Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 08, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ACMR | ||
Entity Registrant Name | ACM RESEARCH, INC. | ||
Entity Central Index Key | 0001680062 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 14,176,690 | ||
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 27,124 | $ 17,681 |
Accounts receivable, less allowance for doubtful accounts of $0 and $0 as of December 31, 2018 and 2017, respectively (note 3) | 24,608 | 26,762 |
Other receivables | 3,547 | 2,491 |
Inventory (note 4) | 38,764 | 15,388 |
Prepaid expenses | 1,985 | 546 |
Other current assets | 0 | 46 |
Total current assets | 96,028 | 62,914 |
Property, plant and equipment, net (note 5) | 3,708 | 2,340 |
Intangible assets, net | 274 | 106 |
Deferred tax assets (note 15) | 1,637 | 1,294 |
Investment in affiliates, equity method (note 10) | 1,360 | 1,237 |
Other long-term assets | 40 | 0 |
Total assets | 103,047 | 67,891 |
Current liabilities: | ||
Short-term borrowings (note 6) | 9,447 | 5,095 |
Warrant liability (note 8) | 0 | 3,079 |
Accounts payable | 16,673 | 7,419 |
Advances from customers | 8,417 | 143 |
Income tax payable | 1,193 | 44 |
Other payables and accrued expenses (note 7)) | 10,410 | 6,037 |
Total current liabilities | 46,140 | 21,817 |
Other long-term liabilities (note 9) | 4,583 | 6,217 |
Total liabilities | 50,723 | 28,034 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity: | ||
Additional paid in capital | 56,567 | 49,695 |
Accumulated deficit | (3,387) | (9,961) |
Accumulated other comprehensive income (loss) | (857) | 122 |
Total stockholders' equity | 52,324 | 39,857 |
Total liabilities and stockholders' equity | 103,047 | 67,891 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 1 | 1 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 0 |
Common Class A [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 14,110,315 | 12,935,546 |
Common stock, shares outstanding | 14,110,315 | 12,935,546 |
Common Class B [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 7,303,533 | 7,303,533 |
Common stock, shares issued | 1,898,423 | 2,409,738 |
Common stock, shares outstanding | 1,898,423 | 2,409,738 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 74,643 | $ 36,506 |
Cost of revenue | 40,194 | 19,281 |
Gross profit | 34,449 | 17,225 |
Operating expenses, net: | ||
Sales and marketing | 9,611 | 5,500 |
Research and development | 10,380 | 5,138 |
General and administrative | 7,987 | 5,887 |
Total operating expenses, net | 27,978 | 16,525 |
Income from operations | 6,471 | 700 |
Interest income | 29 | 9 |
Interest expense | (498) | (277) |
Other? income (expense),? net | 1,255 | (794) |
Equity in net income of affiliates | 123 | 37 |
Income (loss) before income taxes | 7,380 | (325) |
Income tax expense (note 17) | (806) | (547) |
Net income (loss) | 6,574 | (872) |
Less: Net income (loss) attributable to non-controlling interests | 0 | (554) |
Net income (loss) attributable to ACM Research, Inc. | 6,574 | (318) |
Comprehensive income (loss): | ||
Net income (loss) | 6,574 | (872) |
Foreign currency translation adjustment | (979) | 472 |
Comprehensive income (loss) | 5,595 | (400) |
Less: Comprehensive income (loss) attributable to non-controlling interests | 0 | (369) |
Total comprehensive income (loss) attributable to ACM Research, Inc. | $ 5,595 | $ (31) |
Net income (loss) per common shares (note 2) | ||
Basic | $ 0.42 | $ (0.05) |
Diluted | $ 0.37 | $ (0.05) |
Weighted average common stocks outstanding used in computing per share amounts (note 2) | ||
Basic | 15,788,460 | 6,865,390 |
Diluted | 17,912,105 | 6,865,390 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands | Preferred Stock Series A | Preferred Stock Series B | Preferred Stock Series C | Preferred Stock Series D | Preferred Stock Series E | Preferred Stock Series F | Preferred Stock Total | Common Stock | Common Stock Class A | Common Stock Class B | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total |
Beginning balance, shares at Dec. 31, 2016 | 385,000 | 1,572,000 | 1,360,962 | 1,326,642 | 0 | 3,663,254 | 0 | 2,228,740 | 2,409,738 | ||||||
Beginning balance, amount at Dec. 31, 2016 | $ 288 | $ 1,572 | $ 2,041 | $ 4,975 | $ 0 | $ 9,158 | $ 18,034 | $ 0 | $ 1 | $ 1 | $ 7,620 | $ (9,643) | $ (413) | $ 4,919 | $ 2,485 |
Net income (loss) | (318) | (554) | (872) | ||||||||||||
Foreign currency translation adjustment | 535 | 185 | 720 | ||||||||||||
Exercise of stock option, shares | 472,887 | ||||||||||||||
Exercise of stock option, amount | 396 | 396 | |||||||||||||
Stock-based compensation | 1,622 | 1,622 | |||||||||||||
Purchase of non-controlling interest | (16,258) | (4,550) | 20,808 | ||||||||||||
Issuance of Series E Preferred Stock, shares | 4,998,508 | ||||||||||||||
Issuance of Series E Preferred Stock, amount | $ 5,800 | 5,800 | |||||||||||||
Issuance of Common Stock to Ninebell, shares | 133,334 | ||||||||||||||
Issuance of Common Stock to Ninebell, amount | 1,000 | 1,000 | |||||||||||||
Issuance of Common Stock to Shanghai and Pudong VC, shares | 1,906,674 | ||||||||||||||
Issuance of Common Stock to Shanghai and Pudong VC, amount | 14,299 | 14,299 | |||||||||||||
Convertible preferred shares converted to common shares in connection with initial public offering, shares | (385,000) | (1,572,000) | (1,360,962) | (1,326,642) | (4,998,508) | (3,663,254) | 4,627,577 | ||||||||
Convertible preferred shares converted to common shares in connection with initial public offering, amount | $ (288) | $ (1,572) | $ (2,041) | $ (4,975) | $ (5,800) | $ (9,158) | $ (23,834) | 23,834 | 23,834 | ||||||
Issuance of Class A common stock in connection with inital public offering and concurrent private placement, net of issuance costs of $2,791 and underwriter's warrant of $137, shares | 3,566,334 | ||||||||||||||
Issuance of Class A common stock in connection with inital public offering and concurrent private placement, net of issuance costs of $2,791 and underwriter's warrant of $137, amount | 17,044 | 17,044 | |||||||||||||
Issuance of underwriter's warrant, amount | 137 | 137 | |||||||||||||
Reclassification of reverse split par value | $ (1) | 1 | |||||||||||||
Ending balance, shares at Dec. 31, 2017 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12,935,546 | 2,409,738 | |||||
Ending balance, amount at Dec. 31, 2017 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ 0 | 49,695 | (9,961) | 122 | 0 | 39,857 |
Net income (loss) | 6,574 | 6,574 | |||||||||||||
Foreign currency translation adjustment | (979) | (979) | |||||||||||||
Exercise of stock option, shares | 265,952 | ||||||||||||||
Exercise of stock option, amount | 528 | 528 | |||||||||||||
Stock-based compensation | 3,363 | 3,363 | |||||||||||||
Purchase of non-controlling interest | 0 | ||||||||||||||
Convertible preferred shares converted to common shares in connection with initial public offering, amount | 0 | ||||||||||||||
Conversion of class B common shares to Class A common shares | 511,315 | (511,315) | |||||||||||||
Exercise of common stock warrant issued to SMC | 397,502 | ||||||||||||||
Exercise of common stock warrant issued to SMC, amount | 2,981 | 2,981 | |||||||||||||
Ending balance, shares at Dec. 31, 2018 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14,110,315 | 1,898,423 | |||||
Ending balance, amount at Dec. 31, 2018 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ 0 | $ 56,567 | $ (3,387) | $ (857) | $ 0 | $ 52,324 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 6,574 | $ (872) |
Adjustments to reconcile net loss from operations to net cash provided by operating activities: | ||
Depreciation and amortization | 417 | 271 |
Equity income in net income of affiliates | (123) | (37) |
Deferred income taxes | (405) | 659 |
Stock-based compensation | 3,363 | 1,622 |
Loss on disposals of fixed assets, intangible assets and other long-term assets | 0 | 1 |
Net changes in operating assets and liabilities: | ||
Accounts receivable | 883 | (9,757) |
Other receivables | (1,171) | 332 |
Inventory | (24,083) | (3,073) |
Prepaid expenses | (1,494) | 256 |
Other current assets | 44 | 8 |
Accounts payable | 9,825 | 1,905 |
Advances from customers | 8,316 | (127) |
Income tax payable | 1,149 | 0 |
Other payables and accrued expenses | 4,954 | 1,789 |
Other long-term liabilities | (1,340) | (1,078) |
Net cash provided by (used in) operating activities | 6,909 | (8,101) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (1,830) | (651) |
Purchase of intangible assets | (241) | (115) |
Loan to related party | 0 | (946) |
Purchase of non-controlling interest | 0 | (20,808) |
Investments in unconsolidated equity method affiliates | 0 | (1,200) |
Net cash used in investing activities | (2,071) | (23,720) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings | 17,726 | 11,154 |
Repayments of short-term borrowings | (13,131) | (11,110) |
Proceeds from stock option exercise to common stock | 528 | 396 |
Proceed from issuance of Series E convertible preferred stock | 0 | 5,800 |
Proceeds from issuance of common stock in connection with initial public offering and concurrent private placement | 0 | 18,717 |
Payment of inital public offering expenses | 0 | (1,537) |
Investment in affiliates | 0 | 1,000 |
Proceeds from issuance of common stock for non-controlling interest purchase | 0 | 14,300 |
Net cash provided by financing activities | 5,123 | 38,720 |
Effect of exchange rate changes on cash and cash equivalents | (518) | 663 |
Net increase in cash and cash equivalents | 9,443 | 7,562 |
Cash and cash equivalents at beginning of period | 17,681 | 10,119 |
Cash and cash equivalents at end of period | 27,124 | 17,681 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 498 | 277 |
Non-cash financing activities: | ||
Preferred stock conversion to common stock in connection with initial public offering | 0 | 23,834 |
Warrant conversion to common stock | $ 3,079 | $ 0 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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. The Company also offers a range of custom-made equipment, including cleaners, coaters and developers, to back-end wafer assembly and packaging factories, principally in the PRC. In 2011 ACM Shanghai formed a wholly owned subsidiary in the PRC, ACM Research (Wuxi), Inc. (“ACM Wuxi”), to manage sales and service operations. In November 2016 ACM redomesticated from California to Delaware pursuant to a merger in which ACM Research, Inc., a California corporation, was merged into a newly formed, wholly owned Delaware subsidiary, also named ACM Research, Inc. In June 2017 ACM formed a wholly owned subsidiary in Hong Kong, CleanChip Technologies Limited (“CleanChip”), to act on the Company’s behalf in Asian markets outside the PRC by, for example, serving as a trading partner between ACM Shanghai and its customers, procuring raw materials and components, performing sales and marketing activities, and making strategic investments. In August 2017 ACM purchased 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 condensed consolidated financial statements have been adjusted retrospectively to reflect the reverse stock split. On November 2, 2017, the Registration Statement on Form S-1 (File No. 333- 220451) for ACM’s initial public offering of Class A common stock (the “IPO”) was declared effective by the U.S. Securities and Exchange Commission. Shares of Class A common stock began trading on the Nasdaq Global Market on November 3, 2017, and the closing for the IPO was held on November 7, 2017. In December 2017 ACM formed a wholly owned subsidiary in the Republic of Korea, ACM Research Korea CO., LTD. (“ACM Korea”), to serve customers based in Republic of Korea and perform sales, marketing, research and development activities for new products and solutions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated accounts include ACM and its subsidiaries, ACM Shanghai, ACM Wuxi, CleanChip and ACM Korea. 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 The preparation of 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 stock-based compensation arrangements and warrant liability, realization of deferred tax assets, assessment for impairment of long-lived assets, allowance for doubtful accounts, inventory valuation for excess and obsolete inventories, lower of cost and market value or net realizable value of inventories, depreciable lives of property and equipment, accrued warranty, 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. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, 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. 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, and current economic trends. Accounts are written off after all collection efforts have been exhausted. At December 31, 2018 and 2017, the Company, based on a review of its outstanding balances and its customers, determined the allowance for doubtful accounts in the amount of $0 and $0 respectively. 