenue By Product Category $ 388,832 $ 259,751 $ 156,624 49.7 % Wet cleaning and other front-end processing tools $ 308,528 $ 202,268 $ 136,317 52.5 % Advanced packaging, other processing tools, services and spares 80,304 57,483 20,307 39.7 % Total Revenue Front-end and Back-End $ 388,832 $ 259,751 $ 156,624 49.7 % Year Ended December 31, 2022 2021 2020 Mainland China $ 377,752 $ 258,615 $ 154,359 Other Regions 11,080 1,136 2,265 $ 388,832 $ 259,751 $ 156,624 Below are the accounts receivables and contract liabilities balances as of: December 31, December 31, 2022 2021 Accounts receivable $ 182,936 $ 105,553 Advances from customers 153,773 52,824 Deferred revenue 4,174 3,180 During the year ended December 31, 2022, advances from customers increased by $100.9 million, due to an increase of payments made by customers for first tools under evaluation, and an increase in customer pre-payments for tools prior to delivery. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4 – ACCOUNTS RECEIVABLE At December 31, 2022 and 2021, accounts receivable consisted of the following: December 31, 2022 2021 Accounts receivable $ 182,936 $ 105,553 Less: Allowance for doubtful accounts - - Total $ 182,936 $ 105,553 The $77.4 million increase in accounts receivable for the twelve months ended 2022 corresponds to a $129.1 million increase in revenue for the same period. The 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. Based on the age of the balance, a customer’s payment history and credit worthiness, current economic trends and reasonable and supportable forecasts, the Company determined there were no collectability issues at December 31, 2022 and 2021, and no allowance for doubtful accounts was necessary. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 5 – INVENTORIES At December 31, 2022 and 2021, inventory consisted of the following: December 31, 2022 2021 Raw materials $ 167,135 $ 90,552 Work-in-process 79,126 35,840 Finished goods 146,911 91,724 Total inventory $ 393,172 $ 218,116 Inventories are stated at the lower of cost or net realizable value on a moving weighted average basis. At December 31, 2022 and December 31, 2021, the value of finished goods inventory, which is comprised of first-tools at customer physical locations, for which customers were contractually obligated to take ownership upon acceptance, totaled $123,169 and $71,889, respectively. The $119,869 increase in raw materials and work-in-process inventory at December 31, 2022 compared to December 31, 2021 was due to additional purchase of supplies to support a higher level of expected total shipments for the next several quarters, and to reduce the risk of supply chain delays to meet anticipated customer demand for the Company’s products. The $55,187 increase in finished goods inventory at December 31, 2022 compared to December 31, 2021 primarily reflects a higher value of first-tools under evaluation by existing or prospective customers, due to shipments made, net of customer acceptances during the period. The Company’s products each require a certain degree of customization, and the substantial majority of the work-in-process inventory and finished goods inventory is built to meet a specific customer order for repeat shipment of first tool delivery. At the end of each period, the Company assesses the status of each item in work-in-process and finished goods and inventory. The Company recognizes a loss or impairment if in management’s judgement the inventory cannot be sold or used for production, if it has been damaged or should be considered as obsolete, or if the net realizable value is lower than the cost. At the end of each period, the Company also assesses the status of its raw materials. The Company recognizes a loss or impairment for any raw materials aged more than three years for which the Company determines it is not likely to be used in future production. The three-year aging is based on the Company’s assessment of technology change, its requirement to maintain stock for warranty coverage, and other factors. During the years ended December 31, 2022 and December 31, 2021, inventory write-downs of $2,248 and $75 were recognized in cost of revenue, respectively. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET At December 31, 2022 and 2021, property, plant and equipment consisted of the following: December 31, 2022 2021 Buildings and plants $ 35,864 $ - Manufacturing equipment 9,298 7,973 Office equipment 3,691 2,012 Transportation equipment 407 217 Leasehold improvement 7,173 4,134 Total cost 56,433 14,336 Less: Total accumulated depreciation and amortization (10,047 ) (5,900 ) Construction in progress 36,489 5,606 Total property, plant and equipment, net $ 82,875 $ 14,042 Depreciation expense was , and $826 for the years ended December 2021, and respectively. Buildings and plants represent Lingang housing property that was transferred to ACM Shengwei in January at a value of which includes the purchase price and accumulated interest, and with estimated useful lives of 30-years (Note . Buildings and plants are pledged as security for loans from China Merchants Bank (Note . Construction in progress primarily reflects costs incurred related to the construction of several facilities in Lingang by ACM Shengwei, and are scheduled to begin production in and beyond. |
LAND USE RIGHT, NET
LAND USE RIGHT, NET | 12 Months Ended |
Dec. 31, 2022 | |
LAND USE RIGHT, NET [Abstract] | |
LAND USE RIGHT, NET | NOTE 7 – LAND USE RIGHT, NET A summary of land use right is as follows: December 31, 2022 2021 Land use right purchase amount $ 9,149 $ 9,966 Less: accumulated amortization (457 ) (299 ) Land use right, net $ 8,692 $ 9,667 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 increased production capacity and related research and development activities. The amortization for the years ended December 31, 2022 and 2021 was $189 and $199, respectively. The annual amortization of land use right for each of the five succeeding years is as follows: Year ending December 31, 2023 $ 200 2024 200 2025 200 2026 200 2027 and thereafter 7,892 Total $ 8,692 |
OTHER LONG-TERM ASSETS
OTHER LONG-TERM ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
OTHER LONG-TERM ASSETS [Abstract] | |
OTHER LONG-TERM ASSETS | NOTE 8 – OTHER LONG-TERM ASSETS At December 31, 2022 and 2021, other long-term assets consisted of the following: December 31, 2022 2021 Prepayment for property - Lingang $ - $ 42,111 Prepayment for property, plant and equipment and other non-current assets 704 440 Prepayment for property - lease deposit 393 429 Security deposit for land use right 708 773 Prepayment for property - Zhangjiang New Building 47,251 - Others 1,209 1,264 Total other long-term assets $ 50,265 $ 45,017 Prepayment for property – Zhangjiang New Building is for the planned new corporate headquarters of ACM Shanghai. |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
SHORT-TERM BORROWINGS [Abstract] | |
SHORT-TERM BORROWINGS | NOTE 9 – SHORT-TERM BORROWINGS At December 31, 2022 and December 31, 2021, short-term and long-term borrowings consisted of the following: December 2022 2021 Line of credit up to RMB from Bank of Shanghai Pudong Branch, 1) due on June 7, 2022 with an annual interest rate of and fully repaid on June 7, 2022 $ - $ 4,616 Line of credit up to RMB from China Everbright Bank, 1) due on October with annual interest rate of and fully repaid on September 27, 2022 - 3,407 2) due on August with an annual interest rate of . 8,616 - 3) due on September with an annual interest rate of . 8,616 - 4) due on December with an annual interest rate of 3.00%. 4,308 - Line of credit up to RMB from Bank of Communications, 1) due on October with an annual interest rate of 3.85% and fully repaid on July 1, 2022 - 1,568 2) due on August with an annual interest rate of . 8,616 - 3) due on September with an annual interest rate of . 5,744 - Line of credit up to RMB from Bank of China, 1) due on August with an annual interest rate of 3.15%. 5,744 - Line of credit up to RMB from China Merchants Bank, 1) due on July with an annual interest rate of . 1,292 - 2) due on July with an annual interest rate of 3.50%. 1,292 - 3) due on August with an annual interest rate of 3.50%. 1,292 - 4) due on August with an annual interest rate of . 1,292 - 5) due on August with an annual interest rate of . 1,293 - 6) due on August with an annual interest rate of . 1,293 - 7) due on August with an annual interest rate of . 1,293 - 8) due on August with an annual interest rate of . 1,005 - 9) due on August with an annual interest rate of . 1,292 - 10) due on September with an annual interest rate of . 1,292 - 11) due on September with an annual interest rate of . 1,293 - 12) due on September with an annual interest rate of . 431 - Total $ 56,004 $ 9,591 (1) Guaranteed by CleanChip For the years ended December and |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 10 – OTHER PAYABLES AND ACCRUED EXPENSES At December 31, 2022 and 2021, other payables and accrued expenses consisted of the following: December 31, 2022 2021 Accrued commissions $ 14,890 $ 12,507 Accrued warranty 8,780 6,631 Accrued payroll 12,201 5,684 Accrued professional fees 724 785 Accrued machine testing fees 1,215 149 Accrued machine sales fees 5,874 - Others 8,517 5,979 Total $ 52,201 $ 31,735 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
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: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 2,816 $ 2,451 $ 1,541 Short-term lease cost 786 394 236 Lease cost $ 3,602 $ 2,845 $ 1,777 Supplemental cash flow information related to operating leases was as follows for the years ended December 31, 2022, 2021, and 2020: Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 3,602 $ 2,845 $ 1,777 Maturities of lease liabilities for all operating leases were as follows as of December 31, 2022: December 31, 2023 $ 1,461 2024 1,065 2025 67 2026 49 2027 10 Total lease payments $ 2,652 Less: Interest (163 ) Present value of lease liabilities $ 2,489 The weighted average remaining lease terms and discount rates for all operating leases were as follows as of December 31, 2022 and 2021: December 31, 2022 2021 Remaining lease term and discount rate: Weighted average remaining lease term (years) 2.00 1.37 Weighted average discount rate 4.25 % 4.54 % |
LONG-TERM BORROWINGS
LONG-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM BORROWINGS [Abstract] | |
LONG-TERM BORROWINGS | NOTE 12 – LONG-TERM BORROWINGS At December 31, 2022 and 2021, long-term borrowings consisted of the following: December 31, 2022 2021 Loan from China Merchants Bank $ 15,265 $ 18,390 Loans from Bank of China 5,744 6,977 Less: Current portion (2,322 ) (2,410 ) $ 18,687 $ 22,957 The loan from China Merchants Bank is for the purpose of purchasing property in Lingang, Shanghai. The loan is repayable in 120 installments with the last installment due in November 2030 Two loans from Bank of China are for the purpose of funding ACM Shanghai project expenditures. The loans bear interest at an annual rate of 2.6% and are repayable in 6 installments, with the last installments due in June 2024 September 2024 Scheduled principal payments for the outstanding long-term loans as of December 31, 2022 are as follows: Year ending December 31, 2023 $ 2,322 2024 6,841 2025 1,813 2026 1,886 2027 and onwards 8,147 $ 21,009 For the year ended December 31, 2022, $845 of interest related to long-term borrowings was incurred, of which $845 was charged to interest expense and $0 was capitalized as other long-term assets. For the year ended December 31, 2021, $1,040 of interest related to long-term borrowings was incurred, of which $65 was charged to interest expense and $975 was capitalized as other long-term assets. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
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 (note 2). As of December 31, 2022 and 2021, other long-term liabilities consisted of the following unearned government subsidies: December 31, 2022 2021 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 611 $ 791 Subsidies to Electro Copper Plating project, commenced in 2014 119 160 Subsidies to other cleaning tools, commenced in 2020 785 1,014 Subsidies to SW Lingang R&D development in 2021 4,266 5,958 Subsidies to CO2 Technology 965 - Other 575 524 Total $ 7,321 $ 8,447 |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM INVESTMENTS [Abstract] | |
LONG-TERM INVESTMENTS | NOTE 14 – LONG-TERM INVESTMENTS On September 6, 2017, ACM and Ninebell Co., Ltd. (“Ninebell”), a Korean company that is one of the Company’s principal material suppliers, entered into an ordinary share purchase agreement, effective as of September 11, 2017, pursuant to which Ninebell issued to ACM ordinary shares representing 20% of Ninebell’s post-closing equity for a purchase price of $1,200, and a common stock purchase agreement, effective as of September 11, 2017, pursuant to which ACM issued 400,002 shares of Class A common stock to Ninebell for a purchase price of $1,000 at $2.50 per share. The investment in Ninebell is accounted for under the equity method. On June 27, 2019, ACM Shanghai and Shengyi Semiconductor Technology Co., Ltd. (“Shengyi”), a company based in Wuxi, China that is one of the Company’s component suppliers, entered into an agreement pursuant to which Shengyi issued to ACM Shanghai shares representing 15% of Shengyi’s post-closing equity for a purchase price of $109. The investment in Shengyi is accounted for under the equity method. On September 5, 2019, ACM Shanghai entered into a Partnership Agreement with six 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 30, 2019, ACM Shanghai invested RMB 30,000 ($4,200), which represented 10% 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 323-30-S99-1. On October 29, 2021, ACM Shanghai and Waferworks (Shanghai) Co., Ltd, or Waferworks, a company based in Shanghai, China, and one of the Company’s customers, entered into an agreement pursuant to which Waferworks issued to ACM Shanghai shares representing 0.25% of Waferworks’ post-closing equity for a purchase price of $1,568. As there is no readily determinable fair value, the Company measures the investment in Waferworks at cost minus impairment, if any. On August 17, 2022, ACM Singapore and Wooil Flucon Co., Ltd. (“Wooil”), a company based in South Korea and a potential component supplier to the Company, entered into an agreement pursuant to which Wooil, on September 1, 2022, issued to ACM Singapore shares representing 20% of Wooil’s post-closing equity for a purchase price of $1,000. The investment in Wooil is accounted for under the equity method. The Company treats each equity investment in the consolidated financial statements under the equity method and they are classified as long-term investments. Under the equity method, an 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. The Company concluded that the investments were not impaired and did not record any impairment charges related to the investments for any prior periods. December 31, Equity investee: 2022 2021 Ninebell $ 5,199 $ 3,051 Wooil 1,011 - Shengyi 1,168 211 Hefei Shixi 8,645 7,864 Subtotal 16,023 11,126 Other investee: Waferworks 1,436 1,568 Total $ 17,459 $ 12,694 For the years ended December 31, 2022, 2021 and 2020, the Company’s share of equity investees’ net income was $4,666, $4,637 and $655, respectively, which was included in equity income in net income of affiliates in the accompanying consolidated statements of operations and comprehensive income. For the years ended December 31, 2022, 2021 and 2020, dividends received from its equity investee was $0, $0 and $555, respectively, which was offset in part by a reduction in the carrying value of the Company’s share of equity investees’ net income. |
FINANCIAL LIABILITY CARRIED AT
FINANCIAL LIABILITY CARRIED AT FAIR VALUE | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL LIABILITY CARRIED AT FAIR VALUE [Abstract] | |
FINANCIAL LIABILITY CARRIED AT FAIR VALUE | NOTE 15 – FINANCIAL LIABILITY CARRIED AT FAIR VALUE In December 2016, Shengxin (Shanghai) Management Consulting Limited Partnership (“SMC”) paid 20,123,500 RMB ($2,981 as of the date of funding) (the “SMC Investment”) to ACM Shanghai for investment pursuant to terms to be subsequently negotiated. SMC is a PRC limited partnership partially owned by employees of ACM Shanghai. In March 2017, (a) ACM issued to SMC a warrant (the “Warrant”) exercisable to purchase 1,192,506 shares of Class A common stock at a price of $2.50 per share, for a total exercise price of $2,981, and (b) ACM Shanghai agreed to repay the SMC Investment within 60 days after the exercise of the Warrant. In March 2018, SMC exercised the Warrant in full, as a result of which (1) ACM issued 1,192,506 shares of Class A common stock to SMC, (2) SMC borrowed the funds to pay the Warrant exercise price pursuant to a senior secured promissory note (the “SMC Note”) in the principal amount of $2,981 issued to ACM Shanghai, which in turn issued to ACM a promissory note (the “Intercompany Note”) in the principal amount of $2,981 in payment of the Warrant exercise price. Each of the SMC Note and the Intercompany Note bears an interest at a rate of 3.01% per annum and matured on August 17, 2023. The SMC Note is secured by a pledge of the shares issued upon exercise of the Warrant. In connection with its follow-on public offering of Class A common stock in August 2019, ACM agreed to purchase a total of 464,463 of the Warrant shares from SMC at a per share price of $4.40, of which (a) $1,161 was applied to reduce SMC’s obligations to ACM Shanghai under the SMC Note, and which ACM then withheld for its own account and applied to reduce ACM Shanghai’s obligations to ACM under the Intercompany Note, and (b) the remaining $882 was paid to SMC. In a separate transaction, ACM Shanghai repaid $1,161 of the SMC Investment in cash, which reduced the amount of the SMC Investment due to SMC to $1,820. The SMC Note and SMC Investment are offsetting items in the Company’s consolidated balance sheet in accordance with ASC 210-20-45-1 up to April 30, 2020. In preparation for the STAR IPO, ACM Shanghai was required to terminate its financial relationship with SMC. In order to facilitate such termination, on April 30, 2020, ACM entered into two agreements relating to outstanding obligations among ACM Research, ACM Shanghai and SMC. Pursuant to such agreements: (i) ACM Shanghai assigned to ACM its rights under the SMC Note, including the right to receive payment of the $1,820 payable thereunder; (ii) ACM cancelled the outstanding $1,820 obligation of ACM Shanghai under the Intercompany Note; (iii) SMC surrendered its remaining 728,043 Warrant shares to ACM Research; and (iv) in exchange for such 728,043 Warrant shares, ACM agreed to deliver to SMC certain consideration (“SMC Consideration”) agreed upon by ACM Research and SMC, subject to obtaining certain PRC regulatory approvals. Under the agreements, if the required approvals were not obtained by December 31, 2023, ACM would cancel the SMC Note as consideration for the 728,043 Warrant shares. In a separate transaction in April 2020, ACM Shanghai repaid the remaining $1,820 of the SMC Investment in cash. For the period beginning April 30, 2020, the SMC Consideration is accounted for as a financial liability, and the Company applies fair value option to measure the SMC Consideration in accordance with ASC 825-10-15-4a. On April 30, 2020, the SMC Consideration was $9,715 which was for cancellation of the Warrant shares and recorded in equity. The financial liability was remeasured to fair value as of the end of each of the reporting periods. On July 29, 2020, ACM and SMC entered into an amended agreement under which, in settlement of the SMC Consideration, ACM issued to SMC a warrant (the “SMC 2020 Warrant”) to purchase 728,043 shares of Class A common stock at a purchase price of $2.50 per share, and ACM cancelled the SMC Note. The financial liability was remeasured to fair value of $21,679 as of July 29, 2020, and was retired with the issuance of the SMC 2020 Warrant. The Company recognized a change in fair value of financial liability of $11,964 for the year ended December 31, 2020, which was reflected in the consolidated statement of operations. The Company recorded the difference of $19,859 between the SMC 2020 Warrant of $21,679 and the SMC Note of $1,820 into equity. The SMC 2020 Warrant was initially measured at fair value at the issuance date and classified as equity permanently in accordance with ASC 815. The fair value of the SMC 2020 Warrant amounted to $21,679, based on the grant date using the Black-Scholes valuation model with the following assumptions: July 29, 2020 (6) Fair value of common share(1) $ 29.76 Expected term in years(2) 3.42 Volatility(3) 47.42 % Risk-free interest rate(4) 0.15 % Expected dividend(5) 0 % (1) Fair value of Class A common stock was the closing market price of the Class A common stock on July 29, 2020. (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 the stock of companies comparable to ACM 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 0%, as ACM has no history or expectation of paying a dividend on its common stock. (6) Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. On June 9, 2021, subsequent to its obtaining the necessary PRC approvals, SMC exercised the 2020 Warrant by paying the $1,820 exercise price to ACM and surrendering the 2020 Warrant to ACM. In return, ACM delivered 728,043 shares of ACM Class A common stock to SMC. |