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, 2018 and 2017. ● 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. ● Market value is determined as the lower of replacement cost or net realizable value. ● 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. Plant, property 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. Estimated useful lives of assets in the United States are as follows: Computer and office equipment 3 to 5 years Furniture and fixtures 5 years Leasehold improvements shorter of lease term or estimated useful life ACM’s subsidiaries follow regulations for depreciation of fixed assets implemented under the PRC’s Enterprise Income Tax Law, which state that the minimum useful lives used for calculating depreciation for fixed assets are as follows: Manufacturing equipment for small to medium-sized equipment, 5 years; for large equipment, estimated by purchasing department at time of acceptance Furniture and fixtures 5 years Transportation equipment 4 to 5 years Electronic equipment 3 years Leasehold improvements remaining lease term for improvements on leased fixed assets or, for large improvements, estimated useful life; not less than 3 years for non-fixed asset repairs 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 software 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 beneficial period, then the intangible asset is amortized over a term not exceeding the beneficial period. If the contract does not specify a beneficial period, then the intangible asset is amortized over a term not exceeding the valid period specified by local law. If neither the contract nor local law specifies a beneficial period, then the intangible asset is amortized over a period of up to 10 years. Currently, the software that the Company uses is amortized over a two-year period in accordance with the policy described above. 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 flow 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 Each lease is classified at the inception date as either a capital lease or an operating lease. For the lessee, a lease is a capital lease if any of the following conditions exist: (a) ownership is transferred to the lessee by the end of the lease term; (b) there is a bargain purchase option; (c) the lease term is at least 75% of the property’s estimated remaining economic life; or (d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the leasor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations and comprehensive income on a straight-line basis over the terms of the underlying lease. The Company had no capital lease for either of the periods presented. Redeemable Convertible Preferred Stock The Company recorded each series of convertible preferred stock at fair value on the date of issuance, net of issuance costs. The convertible preferred stock is recorded outside of stockholders’ equity (deficit) because, in the event of certain deemed liquidation events considered not solely within the Company’s control (such as a merger, acquisition, or sale of all or substantially all of the Company’s assets), the convertible preferred stock will become redeemable at the option of the holders. The Company has not adjusted the carrying value of any series of convertible preferred stock to the liquidation preference of such series because it is uncertain whether or when an event would occur that would obligate the Company to pay the liquidation preferences to holders of convertible preferred stock. Subsequent adjustments to the carrying values to the liquidation preferences will be made only when it becomes probable that such a liquidation event will occur. Revenue Recognition On January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers The Company derives revenue principally from the sale of single-wafer wet cleaning equipment. Revenue from contracts with customers is recognized using the following five steps pursuant to the New Revenue Standard: 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 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations. The Company’s contracts with customers include more than one performance obligation. For example, the delivery of a piece of equipment generally includes the promise to install the equipment in the customer’s facility. The Company’s performance obligations in connection with a sale of equipment generally include production, delivery and installation, together with the provision of a warranty. 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 standalone selling prices (“SSP”). The SSP represents the price at which the Company would sell that good or service on a standalone 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. All of the Company’s products were sold in stand-alone arrangements. The Company does not have observable SSPs for most performance obligations as the obligations are not regularly sold on a standalone basis. Production, delivery and installation of a product, together with provision of a warranty, are a single unit of accounting. 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. If terms of the sale provide for a lapsing customer acceptance period, the Company recognizes revenue as of the earlier of the expiration of the lapsing acceptance period and customer acceptance. 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 or lapsing acceptance provision and the Company can objectively demonstrate that the tool meets all of the required acceptance criteria; ● When the customer withholds acceptance due to issues unrelated to product performance, in which case revenue is recognized when the system is performing as intended and meets predetermined specifications; or ● When the Company’s sales arrangements do not include a general right of return. The Company offers post-warranty period 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, risk of loss has passed to the customer, and collection is probable. The Company does not expect revenue from extended maintenance service contracts to represent a material portion of its revenue in the future. As such, the Company has concluded that its revenue recognition under the adoption of the New Revenue Standard will remain the same as previously reported and will not have material impacts to its consolidated financial statements. 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 in accordance with the practical expedient in the New Revenue Standard when the underlying contract asset is less than one year. These costs are recorded within sales and marketing expenses. Generally, all contracts have expected durations of one year or less. Accordingly, the Company applies the practical expedient allowed in the New Revenue Standard and does not disclose information about remaining performance obligations that have original expected durations of one year or less. 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). 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 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, which relate to transportation of products to customer locations, are charged to selling and marketing expense. For the year ended December 31, 2018 and 2017, shipping and handling costs included in sales and marketing expenses were $146 and $139 respectively. 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 expenses in the consolidated statements of operations and comprehensive income in the period in which they are incurred. No borrowing costs were capitalized for the year ended December 31, 2018 or 2017. Warranty For each of its products, the Company generally provides a 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. The following table shows changes in the Company’s warranty obligations for the year ended December 31, 2018 and 2017, respectively. Year Ended December 31, 2018 2017 Balance at beginning of period $ 839 $ 290 Additions 1,412 736 Utilized (541 ) (187 ) Balance at end of period $ 1,710 $ 839 Government Subsidies ACM Shanghai has been awarded four subsidies from local and central governmental authorities in the PRC. The first subsidy, which was awarded in October 2008, relates to the development and commercialization of 65-45 nanometer Stress Free Polishing technology. The second subsidy was awarded in April 2009 to fund interest expenses for short-term borrowings. The third subsidy was awarded in January 2014 and relates to the development of Electro Copper Plating technology. The fourth subsidy was awarded in June of 2018, and related to development of Polytetrafluoroethylene. The PRC governmental authorities will provide the majority of the funding, although ACM Shanghai is also required to invest certain amounts in the projects. The government subsidies contain certain operating conditions and therefore are recorded as long-term liabilities upon receipt. The grant amounts are recognized in the statements of operations and comprehensive income: ● 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, 2018 and 2017, related government subsidies recognized as reductions of relevant expenses in the consolidated statements of operations and comprehensive income were $1,486 and $3,421 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, 2018 and 2017, related government subsidies recognized as other income in the consolidated statements of operations and comprehensive income were $144 and $135, respectively. Unearned government subsidies received are deferred for recognition and recorded as other long-term liabilities (note 9) in the balance sheet until the criteria for such recognition are satisfied. 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, and FASB ASC Subtopic 505-50, Equity-Based Payments to Non-Employees. Stock-based awards granted to employees 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. Stock-based compensation expense, when recognized, is charged to the category of operating expense corresponding to the employee’s service function. Stock-based awards granted to non-employees are accounted for at the fair value of the awards at the earlier of (a) the date at which a commitment for performance by the non-employee to earn the awards is reached and (b) the date at which the non-employee’s performance is complete. The fair value of such non-employee awards is re-measured at each reporting date using the fair value at each period end until the vesting date. Changes in fair value between the reporting dates are recognized by the graded vesting method. 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 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. Three customers individually accounted for greater than ten percent of the Company’s revenue for the year ended 2018 and two of those customers individually accounted for greater than ten percent of the Company’s revenue in 2017: Year Ended December 31 2018 2017 Customer A 24.17 % * Customer B 23.83 18.10 Customer C * 12.77 Customer D * 14.12 Customer E 39.63 10.23 * Customer accounted for less than 10% of revenue in the period. Interest Rate Risk As of December 31, 2018 and 2017, the balance of bank borrowings (note 6) was short-term in nature, matured at various dates within the following year and did not expose the Company to interest rate risk. Liquidity Risk The Company’s working capital at December 31, 2018 and 2017 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 Chinese 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 Chinese 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. Because 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 transactions are included in the consolidated statements of operations and comprehensive income. Total exchange gain (loss) was ($979) and $1,052 for the years ended December 31, 2018 and 2017. 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: Consolidated balance sheets: At December 31, 2018 RMB 6.8634 to $1.00 At December 31, 2017 RMB 6.5359 to $1.00 At December 31, 2018 KRW 1,114.83 to $1.00 At December 31, 2017 No transactions in Korean Won Consolidated statements of operations and comprehensive income: Year ended December 31, 2018 RMB 6.6181 to $1.00 Year ended December 31, 2017 RMB 6.7522 to $1.00 Year ended December 31, 2018 KRW 1,100.11 to $1.00 Year ended December 31, 2017 No transactions in Korean Won 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 (Loss) per Common Share Basic and diluted net income (loss) per common share is calculated as follows: For the Year Ended December 31 2018 2017 Numerator: Net income (loss) $ 6,574 $ (872 ) Net loss attributable to non-controlling interest - (554 ) Net income (loss) attributable to ACM, basic and diluted 6,574 $ (318 ) Denominator: Weighted average shares outstanding, basic 15,788,460 6,865,390 Effect of dilutive securities 2,123,645 - Weighted average shares outstanding, diluted 17,912,105 6,865,390 Net income (loss) attributable to ACM per common share: Basic $ 0.42 $ (0.05 ) Diluted $ 0.37 $ (0.05 ) Basic and diluted net income (loss) 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 (loss) 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. Shares of ACM’s Series A, B, C, D, E and F convertible preferred stock are participating securities, as the holders are entitled to participate in and receive the same dividends as may be declared for common stockholders on a pro-rata, if-converted basis. 