TRADING SECURITIES
TRADING SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
TRADING SECURITIES [Abstract] | |
TRADING SECURITIES | NOTE 16 – TRADING SECURITIES Pursuant to a June 18, 2020. Upon the the Supplementary Agreement. As Pursuant to an Agreement entered into on September 19, 2022 (the “Agreement”), ACM Shanghai became a limited partner of the Nuode Asset Fund Pujiang No. 783 Single Asset Management Plan (“Nuode Asset Fund”) a Chinese limited partnership formed by Nuode Asset Management Co., Ltd, a financial services firm based in Shanghai, China. Nuode Asset Fund was formed to establish a special fund with the purpose to participate in certain technology related investments in China. Subsequent to the future purchase, any investment will be held by Nuode Asset Fund and restricted for a minimum period of six months. The limited partners of the Nuode Asset Fund contributed a total of RMB 160 million ($22,160) to the fund, of which ACM Shanghai contributed RMB 30 million ($4,196), or 18.75% of the total contribution, on September 27, 2022. The components of trading securities were as follows: December 31, 2022 2021 Trading securities listed in Shanghai Stock Exchange Cost $ 14,779 $ 15,363 Market value $ 20,209 $ 29,498 For the years ended December 31, 2022 and 2021, unrealized gain on trading securities, net of exchange difference amounted to $(7,855) and $607, respectively. During the year ended December 31, 2022, the Company received $4,577 in proceeds from the sale of trading securities, including a realized gain of $1,116. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY BALANCES AND TRANSACTIONS [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 17 – RELATED PARTY BALANCES AND TRANSACTIONS Ninebell Ninebell is an equity investee of ACM (Note and is the Company’s principal supplier of robotic delivery system subassemblies used in our single-wafer cleaning equipment. The Company purchases equipment through arms-length transactions from Ninebell for production in the ordinary course of business. The Company pays for a portion of the equipment in advance and is obligated for the remaining amounts upon receipt of the product. All related party outstanding balances are short-term in nature and are expected to be settled in cash. Shengyi Shengyi is an equity investee of ACM Shanghai (Note and is of the Company’s component suppliers in China. The Company purchases components from Shengyi for production in the ordinary course of business. The Company pays for a portion of the raw materials in advance and is obligated for the remaining amounts upon receipt of the product. The following tables represents related party transactions with the equity investees as of December and : December 31, Advances to related party 2022 2021 Ninebell $ 3,322 $ 2,383 December 31, Accounts payable 2022 2021 Ninebell $ 10,526 $ 5,703 Shengyi 3,942 2,196 Total $ 14,468 $ 7,899 Year Ended December 31 Purchase of materials 2022 2021 2020 Ninebell $ 40,985 $ 33,659 $ 15,251 Shengyi 5,350 2,434 2,300 Total $ 46,335 $ 36,093 $ 17,551 Year Ended December 31 Service fee charged by 2022 2021 2020 Shengyi $ 543 $ 561 $ 322 Ninebell - - 22 Total $ 543 $ 561 $ 344 |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 31, 2022 | |
COMMON STOCK [Abstract] | |
COMMON STOCK | NOTE 18 – COMMON STOCK At December 31, 2021 and 2022, ACM was authorized to issue 150,000,000 shares of Class A common stock and 5,307,816 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. In March 2022, ACM effectuated the Stock Split, which was a 3-for-1 stock split of Class A and Class B common stock in the form of a stock dividend. Each stockholder of record at the close of business on March 16, 2022 received a dividend of two additional shares of Class A common stock for each then-held share of Class A common stock and two additional shares of Class B common stock for each then-held share of Class B common stock, which were distributed after the close of trading on March 23, 2022. During the year ended December 31, 2022, ACM issued 980,354 shares of Class A common stock upon option exercises by employees and non-employees and an additional 66,003 shares of Class A common stock upon conversion of an equal number of shares of Class B common stock. During the year ended December 31, 2021, the Company issued 1,870,803 shares of Class A common stock upon options exercises by certain employees and non-employees and an additional 320,004 shares of Class A common stock upon conversion of an equal number of shares of Class B common stock. During the year ended December 31, 2021, ACM issued 728,043 shares of Class A common stock upon the warrant exercise SMC (Note 15). At and , the number of shares of Class A common stock issued and outstanding was At and , the number of shares of Class B common stock issued and outstanding was |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
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, and 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 did not begin trading until November 2021, 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 the 1998 Stock Option Plan and the 2016 Omnibus Incentive Plan and as standalone options. ACM granted stock options to employees under the 2016 Omnibus Incentive Plan during the years ended December 31, 2022, 2021, and 2020. 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 a 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 a 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: Year Ended December 31, 2022 2021 2020 Stock-Based Compensation Expense: Cost of revenue $ 520 $ 397 $ 175 Sales and marketing expense 1,877 1,802 1,199 Research and development expense 2,565 1,115 763 General and administrative expense 2,768 1,803 3,491 $ 7,730 $ 5,117 $ 3,572 Year Ended December 31, 2022 2021 2020 Stock-based compensation expense by type: Employee stock option plan $ 7,346 $ 4,674 $ 4,900 Non-employee stock option plan 46 94 396 Subsidiary stock option plan 338 349 332 $ 7,730 $ 5,117 $ 3,572 The fair value of options granted to employees with a service period-based condition is estimated on the grant date using the Black-Scholes valuation model with the following assumptions: Year ended December 31, 2022 (6) 2021 (6) 2020 (6) Fair value of common share(1) $ 16.83-25.45 $ 12.79-17.02 $ 7.36-28.42 Expected term in years(2) 5.50-6.25 6.25 5.50-6.25 Volatility(3) 49.43-50.87 % 48.53-49.47 % 42.17%-48.15 % Risk-free interest rate(4) 1.7%-3.04 % 1.00%-1.44 % 0.44%-0.82 % Expected dividend(5) 0 % 0 % 0 % (1) Fair value of Class A common stock value was the closing market price of the Class A common stock 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 the stock of companies comparable to ACM 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 0% as ACM has no history or expectation of paying a dividend on its common stock. (6) Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. During the years ended December 31, 2022 and 2021, no options were granted to employees with a market-based condition. During the year ended December 31, 2020, the fair values of option granted to employees with a market-based condition was estimated on the grant date using the Monte Carlo simulation model with the following assumptions: Year Ended December 31, 2020 (6) Fair value of common share(1) $ 7.36 Expected term in years(2) 9.20 - 9.80 Volatility(3) 45.10 % Risk-free interest rate(4) 2.68 % Expected dividend(5) 0 % (1) Fair value of Class A common stock value was the closing market price of the Class A common stock 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 the stock of companies comparable to ACM 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 0%, as ACM has no history or expectation of paying a dividend on its common stock. (6) Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. Employee Awards The following table summarizes the Company’s employee share option activities during the years ended December 31, 2020, 2021 and 2022: Number of Option Shares (1) Weighted Average Grant Date Fair Value (1) Weighted Average Exercise Price (1) Weighted Average Remaining Contractual Term Outstanding at December 31, 2019 8,982,189 $ 0.86 $ 2.26 7.05 years Granted 2,359,197 4.06 9.72 Exercised (1,641,567 ) 0.45 1.26 Forfeited/cancelled (125,586 ) 1.60 4.22 Outstanding at December 31, 2020 9,574,233 $ 1.71 $ 4.24 7.13 years Granted 421,200 16.05 35.38 Exercised (1,431,174 ) 0.82 2.10 Forfeited/cancelled (162,012 ) 8.32 19.03 Outstanding at December 31, 2021 8,402,247 $ 2.45 $ 5.88 6.53 years Granted 1,653,300 10.31 22.41 Exercised (416,546 ) 1.20 2.97 Forfeited/cancelled (427,360 ) 11.41 25.24 Outstanding at December 31, 2022 9,211,641 $ 3.58 $ 8.24 6.36 years Vested and exercisable at December 31, 2022 6,346,725 (1) Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. As of December 31, 2022, $16,009 of total unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to stock-based awards for ACM was expected to be recognized over a weighted-average period of 1.53 years. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. Non-employee Awards The following table summarizes the Company’s non-employee share option activities during the years ended December 31, 2020, 2021 and 2022: Number of Option Shares (1) Weighted Average Grant Date Fair Value (1) Weighted Average Exercise Price (1) Weighted Average Remaining Contractual Term Outstanding at December 31, 2019 3,304,839 $ 0.27 $ 0.90 5.85 years Granted 60,000 3.43 8.53 Exercised (855,945 ) 0.29 1.06 Forfeited/cancelled (780 ) 0.10 0.25 Outstanding at December 31, 2020 2,508,114 $ 0.34 $ 1.02 4.92 years Exercised (439,629 ) 0.37 1.28 Forfeited/cancelled (1,467 ) 0.11 0.28 Outstanding at December 31, 2021 2,067,018 $ 0.33 $ 0.97 3.98 years Exercised (563,808 ) 0.21 0.51 Forfeited/cancelled (19,552 ) 0.21 0.48 Outstanding at December 31, 2022 1,483,658 $ 0.38 $ 1.15 3.68 years Vested and exercisable at December 31, 2022 1,464,908 (1) Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. As of December 31, 2022 and 2021, $55 and $102, respectively, of total unrecognized non-employee stock-based compensation expense, net of estimated forfeitures, related to stock-based awards were both expected to be recognized over a weighted-average period of 0.06 years. 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 years ended December 31, 2022 and 2021: Number of Option Shares in ACM Shanghai Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2020 5,423,654 $ 0.23 $ 1.89 3.50 years Forfeited/cancelled (46,154 ) 0.24 2.04 Outstanding at December 31, 2021 5,377,500 $ 0.24 $ 2.04 2.50 years Outstanding at December 31, 2022 5,377,500 $ 0.23 $ 1.93 1.76 years Vested and exercisable at December 31, 2022 2,688,771 During the years ended December 31, 2022 and 2021, the Company recognized stock-based compensation expense of $338 and $349, related to stock option grants of ACM Shanghai. As of December 31, 2022 and 2021, $160 and $525 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 0.8 and 1.5 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 20 – INCOME TAXES The following represent the U.S. and foreign components of income before income tax for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (in thousands) U.S. federal $ (3,456 ) $ (4,389 ) $ (16,688 ) Foreign 70,818 47,444 35,983 Income before income taxes $ 67,362 $ 43,055 $ 19,295 The following represent components of the income tax benefit (expense) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (in thousands) Current: U.S. federal $ (479 ) $ (91 ) $ (61 ) U.S. state (18 ) (2 ) (2 ) Total U.S. current tax benefit (expense) (497 ) (93 ) (63 ) Foreign (11,139 ) (2,195 ) (2,014 ) Total current tax expense (11,636 ) (2,288 ) (2,077 ) Deferred: U.S. federal (10,927 ) 2,089 7,325 U.S. state 8 - - Total U.S. deferred tax benefit (expense) (10,919 ) 2,089 7,325 Foreign 5,757 65 (2,866 ) Total deferred tax benefit (5,162 ) 2,154 4,459 Total income tax benefit (expense) $ (16,798 ) $ (134 ) $ 2,382 Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets at December 31, 2022, 2021, and 2020 are presented below: Year Ended December 31, 2022 2021 2020 Deferred tax assets: Net operating loss carry forwards (offshore) $ 1,456 $ 522 $ 323 Net operating loss carry forwards (U.S.) and credit 1,246 12,173 9,981 Deferred revenue (offshore) 1,826 361 556 Accruals (U.S.) 100 15 22 Reserves and other (offshore) 3,655 1,528 884 Stock-based compensation (U.S.) 3,289 2,283 1,599 Property and equipment (U.S.) - 1 164 Lease liability 414 559 659 Total gross deferred tax assets 11,986 17,442 14,188 Less: valuation allowance (1,782 ) (919 ) (848 ) Total deferred tax assets 10,204 16,523 13,340 Deferred tax liabilities: Fixed assets (443 ) (589 ) (697 ) Deferred revenue (offshore) - (1,486 ) (967 ) Equity Investments and unrealized gain on trading securities (3,059 ) (2,584 ) (1,886 ) Total deferred tax liabilities (3,502 ) (4,659 ) (3,550 ) Deferred tax assets, net $ 6,702 $ 11,864 $ 9,790 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. Based on all available evidence, a partial valuation allowance has been established against some net deferred tax assets as of December 31, 2022 and 2021, based on estimates of recoverability. In order to fully realize the deferred tax assets, the Company must generate sufficient taxable income in future periods before the expiration of the deferred tax assets governed by the tax code. As of December 31, 2022 and 2021, the Company had valuation allowances, respectively, of $49 and $160 for U.S federal purposes, $277 and $237 for U.S. state purposes and $1,456 and $522 for PRC income tax purposes. As of December 31, 2022 and 2021, the Company had net operating loss carry-forwards of, respectively, $4,385 and $56,077 for U.S federal purposes, $545 and $545 for U.S. state purposes and $6,474 and $2,086 for PRC income tax purposes . 2037 2032 2025 As of December 31, 2022 and 2021, the Company had research credit carry-forwards of, respectively, $61 and $200 for U.S. federal purposes and $377 and $377 for U.S. state purposes. Such credits begin expiring in 2023 Under provisions of the U.S. Internal Revenue Code (the “IRC”), a limitation applies to the use of the U.S. net operating loss and credit carry-forwards that would be applicable if ACM experiences an “ownership change,” as defined in IRC Section 382. ACM conducted an analysis of its stock ownership under IRC Section 382 and $4,385 of the net operating loss carryforwards are subject to annual limitation as a result of the ownership change in 2017. The net operating loss carryforwards are not expected to expire before utilization. The Company’s effective tax rate differs from statutory rates of 21% for U.S. federal income tax purposes and 12.5% to 25% for PRC income tax purpose due to the effects of the valuation allowance and certain permanent differences as they pertain to book-tax differences in employee stock-based compensation and non-US research expense. A new requirement to capitalize and amortize previously deductible research and experimental expenses resulting from a change in Section 174 made by the Tax Cuts and Jobs Act of 2017 (the “TCJA”) became effective on January 1, 2022. Under the TCJA, the Company is required to capitalize, and subsequently amortize R&D expenses over fifteen years for research activities conducted outside of the U.S. The capitalization of overseas R&D expenses resulted in a significant increase in the Company’s global intangible low-taxed income inclusion. Congress is considering legislation, but legislation has not passed, that would repeal the capitalization requirement. In 2021, ACM Shanghai was certified as an eligible integrated circuit production enterprise and is entitled to a preferential income tax rate of 12.5% from January 1, 2020 to December 31, 2022. The Income tax expense for the years ended December 31, 2022, 2021 and 2020 differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% to pretax income as a result of the following: Year Ended December 31, 2022 2021 2020 Effective tax rate reconciliation: Income tax provision at statutory rate 21.00 % 21.00 % 21.00 % Stock Compensation (2.72 ) (12.75 ) (36.99 ) Foreign rate differential (9.43 ) (11.60 ) (5.07 ) Other permanent difference (0.26 ) (0.23 ) 11.71 Foreign income taxed in US 19.86 10.32 6.05 Foreign Research Expense (4.79 ) (6.59 ) (8.80 ) Change in valuation allowance 1.28 0.16 (0.25 ) Total income tax expense (benefit) 24.94 % 0.31 % (12.35 )% Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The aggregate changes in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the years ended December 31, 2022 and 2021, were as follows: Year Ended December 31, 2022 2021 2020 Beginning balance $ 6,066 $ 570 $ 44 Increase of unrecognized tax benefits taken in prior years - 52 116 Increase of unrecognized tax benefits related to current year 2,623 5,476 410 Reductions for tax positions related to prior years (241 ) (32 ) - Ending balance $ 8,448 $ 6,066 $ 570 The Company is subject to taxation in the United States, California 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, 2000 through December 31, 2022. 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 or by state or foreign tax authorities to the extent utilized in a future period. The Company had $8,448 and $6,066 of unrecognized tax benefits as of December 31, 2022 and 2021, respectively. The As of December 31, 2022, the Company has not made a provision for U.S. or additional foreign withholding taxes on approximately $90 million of undistributed earnings of its foreign subsidiaries that is indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | NOTE 21 – SEGMENT INFORMATION The Company is engaged in the developing, manufacture and sale of single-wafer wet cleaning equipment, which have been organized as one reporting segment as the equipment has substantially similar nature and economic characteristics. The Company’s principal operating decision maker, ACM’s Chief Executive Officer, receives and reviews the results of the operations for all major type of equipment as a whole when making decisions about allocating resources and assessing performance of the Company. For geographical reporting, revenue by geographic location is determined by the location of customers’ facilities to which products were shipped. Long-lived assets consist primarily of property, plant and equipment, other long-term assets, and right-of-use assets and are attributed to the geographic location in which they are located. Long-lived assets by geographic region as of the years ended were as follows: December 31, 2022 2021 Long-lived assets by geography: Mainland China $ 140,481 $ 71,534 South Korea 3,830 1,324 United States 10 50 Total $ 144,321 $ 72,908 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 22 – COMMITMENTS AND CONTINGENCIES The Company leases offices under non-cancelable operating lease agreements. See note 11 for future minimum lease payments under non-cancelable operating lease agreements with initial terms of one year or more. As of December 31, 2022, the Company had $102,906 of open capital commitments. Covenants in ACM Shengwei’s Grant Contract for State-owned Construction Land Use Right in Shanghai City (Category of R&D Headquarters and Industrial Projects) 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 December 31, 2022 and December 31, 2021, the Company had paid in total $35,376 and $13,265, respectively 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 December 31, 2022 and 2021. In the opinion of management, no provision for liability nor disclosure was required as of December 31, 2022 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. |
STATUTORY SURPLUS RESERVE
STATUTORY SURPLUS RESERVE | 12 Months Ended |
Dec. 31, 2022 | |
STATUTORY SURPLUS RESERVE [Abstract] | |