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, 2018 and 2017, the net income (loss) 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 (loss) and in the above computation of net income (loss) per common share. Diluted net income (loss) per common share reflects the potential dilution from securities that could share in ACM’s earnings. All potential dilutive securities, including potentially dilutive convertible preferred stocks and stock options, if any, were excluded from the computation of dilutive net loss per common share for the years ended December 31, 2018 and 2017, as their effects are antidilutive due to our net loss for those periods. The potentially dilutive securities that were not included in the calculation of diluted net income per share in the periods presented where their inclusion would be anti-dilutive are as follows: Year Ended December 31 2018 2017 Stock options 3,715,779 3,372,292 Warrant 80,000 477,502 3,795,779 3,849,794 Comprehensive Income (Loss) Attributable to the Company The Company applies FASB ASC Topic 220, Comprehensive Income, which establishes standards for the reporting and display of comprehensive income or loss, requiring its components to be reported in a financial statement with the same prominence as other financial statements. The comprehensive income (loss) attributable to the Company was $5,595 and $(31) for the years ended December 31, 2018 and 2017, respectively. Appropriated Retained Earnings 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 l |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | At December 31, 2018 and 2017, accounts receivable consisted of the following: December 31, 2018 2017 Accounts receivable $ 24,608 $ 26,762 Less: Allowance for doubtful accounts - Total $ 24,608 $ 26,762 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. No allowance for doubtful accounts was considered necessary at December 31, 2018 and 2017. At December 31, 2018 and 2017, accounts receivable of $1,457 (RMB 10,000) and $1,805 (RMB 11,800), respectively, were pledged as collateral for borrowings from financial institutions (note 6). |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | At December 31, 2018 and 2017, inventory consisted of the following: December 31, 2018 2017 Raw materials $ 12,646 $ 6,181 Work in process 9,631 4,328 Finished goods 16,487 4,879 Total inventory, gross 38,764 15,388 Inventory reserve - - Total inventory, net $ 38,764 $ 15,388 The Company did not set up any inventory reserve as of December 31, 2018 or 2017 and no inventory was pledged as collateral for borrowings from financial institutions. System shipments of first-tools to an existing or prospective customer, for which ownership does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until ownership is transferred. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | At December 31, 2018 and 2017, property, plant and equipment consisted of the following: December 31, 2018 2017 Manufacturing equipment $ 9,703 $ 9,660 Office equipment 512 463 Transportation equipment 184 203 Leasehold improvement 1,379 277 Total cost 11,778 10,603 Less: Total accumulated depreciation (8,102 ) (8,263 ) Construction in progress 32 - Total property, plant and equipment, net $ 3,708 $ 2,340 Depreciation expense was $350 and $243 for the years ended December 31, 2018 and 2017, respectively. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | At December 31, 2018 and 2017, short-term borrowings consisted of the following: December 31, 2018 2017 Line of credit up to RMB 30,000 from Bank of China Pudong Branch, due on March 5, 2018 with annual interest rate of 5.69%, secured by certain of the Company’s intellectual property and fully repaid on March 5, 2018 . $ - $ 2,219 Line of credit up to RMB 25,000 from Bank of Shanghai Pudong Branch, due on Various dates of October 2018 with an annual interest rate of 5.66%, guaranteed by the Company’s CEO and fully repaid on May 8, 2018. - 2,111 Line of credit up to RMB 50,000 from Bank of Shanghai Pudong Branch, due on April 17, 2019 with an annual interest rate of 4.99%, guaranteed by the Company’s CEO. 3,133 - Line of credit up to RMB 50,000 from Bank of Shanghai Pudong Branch, due on February 14, 2019 with an annual interest rate of 5.15%, guaranteed by the Company’s CEO. 485 - Line of credit up to RMB 5,000 from Shanghai Rural Commercial Bank, due on November 21, 2018 with an annual interest rate of 5.44%, guaranteed by the Company’s CEO and pledged by accounts receivable (Note 3). - 765 Line of credit up to RMB 10,000 from Shanghai Rural Commercial Bank, due on January 23, 2019 with an annual interest rate of 5.44%, guaranteed by the Company’s CEO and pledged by accounts receivable (Note 3). 1,457 - Line of credit up to RMB 30,000 from Bank of China Pudong Branch, due on June 6, 2019 with annual interest rate of 5.22%, secured by certain of the Company’s intellectual property and the Company’s CEO. 2,186 - Line of credit up to RMB 30,000 from Bank of China Pudong Branch, due on June 13, 2019 with annual interest rate of 5.22%, secured by certain of the Company’s intellectual property and the Company’s CEO. 2,186 Total $ 9,447 $ 5,095 For the years ended December 31, 2018 and 2017, interest expense related to short-term borrowings amounted to $498 and $272 respectively. |
Other Payable and Accrued Expen
Other Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Other Payable and Accrued Expenses | At December 31, 2018 and 2017, other payable and accrued expenses consisted of the following: December 31, 2018 2017 Lease expenses and payable for leasehold improvement due to a related party (note 11) $ 53 $ 2,024 Accrued commissions 2,931 836 Accrued warranty 1,710 839 Accrued payroll 626 745 Accrued professional fees 64 60 Accrued machine testing fees 3,076 684 Others 1,950 849 Total $ 10,410 $ 6,037 |
Warrant Liability
Warrant Liability | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Warrant Liability | On December 9, 2016, Shengxin (Shanghai) Management Consulting Limited Partnership (“SMC”), a related party (note 11), delivered RMB 20,124 (approximately $2,981 as of the close of business on such date) in cash (the “SMC Investment”) to ACM Shanghai for potential investment pursuant to terms to be subsequently negotiated On March 14, 2017, ACM, ACM Shanghai and SMC entered into a securities purchase agreement (the “SMC Agreement”) pursuant to which, in exchange for the SMC Investment, ACM issued to SMC a warrant exercisable, for cash or on a cashless basis, to purchase, at any time on or before May 17, 2023, all, but not less than all, of 397,502 shares of Class A common stock at a price of $7.50 per share. The warrant issued to SMC, while outstanding as of December 31, 2017, was classified as a liability as it was conditionally puttable in accordance with FASB ASC 480, Distinguishing Liabilities from Equity. The fair value of the warrant was adjusted for changes in fair value at each reporting period but could not be lower than the proceeds of the SMC Investment. The corresponding non-cash gain or loss of the changes in fair value was recorded in earnings. The methodology used to value the warrant was the Black-Scholes valuation model. On March 30, 2018, ACM entered into a warrant exercise agreement with ACM Shanghai and SMC pursuant to which SMC exercised its warrant in full by issuing to ACM a senior secured promissory note in the principal amount of approximately $3,000. ACM then transferred the SMC note to ACM Shanghai in exchange for an intercompany promissory note of ACM Shanghai in the principal amount of approximately $3,000. Each of the two notes bears interest at a rate of 3.01% per annum and matures on August 17, 2023. As security for its performance of its obligations under its note, SMC granted to ACM Shanghai a security interest in the 397,502 shares of Class A common stock issued to SMC upon its exercise of the warrant. Upon the issuance of 397,502 shares of Class A common stock to SMC, the senior secured promissory note issued to AMC by SMC was offset against the SMC investment. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [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, 2018 and 2017, other long-term liabilities consisted of the following unearned government subsidies: December 31 2018 2017 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 1,483 $ 1,952 Subsidies to Electro Copper Plating project, commenced in 2014 2,860 4,265 Subsidies to Polytetrafluoroethylene, commenced in 2018 178 - Other 62 - Total $ 4,583 $ 6,217 |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | On September 6, 2017, ACM and Ninebell Co., Ltd. (“Ninebell”), a Korean company that is one of the Company’s principal materials 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 133,334 shares of Class A common stock to Ninebell for a purchase price of $1,000 at $7.50 per share. The investment in Ninebell is accounted for under the equity method. Undistributed earnings attributable to ACM’s equity method investment represented $123 and $37 of the consolidated retained earnings at December 31, 2018 and 2017, respectively. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | On August 18, 2017, ACM and Ninebell, its equity method investment affiliate (note 10), entered into a loan agreement pursuant to which ACM made an interest-free loan of $946 to Ninebell, payable in 180 days or automatically extended another 180 days if in default. The loan was secured by a pledge of Ninebell’s accounts receivable due from ACM and all money that Ninebell received from ACM. Ninebell repaid the loan in March 2018. ACM purchased materials from Ninebell amounting to $7,785 and $3,704 during the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, accounts payable due to Ninebell were $1,477 and $2,118, respectively, and prepaid to Ninebell for material purchases were $572 and $229, respectively. In 2007 ACM Shanghai entered into an operating lease agreement with Shanghai Zhangjiang Group Co., Ltd. (“Zhangjiang Group”) to lease manufacturing and office space located in Shanghai, China. An affiliate of Zhangjiang Group holds 787,098 shares of Class A common stock that it acquired in September 2017 for $5,903. Pursuant to the lease agreement, Zhangjiang Group provided $771 to ACM Shanghai for leasehold improvements. In September 2016 the lease agreement was amended to modify payment terms and extend the lease through December 31, 2017. From January 1 to April 25, 2018, ACM Shanghai leased the property on a month-to-month basis. On April 26, 2018, ACM Shanghai entered into a renewed lease with Zhangjiang Group for the period from January 1, 2018 through December 31, 2022. Under the lease, ACM Shanghai would pay a monthly rental fee of approximately RMB 366 (equivalent to $55). The required security deposit is RMB 1,077 (equivalent to $163). The Company incurred leasing expenses under the lease agreement of $620 and $638 during the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, payables to Zhangjiang Group for lease expenses and leasehold improvements recorded as other payables and accrued expenses amounted to $53 and $2,024, respectively (note 7). On December 9, 2016, ACM Shanghai received the SMC Investment from SMC for potential investment pursuant to terms to be subsequently negotiated (note 8). SMC is a limited partnership incorporated in the PRC, whose partners consist of employees of ACM Shanghai. On March 14, 2017, ACM, ACM Shanghai and SMC entered into a securities purchase agreement (the “SMC Agreement”) pursuant to which, in exchange for the SMC Investment, ACM issued to SMC a warrant exercisable, for cash or on a cashless basis, to purchase, at any time on or before May 17, 2023, all, but not less than all, of 397,502 shares of Class A common stock at a price of $7.50 per share, for a total exercise price of $2,981. On March 30, 2018, SMC exercised the warrant and purchased 397,502 shares of Class A common stock (note 8). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | ACM entered into a two-year lease agreement in March 2015 for office and warehouse space of approximately 3,000 square feet for its headquarters in Fremont, California, at a rate of $2 per month. On February 4, 2019, ACM amended the lease agreement to extend the lease term through March 31, 2020 and increase the base rent to $3.3 per month from April 1, 2019 to March 31, 2020 and $3.4 per month from April 1, 2020 to March 31, 2021. ACM Shanghai entered into an operating lease agreement with Zhangjiang Group (a related party, see Note 11) in 2007 for manufacturing and office space of approximately 63,510 square feet in Shanghai, China. The lease terms and its payment terms are subject to modification and extension with Zhangjiang Group from time to time. The lease with Zhangjiang Group expired on December 31, 2017 and from January 1, 2018 to April 25, 2018 we leased the property on a month-to-month basis. On April 26, 2018, ACM Shanghai entered into a renewed lease with Zhangjiang Group for the period from January 1, 2018 through December 31, 2022. Under the lease, ACM Shanghai would pay a monthly rental fee of approximately RMB 366 (equivalent to $55). The required security deposit is RMB 1,077 (equivalent to $163). ACM Wuxi leases office space in Wuxi, China, at a rate of less than $1 per month. In January 2018, ACM Shanghai entered into an operating lease agreement for the second factory in the Pudong region of Shanghai from January 2018 to January 2023. The new facility has a total of 50,000 square feet of available floor space. The monthly rent varies during the term of the lease. ACM leases its administrative, research and development and manufacturing facilities under various operating leases. Future minimum lease payments under non-cancelable lease agreements as of December 31, 2018 were as follows: December 31, 2018 2019 $ 1,391 2020 1,371 2021 1,403 2022 1,441 Total $ 5,606 Rent expense was $1867 and $670 for the years ended December 31, 2018 and 2017, respectively. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Common Stock | ACM is authorized to issue 100,000,000 shares of Class A common stock and 7,303,533 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 stock holders. In August 2017 ACM entered into a securities purchase agreement with PDHTI and its subsidiary Pudong Science and Technology (Cayman) Co., Ltd. (“PST”), in which ACM agreed to bid, in an auction process mandated by PRC regulations, to purchase PDHTI’s 10.78% equity interest in ACM Shanghai and to sell shares of Class A common stock to PST. On September 8, 2017, ACM issued 1,119,576 shares of Class A common stock to PST for a purchase price of $7.50 per share, representing an aggregate purchase price of $8,397. In August 2017 ACM entered into a securities purchase agreement with ZSTVC and its subsidiary Zhangjiang AJ Company Limited (“ZJAJ”), in which ACM agreed to bid, in an auction process mandated by PRC regulations, to purchase ZSTVC’s 7.58% equity interest in ACM Shanghai and to sell shares of Class A common stock to ZJAJ. On September 8, 2017, ACM issued 787,098 shares of Class A common stock to ZJAJ for a purchase price of $7.50 per share, or an aggregate purchase price of $5,903. In September 2017 ACM issued 133,334 shares of Class A common stock to Ninebell for a purchase price of $7.50 per share, or an aggregate purchase price of $1,000 (note 10). In November 2017 ACM issued 2,233,000 shares of Class A common stock and received net proceeds of $11,664 from the IPO and concurrently ACM issued an additional 1,333,334 shares of Class A common stock in a private placement for net proceeds of $7,053. Upon the completion of the IPO on November 2, 2017, the Company issued a five-year warrant (the “Underwriter's Warrant”) to Roth Capital Partners, LLC, the lead underwriter of the IPO, for the purchase of up to 80,000 shares of Class A common stock at an exercise price of $6.16 per share. The Underwriter’s Warrant was immediately exercisable and expires on November 1, 2022. The Underwriter's Warrant is equity classified and its fair value was $137 at the IPO closing date, using the Black Scholes model with the following assumptions: volatility of 28.26%, a dividend rate of 0%, and a risk-free discount rate of 2%. In September 2017 ACM issued 133,334 shares of Class A common stock to Ninebell for a purchase price of $7.50 per share, or an aggregate purchase price of $1,000 (note 10). At various dates during 2017, ACM issued 472,889 shares of Class A common stock upon options exercises by certain employees and non-employees. During the year ended December 31, 2018, the Company issued 265,952 shares of Class A common stock upon options exercises by certain employees and non-employees. On March 30, 2018, SMC exercised its warrant (note 8) and purchased 397,502 shares of Class A common stock. At December 31, 2018 and 2017, the number of shares of Class A common stock issued and outstanding was 14,110,315 and 12,935,546, respectively. At December 31, 2018 and 2017, the number of shares of Class B common stock issued and outstanding was 1,898,423 and 2,409,738, respectively. During the year ended December 31, 2018, 511,315 shares of Class B common stock were converted into Class A common stock. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | On April 29, 1998, ACM adopted the 1998 Stock Option Plan (the “1998 Plan”). The options issued under the Plan consisted of incentive stock options (“ISOs”) and nonstatutory stock options (“NSOs”) that should be determined at the time of grant. ISOs could be granted only to employees. NSOs could be granted to employees, directors and consultants. The option price of each ISO and each NSO could not be less than 100% or less than 85% of the fair market value of stock price at the time of grant, respectively. The vesting period was to be determined by the Board of Directors for each grant. The total number of shares of common stock reserved under the 1998 Plan, as amended, was 766,667. If any option granted under the 1998 Plan expires or otherwise terminates without having been exercised in full, the shares of common stock subject to that option would become available for re-grant. At March 3, 2014, the 1998 Plan terminated and no further grants under the 1998 Plan could be made thereunder, although certain previously granted options remained outstanding in accordance with their terms. On December 28, 2016, ACM adopted the 2016 Omnibus Incentive Plan (the “2016 Plan”). Under the 2016 Plan, the aggregate number of shares of Class A common stock that may be issued shall equal the sum of (a) 2,333,334 and (b) an annual increase on the first day of each year beginning in 2018 and ending in 2026 equal to the lesser of (i) 4% of the shares of Class A and Class B common stock outstanding (on an as-converted basis) on the last day of the immediately preceding year and (ii) such smaller number of shares as may be determined by the Board. A maximum of 2,333,334 shares is available for issuance as ISOs under the 2016 Plan. Besides the stock options, the 2016 Plan also authorizes issuance of stock appreciation rights, restricted stock, restricted stock units, and other share-based and cash awards. The 2016 Plan will terminate on December 27, 2026. Employee Awards The following table summarizes the Company’s employee share option activities during the year ended December 31, 2018: Number of Option Shares Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2016 2,100,377 $ 0.54 $ 2.03 7.83 years Granted 140,002 2.28 6.75 Exercised (174,334 ) 0.45 0.75 Expired (3,752 ) 0.54 3.00 Forfeited (16,677 ) 0.54 3.00 Outstanding at December 31, 2017 2,045,616 0.66 2.46 7.57 years Granted 745,700 1.52 8.12 Exercised (151,650 ) 0.53 2.06 Expired (4,622 ) 0.55 3.00 Forfeited (131,639 ) 0.97 3.87 Outstanding at December 31, 2018 2,503,405 0.91 4.09 7.30 years Vested and exercisable at December 31, 2018 1,327,189 During the years ended December 31, 2018 and 2017, ACM recognized employee stock-based compensation expense of $712 and $271, respectively. As of December 31, 2018 and 2017, $2,424 and $729, respectively, of total unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to stock-based awards were expected to be recognized over a weighted-average period of 1.62 years and 1.77 years, respectively. Total unrecognized compensation cost may be adjusted for future changes in estimated forfeitures. The fair value of each option granted to employee is estimated on the grant date using the Black-Scholes valuation model with the following assumptions. December 31, 2018 2017 Fair value of common share(1) $5.31-13.85 $5.60-7.59 Expected term in years(2) 6.25 6.25 Volatility(3) 39.14% -43.00% 28.62% -29.18% Risk-free interest rate(4) 2.55%-2.96% 2.21%-2.22% Expected dividend(5) 0% 0% (1) Common stock value was the close market value on December 31, 2018. (2) Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to Staff Accounting Bulletin 110. (3) Volatility is calculated based on the historical volatility of ACM’s comparable companies in the period equal to the expected term of each grant. (4) Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant. (5) Expected dividend is assumed to be 0% as ACM has no history or expectation of paying a dividend on its common stock. Non-employee Awards The following table summarizes the Company’s non-employee share option activities during the year ended December 31, 2018: Number of Option Shares Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2016 1,578,565 $ 0.51 $ 1.58 6.81 years Granted 196,669 2.25 6.90 Exercised (298,555 ) 0.39 0.93 Expired (133,336 ) 0.45 0.75 Forfeited (16,667 ) 2.58 7.50 Outstanding at December 31, 2017 1,326,676 0.78 2.52 7.54 years Granted - - - - Exercised (114,302 ) 0.43 1.92 - Expired - - - - Forfeited - - - - Outstanding at December 31, 2018 1,212,374 $ 0.78 2.57 6.66 years Vested and exercisable at December 31, 2018 946,691 During the years ended December 31, 2018 and 2017, the Company recognized non-employee stock-based compensation expense of $2,651 and $1,351, respectively. The fair value of each option granted to non-employees is re-measured at each period end until the vesting date using the Black-Scholes valuation model with the following assumptions: December 31, 2018 2017 Fair value of common share(1) $10.88 $5.25-7.59 Expected term in years(2) 2.58-5.36 3.58-6.25 Volatility(3) 40.24%-45.48% 28.71-29.41 % Risk-free interest rate(4) 2.39%-2.94% 1.62%-2.43 % Expected dividend(5) 0% 0% (1) Common stock value was the close market value on December 31, 2018. (2) Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to Staff Accounting Bulletin 110. (3) Volatility is calculated based on the historical volatility of ACM’s comparable companies in the period equal to the expected term of each grant. (4) Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant. (5) Expected dividend is assumed to be 0% as ACM has no history or expectation of paying a dividend on its common stock. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The following represent components of the income tax expense (benefit) for the years ended December 31, 2018 and 2017: Year Ended December 31, 2018 2017 Current: U.S. federal $ - $ - U.S. state - - Foreign (1,149 ) - Total current tax expense (1,149 ) - Deferred: U.S. federal - - U.S. state - - Foreign 343 (547 ) Total deferred tax income (expense) 343 (547 ) Total income tax expense $ (806 ) $ (547 ) Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets at December 31, 2018 and 2017 are presented below: December 31, 2018 2017 Deferred tax assets: Net operating loss carry forwards (offshore) $ 16 $ 4,418 Net operating loss carry forwards (U.S.) and credit 4,105 683 Deferred revenue (offshore) 558 656 Accruals (U.S.) 11 18 Reserves and other (offshore) 1,080 495 Stock-based compensation (U.S.) 1,021 453 Property and equipment (U.S.) 1 2 Total gross deferred tax assets 6,792 6,725 Less: valuation allowance (5,155 ) (5,431 ) Total deferred tax assets 1,637 1,294 Total deferred tax liabilities - - Translation difference - - Deferred tax assets, net $ 1,637 $ 1,294 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, 2018 and 2017, based on estimates of recoverability. While the Company has optimistic plans for its business strategy, it determined that such a valuation allowance was necessary given its historical losses and the uncertainty with respect to its ability to generate sufficient profits from its business model from all tax jurisdictions. In order to fully realize the U.S. 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. The valuation allowance in the U.S. decreased by $278 for the year ended December 31, 2018 and increased $760 for the year ended December 31, 2017. The valuation allowance in China decreased by $2 and decreased by $58 during the years ended December 31, 2018 and 2017, respectively. The Company did not have any significant temporary differences relating to deferred tax liabilities as of December 31, 2018 or 2017. As of December 31, 2018 and 2017, the Company had net operating loss carry-forwards of respectively, $15,867 and $20,116 for U.S federal purposes, $714 and $536 for U.S. state purposes and $6,411 for Chinese income tax purposes. Such losses are set to expire in 2019, 2032, and 2019 for U.S. federal, U.S. state and Chinese income tax purposes, respectively. As of December 31, 2018 and 2017, the Company had research credit carry-forwards of $606 for U.S. federal purposes, and $377 for U.S. state purposes. Such credits are set to expire in 2025 for U.S. federal carry-forwards. There is no expiration date for U.S. state carry-forwards. A limitation may apply to the use of the U.S. net operating loss and credit carry-forwards, under provisions of the U.S. Internal Revenue Code that would be applicable if ACM experiences an “ownership change.” Should these limitations apply, the carry-forwards would be subject to an annual limitation, resulting in a substantial reduction in the gross deferred tax assets before considering the valuation allowance. As of December 31, 2018 and 2017, the Company had not performed an analysis to determine if its net operating loss and credit carry-forwards would be subject to such limitations. The Company’s effective tax rate differs from statutory rates of 21% for U.S. federal income tax purposes and 15%-25% for Chinese income tax purpose due to the effects of the valuation allowance and certain permanent differences as it pertains to book-tax differences in the value of client shares received for services. Pursuant to the Corporate Income Tax Law of the PRC, all of the Company’s PRC subsidiaries are liable to PRC Corporate Income Taxes at a rate of 25% except for ACM Shanghai. According to Guoshuihan 2009 No. 203, if an entity is certified as an “advanced and new technology enterprise,” it is entitled to a preferential income tax rate of 15%. ACM Shanghai obtained the certificate of “advanced and new technology enterprise” in 2012 and again in 2016 with an effective period of three years, and the provision for PRC corporate income tax for ACM Shanghai is calculated by applying the income tax rate of 15% for the years ended December 31, 2018 and 2017. Income tax expense (benefit) for the years ended December 31, 2018 and 2017 differed from the amounts computed by applying the statutory federal income tax rate of 21% and 34%, respectively, to pretax income (loss) as a result of the following: Year Ended December 31, 2018 2017 Effective tax rate reconciliation: Income tax provision at statutory rate 21.00 % 34.00 % State taxes, net of Federal benefit - - Foreign rate differential (20.88 ) 6.80 Other permanent difference 15.59 197.7 Effect of tax reform - (757 ) Change in valuation allowance (4.78 ) 349.9 Total income tax expense (benefit) (10.93 %) (168.65 %) 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, 2018 and 2017, are as follows: December 31, 2018 2017 Beginning balance $ 44 $ 44 Increase/(Decrease) of unrecognized tax benefits taken in prior years - - Increase/(Decrease) of unrecognized tax benefits related to current year - - Increase/(Decreases) of unrecognized tax benefits related to settlements - - Reductions to unrecognized tax benefits related to lapsing statute of limitations - - Ending balance $ 44 $ 44 The Company files income tax returns in the United States, and state and foreign jurisdictions. The federal, state and foreign income tax returns are under the statute of limitations subject to tax examinations for the tax years ended December 31, 2009 through December 31, 2017. To the extent the Company has tax attribute carry-forwards, the tax years in which the attribute was generated may still be adjusted upon examination by the U.S. Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period. The Company had $44 of unrecognized tax benefits as of December 31, 2018 and 2017. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2018 and 2017, the Company had $44 of accrued penalties and $44 of accrued penalties related to uncertain tax positions, none of which has been recognized in the Company’s consolidated statements of operations and comprehensive income for the years ended December 31, 2018 and 2017. There were no ongoing examinations by taxing authorities as of December 31, 2018 and 2017. The Company intends to indefinitely reinvest the PRC earnings outside of the U.S. as of December 31, 2018 and 2017. Thus, deferred taxes are not provided in the U.S. for unremitted earnings in the PRC. On December 22, 2017, the 2017 Tax Cuts and Jobs Act was enacted into law and the new legislation contains several key tax provisions that affect us, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Company leases offices under non-cancelable operating lease agreements. The rental expenses were $1,867 and $670 for the years ended December 31, 2018 and 2017, respectively. See note 12 for future minimum lease payments under non-cancelable operating lease agreements with initial terms of one year or more. The Company did not have any capital commitments during the reported periods. From time to time the Company is subject to legal proceedings, including claims in the ordinary course of business and claims with respect to patent infringements. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Net Assets | |
Restricted Net Assets | In accordance with the PRC’s Foreign Enterprise Law, ACM Shanghai and ACM Wuxi are required to make contributions to a statutory surplus reserve (note 2). As a result of PRC laws and regulations that require annual appropriations of 10% of net after-tax profits to be set aside prior to payment of dividends as a general reserve fund or statutory surplus fund, ACM Shanghai is restricted in its ability to transfer a portion of its net assets to ACM (including any assets received as distributions from ACM Wuxi). Amounts restricted included paid-in capital and statutory reserve funds, as determined pursuant to PRC accounting standards and regulations, were $32,076 and $29,927 as of December 31, 2018 and 2017. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Parent Company Only Condensed Financial Information | |
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, 2018 and 2017. The following represents condensed unconsolidated financial information of ACM only as of and for the years ended December 31, 2018 and 2017: CONDENSED BALANCE SHEET December 31, 2018 2017 Assets Current assets: Cash and cash equivalents $ 13,161 $ 10,874 Accounts Receivable 983 118 Inventory 720 565 Due from intercompany 14,494 12,669 Other receivable 175 50 Total current assets 29,533 24,276 Investment in unconsolidated subsidiaries 26,861 15,476 Due from related party - 946 Total assets 56,394 40,698 Liabilities and Stockholders’ Equity Notes payable - 11 Accounts payable 2,818 739 Other payable 58 47 Income taxes payable 1,193 44 Total liabilities 4,069 841 Total redeemable convertible preferred stocks - - Total stockholders’ equity 52,325 39,857 Total liabilities and stockholders’ equity $ 56,394 $ 40,698 CONDENSED STATEMENT OF OPERATIONS Year Ended December 31, 2018 2017 Revenue $ 25,506 $ 6,985 Cost of revenue (23,927 ) (6,394 ) Gross profit 1,579 591 Operating expenses: Sales and marketing expenses (301 ) (368 ) General and administrative expenses (5,083 ) (3,961 ) Research and development expenses (255 ) (50 ) Loss from operations (4,060 ) (3,788 ) Equity in earnings of unconsolidated subsidiaries 10,360 3,475 Other income (expense), net 108 - Interest expense, net 166 (5 ) Income (loss) before income taxes 6,574 (318 ) Income tax expense (benefit) - - Net income (loss) $ 6,574 $ (318 ) CONDENSED STATEMENT OF CASH FLOWS Year Ended December 31, 2018 2017 Net cash used in operating activities $ (1,189 ) $ (13,848 ) Net cash provided by (used in) investing activities 946 (21,754 ) Net cash provided by financing activities 3,510 38,676 Net increase in cash and cash equivalents 3,267 3,074 Cash and cash equivalents, beginning of year 10,874 7,264 Effect of exchange rate changes on cash and cash equivalents (980 ) 536 Cash and cash equivalents, end of year $ 13,161 $ 10,874 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated accounts include ACM and its subsidiaries, ACM Shanghai, ACM Wuxi, CleanChip and ACM Korea. 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 | The preparation of 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 stock-based compensation arrangements and warrant liability, realization of deferred tax assets, assessment for impairment of long-lived assets, allowance for doubtful accounts, inventory valuation for excess and obsolete inventories, lower of cost and market value or net realizable value of inventories, depreciable lives of property and equipment, accrued warranty, 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. |
Cash and cash equivalents | Cash and cash equivalents consist of cash on hand, 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. |
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, and current economic trends. Accounts are written off after all collection efforts have been exhausted. At December 31, 2018 and 2017, the Company, based on a review of its outstanding balances and its customers, determined the allowance for doubtful accounts in the amount of $0 and $0 respectively. |
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, 2018 and 2017. ● 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. ● Market value is determined as the lower of replacement cost or net realizable value. ● 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. Plant, property 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. Estimated useful lives of assets in the United States are as follows: Computer and office equipment 3 to 5 years Furniture and fixtures 5 years Leasehold improvements shorter of lease term or estimated useful life ACM’s subsidiaries follow regulations for depreciation of fixed assets implemented under the PRC’s Enterprise Income Tax Law, which state that the minimum useful lives used for calculating depreciation for fixed assets are as follows: Manufacturing equipment for small to medium-sized equipment, 5 years; for large equipment, estimated by purchasing department at time of acceptance Furniture and fixtures 5 years Transportation equipment 4 to 5 years Electronic equipment 3 years Leasehold improvements remaining lease term for improvements on leased fixed assets or, for large improvements, estimated useful life; not less than 3 years for non-fixed asset repairs 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 software 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 beneficial period, then the intangible asset is amortized over a term not exceeding the beneficial period. If the contract does not specify a beneficial period, then the intangible asset is amortized over a term not exceeding the valid period specified by local law. If neither the contract nor local law specifies a beneficial period, then the intangible asset is amortized over a period of up to 10 years. Currently, the software that the Company uses is amortized over a two-year period in accordance with the policy described above. |
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 flow 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 | Each lease is classified at the inception date as either a capital lease or an operating lease. For the lessee, a lease is a capital lease if any of the following conditions exist: (a) ownership is transferred to the lessee by the end of the lease term; (b) there is a bargain purchase option; (c) the lease term is at least 75% of the property’s estimated remaining economic life; or (d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the leasor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations and comprehensive income on a straight-line basis over the terms of the underlying lease. The Company had no capital lease for either of the periods presented. |
Redeemable Convertible Preferred Stock | The Company recorded each series of convertible preferred stock at fair value on the date of issuance, net of issuance costs. The convertible preferred stock is recorded outside of stockholders’ equity (deficit) because, in the event of certain deemed liquidation events considered not solely within the Company’s control (such as a merger, acquisition, or sale of all or substantially all of the Company’s assets), the convertible preferred stock will become redeemable at the option of the holders. The Company has not adjusted the carrying value of any series of convertible preferred stock to the liquidation preference of such series because it is uncertain whether or when an event would occur that would obligate the Company to pay the liquidation preferences to holders of convertible preferred stock. Subsequent adjustments to the carrying values to the liquidation preferences will be made only when it becomes probable that such a liquidation event will occur. |
Revenue Recognition | On January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers The Company derives revenue principally from the sale of single-wafer wet cleaning equipment. Revenue from contracts with customers is recognized using the following five steps pursuant to the New Revenue Standard: 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 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations. The Company’s contracts with customers include more than one performance obligation. For example, the delivery of a piece of equipment generally includes the promise to install the equipment in the customer’s facility. The Company’s performance obligations in connection with a sale of equipment generally include production, delivery and installation, together with the provision of a warranty. 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 standalone selling prices (“SSP”). The SSP represents the price at which the Company would sell that good or service on a standalone 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. All of the Company’s products were sold in stand-alone arrangements. The Company does not have observable SSPs for most performance obligations as the obligations are not regularly sold on a standalone basis. Production, delivery and installation of a product, together with provision of a warranty, are a single unit of accounting. 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. If terms of the sale provide for a lapsing customer acceptance period, the Company recognizes revenue as of the earlier of the expiration of the lapsing acceptance period and customer acceptance. 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 or lapsing acceptance provision and the Company can objectively demonstrate that the tool meets all of the required acceptance criteria; ● When the customer withholds acceptance due to issues unrelated to product performance, in which case revenue is recognized when the system is performing as intended and meets predetermined specifications; or ● When the Company’s sales arrangements do not include a general right of return. The Company offers post-warranty period 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, risk of loss has passed to the customer, and collection is probable. The Company does not expect revenue from extended maintenance service contracts to represent a material portion of its revenue in the future. As such, the Company has concluded that its revenue recognition under the adoption of the New Revenue Standard will remain the same as previously reported and will not have material impacts to its consolidated financial statements. 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 in accordance with the practical expedient in the New Revenue Standard when the underlying contract asset is less than one year. These costs are recorded within sales and marketing expenses. Generally, all contracts have expected durations of one year or less. Accordingly, the Company applies the practical expedient allowed in the New Revenue Standard and does not disclose information about remaining performance obligations that have original expected durations of one year or less. 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). |
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 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, which relate to transportation of products to customer locations, are charged to selling and marketing expense. For the year ended December 31, 2018 and 2017, shipping and handling costs included in sales and marketing expenses were $146 and $139 respectively. |
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 expenses in the consolidated statements of operations and comprehensive income in the period in which they are incurred. No borrowing costs were capitalized for the year ended December 31, 2018 or 2017. |
Warranty | For each of its products, the Company generally provides a 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. The following table shows changes in the Company’s warranty obligations for the year ended December 31, 2018 and 2017, respectively. Year Ended December 31, 2018 2017 Balance at beginning of period $ 839 $ 290 Additions 1,412 736 Utilized (541 ) (187 ) Balance at end of period $ 1,710 $ 839 |