STATUTORY SURPLUS RESERVE | NOTE 23 – STATUTORY SURPLUS RESERVE In accordance with the PRC’s Foreign Enterprise Law, ACM Shanghai, ACM Shengwei, and ACM Wuxi are required to make appropriation to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income in accordance with generally accepted accounting principles of PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities’ registered capital. The amount is calculated annually at the end of each calendar year. The balances of statutory reserve funds were $16,881 and $8,312 as of December 31, 2022 and December 31, 2021, respectively, and are presented as statutory surplus reserve on the Company’s consolidated balance sheets. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION [Abstract] | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | NOTE 24 – PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with Rule 4-08(e)(3) of Regulation S-X of the SEC and concluded that it was applicable for the Company to disclose the financial information for ACM only. Certain information and footnote disclosures generally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The footnote disclosure contains supplemental information relating to the operations of ACM separately. ACM’s subsidiaries did not pay any dividends to ACM during the periods presented. ACM did not have significant capital or other commitments, long-term obligations, or guarantees as of December 31, 2022 or 2021. The following represents condensed unconsolidated financial information of ACM only as of December 31, 2022 and 2021, and for the years ended December 31, 2022, 2021 and 2020: CONDENSED BALANCE SHEETS December 31, 2022 2021 Assets Current assets: Cash and cash equivalents $ 23,853 $ 29,536 Accounts receivable 24 16 Due from intercompany - - Other receivable 5,017 48 Prepaid expenses 134 594 Total current assets 29,028 30,194 Deferred tax assets 6,703 13,166 Investment in unconsolidated subsidiaries 653,926 637,961 Total assets $ 689,657 $ 681,321 Liabilities and Stockholders’ Equity Accounts payable $ 236 $ 875 Other payables 4,409 404 Income taxes payable 3,469 254 FIN-48 payable 6,686 2,282 Deferred tax liability - 1,302 Total liabilities 14,800 5,117 Total stockholders’ equity 674,857 676,204 Total liabilities and stockholder’s equity $ 689,657 $ 681,321 CONDENSED STATEMENTS OF OPERATIONS Year Ended December 31, 2022 2021 2020 Revenue $ 569 $ 16 $ 1,776 Cost of revenue - - (1,707 ) Gross profit 569 16 69 Operating expenses: Sales and marketing expenses (3,193 ) (2,443 ) (1,361 ) General and administrative expenses (5,421 ) (5,116 ) (5,010 ) Research and development expenses - - - Loss from operations (8,045 ) (7,543 ) (6,302 ) Equity in earnings of unconsolidated subsidiaries 32,145 43,866 36,273 Change in fair value of financial liability - - (11,964 ) Interest income, net 57 54 90 Interest expense, net (7 ) - - Other income, net 2,148 1,380 683 Income before income taxes 26,298 37,757 18,780 Income tax benefit 12,965 - - Net income $ 39,263 $ 37,757 $ 18,780 CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2022 2021 2020 Net cash used in operating activities $ (5,997 ) $ (5,902 ) $ (290 ) Net cash used by investing activities (1,000 ) - - Net cash provided by financing activities 1,314 5,250 2,745 Net increase (decrease) in cash and cash equivalents (5,683 ) (652 ) 2,455 Cash and cash equivalents, beginning of year 29,536 30,188 27,733 Cash and cash equivalents, end of year $ 23,853 $ 29,536 $ 30,188 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements include the accounts of ACM and its subsidiaries, including ACM Shanghai and its subsidiaries, which include ACM Wuxi, ACM Shengwei, ACM Beijing and CleanChip (the subsidiaries of which include ACM California and ACM Korea). ACM’s subsidiaries are those entities in which ACM, directly and indirectly, controls more than one half of the voting power. All significant intercompany transactions and balances have been eliminated upon consolidation. |
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, 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. |
Common Stock Split | Common Stock Split All prior period share and per share amounts, common stock, other capital, and retained earnings information presented in the accompanying financial statements and these notes thereto has been retroactively adjusted to reflect the impact of the Stock Split. Proportional adjustments were also made to outstanding awards under the Company’s stock-based compensation plans. |
Reclassification | Reclassifications Certain prior year amounts in the notes to the Consolidated Financial Statements have been reclassified to conform with the current year presentation. These classifications within the statements had no impact on the Company’s results of operations. |
Restrictions by the U.S. Department of Commerce on PRC-Based Semiconductor Producers | Restrictions by the U.S. Department of Commerce on PRC-Based Semiconductor Producers In early October 2022 the U.S. government enacted new rules aimed at restricting U.S. support for the PRC’s ability to manufacture advanced semiconductors. The rules include new export license requirements for exports, re-exports or transfers to or within the PRC of additional types of semiconductor manufacturing items, items for use in manufacturing designated types of semiconductor manufacturing equipment in the PRC, and semiconductor manufacturing equipment for use at certain IC manufacturing and development facilities in the PRC. In addition, the U.S. government imposed new restrictions by which U.S. persons anywhere in the world are effectively barred from engaging in certain activities related to the development and production of certain semiconductors at PRC fabrication facilities meeting specified criteria, even if no items subject to the EAR are involved. ACM Shanghai has determined that several of its customers have PRC-based facilities that meet the restricted criteria, and has also determined that several of its products may meet the parameters of export control classification numbers, or ECCNs, affected by the restrictions. Accordingly, depending on the details of the final implementation of these new restrictions and associates licensing policies, ACM may not be able to import, or may face substantial restrictions in importing, parts from the United States to support tool shipments to such facilities, or to be embedded into tools defined by affected ECCNs. ACM and ACM Shanghai have implemented modifications to their existing business policies and practices in response to the new restrictions, including by imposing limitations on the activities of their U.S. persons and their supply chains more broadly to comply with the new regulations. ACM and ACM Shanghai believe that as a result of the new restrictions, several ACM Shanghai customers have significantly reduced production and related capital spending at facilities meeting the restricted advanced node capabilities. In addition, ACM Shanghai has experienced challenges as the companies in its supply chain adapt their policies to the new regulations. These factors had an adverse impact on ACM Shanghai’s shipments and sales in the three months ended December 31, 2022. ACM and ACM Shanghai anticipate these factors will continue to have an adverse impact on ACM Shanghai’s shipments and sales in future periods. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and bank deposits that are unrestricted as to withdrawal and use, and highly liquid investments with an original maturity date of three months or less at the date of purchase. At times, cash deposits may exceed government-insured limits. The following table presents cash and cash equivalents, according to jurisdiction as of December 31, 2022 and December 31, 2021: December 31, 2022 2021 United States $ 25,011 $ 34,852 Mainland China 129,695 469,494 China Hong Kong 89,187 52,527 South Korea 4,007 5,675 Singapore 51 - Total $ 247,951 $ 562,548 The amounts in mainland China do not include short-term and long-term time deposits which totaled $172,448 and $0 at December 31, 2022 and 2021, respectively. Cash held in the U.S. exceeds the Federal Deposit Insurance Corporation (“FDIC”) insurance limits and is subject to risk of loss. No losses have been experienced to date. Cash amounts held by ACM Shanghai at PRC banks in mainland China are subject to a series of risk control regulatory standards from PRC bank regulatory authorities. ACM Shanghai is required to obtain approval from the State Administration of Foreign Exchange (“SAFE”) to transfer funds into or out of the PRC. SAFE requires a valid agreement to approve the transfers, which are processed through a bank. Other than these PRC foreign exchange restrictions, ACM Shanghai is not subject to any PRC restrictions and limitations on its ability to transfer funds to ACM Research or among our other subsidiaries. However, cash held by ACM Shanghai in mainland China does exceed applicable insurance limits and is subject to risk of loss, although no such losses have been experienced to date. ACM California periodically procures goods and services on behalf of ACM Shanghai. For these transactions, ACM Shanghai makes cash payments to ACM California in accordance with applicable transfer pricing arrangements. For the year ended December 31, 2022, cash payments from ACM Shanghai to ACM California for the procurement of goods was $37.0 million and for services was $3.3 million. ACM California periodically borrows funds for working capital advances from its direct parent, CleanChip. ACM California repays or renews these intercompany loans in accordance with their terms. For sales through CleanChip and ACM Research, a certain amount of sales or advance payments from customer proceeds is repatriated back to ACM Shanghai, a subsidiary, in accordance with applicable transfer pricing arrangements in the ordinary course of business. ACM Research provides services to certain customers located in the U.S., Europe and other regions outside of mainland China to support the evaluation of first tools and provide support for tools under warranty on behalf of ACM Shanghai. For these transactions, ACM Shanghai makes cash payments to ACM Research, Inc. in accordance with applicable transfer pricing arrangements. Subsequent to June 30, 2020, with the exception of sales and services-related transfer-pricing payments in the ordinary course of business, no cash transfers, dividends or other payments or distributions have been made between ACM Research and ACM Shanghai. The Company intends to retain any future earnings to finance the operations and expenses of the business, and do not expect to distribute earnings or declare or pay any dividends in the foreseeable future. Amounts held in South Korea exceed the Korea Deposit Insurance Corporation (“KDIC”) insurance limits and are subject to risk of loss. No losses have been experienced to date. There is no additional restriction for the transfer of cash from bank accounts in the U.S., South Korea, and Hong Kong. For the years ended December 31, 2022 and 2021, with the exception of sales and services-related transfer-pricing payments in the ordinary course of business, no transfers, dividends, or distributions have been made between ACM Research and its subsidiaries, including ACM Shanghai, or to holders of ACM Research Class A common stock. |
Time Deposits | Time Deposits Time deposits are deposited with banks in mainland China with fixed terms and interest rates which cannot be withdrawn before maturity. They are also subject to the risk control regulatory standards described above upon maturity. Time deposits consisted of the following: December 31, 2022 2021 Deposit in China Merchant Bank which matures on January 29, 2023 2.25 $ 38,772 $ - Deposit in China Everbright Bank which matures on January 29, 2023 2.25 14,360 - Deposit in China Everbright Bank which matures on May 22, 2023 5.07 3,000 - Deposit in China Industrial Bank which matures on January 30, 2023 2.15 14,360 - Deposit in China Merchant Bank which matures on January 29, 2024 2.85 28,720 - Deposit in Bank of Ningbo which matures on February 17, 2024 2.85 43,080 - Deposit in Shanghai Pudong Development Bank which matures on October 20, 2025 3.10 7,180 - Deposit in Shanghai Pudong Development Bank which matures on November 14, 2025 3.10 7,180 - Deposit in Shanghai Pudong Development Bank which matures on December 8, 2025 3.10 4,308 - Deposit in Shanghai Pudong Development Bank which matures on December 15, 2025 3.10 4,308 - Deposit in Shanghai Pudong Development Bank which matures on December 30, 2025 3.10 7,180 - $ 172,448 $ - For the years ended December 31, 2022 and 2021, respectively, interest income related to time deposits was $3,472 and $0, respectively. |
Accounts Receivable | Accounts Receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history and credit worthiness, current economic trends and reasonable and supportable forecasts. Accounts are written off after all collection efforts have been exhausted. At December 31, 2022, and 2021, the Company, based on a review of its outstanding balances and its customers, determined the allowance for doubtful accounts was both $0. |
Land Use Rights, Net | Land Use Right, Net The land use right represents the cost to purchase a right to use state-owned land in the PRC with lease terms of 50 years expiring in 2070, for which an upfront lump-sum payment was made during the year ended December 31, 2020. The Company classifies the land use right as non-current assets on the consolidated balance sheets (note 7). The land use right is carried at cost less accumulated amortization and impairment losses, if any. Amortization is computed using the straight-line method over the term specified in the land use right certificate, which is 50 years. |
Inventory | Inventory Inventory consists of raw materials and related goods, work-in-progress, finished goods, and other consumable materials such as spare parts. Finished goods typically are shipped from the Company’s warehouse within one month of completion. Inventory was recorded at the lower of cost or net realizable value at December 31, 2022 and 2021. ● The cost of a general inventory item is determined using the weighted moving average method. Under the weighted moving average method, the Company calculates the new average price of all items of a particular inventory stock each time one or more items of that stock are purchased. The then-current average price of the stock is used for purposes of determining cost of inventory or cost of revenue. The cost of an inventory item purchased specifically for a customized product is determined using the specific identification method. Low-cost consumable materials and packaging materials are expensed as incurred. ● Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete or dispose. The Company assesses the recoverability of all inventories quarterly to determine if any adjustments are required. Potential excess or obsolete inventory is written off based on management’s analysis of inventory levels and estimates of future 12-month demand and market conditions. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, Plant and Equipment are recorded at cost less accumulated depreciation and any provision for impairment in value. Depreciation begins when the asset is placed in service and is calculated by using the straight-line method over the estimated useful life of an asset (or, if shorter, over the lease term). Betterments or renewals are capitalized when incurred. Property, plant, and equipment is reviewed each year to determine whether any events or circumstances indicate that the carrying amount of the assets may not be recoverable. There was no impairment charge that was recognized for the years ended December 31, 2022 and 2021. Estimated useful lives of assets are as follows: Buildings and Plants 30 years Computer and office equipment 3 to 5 years Furniture and fixtures 5 years Leasehold improvements shorter of lease term or estimated useful life Electronic equipment 3 to 5 years Manufacturing equipment for small to medium-sized equipment, 5 to 10 years; for large equipment, Transportation equipment 4 to 5 years Expenditures for maintenance and repairs that neither materially add to the value of the property nor appreciably prolong the life of the property are charged to expense as incurred. Upon retirement or sale of an asset, the cost of the asset and the related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is credited or charged to income. |
Intangible Assets, Net | Intangible Assets, Net Intangible assets consist of capitalized software license and other related fees for items used for finance, manufacturing, and research and development purposes. Assets are valued at cost at the time of acquisition and are amortized over their beneficial periods. If a contract specifies a license period, then the intangible asset is amortized over a term not exceeding the license period. For those intangible assets with contracts that do not specify a license term or for which local law does not specify a license term, management estimates the amortization period based on the period over which the asset is expected to contribute directly or indirectly to the cash flows in accordance with ASC 350, Intangibles—Goodwill and Other |
Investments | Investments The Company uses the equity method of accounting for its investment in, and earning or loss of, companies that it does not control but over which it does exert significant influence. The Company considers whether the fair value of its equity method investment has declined below its carrying value whenever adverse events or changes in circumstances indicate that the recorded value may not be recoverable. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as current economic and market conditions, the operating performance of the entities including current earnings trends and forecasted cash flows, and other company and industry specific information. If the Company considers any decline to be other than temporary (based on various factors, including historical financial results and the overall health of the investee), then a write-down would be recorded to estimated fair value. See note 14 for discussion of equity method investment. The Company elects to measure its investments in other equity securities that the Company does not have control nor significant influence on the investee at cost minus impairment, if any for those equity securities without a readily determinable fair value. All marketable securities are classified as trading securities and trading securities and are stated at fair market value, less a discount applied to reflect the remaining lock-up period when the securities are subject to lock-up period. Fair market value is determined by the most recently traded price of the security at the balance sheet date. Net realized and unrealized gains and losses on trading securities are included in the consolidated statements of operations. The cost of investments sold is based on the average cost method. Interest and dividend income earned are included in other income (expense), net. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstance indicate that the carrying value of the assets may not be fully recoverable or that the useful life of the assets is shorter than the Company had originally estimated. When these events or changes occur, the Company evaluates the impairment of the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value over the fair value. No impairment charge was recognized for either of the periods presented. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities and operating lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the 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 commencement date in determining the present value of lease payments. It uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Revenue Recognition | Revenue Recognition The Company derives revenue principally from the sale of semiconductor capital equipment. Revenue from contracts with customers is recognized using the following five steps pursuant ASC Topic 606, Revenue from Contracts with Customers 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied the guidance of ASC Topic 606 in order to verify which promises should be assessed for classification as distinct performance obligations. The Company’s performance obligations in connection with a sale of equipment generally include production, delivery, installation, training and software updates. Given that the Company’s products are customized based on specifications of its customers, the Company determines that the promise to the customer is to provide a customized product solution. The product and customization services are inputs into the combined item for which the customer has contracted and, as a result, the product and installation services are not separately identifiable and are combined into a single performance obligation. Delivery of goods to a customer is not a separate performance obligation since control of the goods normally does not transfer to the customer before shipment. The Company’s warranties provide assurance that its products will function as expected and in accordance with certain specifications. The Company’s warranties are intended to safeguard the customer against existing defects and do not provide any incremental service to the customer. They are not separate performance obligations and accounted for under ASC 460, Guarantees The transaction price is allocated to all the separate performance obligations in an arrangement. It reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services, which may include an estimate of variable consideration to the extent that it is probable of not being subject to significant reversals in the future based on the Company’s experience with similar arrangements. The transaction price excludes amounts collected on behalf of third parties, such as sales taxes. This is done on a relative selling price basis using stand-alone selling prices (“SSP”). The SSP represents the price at which the Company would sell that good or service on a stand-alone basis at the inception of the contract. Given the requirement for establishing SSP for all performance obligations, if the SSP is directly observable through standalone sales, then such sales should be considered in the establishment of the SSP for the performance obligation. For some sale contracts, in addition to the sale of semiconductor capital equipment, the Company also provides certain spare parts to the customers. The Company defers revenue associated with spare parts sold together with its tool products, including production, delivery, installation, training, and software updates which are accounted for as one performance obligation, based on stand-alone observable selling prices for which it receives payments in advance and recognizes the revenue upon the subsequent shipment of the spare parts, which is expected within one year. The deferred revenue for spare parts was $4,174 and $3,180 at December 31, 2022 and 2021, respectively. Revenue is recognized when the Company satisfies each performance obligation by transferring control of the promised goods or services to the customer. Goods or services can transfer at a point in time (upon the acceptance of the products or upon the arrival at the destination as stipulated in the shipment terms) in a sale arrangement. In general, the Company recognizes revenue when a tool has been demonstrated to meet the customer’s predetermined specifications and is accepted by the customer. In the following circumstances, however, the Company recognizes revenue upon shipment or delivery, when legal title to the tool is passed to a customer as follows: ● When the customer has previously accepted the same tool with the same specifications and the Company can objectively demonstrate that the tool meets all of the required acceptance criteria; ● When the sales contract or purchase order contains no acceptance agreement and the Company can objectively demonstrate that the tool meets all of the required acceptance criteria; ● When the Company’s sales arrangements do not include a general right of return. The Company offers maintenance services, which consist principally of the installation and replacement of parts and small-scale modifications to the equipment. The related revenue and costs of revenue are recognized when parts have been delivered and installed and the customers have obtained control of the parts. The Company incurs costs related to the acquisition of its contracts with customers in the form of sales commissions. Sales commissions are paid to third party representatives and distributors. Contractual agreements with these parties outline commission structures and rates to be paid. Generally speaking, the contracts are all individual procurement decisions by the customers and are not for significant periods of time, nor do they include renewal provisions. As such, all contracts have an economic life of significantly less than a year. Accordingly, the Company expenses sales commissions when incurred. These costs are recorded within sales and marketing expenses. The Company, therefore, does not have contract assets. The Company does not incur any costs to fulfill the contracts with customers that are not already reported in compliance with another applicable standard (for example, inventory or plant, property and equipment). The Company receives payments from customers prior to the transfer of control either upon contract sign-off and/or the delivery of evaluation tools, which are recorded as advances from customers. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of: direct materials, comprised principally of parts used in assembling equipment, together with crating and shipping costs; direct labor, including salaries and other labor related expenses attributable to the Company’s manufacturing department; and allocated overhead cost, such as personnel cost, depreciation expense, and allocated administrative costs associated with supply chain management and quality assurance activities, as well as shipping insurance premiums. |
Research and Development Costs | Research and Development Costs Research and development costs relating to the development of new products and processes, including significant improvements and refinements to existing products or to the process of supporting customer evaluations of tools, including the development of new tools for evaluation by customers during the product demonstration process, are expensed as incurred. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs, which relate to transportation of products to customer locations, are charged to selling and marketing expense. For the years ended December 31, 2022, 2021 and 2020, shipping and handling costs included in sales and marketing expenses were $1,507, $923, and $76, respectively. |
Borrowing Costs | Borrowing Costs Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets that require a substantial period of time to be ready for their intended use or sale are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expense in the consolidated statements of operations and comprehensive income in the period in which they are incurred. |
Warranty | Warranty For each of its products, the Company generally provides a standard assurance type warranty ranging from 12 to 36 months and covering replacement of the product during the warranty period. The Company accounts for the estimated warranty costs as sales and marketing expenses at the time revenue is recognized. Warranty obligations are affected by historical failure rates and associated replacement costs. Utilizing historical warranty cost records, the Company calculates a rate of warranty expenses to revenue to determine the estimated warranty charge. The Company updates these estimated charges on a regular basis. Warranty obligations are included in other payables and accrued expenses in the consolidated balance sheets. The following table shows changes in the Company’s warranty obligations for the years ended December 31, 2022, 2021 and 2020, respectively. Year Ended December 31, 2022 2021 2020 Balance at beginning of period $ 6,631 $ 3,975 $ 2,811 Additions 5,379 5,026 3,101 Utilized (3,230 ) (2,370 ) (1,937 ) Balance at end of period $ 8,780 $ 6,631 $ 3,975 |
Government Subsidies | Government Subsidies ACM Shanghai has received seven special government grants. The first grant, which was awarded in 2008, relates to the development and commercialization of 65nm to 45nm stress-free polishing technology. The second grant was awarded in 2009 to fund interest expense on short-term borrowings. The third grant was made in 2014 and relates to the development of electro copper-plating technology. The fourth grant was made in June 2018 and relates to the development of polytetrafluoroethylene. The fifth grant was made in 2020 and relates to the development of Tahoe single bench cleaning technologies. As of December 31, 2022, the fourth and fifth grants had been fully utilized. The sixth grant was made in 2020 and relates to the development of other cleaning technologies. The seventh grant was made in 2021 and relates to the development of the R&D and production center in the Lin-gang Special Area of Shanghai. These governmental authorities provide significant funding, although ACM Shanghai and ACM Shengwei is also required to invest certain amounts in the projects. The governmental grants contain certain operating conditions, and the Company is required to go through a government due diligence process once the project is complete. The grants therefore are recorded as long-term liabilities upon receipt, although the Company is not required to return any funds it receives. Grant amounts are recognized in our statements of operations and comprehensive income as follows: ● Government subsidies relating to current expenses are recorded as reductions of those expenses in the periods in which the current expenses are recorded. For the years ended December 31, 2022, 2021, and 2020, related government subsidies recognized as reductions of relevant expenses in the consolidated statements of operations and comprehensive income were $1,201, $11,260 and $2,658, respectively. ● Government subsidies related to depreciable assets are credited to income over the useful lives of the related assets for which the grant was received. For the years ended December 31, 2022, 2021, and 2020, related government subsidies recognized as other income in the consolidated statements of operations and comprehensive income were $306, $200, and $149, respectively. Unearned government subsidies received are deferred and recorded as other long-term liabilities (note 13) in the balance sheet until the criteria for such recognition are satisfied. |
Stock-based Compensation | Stock-based Compensation ACM grants stock options to employees and non-employee consultants and directors and accounts for those stock-based awards in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. Stock-based awards granted to employees and non-employee consultants and directors are measured at the fair value of the awards on the grant date and are recognized as expenses either (a) immediately on grant, if no vesting conditions are required or (b) using the graded vesting method, net of estimated forfeitures, over the requisite service period. The fair value of stock options is determined using the Black-Scholes valuation model when there is only service condition attached or the Monte Carlo valuation model when there is performance condition attached. Stock-based compensation expense, when recognized, is charged to the category of operating expense corresponding to the service function of the employees and non-employee consultants and directors. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable values. In evaluating the ability to recover its deferred income tax assets, the Company considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, it would make an adjustment to the valuation allowance that would reduce the provision for income taxes. Conversely, in the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Tax benefits related to uncertain tax positions are recognized when it is more likely than not that a tax position will be sustained during an audit. Interest and penalties related to unrecognized tax benefits are included within the provision for income tax. |
Basic and Diluted Net Income per Common Share | Basic and Diluted Net Income per Common Share Basic and diluted net income per common share is calculated as follows: Year Ended December 31, 2022 2021 2020 Numerator: Net income $ 50,564 $ 42,921 $ 21,677 Less: Net income attributable to non-controlling interests 11,301 5,164 2,897 Net income available to common stockholders, basic $ 39,263 $ 37,757 $ 18,780 Less: Dilutive effect arising from stock-based awards by ACM Shanghai 584 108 - Net income available to common stockholders, diluted $ 38,679 $ 37,649 $ 18,780 Weighted average shares outstanding, basic (1) 59,235,975 57,654,708 54,700,083 Effect of dilutive securities 6,105,796 7,702,008 8,850,324 Weighted average shares outstanding, diluted 65,341,771 65,356,716 63,550,407 Net income per common share: Basic $ 0.66 $ 0.65 $ 0.34 Diluted $ 0.59 $ 0.58 $ 0.30 (1) Prior period results have been adjusted to reflect the three Basic and diluted net income per common share is presented using the two-class method, which allocates undistributed earnings to common stock and any participating securities according to dividend rights and participation rights on a proportionate basis. Under the two-class method, basic net income per common share is computed by dividing the sum of distributed and undistributed earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. ACM did not have any participating securities outstanding during the three-year period ending December 31, 2022. 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 years ended December 31, 2022, 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. The number of potentially dilutive shares that were not included in the calculation of diluted net income per share in the periods presented where their inclusion would be anti-dilutive were |
Comprehensive Income Attributable to the Company | Comprehensive Income Attributable to the Company The Company applies FASB ASC Topic 220, Comprehensive Income |
Statutory Surplus Reserve | Statutory surplus reserve The income of ACM’s PRC subsidiaries is distributable to their shareholders after transfers to reserves as required under relevant PRC laws and regulations and the subsidiaries’ Articles of Association. As stipulated by the relevant laws and regulations in the PRC, the PRC subsidiaries are required to maintain reserves, including reserves for statutory surpluses and public welfare funds that are not distributable to shareholders. A PRC subsidiary’s appropriations to the reserves are approved by its board of directors. At least 10% of annual statutory after-tax profits, as determined in accordance with PRC accounting standards and regulations, is required to be allocated to the statutory surplus reserves. If the cumulative total of the statutory surplus reserves reaches 50% of a PRC subsidiary’s registered capital, any further appropriation is optional. Statutory surplus reserves may be used to offset accumulated losses or to increase the registered capital of a PRC subsidiary, subject to approval from the relevant PRC authorities, and are not available for dividend distribution to the subsidiary’s shareholders. The PRC subsidiaries are prohibited from distributing dividends unless any losses from prior years have been offset. Except for offsetting prior years’ losses, however, statutory surplus reserves must be maintained at a minimum of 25% of share capital after such usage. ACM Shanghai estimated a statutory surplus reserve of $16,881 and $8,312 based on an accumulated profit as of December 31, 2022 and 2021, respectively, which is included in the statutory surplus reserve in the consolidated balance sheets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or similar assets or liabilities. Level 3: Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate certain unobservable assumptions and projections in determining the fair value assigned to such assets. All transfers between fair value hierarchy levels are recognized by the Company at the end of each reporting period. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement in its entirety, requires judgment and considers factors specific to the investment. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risks associated with investment in those instruments. Fair Value Measured or Disclosed on a Recurring Basis Trading securities - The fair value of trading securities derives from the quoted prices for identical securities in active markets at the balance sheet date, less a discount applied to reflect the remaining lock-up period. The Company classifies the valuation techniques that use these inputs as Level 1 and Level 2 fair value measurement as of December 31, 2022 and 2021, respectively. Financial liability – Other financial items for disclosure purpose —The fair value of other financial items of the Company, other than long-term borrowings for disclosure purposes, including cash and cash equivalents, accounts receivable, other receivables, short-term borrowings, accounts payable, advances from customers, and other payables and accrued expenses, approximate their carrying value due to their short-term nature. The carrying value of the long-term borrowings which are subject to fixed interest rate approximates its fair value as the market interest rate did not significantly change from the borrowing date to December 31, 2022. Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of December 31, 2022: Assets Cash equivalents $ 247,951 $ - $ - $ 247,951 Trading securities 20,209 - - 20,209 $ 268,160 $ - $ - $ 268,160 Liabilities: Short-term borrowings $ - $ 56,004 $ - $ 58,326 Long-term borrowings - 21,009 - 18,687 $ - $ 77,013 $ - $ 77,013 As of December 31, 2021: Assets Cash equivalents $ 562,548 $ - $ - $ 562,548 Trading securities 29,498 - - 29,498 $ 592,046 $ - $ - $ 592,046 Liabilities: Short-term borrowings $ - $ 9,591 $ - $ 9,591 Long-term borrowings - 25,367 - 25,367 $ - $ 34,958 $ - $ 34,958 |
Operating and Financial Risks | Operating and Financial Risks Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents, time deposits, 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 years ended December 31, 2022 and December 31, 2021, three customers accounted for 43.8% and two customers accounted for 48.9% of revenue, respectively. As of December 31, 2022 and December 31, 2021, two customers accounted for 42.6% and 53.8%, 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. Interest Rate Risk As of December 31, 2022 and 2021, the balance of the Company’s short term bank borrowings (note 9) were scheduled to mature at various dates within the following year and thus exposed the Company to modest interest rate risk. As of December 31, 2022, the balance of the Company’s long-term borrowings (note 12) carry a fixed interest rate, and the Company may be exposed to the fair value interest rate risk. Liquidity Risk The Company’s working capital at December 31, 2022 and 2021 was sufficient to meet its then-current requirements. The Company may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions the Company decides to pursue. In the long run, the Company intends to rely primarily on cash flows from operations and additional borrowings from financial institutions in order to meet its cash needs. If those sources are insufficient to meet cash requirements, the Company may seek to issue additional debt or equity. Country Risk The Company has significant investments in the PRC. The operating results of the Company may be adversely affected by changes in the political and social conditions in the PRC and by changes in PRC government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Foreign Currency Risk and Translation The Company’s consolidated financial statements are presented in U.S. dollars, which is the Company’s reporting currency, while the functional currency of ACM’s subsidiaries is the Chinese Renminbi (“RMB”), and the Korean Won. Changes in the relative values of U.S. dollars and RMB affect the Company’s reported levels of revenues and profitability as the results of its operations are translated from RMB into U.S. dollars for reporting purposes. Since the Company has not engaged in any hedging activities, it cannot predict the impact of future exchange rate fluctuations on the results of its operations, and it may experience economic losses as a result of foreign currency exchange rate fluctuations. Transactions of ACM’s subsidiaries involving foreign currencies are recorded in functional currency according to the rate of exchange prevailing on the date when the transaction occurs. The ending balances of the Company’s foreign currency accounts are converted into functional currency using the rate of exchange prevailing at the end of each reporting period. Net gains and losses resulting from foreign exchange fluctuations as marked to market at year-end are included in the consolidated statements of operations and comprehensive income. Total foreign currency translation adjustment was ($59,102), $4,695, and $10,493 for the years ended December 31, 2022, 2021 and 2020, respectively. In accordance with FASB ASC Topic 830, Foreign Currency Matters Translations of amounts from RMB and Korean Won into U.S. dollars were made at the following exchange rates for the respective dates and periods: At December 31, 2022 2021 2020 Consolidated balance sheets: RMB to $1.00 6.9638 6.3757 6.5232 KRW to $1.00 1,262.63 1,145.48 1,088.14 Consolidated statements of operations and comprehensive income: RMB to $1.00 6.7249 6.4515 6.8966 KRW to $1.00 1,288.66 1,190.48 1,179.25 |
Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements 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 provides 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 consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. In June 2022, the FASB issued an accounting standard update which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined (Topic 820). The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. This authoritative guidance will be effective for the year beginning January 1, 2024 with early adoption permitted. The Company is currently evaluating the effect of this new guidance on its consolidated financial statements . In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. In advance of the issuance of ASU 2019-10, the Company adopted ASU 2017-12, Derivatives and Hedging (Topic 815) and ASU 2016-02, Leases (Topic 842) since January 1, 2019. ASU 2019-10 defers the effective date of ASU 2016-13 for public filers that are considered small reporting companies (“SRC”) as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company was eligible to be an SRC based on its SRC determination as of November 15, 2019 (which is the issuance date of ASU 2019-10) in accordance with SEC regulations, the Company will adopt amendments in ASU 2016-13 for the year beginning January 1, 2023. Adoption of the standard requires using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align existing credit loss methodology with the new standard. The Company is evaluating the impact of this standard on its consolidated financial statements, including accounting policies, processes and systems and expects the standard will not have a significant impact on its consolidated financial statements. |
DESCRIPTION OF BUSINESS (Tables