Government Subsidies | ACM Shanghai has been awarded four subsidies from local and central governmental authorities in the PRC. The first subsidy, which was awarded in October 2008, relates to the development and commercialization of 65-45 nanometer Stress Free Polishing technology. The second subsidy was awarded in April 2009 to fund interest expenses for short-term borrowings. The third subsidy was awarded in January 2014 and relates to the development of Electro Copper Plating technology. The fourth subsidy was awarded in June of 2018, and related to development of Polytetrafluoroethylene. The PRC governmental authorities will provide the majority of the funding, although ACM Shanghai is also required to invest certain amounts in the projects. The government subsidies contain certain operating conditions and therefore are recorded as long-term liabilities upon receipt. The grant amounts are recognized in the statements of operations and comprehensive income: ● 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, 2018 and 2017, related government subsidies recognized as reductions of relevant expenses in the consolidated statements of operations and comprehensive income were $1,486 and $3,421 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, 2018 and 2017, related government subsidies recognized as other income in the consolidated statements of operations and comprehensive income were $144 and $135, respectively. Unearned government subsidies received are deferred for recognition and recorded as other long-term liabilities (note 9) in the balance sheet until the criteria for such recognition are satisfied. |
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, and FASB ASC Subtopic 505-50, Equity-Based Payments to Non-Employees. Stock-based awards granted to employees 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. Stock-based compensation expense, when recognized, is charged to the category of operating expense corresponding to the employee’s service function. Stock-based awards granted to non-employees are accounted for at the fair value of the awards at the earlier of (a) the date at which a commitment for performance by the non-employee to earn the awards is reached and (b) the date at which the non-employee’s performance is complete. The fair value of such non-employee awards is re-measured at each reporting date using the fair value at each period end until the vesting date. Changes in fair value between the reporting dates are recognized by the graded vesting method. |
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 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. Three customers individually accounted for greater than ten percent of the Company’s revenue for the year ended 2018 and two of those customers individually accounted for greater than ten percent of the Company’s revenue in 2017: Year Ended December 31 2018 2017 Customer A 24.17 % * Customer B 23.83 18.10 Customer C * 12.77 Customer D * 14.12 Customer E 39.63 10.23 * Customer accounted for less than 10% of revenue in the period. Interest Rate Risk As of December 31, 2018 and 2017, the balance of bank borrowings (note 6) was short-term in nature, matured at various dates within the following year and did not expose the Company to interest rate risk. Liquidity Risk The Company’s working capital at December 31, 2018 and 2017 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 Chinese 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 Chinese 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. Because 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 transactions are included in the consolidated statements of operations and comprehensive income. Total exchange gain (loss) was ($979) and $1,052 for the years ended December 31, 2018 and 2017. 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: Consolidated balance sheets: At December 31, 2018 RMB 6.8634 to $1.00 At December 31, 2017 RMB 6.5359 to $1.00 At December 31, 2018 KRW 1,114.83 to $1.00 At December 31, 2017 No transactions in Korean Won Consolidated statements of operations and comprehensive income: Year ended December 31, 2018 RMB 6.6181 to $1.00 Year ended December 31, 2017 RMB 6.7522 to $1.00 Year ended December 31, 2018 KRW 1,100.11 to $1.00 Year ended December 31, 2017 No transactions in Korean Won |
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 (Loss) per Common Share | Basic and diluted net income (loss) per common share is calculated as follows: For the Year Ended December 31 2018 2017 Numerator: Net income (loss) $ 6,574 $ (872 ) Net loss attributable to non-controlling interest - (554 ) Net income (loss) attributable to ACM, basic and diluted 6,574 $ (318 ) Denominator: Weighted average shares outstanding, basic 15,788,460 6,865,390 Effect of dilutive securities 2,123,645 - Weighted average shares outstanding, diluted 17,912,105 6,865,390 Net income (loss) attributable to ACM per common share: Basic $ 0.42 $ (0.05 ) Diluted $ 0.37 $ (0.05 ) Basic and diluted net income (loss) 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 (loss) 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. Shares of ACM’s Series A, B, C, D, E and F convertible preferred stock are participating securities, as the holders are entitled to participate in and receive the same dividends as may be declared for common stockholders on a pro-rata, if-converted basis. 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, 2018 and 2017, the net income (loss) 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 (loss) and in the above computation of net income (loss) per common share. Diluted net income (loss) per common share reflects the potential dilution from securities that could share in ACM’s earnings. All potential dilutive securities, including potentially dilutive convertible preferred stocks and stock options, if any, were excluded from the computation of dilutive net loss per common share for the years ended December 31, 2018 and 2017, as their effects are antidilutive due to our net loss for those periods. The potentially dilutive securities that were not included in the calculation of diluted net income per share in the periods presented where their inclusion would be anti-dilutive are as follows: Year Ended December 31 2018 2017 Stock options 3,715,779 3,372,292 Warrant 80,000 477,502 3,795,779 3,849,794 |
Comprehensive Income (Loss) Attributable to the Company | The Company applies FASB ASC Topic 220, Comprehensive Income, which establishes standards for the reporting and display of comprehensive income or loss, requiring its components to be reported in a financial statement with the same prominence as other financial statements. The comprehensive income (loss) attributable to the Company was $5,595 and $(31) for the years ended December 31, 2018 and 2017, respectively. |
Appropriated Retained Earnings | 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. No retained earnings of either PRC subsidiary had been appropriated to statutory surplus reserves as the PRC subsidiaries recorded accumulated losses as of December 31, 2018 and 2017. |
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 Short-term borrowings Warrant liability Other financial items for disclosure purpose As of December 31, 2018 and 2017, information about inputs into the fair value measurement of the Company’s liabilities that are measured and recorded at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) As of December 31, 2018: Liabilities: Short-term borrowings $ - $ 9,447 $ - $ 9,447 $ - $ 9,447 $ - $ 9,447 As of December 31, 2017: Liabilities: Short-term borrowings $ - $ 5,095 $ - $ 5,095 Warrant liability - - 3,079 3,079 $ - $ 5,095 $ 3,079 $ 8,174 Fair Value Measured on a Non-Recurring Basis The Company reviews long-lived assets for impairment annually or more frequently if events or changes in circumstances indicate the possibility of impairment. Long-lived assets are measured at fair value on a nonrecurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. In determining the fair value, the Company used projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the assets. This approach required significant judgments including the Company’s projected net cash flows, which were derived using the most recent available estimate for the reporting unit containing the assets tested. Several key assumptions included periods of operation, projections of product pricing, production levels, product costs, market supply and demand, and inflation. |
Reclassification of Accounts | Certain prior year’s amounts have been reclassified to conform to current year presentations. There was no change to previously reported stockholders’ deficit or net income. |
Recent Accounting Pronouncements | In May 2017, the Financial Accounting Standards Board Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”), which clarifies the scope of nonfinancial asset guidance in Subtopic 610-20. This ASU also clarifies that derecognition of all businesses and nonprofit activities (except those related to conveyances of oil and gas mineral rights or contracts with customers) should be accounted for in accordance with the derecognition and deconsolidation guidance in Subtopic 810-10. The amendments in this ASU also provide guidance on the accounting for so-called “partial sales” of nonfinancial assets within the scope of Subtopic 610-20 and contributions of nonfinancial assets to a joint venture or other noncontrolled investee. The amendments in this ASU are effective for annual reporting reports beginning after December 15, 2017, including interim reporting periods within that reporting period. The adoption of ASU 2017-05 did not have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) On January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers, Recent Accounting Pronouncements Not Yet Adopted In June 2018, the FASB issued ASU 2018-07, Compensation — Stock Compensation (Topic 718) — Improvements to Nonemployee Share-Based Payment Accounting In February 2018, the FASB issued ASU No. 2018-02 which provides financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The amendments in ASU 2018-02 are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of ASU 2018-02 is permitted, including adoption in any interim period for the public business entities for reporting periods for which financial statements have not yet been issued. The amendments in ASU 2018-02 should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not expect the adoption of ASU 2018-02 to have a material impact on its consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (“ASU 2017-11”), which addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. For public business entities, the amendments in Part I of ASU 2017-11 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of ASU 2017-11 are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is evaluating the impact of the adoption of ASU 2017-11 on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases Leases |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Property, plant, and equipment, net | Computer and office equipment 3 to 5 years Furniture and fixtures 5 years Leasehold improvements shorter of lease term or estimated useful life Manufacturing equipment for small to medium-sized equipment, 5 years; for large equipment, estimated by purchasing department at time of acceptance Furniture and fixtures 5 years Transportation equipment 4 to 5 years Electronic equipment 3 years Leasehold improvements remaining lease term for improvements on leased fixed assets or, for large improvements, estimated useful life; not less than 3 years for non-fixed asset repairs |
Warranty obligations | Year Ended December 31, 2018 2017 Balance at beginning of period $ 839 $ 290 Additions 1,412 736 Utilized (541 ) (187 ) Balance at end of period $ 1,710 $ 839 |
Concentration of credit risks | Year Ended December 31 2018 2017 Customer A 24.17 % * Customer B 23.83 18.10 Customer C * 12.77 Customer D * 14.12 Customer E 39.63 10.23 * Customer accounted for less than 10% of revenue in the period. |
Foreign Currency Risk and Translation | Consolidated balance sheets: At December 31, 2018 RMB 6.8634 to $1.00 At December 31, 2017 RMB 6.5359 to $1.00 At December 31, 2018 KRW 1,114.83 to $1.00 At December 31, 2017 No transactions in Korean Won Consolidated statements of operations and comprehensive income: Year ended December 31, 2018 RMB 6.6181 to $1.00 Year ended December 31, 2017 RMB 6.7522 to $1.00 Year ended December 31, 2018 KRW 1,100.11 to $1.00 Year ended December 31, 2017 No transactions in Korean Won |
Calculation of Basic and Diluted Net Income (Loss) per Common Share | For the Year Ended December 31 2018 2017 Numerator: Net income (loss) $ 6,574 $ (872 ) Net loss attributable to non-controlling interest - (554 ) Net income (loss) attributable to ACM, basic and diluted 6,574 $ (318 ) Denominator: Weighted average shares outstanding, basic 15,788,460 6,865,390 Effect of dilutive securities 2,123,645 - Weighted average shares outstanding, diluted 17,912,105 6,865,390 Net income (loss) attributable to ACM per common share: Basic $ 0.42 $ (0.05 ) Diluted $ 0.37 $ (0.05 ) |
Antidilutive securities | Year Ended December 31 2018 2017 Stock options 3,715,779 3,372,292 Warrant 80,000 477,502 3,795,779 3,849,794 |