DESCRIPTION OF BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 Place and date of December 31, Name of subsidiaries incorporation 2022 2021 ACM Research (Shanghai), Inc. PRC, May 2005 82.5% 82.5% ACM Research (Wuxi), Inc. PRC, July 2011 82.5% 82.5% CleanChip Technologies Limited Hong Kong, June 2017 82.5% 82.5% ACM Research Korea CO., LTD. Korea, December 2017 82.5% 82.5% Shengwei Research (Shanghai), Inc. PRC, March 2019 82.5% 82.5% ACM Research (CA), Inc. USA, April 2019 82.5% 82.5% ACM Research (Cayman), Inc. Cayman Islands, April 2019 100.0% 100.0% ACM Research (Singapore) PTE. Ltd. Singapore, August 2021 100.0% 100.0% ACM Research (Beijing), Inc. PRC, February 2022 82.5% - Hanguk ACM CO., LTD Korea, March 2022 100.0% - 1. ACM Research (Lingang) Inc., or ACM Lingang, is the English name referred to by its Chinese language name Shengwei Research (Shanghai), Inc. in prior filings |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Cash and Cash Equivalents | The following table presents cash and cash equivalents, according to jurisdiction as of December 31, 2022 and December 31, 2021: December 31, 2022 2021 United States $ 25,011 $ 34,852 Mainland China 129,695 469,494 China Hong Kong 89,187 52,527 South Korea 4,007 5,675 Singapore 51 - Total $ 247,951 $ 562,548 |
Summary of Time Deposits | Time deposits are deposited with banks in mainland China with fixed terms and interest rates which cannot be withdrawn before maturity. They are also subject to the risk control regulatory standards described above upon maturity. Time deposits consisted of the following: December 31, 2022 2021 Deposit in China Merchant Bank which matures on January 29, 2023 2.25 $ 38,772 $ - Deposit in China Everbright Bank which matures on January 29, 2023 2.25 14,360 - Deposit in China Everbright Bank which matures on May 22, 2023 5.07 3,000 - Deposit in China Industrial Bank which matures on January 30, 2023 2.15 14,360 - Deposit in China Merchant Bank which matures on January 29, 2024 2.85 28,720 - Deposit in Bank of Ningbo which matures on February 17, 2024 2.85 43,080 - Deposit in Shanghai Pudong Development Bank which matures on October 20, 2025 3.10 7,180 - Deposit in Shanghai Pudong Development Bank which matures on November 14, 2025 3.10 7,180 - Deposit in Shanghai Pudong Development Bank which matures on December 8, 2025 3.10 4,308 - Deposit in Shanghai Pudong Development Bank which matures on December 15, 2025 3.10 4,308 - Deposit in Shanghai Pudong Development Bank which matures on December 30, 2025 3.10 7,180 - $ 172,448 $ - |
Estimated Useful Lives of Property, Plant and Equipment | Estimated useful lives of assets are as follows: Buildings and Plants 30 years Computer and office equipment 3 to 5 years Furniture and fixtures 5 years Leasehold improvements shorter of lease term or estimated useful life Electronic equipment 3 to 5 years Manufacturing equipment for small to medium-sized equipment, 5 to 10 years; for large equipment, Transportation equipment 4 to 5 years |
Warranty Obligations | The following table shows changes in the Company’s warranty obligations for the years ended December 31, 2022, 2021 and 2020, respectively. Year Ended December 31, 2022 2021 2020 Balance at beginning of period $ 6,631 $ 3,975 $ 2,811 Additions 5,379 5,026 3,101 Utilized (3,230 ) (2,370 ) (1,937 ) Balance at end of period $ 8,780 $ 6,631 $ 3,975 |
Basic and Diluted Net Income per Common Share | Basic and diluted net income per common share is calculated as follows: Year Ended December 31, 2022 2021 2020 Numerator: Net income $ 50,564 $ 42,921 $ 21,677 Less: Net income attributable to non-controlling interests 11,301 5,164 2,897 Net income available to common stockholders, basic $ 39,263 $ 37,757 $ 18,780 Less: Dilutive effect arising from stock-based awards by ACM Shanghai 584 108 - Net income available to common stockholders, diluted $ 38,679 $ 37,649 $ 18,780 Weighted average shares outstanding, basic (1) 59,235,975 57,654,708 54,700,083 Effect of dilutive securities 6,105,796 7,702,008 8,850,324 Weighted average shares outstanding, diluted 65,341,771 65,356,716 63,550,407 Net income per common share: Basic $ 0.66 $ 0.65 $ 0.34 Diluted $ 0.59 $ 0.58 $ 0.30 (1) Prior period results have been adjusted to reflect the three |
Carrying Value of Borrowings | The carrying value of the long-term borrowings which are subject to fixed interest rate approximates its fair value as the market interest rate did not significantly change from the borrowing date to December 31, 2022. Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of December 31, 2022: Assets Cash equivalents $ 247,951 $ - $ - $ 247,951 Trading securities 20,209 - - 20,209 $ 268,160 $ - $ - $ 268,160 Liabilities: Short-term borrowings $ - $ 56,004 $ - $ 58,326 Long-term borrowings - 21,009 - 18,687 $ - $ 77,013 $ - $ 77,013 As of December 31, 2021: Assets Cash equivalents $ 562,548 $ - $ - $ 562,548 Trading securities 29,498 - - 29,498 $ 592,046 $ - $ - $ 592,046 Liabilities: Short-term borrowings $ - $ 9,591 $ - $ 9,591 Long-term borrowings - 25,367 - 25,367 $ - $ 34,958 $ - $ 34,958 |
Translations of Foreign Exchange Rate | Translations of amounts from RMB and Korean Won into U.S. dollars were made at the following exchange rates for the respective dates and periods: At December 31, 2022 2021 2020 Consolidated balance sheets: RMB to $1.00 6.9638 6.3757 6.5232 KRW to $1.00 1,262.63 1,145.48 1,088.14 Consolidated statements of operations and comprehensive income: RMB to $1.00 6.7249 6.4515 6.8966 KRW to $1.00 1,288.66 1,190.48 1,179.25 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue From Contracts With Customer [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 customer facility. The following tables present disaggregated revenue information: Year Ended December 31, 2022 2021 2020 % Change 2022 v 2021 Single Wafer Cleaning, Tahoe and Semi-Critical Cleaning Equipment $ 272,939 $ 189,208 $ 131,248 44.3 % ECP (front-end and packaging), Furnace and Other Technologies 77,482 33,210 13,343 133.3 % Advanced Packaging (excluding ECP), Services & Spares 38,411 37,333 12,033 2.9 % Total Revenue By Product Category $ 388,832 $ 259,751 $ 156,624 49.7 % Wet cleaning and other front-end processing tools $ 308,528 $ 202,268 $ 136,317 52.5 % Advanced packaging, other processing tools, services and spares 80,304 57,483 20,307 39.7 % Total Revenue Front-end and Back-End $ 388,832 $ 259,751 $ 156,624 49.7 % Year Ended December 31, 2022 2021 2020 Mainland China $ 377,752 $ 258,615 $ 154,359 Other Regions 11,080 1,136 2,265 $ 388,832 $ 259,751 $ 156,624 |
Accounts Receivables and Contract Liabilities | Below are the accounts receivables and contract liabilities balances as of: December 31, December 31, 2022 2021 Accounts receivable $ 182,936 $ 105,553 Advances from customers 153,773 52,824 Deferred revenue 4,174 3,180 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE [Abstract] | |
Accounts Receivable | At December 31, 2022 and 2021, accounts receivable consisted of the following: December 31, 2022 2021 Accounts receivable $ 182,936 $ 105,553 Less: Allowance for doubtful accounts - - Total $ 182,936 $ 105,553 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES [Abstract] | |
Inventory | At December 31, 2022 and 2021, inventory consisted of the following: December 31, 2022 2021 Raw materials $ 167,135 $ 90,552 Work-in-process 79,126 35,840 Finished goods 146,911 91,724 Total inventory $ 393,172 $ 218,116 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
Property, Plant and Equipment | At December 31, 2022 and 2021, property, plant and equipment consisted of the following: December 31, 2022 2021 Buildings and plants $ 35,864 $ - Manufacturing equipment 9,298 7,973 Office equipment 3,691 2,012 Transportation equipment 407 217 Leasehold improvement 7,173 4,134 Total cost 56,433 14,336 Less: Total accumulated depreciation and amortization (10,047 ) (5,900 ) Construction in progress 36,489 5,606 Total property, plant and equipment, net $ 82,875 $ 14,042 |
LAND USE RIGHT, NET (Tables)
LAND USE RIGHT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LAND USE RIGHT, NET [Abstract] | |
Land Use Rights | A summary of land use right is as follows: December 31, 2022 2021 Land use right purchase amount $ 9,149 $ 9,966 Less: accumulated amortization (457 ) (299 ) Land use right, net $ 8,692 $ 9,667 |
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, 2023 $ 200 2024 200 2025 200 2026 200 2027 and thereafter 7,892 Total $ 8,692 |
OTHER LONG-TERM ASSETS (Tables)
OTHER LONG-TERM ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER LONG-TERM ASSETS [Abstract] | |
Other Long-term Assets | At December 31, 2022 and 2021, other long-term assets consisted of the following: December 31, 2022 2021 Prepayment for property - Lingang $ - $ 42,111 Prepayment for property, plant and equipment and other non-current assets 704 440 Prepayment for property - lease deposit 393 429 Security deposit for land use right 708 773 Prepayment for property - Zhangjiang New Building 47,251 - Others 1,209 1,264 Total other long-term assets $ 50,265 $ 45,017 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHORT-TERM BORROWINGS [Abstract] | |
Short-Term and Long-Term Borrowings | At December 31, 2022 and December 31, 2021, short-term and long-term borrowings consisted of the following: December 2022 2021 Line of credit up to RMB from Bank of Shanghai Pudong Branch, 1) due on June 7, 2022 with an annual interest rate of and fully repaid on June 7, 2022 $ - $ 4,616 Line of credit up to RMB from China Everbright Bank, 1) due on October with annual interest rate of and fully repaid on September 27, 2022 - 3,407 2) due on August with an annual interest rate of . 8,616 - 3) due on September with an annual interest rate of . 8,616 - 4) due on December with an annual interest rate of 3.00%. 4,308 - Line of credit up to RMB from Bank of Communications, 1) due on October with an annual interest rate of 3.85% and fully repaid on July 1, 2022 - 1,568 2) due on August with an annual interest rate of . 8,616 - 3) due on September with an annual interest rate of . 5,744 - Line of credit up to RMB from Bank of China, 1) due on August with an annual interest rate of 3.15%. 5,744 - Line of credit up to RMB from China Merchants Bank, 1) due on July with an annual interest rate of . 1,292 - 2) due on July with an annual interest rate of 3.50%. 1,292 - 3) due on August with an annual interest rate of 3.50%. 1,292 - 4) due on August with an annual interest rate of . 1,292 - 5) due on August with an annual interest rate of . 1,293 - 6) due on August with an annual interest rate of . 1,293 - 7) due on August with an annual interest rate of . 1,293 - 8) due on August with an annual interest rate of . 1,005 - 9) due on August with an annual interest rate of . 1,292 - 10) due on September with an annual interest rate of . 1,292 - 11) due on September with an annual interest rate of . 1,293 - 12) due on September with an annual interest rate of . 431 - Total $ 56,004 $ 9,591 (1) Guaranteed by CleanChip |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |
Other Payables and Accrued Expenses | At December 31, 2022 and 2021, other payables and accrued expenses consisted of the following: December 31, 2022 2021 Accrued commissions $ 14,890 $ 12,507 Accrued warranty 8,780 6,631 Accrued payroll 12,201 5,684 Accrued professional fees 724 785 Accrued machine testing fees 1,215 149 Accrued machine sales fees 5,874 - Others 8,517 5,979 Total $ 52,201 $ 31,735 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASES [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 2,816 $ 2,451 $ 1,541 Short-term lease cost 786 394 236 Lease cost $ 3,602 $ 2,845 $ 1,777 |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases was as follows for the years ended December 31, 2022, 2021, and 2020: Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 3,602 $ 2,845 $ 1,777 |
Maturities of Outstanding Lease Liabilities for Operating Leases | Maturities of lease liabilities for all operating leases were as follows as of December 31, 2022: December 31, 2023 $ 1,461 2024 1,065 2025 67 2026 49 2027 10 Total lease payments $ 2,652 Less: Interest (163 ) Present value of lease liabilities $ 2,489 |
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 December 31, 2022 and 2021: December 31, 2022 2021 Remaining lease term and discount rate: Weighted average remaining lease term (years) 2.00 1.37 Weighted average discount rate 4.25 % 4.54 % |
LONG-TERM BORROWINGS (Tables)
LONG-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM BORROWINGS [Abstract] | |
Long-Term Borrowings | At December 31, 2022 and 2021, long-term borrowings consisted of the following: December 31, 2022 2021 Loan from China Merchants Bank $ 15,265 $ 18,390 Loans from Bank of China 5,744 6,977 Less: Current portion (2,322 ) (2,410 ) $ 18,687 $ 22,957 |
Principal Payments for Outstanding Long-Term Loans | Scheduled principal payments for the outstanding long-term loans as of December 31, 2022 are as follows: Year ending December 31, 2023 $ 2,322 2024 6,841 2025 1,813 2026 1,886 2027 and onwards 8,147 $ 21,009 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 (note 2). As of December 31, 2022 and 2021, other long-term liabilities consisted of the following unearned government subsidies: December 31, 2022 2021 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 611 $ 791 Subsidies to Electro Copper Plating project, commenced in 2014 119 160 Subsidies to other cleaning tools, commenced in 2020 785 1,014 Subsidies to SW Lingang R&D development in 2021 4,266 5,958 Subsidies to CO2 Technology 965 - Other 575 524 Total $ 7,321 $ 8,447 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM INVESTMENTS [Abstract] | |
Long-Term Investments | December 31, Equity investee: 2022 2021 Ninebell $ 5,199 $ 3,051 Wooil 1,011 - Shengyi 1,168 211 Hefei Shixi 8,645 7,864 Subtotal 16,023 11,126 Other investee: Waferworks 1,436 1,568 Total $ 17,459 $ 12,694 |
FINANCIAL LIABILITY CARRIED A_2
FINANCIAL LIABILITY CARRIED AT FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL LIABILITY CARRIED AT FAIR VALUE [Abstract] | |
Assumptions Used to Determine Fair Value of Warrants | The SMC 2020 Warrant was initially measured at fair value at the issuance date and classified as equity permanently in accordance with ASC 815. The fair value of the SMC 2020 Warrant amounted to $21,679, based on the grant date using the Black-Scholes valuation model with the following assumptions: July 29, 2020 (6) Fair value of common share(1) $ 29.76 Expected term in years(2) 3.42 Volatility(3) 47.42 % Risk-free interest rate(4) 0.15 % Expected dividend(5) 0 % (1) Fair value of Class A common stock was the closing market price of the Class A common stock on July 29, 2020. (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 the stock of companies comparable to ACM 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 0%, as ACM has no history or expectation of paying a dividend on its common stock. (6) Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. |
TRADING SECURITIES (Tables)
TRADING SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TRADING SECURITIES [Abstract] | |
Components of Trading Securities | The components of trading securities were as follows: December 31, 2022 2021 Trading securities listed in Shanghai Stock Exchange Cost $ 14,779 $ 15,363 Market value $ 20,209 $ 29,498 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY BALANCES AND TRANSACTIONS [Abstract] | |
Related Party Balances and Transactions | The following tables represents related party transactions with the equity investees as of December and : December 31, Advances to related party 2022 2021 Ninebell $ 3,322 $ 2,383 December 31, Accounts payable 2022 2021 Ninebell $ 10,526 $ 5,703 Shengyi 3,942 2,196 Total $ 14,468 $ 7,899 Year Ended December 31 Purchase of materials 2022 2021 2020 Ninebell $ 40,985 $ 33,659 $ 15,251 Shengyi 5,350 2,434 2,300 Total $ 46,335 $ 36,093 $ 17,551 Year Ended December 31 Service fee charged by 2022 2021 2020 Shengyi $ 543 $ 561 $ 322 Ninebell - - 22 Total $ 543 $ 561 $ 344 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: Year Ended December 31, 2022 2021 2020 Stock-Based Compensation Expense: Cost of revenue $ 520 $ 397 $ 175 Sales and marketing expense 1,877 1,802 1,199 Research and development expense 2,565 1,115 763 General and administrative expense 2,768 1,803 3,491 $ 7,730 $ 5,117 $ 3,572 Year Ended December 31, 2022 2021 2020 Stock-based compensation expense by type: Employee stock option plan $ 7,346 $ 4,674 $ 4,900 Non-employee stock option plan 46 94 396 Subsidiary stock option plan 338 349 332 $ 7,730 $ 5,117 $ 3,572 |
Assumptions Used to Determine Fair Value of Options Granted | The fair value of options granted to employees with a service period-based condition is estimated on the grant date using the Black-Scholes valuation model with the following assumptions: Year ended December 31, 2022 (6) 2021 (6) 2020 (6) Fair value of common share(1) $ 16.83-25.45 $ 12.79-17.02 $ 7.36-28.42 Expected term in years(2) 5.50-6.25 6.25 5.50-6.25 Volatility(3) 49.43-50.87 % 48.53-49.47 % 42.17%-48.15 % Risk-free interest rate(4) 1.7%-3.04 % 1.00%-1.44 % 0.44%-0.82 % Expected dividend(5) 0 % 0 % 0 % (1) Fair value of Class A common stock value was the closing market price of the Class A common stock 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 the stock of companies comparable to ACM 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 0% as ACM has no history or expectation of paying a dividend on its common stock. (6) Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. During the year ended December 31, 2020, the fair values of option granted to employees with a market-based condition was estimated on the grant date using the Monte Carlo simulation model with the following assumptions: Year Ended December 31, 2020 (6) Fair value of common share(1) $ 7.36 Expected term in years(2) 9.20 - 9.80 Volatility(3) 45.10 % Risk-free interest rate(4) 2.68 % Expected dividend(5) 0 % (1) Fair value of Class A common stock value was the closing market price of the Class A common stock 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 the stock of companies comparable to ACM 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 0%, as ACM has no history or expectation of paying a dividend on its common stock. (6) Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. |
Employee Stock Option Plan [Member] | |
Stock-Based Compensation [Abstract] | |
Summary of Share Option Activities | The following table summarizes the Company’s employee share option activities during the years ended December 31, 2020, 2021 and 2022: Number of Option Shares (1) Weighted Average Grant Date Fair Value (1) Weighted Average Exercise Price (1) Weighted Average Remaining Contractual Term Outstanding at December 31, 2019 8,982,189 $ 0.86 $ 2.26 7.05 years Granted 2,359,197 4.06 9.72 Exercised (1,641,567 ) 0.45 1.26 Forfeited/cancelled (125,586 ) 1.60 4.22 Outstanding at December 31, 2020 9,574,233 $ 1.71 $ 4.24 7.13 years Granted 421,200 16.05 35.38 Exercised (1,431,174 ) 0.82 2.10 Forfeited/cancelled (162,012 ) 8.32 19.03 Outstanding at December 31, 2021 8,402,247 $ 2.45 $ 5.88 6.53 years Granted 1,653,300 10.31 22.41 Exercised (416,546 ) 1.20 2.97 Forfeited/cancelled (427,360 ) 11.41 25.24 Outstanding at December 31, 2022 9,211,641 $ 3.58 $ 8.24 6.36 years Vested and exercisable at December 31, 2022 6,346,725 (1) Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. |
Employee Stock Option Plan [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 years ended December 31, 2022 and 2021: Number of Option Shares in ACM Shanghai Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2020 5,423,654 $ 0.23 $ 1.89 3.50 years Forfeited/cancelled (46,154 ) 0.24 2.04 Outstanding at December 31, 2021 5,377,500 $ 0.24 $ 2.04 2.50 years Outstanding at December 31, 2022 5,377,500 $ 0.23 $ 1.93 1.76 years Vested and exercisable at December 31, 2022 2,688,771 |
Non-Employee Stock Option Plan [Member] | |
Stock-Based Compensation [Abstract] | |
Summary of Share Option Activities | The following table summarizes the Company’s non-employee share option activities during the years ended December 31, 2020, 2021 and 2022: Number of Option Shares (1) Weighted Average Grant Date Fair Value (1) Weighted Average Exercise Price (1) Weighted Average Remaining Contractual Term Outstanding at December 31, 2019 3,304,839 $ 0.27 $ 0.90 5.85 years Granted 60,000 3.43 8.53 Exercised (855,945 ) 0.29 1.06 Forfeited/cancelled (780 ) 0.10 0.25 Outstanding at December 31, 2020 2,508,114 $ 0.34 $ 1.02 4.92 years Exercised (439,629 ) 0.37 1.28 Forfeited/cancelled (1,467 ) 0.11 0.28 Outstanding at December 31, 2021 2,067,018 $ 0.33 $ 0.97 3.98 years Exercised (563,808 ) 0.21 0.51 Forfeited/cancelled (19,552 ) 0.21 0.48 Outstanding at December 31, 2022 1,483,658 $ 0.38 $ 1.15 3.68 years Vested and exercisable at December 31, 2022 1,464,908 (1) Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES [Abstract] | |
Components of Income Before Income Tax | The following represent the U.S. and foreign components of income before income tax for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (in thousands) U.S. federal $ (3,456 ) $ (4,389 ) $ (16,688 ) Foreign 70,818 47,444 35,983 Income before income taxes $ 67,362 $ 43,055 $ 19,295 |
Components of Income Tax Benefit (Expense) | The following represent components of the income tax benefit (expense) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (in thousands) Current: U.S. federal $ (479 ) $ (91 ) $ (61 ) U.S. state (18 ) (2 ) (2 ) Total U.S. current tax benefit (expense) (497 ) (93 ) (63 ) Foreign (11,139 ) (2,195 ) (2,014 ) Total current tax expense (11,636 ) (2,288 ) (2,077 ) Deferred: U.S. federal (10,927 ) 2,089 7,325 U.S. state 8 - - Total U.S. deferred tax benefit (expense) (10,919 ) 2,089 7,325 Foreign 5,757 65 (2,866 ) Total deferred tax benefit (5,162 ) 2,154 4,459 Total income tax benefit (expense) $ (16,798 ) $ (134 ) $ 2,382 |
Deferred tax Assets | Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets at December 31, 2022, 2021, and 2020 are presented below: Year Ended December 31, 2022 2021 2020 Deferred tax assets: Net operating loss carry forwards (offshore) $ 1,456 $ 522 $ 323 Net operating loss carry forwards (U.S.) and credit 1,246 12,173 9,981 Deferred revenue (offshore) 1,826 361 556 Accruals (U.S.) 100 15 22 Reserves and other (offshore) 3,655 1,528 884 Stock-based compensation (U.S.) 3,289 2,283 1,599 Property and equipment (U.S.) - 1 164 Lease liability 414 559 659 Total gross deferred tax assets 11,986 17,442 14,188 Less: valuation allowance (1,782 ) (919 ) (848 ) Total deferred tax assets 10,204 16,523 13,340 Deferred tax liabilities: Fixed assets (443 ) (589 ) (697 ) Deferred revenue (offshore) - (1,486 ) (967 ) Equity Investments and unrealized gain on trading securities (3,059 ) (2,584 ) (1,886 ) Total deferred tax liabilities (3,502 ) (4,659 ) (3,550 ) Deferred tax assets, net $ 6,702 $ 11,864 $ 9,790 |
Effective Income Tax Rate | Income tax expense for the years ended December 31, 2022, 2021 and 2020 differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% to pretax income as a result of the following: Year Ended December 31, 2022 2021 2020 Effective tax rate reconciliation: Income tax provision at statutory rate 21.00 % 21.00 % 21.00 % Stock Compensation (2.72 ) (12.75 ) (36.99 ) Foreign rate differential (9.43 ) (11.60 ) (5.07 ) Other permanent difference (0.26 ) (0.23 ) 11.71 Foreign income taxed in US 19.86 10.32 6.05 Foreign Research Expense (4.79 ) (6.59 ) (8.80 ) Change in valuation allowance 1.28 0.16 (0.25 ) Total income tax expense (benefit) 24.94 % 0.31 % (12.35 )% |
Aggregate Changes in Balance of Gross Unrecognized Tax Benefits | Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The aggregate changes in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the years ended December 31, 2022 and 2021, were as follows: Year Ended December 31, 2022 2021 2020 Beginning balance $ 6,066 $ 570 $ 44 Increase of unrecognized tax benefits taken in prior years - 52 116 Increase of unrecognized tax benefits related to current year 2,623 5,476 410 Reductions for tax positions related to prior years (241 ) (32 ) - Ending balance $ 8,448 $ 6,066 $ 570 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT INFORMATION [Abstract] | |
Long-Lived Assets by Geographic Region | Long-lived assets by geographic region as of the years ended were as follows: December 31, 2022 2021 Long-lived assets by geography: Mainland China $ 140,481 $ 71,534 South Korea 3,830 1,324 United States 10 50 Total $ 144,321 $ 72,908 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION [Abstract] | |
Condensed Balance Sheets | The following represents condensed unconsolidated financial information of ACM only as of December 31, 2022 and 2021, and for the years ended December 31, 2022, 2021 and 2020: CONDENSED BALANCE SHEETS December 31, 2022 2021 Assets Current assets: Cash and cash equivalents $ 23,853 $ 29,536 Accounts receivable 24 16 Due from intercompany - - Other receivable 5,017 48 Prepaid expenses 134 594 Total current assets 29,028 30,194 Deferred tax assets 6,703 13,166 Investment in unconsolidated subsidiaries 653,926 637,961 Total assets $ 689,657 $ 681,321 Liabilities and Stockholders’ Equity Accounts payable $ 236 $ 875 Other payables 4,409 404 Income taxes payable 3,469 254 FIN-48 payable 6,686 2,282 Deferred tax liability - 1,302 Total liabilities 14,800 5,117 Total stockholders’ equity 674,857 676,204 Total liabilities and stockholder’s equity $ 689,657 $ 681,321 |
Condensed Statements of Operations | CONDENSED STATEMENTS OF OPERATIONS Year Ended December 31, 2022 2021 2020 Revenue $ 569 $ 16 $ 1,776 Cost of revenue - - (1,707 ) Gross profit 569 16 69 Operating expenses: Sales and marketing expenses (3,193 ) (2,443 ) (1,361 ) General and administrative expenses (5,421 ) (5,116 ) (5,010 ) Research and development expenses - - - Loss from operations (8,045 ) (7,543 ) (6,302 ) Equity in earnings of unconsolidated subsidiaries 32,145 43,866 36,273 Change in fair value of financial liability - - (11,964 ) Interest income, net 57 54 90 Interest expense, net (7 ) - - Other income, net 2,148 1,380 683 Income before income taxes 26,298 37,757 18,780 Income tax benefit 12,965 - - Net income $ 39,263 $ 37,757 $ 18,780 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2022 2021 2020 Net cash used in operating activities $ (5,997 ) $ (5,902 ) $ (290 ) Net cash used by investing activities (1,000 ) - - Net cash provided by financing activities 1,314 5,250 2,745 Net increase (decrease) in cash and cash equivalents (5,683 ) (652 ) 2,455 Cash and cash equivalents, beginning of year 29,536 30,188 27,733 Cash and cash equivalents, end of year $ 23,853 $ 29,536 $ 30,188 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2022 | Nov. 30, 2021 USD ($) shares | Dec. 31, 2022 shares | Dec. 31, 2019 USD ($) | Mar. 16, 2022 shares | Dec. 31, 2021 shares | Nov. 30, 2021 ¥ / shares shares | Nov. 08, 2017 | Aug. 31, 2017 | |
Description of Business [Abstract] | |||||||||
Stock split ratio | 3 | ||||||||
Class A Common Stock [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Stock split ratio | 3 | 3 | |||||||
Additional shares reserved for issuance as dividends (in shares) | 2 | 2 | |||||||
Common stock, shares outstanding (in shares) | 54,655,286 | 53,608,929 | |||||||
Class B Common Stock [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Stock split ratio | 3 | 3 | |||||||
Additional shares reserved for issuance as dividends (in shares) | 2 | 2 | |||||||
Common stock, shares outstanding (in shares) | 5,021,811 | 5,087,814 | |||||||
ACM Research (Shanghai), Inc. [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Purchase of equity interest percentage | 8.30% | 18.36% | 18.77% | ||||||
Term to complete listing of shares | 3 years | ||||||||
Name of subsidiaries | ACM Research (Shanghai), Inc. | ||||||||
Place and date of incorporation | PRC, May 2005 | ||||||||
Effective interest held as at | 82.50% | 82.50% | |||||||
ACM Research (Shanghai), Inc. [Member] | IPO [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Offering of shares (in shares) | 43,355,753 | ||||||||
Percentage amount of shares offered from shares outstanding | 10% | ||||||||
Common stock, shares outstanding (in shares) | 433,557,100 | ||||||||
Share price (in RMB per share) | ¥ / shares | ¥ 85 | ||||||||
Net proceeds of stock issuance cost | $ | $ 545,512 | ||||||||
Percentage of shares owned by company after stock issuance | 82.50% | ||||||||
ACM Research (Wuxi), Inc. [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Name of subsidiaries | ACM Research (Wuxi), Inc. | ||||||||
Place and date of incorporation | PRC, July 2011 | ||||||||
Effective interest held as at | 82.50% | 82.50% | |||||||
CleanChip Technologies Limited [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Proceeds from sale of interest in subsidiary | $ | $ 3,500 | ||||||||
Name of subsidiaries | CleanChip Technologies Limited | ||||||||
Place and date of incorporation | Hong Kong, June 2017 | ||||||||
Effective interest held as at | 82.50% | 82.50% | |||||||
ACM Research Korea CO., LTD [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Name of subsidiaries | ACM Research Korea CO., LTD. | ||||||||
Place and date of incorporation | Korea, December 2017 | ||||||||
Effective interest held as at | 82.50% | 82.50% | |||||||
Shengwei Research (Shanghai), Inc. [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Purchase of equity interest percentage | 91.70% | ||||||||
Name of subsidiaries | Shengwei Research (Shanghai), Inc. | ||||||||
Place and date of incorporation | PRC, March 2019 | ||||||||
Effective interest held as at | 82.50% | 82.50% | |||||||
ACM Research (CA), Inc. [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Name of subsidiaries | ACM Research (CA), Inc. | ||||||||
Place and date of incorporation | USA, April 2019 | ||||||||
Effective interest held as at | 82.50% | 82.50% | |||||||
ACM Research (Cayman), Inc. [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Name of subsidiaries | ACM Research (Cayman), Inc. | ||||||||
Place and date of incorporation | Cayman Islands, April 2019 | ||||||||
Effective interest held as at | 100% | 100% | |||||||
ACM Research (Singapore) PTE. LTD. [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Name of subsidiaries | ACM Research (Singapore) PTE. Ltd. | ||||||||
Place and date of incorporation | Singapore, August 2021 | ||||||||
Effective interest held as at | 100% | 100% | |||||||
ACM Research (Beijing), Inc. [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Name of subsidiaries | ACM Research (Beijing), Inc. | ||||||||
Place and date of incorporation | PRC, February 2022 | ||||||||
Effective interest held as at | 82.50% | 0% | |||||||
Hanguk ACM CO., LTD. [Member] | |||||||||
Description of Business [Abstract] | |||||||||
Name of subsidiaries | Hanguk ACM CO., LTD | ||||||||
Place and date of incorporation | Korea, March 2022 | ||||||||
Effective interest held as at | 100% | 0% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, COVID-19 Assessment (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Tools | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
COVID-19 Assessment [Abstract] | |||
Revenues | $ 388,832 | $ 259,751 | $ 156,624 |
COVID-19 [Member] | |||
COVID-19 Assessment [Abstract] | |||
Number of tools | Tools | 13 | ||
Revenues | $ 13,000 | ||
Shipments value | $ 24,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash, cash equivalents and restricted cash and time deposits | $ 247,951 | $ 562,548 |
Short-term and long-term time deposits | 172,448 | 0 |
ACM Shanghai [Member] | ||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash payments for procurement of goods and services | 37,000 | |
ACM California [Member] | ||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash payments for procurement of goods and services | 3,300 | |
United States [Member] | ||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash, cash equivalents and restricted cash and time deposits | 25,011 | 34,852 |
Mainland China [Member] | ||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash, cash equivalents and restricted cash and time deposits | 129,695 | 469,494 |
China Hong Kong [Member] | ||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash, cash equivalents and restricted cash and time deposits | 89,187 | 52,527 |
South Korea [Member] | ||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash, cash equivalents and restricted cash and time deposits | 4,007 | 5,675 |
Singapore [Member] | ||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash, cash equivalents and restricted cash and time deposits | $ 51 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Time Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Time Deposits [Abstract] | ||
Time deposits | $ 172,448 | $ 0 |
Interest income related to time deposits | 3,472 | 0 |
China Merchant Bank, Deposits, Maturing on January 29, 2023 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 38,772 | 0 |
Time deposits, maturity date | Jan. 29, 2023 | |
Time deposits, interest rate | 2.25% | |
China Everbright Bank, Deposit, Maturing on January 29, 2023 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 14,360 | 0 |
Time deposits, maturity date | Jan. 29, 2023 | |
Time deposits, interest rate | 2.25% | |
China Everbright Bank, Deposit, Maturing on May 22, 2023 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 3,000 | 0 |
Time deposits, maturity date | May 22, 2023 | |
Time deposits, interest rate | 5.07% | |
China Industrial Bank, Deposit, Maturing on January 30, 2023 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 14,360 | 0 |
Time deposits, maturity date | Jan. 30, 2023 | |
Time deposits, interest rate | 2.15% | |
China Merchant Bank, Deposit, Maturing on January 29, 2024 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 28,720 | 0 |
Time deposits, maturity date | Jan. 29, 2024 | |
Time deposits, interest rate | 2.85% | |
Bank of Ningbo, Deposit, Maturing on February 17, 2024 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 43,080 | 0 |
Time deposits, maturity date | Feb. 17, 2024 | |
Time deposits, interest rate | 2.85% | |
Shanghai Pudong Development Bank, Deposit, Maturing on October 20, 2025 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 7,180 | 0 |
Time deposits, maturity date | Oct. 20, 2025 | |
Time deposits, interest rate | 3.10% | |
Shanghai Pudong Development Bank, Deposit, Maturing on November 14, 2025 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 7,180 | 0 |
Time deposits, maturity date | Nov. 14, 2025 | |
Time deposits, interest rate | 3.10% | |
Shanghai Pudong Development Bank, Deposit, Maturing on December 8, 2025 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 4,308 | 0 |
Time deposits, maturity date | Dec. 08, 2025 | |
Time deposits, interest rate | 3.10% | |
Shanghai Pudong Development Bank, Deposit, Maturing on December 15, 2025 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 4,308 | 0 |
Time deposits, maturity date | Dec. 15, 2025 | |
Time deposits, interest rate | 3.10% | |
Shanghai Pudong Development Bank, Deposit, Maturing on December 30, 2025 [Member] | ||
Time Deposits [Abstract] | ||
Time deposits | $ 7,180 | $ 0 |
Time deposits, maturity date | Dec. 30, 2025 | |
Time deposits, interest rate | 3.10% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Land Use Rights, Net (Details) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Right to use land lease term | 50 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Inventory (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory [Abstract] | |
Maximum shipment period of finished goods from warehouse | 1 month |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | ||
Impairment charge | $ 0 | $ 0 |
Buildings and Plants [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Useful lives | 30 years | |
Computer and Office Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Useful lives | 3 years | |
Computer and Office Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Useful lives | 5 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Useful lives | 5 years | |
Electronic Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Useful lives | 3 years | |
Electronic Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Useful lives | 5 years | |
Manufacturing Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Useful lives | 5 years | |
Manufacturing Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Useful lives | 10 years | |
Transportation Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Useful lives | 4 years | |
Transportation Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Intangible Assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets, Net [Abstract] | ||
Intangible assets useful life | 10 years | |
Impairment charge | $ 0 | $ 0 |
Maximum [Member] | ||
Intangible Assets, Net [Abstract] | ||
Intangible assets amortization period | 10 years |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Revenue Recognition (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) PerformanceObligation | Dec. 31, 2021 USD ($) | |
Revenue Recognition [Abstract] | ||
Number of performance obligations | PerformanceObligation | 1 | |
Deferred revenue | $ | $ 4,174 | $ 3,180 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Shipping and Handling Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shipping and Handling Costs [Abstract] | |||
Sales and marketing expenses | $ 39,889 | $ 26,733 | $ 16,773 |
Shipping and Handling [Member] | |||
Shipping and Handling Costs [Abstract] | |||
Sales and marketing expenses | $ 1,507 | $ 923 | $ 76 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Warranty Obligations [Roll Forward] | |||
Balance at beginning of period | $ 6,631 | $ 3,975 | $ 2,811 |
Additions | 5,379 | 5,026 | 3,101 |
Utilized | (3,230) | (2,370) | (1,937) |
Balance at end of period | $ 8,780 | $ 6,631 | $ 3,975 |
Minimum [Member] | |||
Warranty [Abstract] | |||
Standard assurance type warranty period | 12 months | ||
Maximum [Member] | |||
Warranty [Abstract] | |||
Standard assurance type warranty period | 36 months |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Government Subsidies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Grants | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Government Subsidies [Abstract] | |||
Number of grants received | Grants | 7 | ||
Subsidies recognized as reductions of relevant expenses | $ 1,201 | $ 11,260 | $ 2,658 |
Subsidies recognized as other income | $ 306 | $ 200 | $ 149 |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Basic and Diluted Net Income per Common Share (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | ||
Numerator [Abstract] | |||||
Net income (loss) | $ 50,564 | $ 42,921 | $ 21,677 | ||
Less: Net income attributable to non-controlling interests | 11,301 | 5,164 | 2,897 | ||
Net income available to common stockholders, basic | 39,263 | 37,757 | 18,780 | ||
Less: Dilutive effect arising from stock-based awards by ACM Shanghai | 584 | 108 | 0 | ||
Net income available to common stockholders, diluted | $ 38,679 | $ 37,649 | $ 18,780 | ||
Weighted average shares outstanding, basic (in shares) | shares | [1] | 59,235,975 | 57,654,708 | 54,700,083 | |
Effect of dilutive securities (in shares) | shares | 6,105,796 | 7,702,008 | 8,850,324 | ||
Weighted average shares outstanding, diluted (in shares) | shares | [1] | 65,341,771 | 65,356,716 | 63,550,407 | |
Net income per common share [Abstract] | |||||
Basic (in dollars per share) | $ / shares | $ 0.66 | $ 0.65 | $ 0.34 | ||
Diluted (in dollars per share) | $ / shares | $ 0.59 | $ 0.58 | $ 0.3 | ||
Anti-dilutive securities excluded from earnings per share (in shares) | shares | 1,795,340 | 98,800 | 78,000 | ||
Stock split ratio | 3 | ||||
[1]Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in March 2022. See Note 2 for details. |
SUMMARY OF SIGNIFICANT ACCOU_17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Comprehensive Income Attributable to the Company (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Comprehensive Income (Loss) Attributable to the Company [Abstract] | |||
Comprehensive income (loss) attributable to the Company | $ (10,392) | $ 42,009 | $ 25,312 |
SUMMARY OF SIGNIFICANT ACCOU_18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Statutory Surplus Reserve (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statutory Reserves [Abstract] | ||
Statutory surplus reserve | $ 16,881 | $ 8,312 |
ACM Research (Shanghai), Inc. [Member] | ||
Statutory Reserves [Abstract] | ||
Statutory surplus reserve | $ 16,881 | $ 8,312 |
SUMMARY OF SIGNIFICANT ACCOU_19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Fair Value of Financial Instruments (Details) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Cash equivalents | $ 247,951 | $ 562,548 |
Trading securities | 20,209 | 29,498 |
Assets | 268,160 | 592,046 |
Short-term borrowings | 58,326 | 9,591 |
Long-term borrowings | 18,687 | 25,367 |
Liabilities | 77,013 | 34,958 |
Quoted Prices in Active Markets for Identical Liabilities (Level 1) [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Cash equivalents | 247,951 | 562,548 |
Trading securities | 20,209 | 29,498 |
Assets | 268,160 | 592,046 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
Trading securities | 0 | 0 |
Assets | 0 | 0 |
Short-term borrowings | 56,004 | 9,591 |
Long-term borrowings | 21,009 | 25,367 |
Liabilities | 77,013 | 34,958 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
Trading securities | 0 | 0 |
Assets | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Liabilities | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Operating and Financial Risks (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | Dec. 31, 2020 USD ($) | |
Foreign Currency Risk and Translation [Abstract] | |||
Foreign currency translation adjustment | $ | $ (59,102) | $ 4,695 | $ 10,493 |
Two Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration of Credit Risk [Abstract] | |||
Number of major customers | 2 | ||
Concentration of credit risk | 48.90% | ||
Two Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration of Credit Risk [Abstract] | |||
Number of major customers | 2 | 2 | |
Concentration of credit risk | 42.60% | 53.80% | |
Three Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration of Credit Risk [Abstract] | |||
Number of major customers | 3 | ||
Concentration of credit risk | 43.80% | ||
RMB [Member] | |||
Consolidated balance sheets [Abstract] | |||
Exchange rate | 6.9638 | 6.3757 | 6.5232 |
Consolidated statements of operations and comprehensive income [Abstract] | |||
Exchange rate | 6.7249 | 6.4515 | 6.8966 |
KRW [Member] | |||
Consolidated balance sheets [Abstract] | |||
Exchange rate | 1,262.63 | 1,145.48 | 1,088.14 |