Fair Value Measured or Disclosed on a Recurring Basis | Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) As of December 31, 2018: Liabilities: Short-term borrowings $ - $ 9,447 $ - $ 9,447 $ - $ 9,447 $ - $ 9,447 As of December 31, 2017: Liabilities: Short-term borrowings $ - $ 5,095 $ - $ 5,095 Warrant liability - - 3,079 3,079 $ - $ 5,095 $ 3,079 $ 8,174 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | December 31, 2018 2017 Accounts receivable $ 24,608 $ 26,762 Less: Allowance for doubtful accounts - Total $ 24,608 $ 26,762 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | December 31, 2018 2017 Raw materials $ 12,646 $ 6,181 Work in process 9,631 4,328 Finished goods 16,487 4,879 Total inventory, gross 38,764 15,388 Inventory reserve - - Total inventory, net $ 38,764 $ 15,388 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | December 31, 2018 2017 Manufacturing equipment $ 9,703 $ 9,660 Office equipment 512 463 Transportation equipment 184 203 Leasehold improvement 1,379 277 Total cost 11,778 10,603 Less: Total accumulated depreciation (8,102 ) (8,263 ) Construction in progress 32 - Total property, plant and equipment, net $ 3,708 $ 2,340 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-term borrowing | December 31, 2018 2017 Line of credit up to RMB 30,000 from Bank of China Pudong Branch, due on March 5, 2018 with annual interest rate of 5.69%, secured by certain of the Company’s intellectual property and fully repaid on March 5, 2018 . $ - $ 2,219 Line of credit up to RMB 25,000 from Bank of Shanghai Pudong Branch, due on Various dates of October 2018 with an annual interest rate of 5.66%, guaranteed by the Company’s CEO and fully repaid on May 8, 2018. - 2,111 Line of credit up to RMB 50,000 from Bank of Shanghai Pudong Branch, due on April 17, 2019 with an annual interest rate of 4.99%, guaranteed by the Company’s CEO. 3,133 - Line of credit up to RMB 50,000 from Bank of Shanghai Pudong Branch, due on February 14, 2019 with an annual interest rate of 5.15%, guaranteed by the Company’s CEO. 485 - Line of credit up to RMB 5,000 from Shanghai Rural Commercial Bank, due on November 21, 2018 with an annual interest rate of 5.44%, guaranteed by the Company’s CEO and pledged by accounts receivable (Note 3). - 765 Line of credit up to RMB 10,000 from Shanghai Rural Commercial Bank, due on January 23, 2019 with an annual interest rate of 5.44%, guaranteed by the Company’s CEO and pledged by accounts receivable (Note 3). 1,457 - Line of credit up to RMB 30,000 from Bank of China Pudong Branch, due on June 6, 2019 with annual interest rate of 5.22%, secured by certain of the Company’s intellectual property and the Company’s CEO. 2,186 - Line of credit up to RMB 30,000 from Bank of China Pudong Branch, due on June 13, 2019 with annual interest rate of 5.22%, secured by certain of the Company’s intellectual property and the Company’s CEO. 2,186 Total $ 9,447 $ 5,095 |
Other Payable and Accrued Exp_2
Other Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Other payable and accrued expenses | December 31, 2018 2017 Lease expenses and payable for leasehold improvement due to a related party (note 11) $ 53 $ 2,024 Accrued commissions 2,931 836 Accrued warranty 1,710 839 Accrued payroll 626 745 Accrued professional fees 64 60 Accrued machine testing fees 3,076 684 Others 1,950 849 Total $ 10,410 $ 6,037 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other long-term liabilities | December 31 2018 2017 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 1,483 $ 1,952 Subsidies to Electro Copper Plating project, commenced in 2014 2,860 4,265 Subsidies to Polytetrafluoroethylene, commenced in 2018 178 - Other 62 - Total $ 4,583 $ 6,217 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Summary of Future Minimum Lease Payments under Non-cancelable Lease Agreements | December 31, 2018 2019 $ 1,391 2020 1,371 2021 1,403 2022 1,441 Total $ 5,606 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee Stock Option [Member] | |
Summary of Share Option Activities | Number of Option Shares Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2016 2,100,377 $ 0.54 $ 2.03 7.83 years Granted 140,002 2.28 6.75 Exercised (174,334 ) 0.45 0.75 Expired (3,752 ) 0.54 3.00 Forfeited (16,677 ) 0.54 3.00 Outstanding at December 31, 2017 2,045,616 0.66 2.46 7.57 years Granted 745,700 1.52 8.12 Exercised (151,650 ) 0.53 2.06 Expired (4,622 ) 0.55 3.00 Forfeited (131,639 ) 0.97 3.87 Outstanding at December 31, 2018 2,503,405 0.91 4.09 7.30 years Vested and exercisable at December 31, 2018 1,327,189 |
Summary of Assumptions used to Determine Fair Value of Share Options Granted | December 31, 2018 2017 Fair value of common share(1) $5.31-13.85 $5.60-7.59 Expected term in years(2) 6.25 6.25 Volatility(3) 39.14% -43.00% 28.62% -29.18% Risk-free interest rate(4) 2.55%-2.96% 2.21%-2.22% Expected dividend(5) 0% 0% |
Non Employee Awards [Member] | |
Summary of Share Option Activities | Number of Option Shares Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2016 1,578,565 $ 0.51 $ 1.58 6.81 years Granted 196,669 2.25 6.90 Exercised (298,555 ) 0.39 0.93 Expired (133,336 ) 0.45 0.75 Forfeited (16,667 ) 2.58 7.50 Outstanding at December 31, 2017 1,326,676 0.78 2.52 7.54 years Granted - - - - Exercised (114,302 ) 0.43 1.92 - Expired - - - - Forfeited - - - - Outstanding at December 31, 2018 1,212,374 $ 0.78 2.57 6.66 years Vested and exercisable at December 31, 2018 946,691 |
Summary of Assumptions used to Determine Fair Value of Share Options Granted | December 31, 2018 2017 Fair value of common share(1) $10.88 $5.25-7.59 Expected term in years(2) 2.58-5.36 3.58-6.25 Volatility(3) 40.24%-45.48% 28.71-29.41 % Risk-free interest rate(4) 2.39%-2.94% 1.62%-2.43 % Expected dividend(5) 0% 0% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes Tables Abstract | |
Components of the income tax benefit (expense) | Year Ended December 31, 2018 2017 Current: U.S. federal $ - $ - U.S. state - - Foreign (1,149 ) - Total current tax expense (1,149 ) - Deferred: U.S. federal - - U.S. state - - Foreign 343 (547 ) Total deferred tax income (expense) 343 (547 ) Total income tax expense $ (806 ) $ (547 ) |
Deferred tax assets | December 31, 2018 2017 Deferred tax assets: Net operating loss carry forwards (offshore) $ 16 $ 4,418 Net operating loss carry forwards (U.S.) and credit 4,105 683 Deferred revenue (offshore) 558 656 Accruals (U.S.) 11 18 Reserves and other (offshore) 1,080 495 Stock-based compensation (U.S.) 1,021 453 Property and equipment (U.S.) 1 2 Total gross deferred tax assets 6,792 6,725 Less: valuation allowance (5,155 ) (5,431 ) Total deferred tax assets 1,637 1,294 Total deferred tax liabilities - - Translation difference - - Deferred tax assets, net $ 1,637 $ 1,294 |
Income tax rate | Year Ended December 31, 2018 2017 Effective tax rate reconciliation: Income tax provision at statutory rate 21.00 % 34.00 % State taxes, net of Federal benefit - - Foreign rate differential (20.88 ) 6.80 Other permanent difference 15.59 197.7 Effect of tax reform - (757 ) Change in valuation allowance (4.78 ) 349.9 Total income tax expense (benefit) (10.93 %) (168.65 %) |
Aggregate changes in the balance of gross unrecognized tax benefits | December 31, 2018 2017 Beginning balance $ 44 $ 44 Increase/(Decrease) of unrecognized tax benefits taken in prior years - - Increase/(Decrease) of unrecognized tax benefits related to current year - - Increase/(Decreases) of unrecognized tax benefits related to settlements - - Reductions to unrecognized tax benefits related to lapsing statute of limitations - - Ending balance $ 44 $ 44 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Parent Company Only Condensed Financial Information Tables Abstract | |
Condensed balance sheet | December 31, 2018 2017 Assets Current assets: Cash and cash equivalents $ 13,161 $ 10,874 Accounts Receivable 983 118 Inventory 720 565 Due from intercompany 14,494 12,669 Other receivable 175 50 Total current assets 29,533 24,276 Investment in unconsolidated subsidiaries 26,861 15,476 Due from related party - 946 Total assets 56,394 40,698 Liabilities and Stockholders’ Equity Notes payable - 11 Accounts payable 2,818 739 Other payable 58 47 Income taxes payable 1,193 44 Total liabilities 4,069 841 Total redeemable convertible preferred stocks - - Total stockholders’ equity 52,325 39,857 Total liabilities and stockholders’ equity $ 56,394 $ 40,698 |
Condensed statement of operations | Year Ended December 31, 2018 2017 Revenue $ 25,506 $ 6,985 Cost of revenue (23,927 ) (6,394 ) Gross profit 1,579 591 Operating expenses: Sales and marketing expenses (301 ) (368 ) General and administrative expenses (5,083 ) (3,961 ) Research and development expenses (255 ) (50 ) Loss from operations (4,060 ) (3,788 ) Equity in earnings of unconsolidated subsidiaries 10,360 3,475 Other income (expense), net 108 - Interest expense, net 166 (5 ) Income (loss) before income taxes 6,574 (318 ) Income tax expense (benefit) - - Net income (loss) $ 6,574 $ (318 ) |
Condensed statement of cash flows | Year Ended December 31, 2018 2017 Net cash used in operating activities $ (1,189 ) $ (13,848 ) Net cash provided by (used in) investing activities 946 (21,754 ) Net cash provided by financing activities 3,510 38,676 Net increase in cash and cash equivalents 3,267 3,074 Cash and cash equivalents, beginning of year 10,874 7,264 Effect of exchange rate changes on cash and cash equivalents (980 ) 536 Cash and cash equivalents, end of year $ 13,161 $ 10,874 |
Description of Business (Detail
Description of Business (Details Narrative) | Dec. 31, 2017 |
ACM Shanghai [Member] | |
Outstanding equity interest | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Computer and office equipment [Member] | |
Useful lives | 3 to 5 years |
Computer and office equipment [Member] | ACM Subsidiaries | |
Useful lives | for small to medium-sized equipment, 5 years; for large equipment, estimated by purchasing department at time of acceptance |
Furniture and fixtures | |
Useful lives | 5 years |
Furniture and fixtures | ACM Subsidiaries | |
Useful lives | 5 years |
Leasehold improvements | |
Useful lives | shorter of lease term or estimated useful life |
Leasehold improvements | ACM Subsidiaries | |
Useful lives | remaining lease term for improvements on leased fixed assets or, for large improvements, estimated useful life; not less than 3 years for non-fixed asset repairs |
Transportation equipment | ACM Subsidiaries | |
Useful lives | 4 to 5 years |
Electronic equipment | ACM Subsidiaries | |
Useful lives | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies | ||
Beginning | $ 839 | $ 290 |
Additions | 1,412 | 736 |
Utilized | (541) | (187) |
Ending | $ 1,710 | $ 839 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A | ||
Concentration of credit risk | 24.17% | 0.00% |
Customer B | ||
Concentration of credit risk | 23.83% | 18.10% |
Customer C | ||
Concentration of credit risk | 0.00% | 12.77% |
Customer D | ||
Concentration of credit risk | 0.00% | 14.12% |
Customer E | ||
Concentration of credit risk | 39.63% | 10.23% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details 3) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Balance Sheets | ||
Gain loss on foreign currency transaction | RMB 6.8634 to $1.00 | RMB 6.5359 to $1.00 |
Consolidated Statements of Operations and Comrpehensive Income | ||
Gain loss on foreign currency transaction | RMB 6.6181 to $1.00 | RMB 6.7522 to $1.00 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details 4) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | ||
Net income (loss) | $ 6,574 | $ (872) |
Net income (loss) attributable to non-controlling interest | 0 | (554) |
Net income (loss) available to common stockholders, basic and diluted | $ 6,574 | $ (318) |
Denominator: | ||
Weighted average shares outstanding, basic | 15,788,460 | 6,865,390 |
Effect of dilutive securities | 2,123,645 | 0 |
Weighted average shares outstanding, diluted | 17,912,105 | 6,865,390 |
Net income (loss) per common share: | ||
Basic | $ 0.42 | $ (0.05) |
Diluted | $ 0.37 | $ (0.05) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details 5) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive securities | 3,795,779 | 3,849,794 |
Stock Options | ||
Antidilutive securities | 3,715,779 | 3,372,292 |
Warrants | ||
Antidilutive securities | 80,000 | 477,502 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details 6) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities: | ||
Short-term borrowings | $ 9,447 | $ 5,095 |
Warrant liability | 0 | 3,079 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total | 9,447 | 8,174 |
Fair Value, Inputs, Level 1 [Member] | ||
Liabilities: | ||
Short-term borrowings | 0 | 0 |
Warrant liability | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Liabilities: | ||
Short-term borrowings | 9,447 | 5,095 |
Warrant liability | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total | 9,447 | 5,095 |
Fair Value, Inputs, Level 3 [Member] | ||
Liabilities: | ||
Short-term borrowings | 0 | 0 |
Warrant liability | 0 | 3,079 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total | $ 0 | $ 3,079 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Shipping and handling charged to Selling and marketing expenses | $ 146 | $ 139 |
Other Shipping and handling charged to Selling and marketing expenses | $ 144 | $ 135 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Accounts receivable | $ 24,608 | $ 26,762 |
Less: Allowance for doubtful accounts | 0 | 0 |
Total | $ 24,608 | $ 26,762 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Accounts receivable were pledged as collateral for borrowings | $ 1,457 | $ 1,805 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 12,646 | $ 6,181 |
Work in process | 9,631 | 4,328 |
Finished goods | 16,487 | 4,879 |
Total inventory, gross | 38,764 | 15,388 |
Inventory reserve | 0 | 0 |
Total inventory, net | $ 38,764 | $ 15,388 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventory reserve | $ 0 | $ 0 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total cost | $ 11,778 | $ 10,603 |
Less: Total accumulated depreciation | (8,102) | (8,263) |
Construction in progress | 32 | 0 |