Consolidated statements of operations and comprehensive income [Abstract] | |||
Exchange rate | 1,288.66 | 1,190.48 | 1,179.25 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregated Revenue Information [Abstract] | |||
Revenue | $ 388,832 | $ 259,751 | $ 156,624 |
Percentage of change in revenue | 49.70% | ||
Accounts Receivables and Contract Liabilities [Abstract] | |||
Accounts receivable | $ 182,936 | 105,553 | |
Advances from customers | 153,773 | 52,824 | |
Deferred revenue | 4,174 | 3,180 | |
Increase in advances from customers | 104,258 | 34,831 | 8,578 |
First-Tools [Member] | |||
Accounts Receivables and Contract Liabilities [Abstract] | |||
Increase in advances from customers | 100,900 | ||
Mainland China [Member] | |||
Disaggregated Revenue Information [Abstract] | |||
Revenue | 377,752 | 258,615 | 154,359 |
Oher Regions [Member] | |||
Disaggregated Revenue Information [Abstract] | |||
Revenue | 11,080 | 1,136 | 2,265 |
Single Wafer Cleaning, Tahoe and Semi-Critical Cleaning Equipment [Member] | |||
Disaggregated Revenue Information [Abstract] | |||
Revenue | $ 272,939 | 189,208 | 131,248 |
Percentage of change in revenue | 44.30% | ||
ECP (Front-end and Packaging), Furnace and Other Technologies [Member] | |||
Disaggregated Revenue Information [Abstract] | |||
Revenue | $ 77,482 | 33,210 | 13,343 |
Percentage of change in revenue | 133.30% | ||
Advanced Packaging (Excluding ECP), Services & Spares [Member] | |||
Disaggregated Revenue Information [Abstract] | |||
Revenue | $ 38,411 | 37,333 | 12,033 |
Percentage of change in revenue | 2.90% | ||
Wet Cleaning and Other Front-end Processing Tools [Member] | |||
Disaggregated Revenue Information [Abstract] | |||
Revenue | $ 308,528 | 202,268 | 136,317 |
Percentage of change in revenue | 52.50% | ||
Advanced Packaging, Other Processing Tools, Services and Spares [Member] | |||
Disaggregated Revenue Information [Abstract] | |||
Revenue | $ 80,304 | $ 57,483 | $ 20,307 |
Percentage of change in revenue | 39.70% |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable [Abstract] | ||
Accounts receivable | $ 182,936 | $ 105,553 |
Less: allowance for doubtful accounts | 0 | 0 |
Total | 182,936 | $ 105,553 |
Accounts receivable [Abstract] | ||
Increase in accounts receivable | 77,400 | |
Increase in revenue | $ 129,100 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory [Abstract] | ||
Raw materials | $ 167,135 | $ 90,552 |
Work-in-process | 79,126 | 35,840 |
Finished goods | 146,911 | 91,724 |
Total inventory | 393,172 | 218,116 |
Increase in raw materials and work in process | 119,869 | |
Increase in finished goods | $ 55,187 | |
Period in which raw materials are considered impaired | 3 years | |
Inventory Write-down | $ 2,248 | 75 |
Contractual Obligation [Member] | ||
Inventory [Abstract] | ||
Finished goods | $ 123,169 | $ 71,889 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Total cost | $ 56,433 | $ 14,336 | ||
Less: Total accumulated depreciation and amortization | (10,047) | (5,900) | ||
Construction in progress | 36,489 | 5,606 | ||
Total property, plant and equipment, net | 82,875 | 14,042 | ||
Depreciation expense | 4,839 | 2,099 | $ 826 | |
Buildings and Plants [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Total cost | $ 35,864 | 0 | ||
Estimated useful lives | 30 years | |||
Buildings and Plants [Member] | Shengwei Research (Shanghai), Inc. [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Total cost | $ 41,497 | |||
Estimated useful lives | 30 years | |||
Manufacturing Equipment [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Total cost | $ 9,298 | 7,973 | ||
Office Equipment [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Total cost | 3,691 | 2,012 | ||
Transportation Equipment [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Total cost | 407 | 217 | ||
Leasehold Improvement [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Total cost | $ 7,173 | $ 4,134 |
LAND USE RIGHT, NET (Details)
LAND USE RIGHT, NET (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 31, 2020 ft² | |
Land use Right [Abstract] | |||
Land use right purchase amount | $ 9,149 | $ 9,966 | |
Less: accumulated amortization | (457) | (299) | |
Land use right net | $ 8,692 | 9,667 | |
Right to use land lease term | 50 years | ||
Amortization | $ 189 | 199 | |
Annual Amortization of Land use Right [Abstract] | |||
2023 | 200 | ||
2024 | 200 | ||
2025 | 200 | ||
2026 | 200 | ||
2027 and thereafter | 7,892 | ||
Land use right net | $ 8,692 | $ 9,667 | |
Shengwei 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Other Long-term Assets [Abstract] | ||
Prepayment for property, plant and equipment and other non-current assets | $ 704 | $ 440 |
Prepayment for property - lease deposit | 393 | 429 |
Security deposit for land use right | 708 | 773 |
Others | 1,209 | 1,264 |
Total other long-term assets | 50,265 | 45,017 |
Lingang [Member] | ||
Other Long-term Assets [Abstract] | ||
Prepayment for property | 0 | 42,111 |
Zhangjiang [Member] | ||
Other Long-term Assets [Abstract] | ||
Prepayment for property | $ 47,251 | $ 0 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 CNY (¥) | ||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 56,004 | $ 9,591 | |||
Interest expense related to short-term borrowings | 810 | 700 | $ 897 | ||
Line of Credit Due on June 7, 2022 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | [1] | $ 0 | 4,616 | ||
Maximum borrowing capacity | ¥ | ¥ 100,000 | ||||
Annual interest rate | 2.70% | ||||
Line of credit due date | Jun. 07, 2022 | ||||
Line of Credit Due on October 21, 2022 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | [1] | $ 0 | 3,407 | ||
Maximum borrowing capacity | ¥ | 150,000 | ||||
Annual interest rate | 1.95% | ||||
Line of credit due date | Sep. 27, 2022 | ||||
Line of Credit Due on August 17, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | [1] | $ 8,616 | 0 | ||
Maximum borrowing capacity | ¥ | 150,000 | ||||
Annual interest rate | 3.40% | ||||
Line of Credit Due on September 1, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | [1] | $ 8,616 | 0 | ||
Maximum borrowing capacity | ¥ | 150,000 | ||||
Annual interest rate | 3.60% | ||||
Line of Credit Due on December 16, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 4,308 | 0 | |||
Maximum borrowing capacity | ¥ | 150,000 | ||||
Annual interest rate | 3% | ||||
Line of Credit Due on October 25, 2022 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 0 | 1,568 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.85% | ||||
Line of credit due date | Jul. 01, 2022 | ||||
Line of Credit Due on August 11, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 8,616 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.60% | ||||
Line of Credit Due on September 5, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 5,744 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on August 26, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 5,744 | 0 | |||
Maximum borrowing capacity | ¥ | 40,000 | ||||
Annual interest rate | 3.15% | ||||
Line of Credit Due on July 21, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,292 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on July 27, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,292 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on August 1, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,292 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on August 3, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,292 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on August 7, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,293 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on August 14, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,293 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on August 15, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,293 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on August 21, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,005 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on August 28, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,292 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on September 13, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,292 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on September 20, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 1,293 | 0 | |||
Maximum borrowing capacity | ¥ | 100,000 | ||||
Annual interest rate | 3.50% | ||||
Line of Credit Due on September 29, 2023 [Member] | |||||
Short-Term and Long-term Borrowings [Abstract] | |||||
Short-term borrowings | $ 431 | $ 0 | |||
Maximum borrowing capacity | ¥ | ¥ 100,000 | ||||
Annual interest rate | 3.50% | ||||
[1]Guaranteed by CleanChip |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | ||||
Accrued commissions | $ 14,890 | $ 12,507 | ||
Accrued warranty | 8,780 | 6,631 | $ 3,975 | $ 2,811 |
Accrued payroll | 12,201 | 5,684 | ||
Accrued professional fees | 724 | 785 | ||
Accrued machine testing fees | 1,215 | 149 | ||
Accrued machine sales fees | 5,874 | 0 | ||
Others | 8,517 | 5,979 | ||
Total | $ 52,201 | $ 31,735 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of lease expense [Abstract] | |||
Operating lease cost | $ 2,816 | $ 2,451 | $ 1,541 |
Short-term lease cost | 786 | 394 | 236 |
Lease cost | 3,602 | 2,845 | 1,777 |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | |||
Operating cash outflow from operating leases | 3,602 | $ 2,845 | $ 1,777 |
Maturities of outstanding lease liabilities [Abstract] | |||
2023 | 1,461 | ||
2024 | 1,065 | ||
2025 | 67 | ||
2026 | 49 | ||
2027 | 10 | ||
Total lease payments | 2,652 | ||
Less: Interest | (163) | ||
Present value of lease liabilities | $ 2,489 | ||
Weighted average remaining lease terms and discount rates [Abstract] | |||
Weighted average remaining lease term | 2 years | 1 year 4 months 13 days | |
Weighted average discount rate | 4.25% | 4.54% |
LONG-TERM BORROWINGS (Details)
LONG-TERM BORROWINGS (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Intallment Loan | Dec. 31, 2021 USD ($) | |
Long-Term Borrowings [Abstract] | ||
Long-term debt | $ 21,009 | |
Less: Current portion | (2,322) | $ (2,410) |
Long-term Borrowings | 18,687 | 22,957 |
Principal Payments of Long-Term Loans [Abstract] | ||
2023 | 2,322 | |
2024 | 6,841 | |
2025 | 1,813 | |
2026 | 1,886 | |
2027 and onwards | 8,147 | |
Long-term debt | 21,009 | |
Interest expense related to long-term borrowings incurred | 845 | 1,040 |
Interest expense charged to long-term borrowings | 845 | 65 |
Capitalized interest charged as other long-term assets | 0 | 975 |
China Merchants Bank [Member] | ||
Long-Term Borrowings [Abstract] | ||
Long-term debt | $ 15,265 | 18,390 |
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 Loans [Abstract] | ||
Long-term debt | $ 15,265 | 18,390 |
Bank of China [Member] | ||
Long-Term Borrowings [Abstract] | ||
Long-term debt | $ 5,744 | 6,977 |
Number of loans | Loan | 2 | |
Principal Payments of Long-Term Loans [Abstract] | ||
Long-term debt | $ 5,744 | $ 6,977 |
Bank of China [Member] | Loan 1 [Member] | ||
Long-Term Borrowings [Abstract] | ||
Number of installments for loan repayable | Intallment | 6 | |
Last installment due date | Jun. 30, 2024 | |
Annual interest rate | 2.60% | |
Bank of China [Member] | Loan 2 [Member] | ||
Long-Term Borrowings [Abstract] | ||
Number of installments for loan repayable | Intallment | 6 | |
Last installment due date | Sep. 30, 2024 | |
Annual interest rate | 2.60% |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | $ 7,321 | $ 8,447 |
Subsidies to Stress Free Polishing Project, Commenced in 2008 and 2017 [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 611 | 791 |
Subsidies to Electro Copper Plating Project, Commenced in 2014 [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 119 | 160 |
Subsidies to Other Cleaning Tools, Commenced in 2020 [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 785 | 1,014 |
Subsidies to SW Lingang R&D development in 2021 [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 4,266 | 5,958 |
Subsidies to CO2 Technology [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 965 | 0 |
Other [Member] | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | $ 575 | $ 524 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Sep. 05, 2019 Investor | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 29, 2021 USD ($) | Aug. 17, 2021 USD ($) | Sep. 30, 2019 USD ($) | Sep. 30, 2019 CNY (¥) | Jun. 27, 2019 USD ($) | Sep. 11, 2017 USD ($) $ / shares shares | |
Classification of Investments [Abstract] | ||||||||||
Total | $ 17,459 | $ 12,694 | ||||||||
Equity income in net income of affiliates | 4,666 | 4,637 | $ 655 | |||||||
Dividends received from equity investee | 0 | 0 | $ 555 | |||||||
Ninebell [Member] | ||||||||||
Investments [Abstract] | ||||||||||
Purchase price | $ 1,200 | |||||||||
Ninebell [Member] | Class A Common Stock [Member] | ||||||||||
Investments [Abstract] | ||||||||||
Purchase price | $ 1,000 | |||||||||
Shares issued (in shares) | shares | 400,002 | |||||||||
Share price (in dollars per share) | $ / shares | $ 2.5 | |||||||||
Wooil [Member] | ||||||||||
Investments [Abstract] | ||||||||||
Investment - equity method | $ 1,000 | |||||||||
Classification of Investments [Abstract] | ||||||||||
Total | 1,011 | 0 | ||||||||
Shengyi [Member] | ||||||||||
Investments [Abstract] | ||||||||||
Investment - equity method | $ 1,568 | $ 109 | ||||||||
Number of investors with agreements entered | Investor | 6 | |||||||||
Hefei Shixi [Member] | ||||||||||
Investments [Abstract] | ||||||||||
Investment in partnership | $ 4,200 | ¥ 30,000 | ||||||||
Ownership percentage in partnership | 10% | 10% | ||||||||
Equity Investment [Member] | Ninebell [Member] | ||||||||||
Investments [Abstract] | ||||||||||
Percentage of ordinary shares issued | 20% | |||||||||
Equity Investment [Member] | Wooil [Member] | ||||||||||
Investments [Abstract] | ||||||||||
Percentage of ordinary shares issued | 20% | |||||||||
Equity Investment [Member] | Shengyi [Member] | ||||||||||
Investments [Abstract] | ||||||||||
Percentage of ordinary shares issued | 0.25% | 15% | ||||||||
Other Investee [Member] | Waferworks [Member] | ||||||||||
Classification of Investments [Abstract] | ||||||||||
Total | 1,436 | 1,568 | ||||||||
Investment Excluding Other Investee [Member] | ||||||||||
Classification of Investments [Abstract] | ||||||||||
Total | 16,023 | 11,126 | ||||||||
Investment Excluding Other Investee [Member] | Ninebell [Member] | ||||||||||
Classification of Investments [Abstract] | ||||||||||
Total | 5,199 | 3,051 | ||||||||
Investment Excluding Other Investee [Member] | Shengyi [Member] | ||||||||||
Classification of Investments [Abstract] | ||||||||||
Total | 1,168 | 211 | ||||||||
Investment Excluding Other Investee [Member] | Hefei Shixi [Member] | ||||||||||
Classification of Investments [Abstract] | ||||||||||
Total | $ 8,645 | $ 7,864 |
FINANCIAL LIABILITY CARRIED A_3
FINANCIAL LIABILITY CARRIED AT FAIR VALUE (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Jun. 09, 2021 USD ($) shares | Jul. 29, 2020 USD ($) $ / shares shares | Apr. 30, 2020 USD ($) Agreement shares | Aug. 31, 2019 USD ($) $ / shares shares | Mar. 31, 2018 USD ($) shares | Mar. 31, 2017 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2016 CNY (¥) | ||
Related Party Transaction [Abstract] | ||||||||||||
Change in fair value of financial liability | $ 0 | $ 0 | $ 11,964 | |||||||||
Issuance of warrant for settlement of financial liability | 0 | $ 0 | $ 19,859 | |||||||||
SMC 2020 Warrants [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Financial liability carried at fair value | $ 21,679 | |||||||||||
Change in fair value of financial liability | 11,964 | |||||||||||
Fair value warrant amount | $ 21,679 | |||||||||||
Fair Value of Options Granted [Abstract] | ||||||||||||
Fair value of common share (in dollars per share) | $ / shares | [1],[2] | $ 29.76 | ||||||||||
Expected term | [2],[3] | 3 years 5 months 1 day | ||||||||||
Volatility | [2],[4] | 47.42% | ||||||||||
Expected dividend | [2],[5] | 0.15% | ||||||||||
Risk-free interest rate | [2],[6] | 0% | ||||||||||
Common Class A [Member] | SMC 2020 Warrants [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Shares issued (in shares) | shares | 728,043 | 728,043 | ||||||||||
Shares issued value | $ 1,820 | |||||||||||
Fair Value of Options Granted [Abstract] | ||||||||||||
Fair value of common share (in dollars per share) | $ / shares | $ 2.5 | |||||||||||
ACM Shanghai [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Repayments of notes | $ 1,161 | |||||||||||
Number of agreement | Agreement | 2 | |||||||||||
ACM Shanghai [Member] | Senior Secured Promissory Note [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Receivables | $ 1,820 | |||||||||||
ACM Shanghai [Member] | Intercompany Note [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Promissory note principal amount | $ 2,981 | |||||||||||
Interest rate on promissory note | 3.01% | |||||||||||
Promissory note maturity date | Aug. 17, 2023 | |||||||||||
Fair value warrant amount | $ 1,820 | |||||||||||
SMC [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Payment for investment | $ 2,981 | ¥ 20,123,500 | ||||||||||
Investment repayment period | 60 days | |||||||||||
Number of shares repurchased/surrender in exchange (in shares) | shares | 728,043 | 464,463 | ||||||||||
Repayments of notes | $ 882 | |||||||||||
Investment due amount | $ 1,820 | |||||||||||
Consideration price in fair value | $ 9,715 | |||||||||||
Issuance of warrant for settlement of financial liability | $ 19,859 | |||||||||||
Fair Value of Options Granted [Abstract] | ||||||||||||
Fair value of common share (in dollars per share) | $ / shares | $ 4.4 | |||||||||||
SMC [Member] | Senior Secured Promissory Note [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Promissory note principal amount | $ 2,981 | |||||||||||
Interest rate on promissory note | 3.01% | |||||||||||
Promissory note maturity date | Aug. 17, 2023 | |||||||||||
SMC [Member] | Common Class A [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Shares issued (in shares) | shares | 1,192,506 | |||||||||||
Shares issued value | $ 2,981 | |||||||||||
Fair Value of Options Granted [Abstract] | ||||||||||||
Fair value of common share (in dollars per share) | $ / shares | $ 4.4 | $ 2.5 | ||||||||||
SMC [Member] | Common Class A [Member] | Senior Secured Promissory Note [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Exercise of common stock warrant issued (in shares) | shares | 1,192,506 | |||||||||||
SMC [Member] | ACM Shanghai [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Number of shares repurchased/surrender in exchange (in shares) | shares | 728,043 | |||||||||||
Repayment of investment in cash | $ 1,820 | $ 1,161 | ||||||||||
[1]Fair value of Class A common stock was the closing market price of the Class A common stock on July 29, 2020.[2]Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details.[3]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.[4]Volatility is calculated based on the historical volatility of the stock of companies comparable to ACM in the period equal to the expected term of each grant.[5]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.[6]Expected dividend is assumed to be 0%, as ACM has no history or expectation of paying a dividend on its common stock. |
TRADING SECURITIES (Details)
TRADING SECURITIES (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 27, 2022 USD ($) | Sep. 27, 2022 CNY (¥) | Jun. 18, 2020 USD ($) | Jun. 18, 2020 CNY (¥) | |
Trading securities listed in Shanghai Stock Exchange [Abstract] | |||||||
Cost | $ 14,779 | $ 15,363 | |||||
Market value | 20,209 | 29,498 | |||||
Unrealized gain on trading securities | (7,855) | 607 | |||||
Proceeds from sale of trading securities | 4,577 | 0 | $ 0 | ||||
Realized gain from sale of trading securities | $ 1,116 | $ 0 | $ 0 | ||||
Qingdao LP [Member] | |||||||
Investments [Abstract] | |||||||
Total capital fund of limited partnership | $ 315,000 | ¥ 2,224 | |||||
Investment in partnership | $ 14,200 | ¥ 100 | |||||
Ownership percentage in partnership | 4.30% | 4.30% | |||||
SMIC [Member] | Minimum [Member] | |||||||
Investments [Abstract] | |||||||
Ownership percentage in partnership | 30% | ||||||
Nuode Asset Fund [Member] | |||||||
Investments [Abstract] | |||||||
Total capital fund of limited partnership | $ 22,160 | ¥ 160 | |||||
Investment in partnership | $ 4,196 | ¥ 30 | |||||
Ownership percentage in partnership | 18.75% | 18.75% | |||||
Minimum restricted investment period | 6 months |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Abstract] | |||
Advances to related party | $ 3,322 | $ 2,383 | |
Accounts payable | 14,468 | 7,899 | |
Purchase of materials | 46,335 | 36,093 | $ 17,551 |
Service fee charged by | 543 | 561 | 344 |
Ninebell Co., Ltd [Member] | |||
Related Party Transaction [Abstract] | |||
Advances to related party | 3,322 | 2,383 | |
Accounts payable | 10,526 | 5,703 | |
Purchase of materials | 40,985 | 33,659 | 15,251 |
Service fee charged by | 0 | 0 | 22 |
Shanghai Zhangjiang Group Co., Ltd. [Member] | |||
Related Party Transaction [Abstract] | |||
Accounts payable | 3,942 | 2,196 | |
Purchase of materials | 5,350 | 2,434 | 2,300 |
Service fee charged by | $ 543 | $ 561 | $ 322 |
COMMON STOCK (Details)
COMMON STOCK (Details) | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 shares | Mar. 16, 2022 shares | ||
Class of Stock [Abstract] | ||||||
Reverse stock split | 3 | |||||
Common Class A [Member] | ||||||
Class of Stock [Abstract] | ||||||
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Number of votes for each share entitled | 1 | |||||
Reverse stock split | 3 | 3 | ||||
Additional shares reserved for issuance as dividends (in shares) | 2 | 2 | ||||
Common stock, shares issued (in shares) | 54,655,286 | 53,608,929 | ||||
Common stock, shares outstanding (in shares) | 54,655,286 | 53,608,929 | ||||
Common Class B [Member] | ||||||
Class of Stock [Abstract] | ||||||
Common stock, shares authorized (in shares) | 5,307,816 | 5,307,816 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Number of votes for each share entitled | 20 | |||||
Convertible shares in to Class A common stock (in shares) | 1 | |||||
Reverse stock split | 3 | 3 | ||||
Additional shares reserved for issuance as dividends (in shares) | 2 | 2 | ||||
Common stock, shares issued (in shares) | 5,021,811 | 5,087,814 | ||||
Common stock, shares outstanding (in shares) | 5,021,811 | 5,087,814 | ||||
Common Stock [Member] | Common Class A [Member] | ||||||
Class of Stock [Abstract] | ||||||
Stock issued upon exercise of stock options (in shares) | [1] | 980,354 | 1,870,803 | 2,497,512 | ||
Conversion of class B common shares to Class A common shares (in shares) | [1] | 66,003 | 320,004 | 180,006 | ||
Exercise of common stock warrant issued (in shares) | [1] | 728,043 | 194,151 | |||
Common Stock [Member] | Common Class B [Member] | ||||||
Class of Stock [Abstract] | ||||||
Stock issued upon exercise of stock options (in shares) | [1] | 0 | 0 | 0 | ||
Conversion of class B common shares to Class A common shares (in shares) | [1] | (66,003) | (320,004) | (180,006) | ||
Exercise of common stock warrant issued (in shares) | [1] | 0 | 0 | |||
[1]Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in March 2022. See Note 2 for details. |
STOCK-BASED COMPENSATION, Stock
STOCK-BASED COMPENSATION, Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 7,730 | $ 5,117 | $ 3,572 |
Employee Stock Option Plan [Member] | |||
Stock-based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 7,346 | 4,674 | 4,900 |
Employee Stock Option Plan [Member] | ACM Shanghai [Member] | |||
Stock-based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 338 | 349 | 332 |
Non-Employee Stock Option [Member] | |||
Stock-based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 46 | 94 | 396 |
Cost of Revenue [Member] | |||
Stock-based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 520 | 397 | 175 |
Sales and Marketing Expense [Member] | |||
Stock-based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 1,877 | 1,802 | 1,199 |
Research and Development Expense [Member] | |||
Stock-based Compensation Expense [Abstract] | |||
Stock-based compensation expense | 2,565 | 1,115 | 763 |
General and Administrative Expense [Member] | |||
Stock-based Compensation Expense [Abstract] | |||
Stock-based compensation expense | $ 2,768 | $ 1,803 | $ 3,491 |
STOCK-BASED COMPENSATION, Assum
STOCK-BASED COMPENSATION, Assumptions Used to Determine Fair Value of Share Options Granted (Details) - Employee Share Option [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Fair Value of Options Granted [Abstract] | ||||
Granted (in shares) | [1] | 1,653,300 | 421,200 | 2,359,197 |
Service Period Based [Member] | ||||
Fair Value of Options Granted [Abstract] | ||||
Expected term in years | [1],[2] | 6 years 3 months | ||
Expected dividend | [1],[3] | 0% | 0% | 0% |
Service Period Based [Member] | Minimum [Member] | ||||
Fair Value of Options Granted [Abstract] | ||||
Fair value of common share (in dollars per share) | [1],[4] | $ 16.83 | $ 12.79 | $ 7.36 |
Expected term in years | [1],[2] | 5 years 6 months | 5 years 6 months | |
Volatility | [1],[5] | 49.43% | 48.53% | 42.17% |
Risk-free interest rate | [1],[6] | 1.70% | 1% | 0.44% |
Service Period Based [Member] | Maximum [Member] | ||||
Fair Value of Options Granted [Abstract] | ||||
Fair value of common share (in dollars per share) | [1],[4] | $ 25.45 | $ 17.02 | $ 28.42 |
Expected term in years | [1],[2] | 6 years 3 months | 6 years 3 months | |
Volatility | [1],[5] | 50.87% | 49.47% | 48.15% |
Risk-free interest rate | [1],[6] | 3.04% | 1.44% | 0.82% |
Market Based [Member] | ||||
Fair Value of Options Granted [Abstract] | ||||
Fair value of common share (in dollars per share) | [1],[4] | $ 7.36 | ||
Volatility | [1],[5] | 45.10% | ||
Risk-free interest rate | [1],[6] | 2.68% | ||
Expected dividend | [1],[7] | 0% | ||
Granted (in shares) | 0 | 0 | ||
Market Based [Member] | Minimum [Member] | ||||
Fair Value of Options Granted [Abstract] | ||||
Expected term in years | [1],[2] | 9 years 2 months 12 days | ||
Market Based [Member] | Maximum [Member] | ||||
Fair Value of Options Granted [Abstract] | ||||
Expected term in years | [1],[2] | 9 years 9 months 18 days | ||
[1]Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details.[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]Expected dividend is assumed to be 0% as ACM has no history or expectation of paying a dividend on its common stock.[4]Fair value of Class A common stock value was the closing market price of the Class A common stock on the grant date.[5]Volatility is calculated based on the historical volatility of the stock of companies comparable to ACM in the period equal to the expected term of each grant.[6]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.[7]Expected dividend is assumed to be 0%, as ACM has no history or expectation of paying a dividend on its common stock. |
STOCK-BASED COMPENSATION, Share
STOCK-BASED COMPENSATION, Share Option Activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Weighed Average Remaining Contractual Term [Abstract] | |||||
Stock-based compensation expense | $ 7,730 | $ 5,117 | $ 3,572 | ||
Employee Share Option [Member] | |||||
Number of Option Share [Roll Forward] | |||||
Outstanding, beginning of period (in shares) | [1] | 8,402,247 | 9,574,233 | 8,982,189 | |
Granted (in shares) | [1] | 1,653,300 | 421,200 | 2,359,197 | |
Exercised (in shares) | [1] | (416,546) | (1,431,174) | (1,641,567) | |
Forfeited/cancelled (in shares) | [1] | (427,360) | (162,012) | (125,586) | |
Outstanding, end of period (in shares) | [1] | 9,211,641 | 8,402,247 | 9,574,233 | 8,982,189 |
Vested and exercisable (in shares) | [1] | 6,346,725 | |||
Weighted Average Grant Date Fair Value [Abstract] | |||||
Outstanding at beginning of period (in dollars per share) | $ 2.45 | $ 1.71 | $ 0.86 | ||
Granted (in dollars per share) | 10.31 | 16.05 | 4.06 | ||
Exercised (in dollars per share) | 1.2 | 0.82 | 0.45 | ||
Forfeited/cancelled (in dollars per share) | 11.41 | 8.32 | 1.6 | ||
Outstanding at end of period (in dollars per share) | 3.58 | 2.45 | 1.71 | $ 0.86 | |
Weighted Average Exercise Price [Abstract] | |||||
Outstanding, beginning of period (in dollars per share) | 5.88 | 4.24 | 2.26 | ||
Granted (in dollars per share) | 22.41 | 35.38 | 9.72 | ||
Exercised (in dollars per share) | 2.97 | 2.1 | 1.26 | ||
Forfeited/cancelled (in dollars per share) | 25.24 | 19.03 | 4.22 | ||
Outstanding, end of period (in dollars per share) | $ 8.24 | $ 5.88 | $ 4.24 | $ 2.26 | |
Weighed Average Remaining Contractual Term [Abstract] | |||||
Outstanding weighed average remaining contractual term | 6 years 4 months 9 days | 6 years 6 months 10 days | 7 years 1 month 17 days | 7 years 18 days | |
Stock-based compensation expense | $ 7,346 | $ 4,674 | $ 4,900 | ||
Unrecognized employee stock-based compensation expense | $ 16,009 | ||||
Weighted-average period over which unrecognized compensation is expected to be recognized | 1 year 6 months 10 days | ||||
Employee Share Option [Member] | ACM Shanghai [Member] | |||||
Number of Option Share [Roll Forward] | |||||
Outstanding, beginning of period (in shares) | 5,377,500 | 5,423,654 | |||
Forfeited/cancelled (in shares) | (46,154) | ||||
Outstanding, end of period (in shares) | 5,377,500 | 5,377,500 | 5,423,654 | ||
Vested and exercisable (in shares) | 2,688,771 | ||||
Weighted Average Grant Date Fair Value [Abstract] | |||||
Outstanding at beginning of period (in dollars per share) | $ 0.24 | $ 0.23 | |||
Forfeited/cancelled (in dollars per share) | 0.24 | ||||
Outstanding at end of period (in dollars per share) | 0.23 | 0.24 | $ 0.23 | ||
Weighted Average Exercise Price [Abstract] | |||||
Outstanding, beginning of period (in dollars per share) | 2.04 | 1.89 | |||
Forfeited/cancelled (in dollars per share) | 2.04 | ||||
Outstanding, end of period (in dollars per share) | $ 1.93 | $ 2.04 | $ 1.89 | ||
Weighed Average Remaining Contractual Term [Abstract] | |||||
Outstanding weighed average remaining contractual term | 1 year 9 months 3 days | 2 years 6 months | 3 years 6 months | ||
Stock-based compensation expense | $ 338 | $ 349 | $ 332 | ||
Non-Employee Stock Option [Member] | |||||
Number of Option Share [Roll Forward] | |||||
Outstanding, beginning of period (in shares) | [1] | 2,067,018 | 2,508,114 | 3,304,839 | |
Granted (in shares) | [1] | 60,000 | |||
Exercised (in shares) | [1] | (563,808) | (439,629) | (855,945) | |
Forfeited/cancelled (in shares) | [1] | (19,552) | (1,467) | (780) | |
Outstanding, end of period (in shares) | [1] | 1,483,658 | 2,067,018 | 2,508,114 | 3,304,839 |
Vested and exercisable (in shares) | [1] | 1,464,908 | |||
Weighted Average Grant Date Fair Value [Abstract] | |||||
Outstanding at beginning of period (in dollars per share) | $ 0.33 | $ 0.34 | $ 0.27 | ||
Granted (in dollars per share) | 3.43 | ||||
Exercised (in dollars per share) | 0.21 | 0.37 | 0.29 | ||
Forfeited/cancelled (in dollars per share) | 0.21 | 0.11 | 0.1 | ||
Outstanding at end of period (in dollars per share) | 0.38 | 0.33 | 0.34 | $ 0.27 | |
Weighted Average Exercise Price [Abstract] | |||||
Outstanding, beginning of period (in dollars per share) | 0.97 | 1.02 | 0.9 | ||
Granted (in dollars per share) | 8.53 | ||||
Exercised (in dollars per share) | 0.51 | 1.28 | 1.06 | ||
Forfeited/cancelled (in dollars per share) | 0.48 | 0.28 | 0.25 | ||
Outstanding, end of period (in dollars per share) | $ 1.15 | $ 0.97 | $ 1.02 | $ 0.9 | |
Weighed Average Remaining Contractual Term [Abstract] | |||||
Outstanding weighed average remaining contractual term | 3 years 8 months 4 days | 3 years 11 months 23 days | 4 years 11 months 1 day | 5 years 10 months 6 days | |
Stock-based compensation expense | $ 46 | $ 94 | $ 396 | ||
Unrecognized employee stock-based compensation expense | $ 55 | $ 102 | |||
Weighted-average period over which unrecognized compensation is expected to be recognized | 21 days | 21 days | |||
Non-Employee Stock Option [Member] | ACM Shanghai [Member] | |||||
Weighed Average Remaining Contractual Term [Abstract] | |||||
Unrecognized employee stock-based compensation expense | $ 160 | $ 525 | |||
Weighted-average period over which unrecognized compensation is expected to be recognized | 9 months 18 days | 1 year 6 months | |||
[1]Prior period results have been adjusted to reflect the Stock Split effected in March 2022. See Note 2 for details. |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Before Income Taxes [Abstract] | |||
U.S. federal | $ (3,456) | $ (4,389) | $ (16,688) |
Foreign | 70,818 | 47,444 | 35,983 |
Income before income taxes | 67,362 | 43,055 | 19,295 |
Current [Abstract] | |||
U.S. federal | (479) | (91) | (61) |
U.S. state | (18) | (2) | (2) |
Total U.S. current tax benefit (expense) | (497) | (93) | (63) |
Foreign | (11,139) | (2,195) | (2,014) |
Total current tax expense | (11,636) | (2,288) | (2,077) |
Deferred [Abstract] | |||
U.S. federal | (10,927) | 2,089 | 7,325 |
U.S. state | 8 | 0 | 0 |
Total U.S. deferred tax benefit (expense) | (10,919) | 2,089 | 7,325 |
Foreign | 5,757 | 65 | (2,866) |
Total deferred tax benefit | (5,162) | 2,154 | 4,459 |
Total income tax benefit (expense) | (16,798) | (134) | 2,382 |
Deferred Tax Assets [Abstract] | |||
Net operating loss carry forwards (offshore) | 1,456 | 522 | 323 |
Net operating loss carry forwards (U.S.) and credit | 1,246 | 12,173 | 9,981 |
Deferred revenue (offshore) | 1,826 | 361 | 556 |
Accruals (U.S.) | 100 | 15 | 22 |
Reserves and other (offshore) | 3,655 | 1,528 | 884 |
Stock-based compensation (U.S.) | 3,289 | 2,283 | 1,599 |
Property and equipment (U.S.) | 0 | 1 | 164 |
Lease liability | 414 | 559 | 659 |
Total gross deferred tax assets | 11,986 | 17,442 | 14,188 |
Less: valuation allowance | (1,782) | (919) | (848) |
Total deferred tax assets | 10,204 | 16,523 | 13,340 |
Deferred Tax Liabilities [Abstract] | |||
Fixed assets | (443) | (589) | (697) |
Deferred revenue (offshore) | 0 | (1,486) | (967) |
Equity Investments and unrealized gain on trading securities | (3,059) | (2,584) | (1,886) |
Total deferred tax liabilities | (3,502) | (4,659) | (3,550) |
Deferred tax assets, net | 6,702 | $ 11,864 | $ 9,790 |
Income Taxes [Abstract] | |||
Net operating loss carryforwards subject to annual limitation ownership change | $ 4,385 | ||
Capitalized research and development expenses, amortization period | 15 years | ||
Effective Tax Rate Reconciliation [Abstract] | |||
Income tax provision at statutory rate | 21% | 21% | 21% |
Stock Compensation | (2.72%) | (12.75%) | (36.99%) |
Foreign rate differential | (9.43%) | (11.60%) | (5.07%) |
Other permanent difference | (0.26%) | (0.23%) | 11.71% |
Foreign income taxed in US | 19.86% | 10.32% | 6.05% |
Foreign Research Expense | (4.79%) | (6.59%) | (8.80%) |
Change in valuation allowance | 1.28% | 0.16% | (0.25%) |
Total income tax expense (benefit) | 24.94% | 0.31% | (12.35%) |
Aggregate Changes in Balance of Gross Unrecognized Tax Benefits [Abstract] | |||
Beginning balance | $ 6,066 | $ 570 | $ 44 |
Increase of unrecognized tax benefits taken in prior years | 0 | 52 | 116 |
Increase of unrecognized tax benefits related to current year | 2,623 | 5,476 | 410 |
Reductions for tax positions related to prior years | (241) | (32) | 0 |
Ending balance | 8,448 | 6,066 | $ 570 |
Accrued penalties | 508 | 44 | |
Unrecognized tax benefits that would impact effective tax rate | 8,360 | ||
Undistributed earnings of foreign subsidiaries | $ 90,000 | ||
ACM Research (Shanghai), Inc. [Member] | |||
Effective Tax Rate Reconciliation [Abstract] | |||
Foreign rate differential | 15% | ||
U.S. Federal [Member] | |||
Income Taxes [Abstract] | |||
Increase (decrease) in valuation allowance | $ 49 | 160 | |
Net operating loss carry-forwards | $ 4,385 | 56,077 | |
Operating loss carry-forwards, expiration date | Dec. 31, 2037 | ||
Research credit carry-forwards | $ 61 | 200 | |
Tax credit carry-forwards, expiration date | Dec. 31, 2023 | ||
U.S. State [Member] | |||
Income Taxes [Abstract] | |||
Increase (decrease) in valuation allowance | $ 277 | 237 | |
Net operating loss carry-forwards | $ 545 | 545 | |
Operating loss carry-forwards, expiration date | Dec. 31, 2032 | ||
Research credit carry-forwards | $ 377 | 377 | |
PRC [Member] | |||
Income Taxes [Abstract] | |||
Increase (decrease) in valuation allowance | 1,456 | 522 | |
Net operating loss carry-forwards | $ 6,474 | $ 2,086 | |
Operating loss carry-forwards, expiration date | Dec. 31, 2025 | ||
Effective period of preferential income tax rate | 3 years | ||
PRC [Member] | Minimum [Member] | |||
Income Taxes [Abstract] | |||
Foreign corporate tax rate | 12.50% | 12.50% | |
PRC [Member] | Maximum [Member] | |||
Income Taxes [Abstract] | |||
Foreign corporate tax rate | 25% | ||
PRC [Member] | ACM Research (Shanghai), Inc. [Member] | |||
Income Taxes [Abstract] | |||
Foreign corporate tax rate | 12.50% | ||
Effective Tax Rate Reconciliation [Abstract] | |||
Foreign rate differential | 12.50% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | |
SEGMENT INFORMATION [Abstract] | ||
Number of reporting segments | Segment | 1 | |
Long-lived assets by geography [Abstract] | ||
Long-lived assets | $ 144,321 | $ 72,908 |
Mainland China [Member] | ||
Long-lived assets by geography [Abstract] | ||
Long-lived assets | 140,481 | 71,534 |
South Korea [Member] | ||
Long-lived assets by geography [Abstract] | ||
Long-lived assets | 3,830 | 1,324 |
United States [Member] | ||
Long-lived assets by geography [Abstract] | ||
Long-lived assets | $ 10 | $ 50 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
Commitments | $ 102,906 | ||
Required liquidate damage value | $ 63,400 | ¥ 450 | |
Land use rights period | 6 years | 6 years | |
Annual total taxes | $ 22,000 | ¥ 157.6 | |
Investments | $ 35,376 | $ 13,265 |
STATUTORY SURPLUS RESERVE (Deta
STATUTORY SURPLUS RESERVE (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statutory Reserves [Abstract] | ||
Statutory surplus reserve | $ 16,881 | $ 8,312 |
ACM Research (Shanghai), Inc. [Member] | ||
Statutory Reserves [Abstract] | ||
Statutory surplus reserve | $ 16,881 | $ 8,312 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION, Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets [Abstract] | |||
Cash and cash equivalents | $ 247,951 | $ 562,548 | $ 71,766 |
Accounts receivable | 182,936 | 105,553 | |
Other receivable | 29,617 | 18,979 | |
Prepaid expenses | 15,607 | 14,256 | |
Total current assets | 963,806 | 952,934 | |
Deferred tax assets | 6,703 | 13,166 | |
Total assets | 1,235,500 | 1,052,179 | |
Liabilities and Stockholders' Equity [Abstract] | |||
Income taxes payable | 3,469 | 254 | |
FIN-48 payable | 6,686 | 2,282 | |
Deferred tax liability | 0 | 1,302 | |
Total liabilities | 423,329 | 240,514 | |
Total stockholders' equity | 674,856 | 676,204 | |
Total liabilities and equity | 1,235,500 | 1,052,179 | |
Parent Company [Member] | |||
Current assets [Abstract] | |||
Cash and cash equivalents | 23,853 | 29,536 | |
Accounts receivable | 24 | 16 | |
Due from intercompany | 0 | 0 | |
Other receivable | 5,017 | 48 | |
Prepaid expenses | 134 | 594 | |
Total current assets | 29,028 | 30,194 | |
Deferred tax assets | 6,703 | 13,166 | |
Investment in unconsolidated subsidiaries | 653,926 | 637,961 | |
Total assets | 689,657 | 681,321 | |
Liabilities and Stockholders' Equity [Abstract] | |||
Accounts payable | 236 | 875 | |
Other payables | 4,409 | 404 | |
Income taxes payable | 3,469 | 254 | |
FIN-48 payable | 6,686 | 2,282 | |
Deferred tax liability | 0 | 1,302 | |
Total liabilities | 14,800 | 5,117 | |
Total stockholders' equity | 674,857 | 676,204 | |
Total liabilities and equity | $ 689,657 | $ 681,321 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION, Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 388,832 | $ 259,751 | $ 156,624 |
Cost of revenue | (205,217) | (144,895) | (87,025) |
Gross profit | 183,615 | 114,856 | 69,599 |
Operating expenses [Abstract] | |||
Sales and marketing expenses | (39,889) | (26,733) | (16,773) |
General and administrative expenses | (22,465) | (15,214) | (12,215) |
Research and development expenses | (62,226) | (34,207) | (19,119) |
Income from operations | 59,035 | 38,702 | 21,492 |
Equity in earnings of unconsolidated subsidiaries | 4,666 | 4,637 | 655 |
Change in fair value of financial liability | 0 | 0 | (11,964) |
Interest income, net | 8,740 | 505 | 897 |
Interest expense, net | (1,655) | (765) | (982) |
Income before income taxes | 67,362 | 43,055 | 19,295 |
Income tax benefit | (16,798) | (134) | 2,382 |
Net income attributable to ACM Research, Inc. | 39,263 | 37,757 | 18,780 |
Parent Company [Member] | |||
Income Statement [Abstract] | |||
Revenue | 569 | 16 | 1,776 |
Cost of revenue | 0 | 0 | (1,707) |
Gross profit | 569 | 16 | 69 |
Operating expenses [Abstract] | |||
Sales and marketing expenses | (3,193) | (2,443) | (1,361) |
General and administrative expenses | (5,421) | (5,116) | (5,010) |
Research and development expenses | 0 | 0 | 0 |
Income from operations | (8,045) | (7,543) | (6,302) |
Equity in earnings of unconsolidated subsidiaries | 32,145 | 43,866 | 36,273 |
Change in fair value of financial liability | 0 | 0 | (11,964) |
Interest income, net | 57 | 54 | 90 |
Interest expense, net | (7) | 0 | 0 |
Other income, net | 2,148 | 1,380 | 683 |
Income before income taxes | 26,298 | 37,757 | 18,780 |
Income tax benefit | 12,965 | 0 | 0 |
Net income attributable to ACM Research, Inc. | $ 39,263 | $ 37,757 | $ 18,780 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | |||
Net cash used in operating activities | $ (62,194) | $ (40,093) | $ (13,547) |
Net cash used by investing activities | (265,670) | (11,280) | (69,950) |
Net cash provided by financing activities | 45,871 | 538,766 | 32,834 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (314,616) | 491,301 | (46,093) |
Cash, cash equivalents and restricted cash at beginning of period | 563,067 | 71,766 | 117,859 |
Cash, cash equivalents and restricted cash at end of period | 248,451 | 563,067 | 71,766 |
Parent Company [Member] | |||
Statement of Cash Flows [Abstract] | |||
Net cash used in operating activities | (5,997) | (5,902) | (290) |
Net cash used by investing activities | (1,000) | 0 | 0 |
Net cash provided by financing activities | 1,314 | 5,250 | 2,745 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (5,683) | (652) | 2,455 |
Cash, cash equivalents and restricted cash at beginning of period | 29,536 | 30,188 | 27,733 |
Cash, cash equivalents and restricted cash at end of period | $ 23,853 | $ 29,536 | $ 30,188 |