Total property, plant and equipment, net | 3,708 | 2,340 |
Tools, Dies and Molds [Member] | ||
Total cost | 9,703 | 9,660 |
Total property, plant and equipment, net | 9,660 | |
Office Equipment [Member] | ||
Total cost | 512 | 463 |
Total property, plant and equipment, net | 463 | |
Transportation Equipment [Member] | ||
Total cost | 184 | 203 |
Total property, plant and equipment, net | 203 | |
Leasehold Improvements [Member] | ||
Total cost | $ 1,379 | 277 |
Total property, plant and equipment, net | $ 277 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment Capitalized Interest Costs [Abstract] | ||
Depreciation expense | $ 350 | $ 243 |
Short-Term Borrowing (Details)
Short-Term Borrowing (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term borrowings | $ 9,447 | $ 5,095 |
Borrowings One | ||
Short-term borrowings | 0 | 2,219 |
Borrowings Two | ||
Short-term borrowings | 0 | 2,111 |
Borrowings Three | ||
Short-term borrowings | 3,133 | 0 |
Line of Credit One | ||
Short-term borrowings | 485 | 0 |
Line of Credit Two | ||
Short-term borrowings | 0 | 765 |
Line of Credit Three | ||
Short-term borrowings | 1,457 | 0 |
Line of Credit Four | ||
Short-term borrowings | 2,186 | 0 |
Line of Credit Five | ||
Short-term borrowings | $ 2,186 | $ 0 |
Short-Term Borrowings (Details
Short-Term Borrowings (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Interest expense related to short-term borrowings | $ 498 | $ 272 |
Other Payable and Accrued Exp_3
Other Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | |||
Lease expenses and payable for leasehold improvement due to a related party (note 11) | $ 53 | $ 2,024 | |
Commissions | 2,931 | 836 | |
Accrued warranty | 1,710 | 839 | $ 290 |
Accrued payroll | 626 | 745 | |
Accrued professional fees | 64 | 60 | |
Accrued machine testing fee | 3,076 | 684 | |
Others | 1,950 | 849 | |
Total | $ 10,410 | $ 6,037 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other long-term liabilities | $ 4,583 | $ 6,217 |
Subsidies to Stress Free Polishing project [Member] | ||
Other long-term liabilities | 1,483 | 1,952 |
Subsidies to Electro Copper Plating project [Member] | ||
Other long-term liabilities | 2,860 | 4,265 |
Subsidies to Polytetrafluoroethylene [Member] | ||
Other long-term liabilities | 178 | 0 |
Other [Member] | ||
Other long-term liabilities | $ 62 | $ 0 |
Equity Method Investment (Detai
Equity Method Investment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Post-closing equity purchase price | $ 0 | $ 1,200 |
Ninebell [Member] | ||
Undistributed earnings attributable to ACM's equity method investment | $ 123 | $ 37 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts payable-related party | $ 1,477 | $ 2,118 |
Operating Lease Agreement [Member] | Shanghai Zhangjiang Group Co., Ltd. [Member] | ||
Leasing expense under lease agreement | 620 | 638 |
Lease expenses and payable for leasehold improvement due to a related party | $ 53 | $ 2,024 |
Leases (Details)
Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2019 | $ 1,391 |
2020 | 1,371 |
2021 | 1,403 |
2022 | 1,441 |
Total | $ 5,606 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | ||
Rent expense | $ 1,867 | $ 670 |
Rent expense | $ 1,867 | $ 670 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common Class A [Member] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 14,110,315 | 12,935,546 |
Common stock, shares outstanding | 14,110,315 | 12,935,546 |
Common Class B [Member] | ||
Common stock, shares authorized | 7,303,533 | 7,303,533 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 1,898,423 | 2,409,738 |
Common stock, shares outstanding | 1,898,423 | 2,409,738 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Option [Member] | ||
Number of Option Shares, Outstanding, Beginning balance | 2,045,616 | 2,100,377 |
Number of Option Shares, Outstanding, Granted | 745,700 | 140,002 |
Number of Option Shares, Outstanding, Exercised | (151,650) | (174,334) |
Number of Option Shares, Outstanding, Expired | (4,622) | (3,752) |
Number of Option Shares, Outstanding, Forfeited | (131,639) | (16,677) |
Number of Option Shares, Outstanding, Ending balance | 2,503,405 | 2,045,616 |
Vested and exercisable | 1,327,189 | |
Weighted Average Grant Date Fair Value, Outstanding, Beginning balance | $ 0.66 | $ 0.54 |
Weighted Average Grant Date Fair Value, Granted | 1.52 | 2.28 |
Weighted Average Grant Date Fair Value, Exercised | 0.53 | 0.45 |
Weighted Average Grant Date Fair Value, Expired | 0.55 | 0.54 |
Weighted Average Grant Date Fair Value, Forfeited | 0.97 | 0.54 |
Weighted Average Grant Date Fair Value, Outstanding, Ending balance | 0.91 | 0.66 |
Weighted Average Exercise Price, Outstanding, Beginning balance | 2.46 | 2.03 |
Weighted Average Exercise Price, Granted | 8.12 | 6.75 |
Weighted Average Exercise Price, Exercised | 2.06 | 0.75 |
Weighted Average Exercise Price, Expired | 3 | 3 |
Weighted Average Exercise Price, Forfeited | 3.87 | 3 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ 4.09 | $ 2.46 |
Weighted Average Remaining Contractual Term, Outstanding | 7 years 3 months 18 days | 7 years 6 months 25 days |
Non Employee Awards [Member] | ||
Number of Option Shares, Outstanding, Beginning balance | 1,326,676 | 1,578,565 |
Number of Option Shares, Outstanding, Granted | 0 | 196,669 |
Number of Option Shares, Outstanding, Exercised | (114,302) | (298,555) |
Number of Option Shares, Outstanding, Expired | 0 | (133,336) |
Number of Option Shares, Outstanding, Forfeited | 0 | (16,667) |
Number of Option Shares, Outstanding, Ending balance | 1,212,374 | 1,326,676 |
Vested and exercisable | 946,691 | |
Weighted Average Grant Date Fair Value, Outstanding, Beginning balance | $ 0.78 | $ 0.51 |
Weighted Average Grant Date Fair Value, Granted | 0 | 2.25 |
Weighted Average Grant Date Fair Value, Exercised | 0.43 | 0.39 |
Weighted Average Grant Date Fair Value, Expired | 0 | 0.45 |
Weighted Average Grant Date Fair Value, Forfeited | 0 | 2.58 |
Weighted Average Grant Date Fair Value, Outstanding, Ending balance | 0.78 | 0.78 |
Weighted Average Exercise Price, Outstanding, Beginning balance | 2.52 | 1.58 |
Weighted Average Exercise Price, Granted | 0 | 6.90 |
Weighted Average Exercise Price, Exercised | 1.92 | 0.93 |
Weighted Average Exercise Price, Expired | 0 | 0.75 |
Weighted Average Exercise Price, Forfeited | 0 | 7.5 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ 2.57 | $ 2.52 |
Weighted Average Remaining Contractual Term, Outstanding | 6 years 7 months 28 days | 7 years 6 months 14 days |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Option [Member] | ||
Expected term in years | 6 years 3 months | 6 years 3 months |
Expected dividend | 0.00% | 0.00% |
Employee Stock Option [Member] | Minimum [Member] | ||
Fair value of common share | $ 5.31 | $ 5.60 |
Volatility | 39.14% | 28.62% |
Risk-free interest rate | 2.55% | 2.21% |
Employee Stock Option [Member] | Maximum [Member] | ||
Fair value of common share | $ 13.85 | $ 7.59 |
Volatility | 43.00% | 29.18% |
Risk-free interest rate | 2.96% | 2.22% |
Non Employee Awards [Member] | ||
Fair value of common share | $ 10.88 | |
Expected dividend | 0.00% | |
Non Employee Awards [Member] | Minimum [Member] | ||
Fair value of common share | $ 5.25 | |
Expected term in years | 2 years 6 months 29 days | 3 years 6 months 29 days |
Volatility | 40.24% | 28.71% |
Risk-free interest rate | 2.39% | 1.62% |
Expected dividend | 0.00% | |
Non Employee Awards [Member] | Maximum [Member] | ||
Fair value of common share | $ 7.59 | |
Expected term in years | 5 years 4 months 10 days | 6 years 3 months |
Volatility | 45.48% | 29.41% |
Risk-free interest rate | 2.94% | 2.43% |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Non Employee Awards [Member] | ||
Stock-based compensation expense | $ 2,651 | $ 1,351 |
Number of options granted | 0 | 196,669 |
Employee Stock Option [Member] | ||
Stock-based compensation expense | $ 712 | $ 271 |
Unrecognized employee stock-based compensation expense, net of estimated forfeitures | $ 2,424 | $ 729 |
Weighted-average period over which unrecognized compensation is expected to be recognized | 1 year 7 months 13 days | 1 year 9 months 7 days |
Number of options granted | 745,700 | 140,002 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | ||
U.S. federal | $ 0 | $ 0 |
U.S. state | 0 | 0 |
Foreign | (1,149) | 0 |
Total current tax expense | (1,149) | 0 |
Deferred: | ||
U.S. federal | 0 | 0 |
U.S. state | 0 | 0 |
Foreign | 343 | (547) |
Total deferred tax expense | 343 | (547) |
Total income tax expense | $ (806) | $ (547) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carry forwards (offshore) | $ 16 | $ 4,418 |
Net operating loss carry forwards (U.S.) and credit | 4,105 | 683 |
Deferred revenue (offshore) | 558 | 656 |
Accruals (U.S.) | 11 | 18 |
Reserves and other (offshore) | 1,080 | 495 |
Stock-based compensation (U.S.) | 1,021 | 453 |
Property and equipment (U.S.) | 1 | 2 |
Total gross deferred tax assets | 6,792 | 6,725 |
Less: valuation allowance | (5,155) | (5,431) |
Total deferred tax assets | 1,637 | 1,294 |
Total deferred tax liabilities | 0 | 0 |
Translation difference | 0 | 0 |
Deferred tax assets, net | $ 1,637 | $ 1,294 |
Income Taxes (Details 2)
Income Taxes (Details 2) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Effective tax rate reconciliation: | ||
Income tax provision at statutory rate | 21.00% | 34.00% |
State taxes, net of Federal benefit | 0.00% | 0.00% |
Foreign rate differential | (20.88%) | 6.80% |
Other permanent difference | 15.59% | 197.70% |
Effect of Tax Reform | 0.00% | (757.00%) |
Change in valuation allowance | (4.78%) | 349.90% |
Total income tax (expense) benefit | (10.93%) | (168.60%) |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes Details 3Abstract | ||
Beginning balance | $ 44 | $ 44 |
Increase/(Decrease) of unrecognized tax benefits taken in prior years | 0 | 0 |
Increase/(Decrease) of unrecognized tax benefits related to current year | 0 | 0 |
Increase/(Decreases) of unrecognized tax benefits related to settlements | 0 | 0 |
Reductions to unrecognized tax benefits related to lapsing statute of limitations | 0 | 0 |
Ending balance | $ 1,193 | $ 44 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Statutory U.S federal income tax rate | 21.00% | 34.00% |
Statutory Chinese income tax rate | (20.88%) | 6.80% |
Income tax provision (benefit) | $ 806 | $ 547 |
Unrecognized tax benefits | $ 44 | $ 44 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental expenses | $ 1,867 | $ 670 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | |||
Cash and cash equivalents | $ 27,124 | $ 17,681 | $ 10,119 |
Accounts Receivable | 24,608 | 26,762 | |
Inventory | 38,764 | 15,388 | |
Total current assets | 96,028 | 62,914 | |
Total assets | 103,047 | 67,891 | |
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity | |||
Total liabilities | 50,723 | 28,034 | |
Total stockholders’ equity | 52,324 | 39,857 | |
Total liabilities, redeemable convertible preferred stock and stockholders’ equity | 103,047 | 67,891 | |
Parent | |||
Current assets: | |||
Cash and cash equivalents | 13,161 | 10,874 | $ 7,264 |
Accounts Receivable | 983 | 118 | |
Inventory | 720 | 565 | |
Due from intercompany | 14,494 | 12,669 | |
Other receivable | 175 | 50 | |
Total current assets | 29,533 | 24,276 | |
Investment in unconsolidated subsidiaries | 26,861 | 15,476 | |
Due from related party | 0 | 946 | |
Total assets | 56,394 | 40,698 | |
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity | |||
Notes payable | 0 | 11 | |
Accounts payable | 2,818 | 739 | |
Other payable | 58 | 47 | |
Income taxes payable | 1,193 | 44 | |
Total liabilities | 4,069 | 841 | |
Total redeemable convertible preferred stocks | 0 | 0 | |
Total stockholders’ equity | 52,325 | 39,857 | |
Total liabilities, redeemable convertible preferred stock and stockholders’ equity | $ 56,394 | $ 40,698 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 74,643 | $ 36,506 |
Cost of revenue | 40,194 | 19,281 |
Gross profit | 34,449 | 17,225 |
Operating expenses: | ||
General and administrative expenses | 7,987 | 5,887 |
Research and development expenses | 10,380 | 5,138 |
Other income (expense), net | 1,255 | (794) |
Interest expense, net | 498 | 277 |
Income (loss) before income taxes | 7,380 | (325) |
Income tax expense (benefit) | 806 | 547 |
Net income (loss) | 6,574 | (318) |
Parent | ||
Revenue | 25,506 | 6,985 |
Cost of revenue | (23,927) | (6,394) |
Gross profit | 1,579 | 591 |
Operating expenses: | ||
Sales and marketing expenses | (301) | (368) |
General and administrative expenses | (5,083) | (3,961) |
Research and development expenses | (255) | (50) |
Loss from operations | (4,060) | (3,788) |
Equity in earnings of unconsolidated subsidiaries | 10,360 | 3,475 |
Other income (expense), net | 108 | 0 |
Interest expense, net | 166 | (5) |
Income (loss) before income taxes | 6,574 | (318) |
Income tax expense (benefit) | 0 | 0 |
Net income (loss) | $ 6,574 | $ (318) |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net increase in cash and cash equivalents | $ 9,443 | $ 7,562 |
Cash and cash equivalents at beginning of period | 17,681 | 10,119 |
Effect of exchange rate changes on cash and cash equivalents | (518) | 663 |
Cash and cash equivalents at end of period | 27,124 | 17,681 |
Parent | ||
Net cash used in operating activities | (1,189) | (13,848) |
Net cash used in investing activities | 946 | (21,754) |
Net cash provided by financing activities | 3,510 | 38,676 |
Net increase in cash and cash equivalents | 3,267 | 3,074 |
Cash and cash equivalents at beginning of period | 10,874 | 7,264 |
Effect of exchange rate changes on cash and cash equivalents | (980) | 536 |
Cash and cash equivalents at end of period | $ 13,161 | $ 10,874 |