ACM Research (ACMR) 10-Q 14 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 09, 2019
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
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 Ex Transition Period	true
Entity Small Business	true
Entity Current Reporting Status	Yes
Common Class A [Member]
Entity Common Stock, Shares Outstanding		14,196,966
Common Class B [Member]
Entity Common Stock, Shares Outstanding		1,895,090

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 27,367	$ 27,124
Accounts receivable, less allowance for doubtful accounts of $0 as of March 31, 2019 and $0 as of December 31, 2018 (note 3)	25,070	24,608
Other receivables	2,982	3,547
Inventories (note 4)	42,253	38,764
Prepaid expenses	1,833	1,985
Total current assets	99,505	96,028
Property, plant and equipment, net (note 5)	3,719	3,708
Operating lease right-of-use assets, net (note 8)	4,787	0
Intangible assets, net	263	274
Deferred tax assets (note 15)	1,669	1,637
Investment in affiliates, equity method (note 10)	1,476	1,360
Other long-term assets	0	40
Total assets	111,419	103,047
Current liabilities:
Short-term borrowings (note 6)	12,829	9,447
Accounts payable	13,333	16,673
Advances from customers	8,469	8,417
Income tax payable	1,228	1,193
Other payables and accrued expenses (note 7)	11,834	10,410
Current portion of operating lease liability (note 8)	1,326	0
Total current liabilities	49,019	46,140
Long-term operating lease liability (note 8)	3,462	0
Other long-term liabilities (note 9)	3,296	4,583
Total liabilities	55,777	50,723
Commitments and contingencies (note 16)
Stockholders' equity (deficit):
Additional paid in capital	57,371	56,567
Accumulated deficit	(1,530)	(3,387)
Accumulated other comprehensive income (loss)	(200)	(857)
Total stockholders' equity	55,642	52,324
Total liabilities and stockholders' equity	111,419	103,047
Common Class A [Member]
Stockholders' equity (deficit):
Common stock	1	1
Common Class B [Member]
Stockholders' equity (deficit):
Common stock	$ 0	$ 0

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accounts receivable, allowance for doubtful accounts	$ 0	$ 0
Common Class A [Member]
Common stock, par value	$ .0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	14,176,690	14,110,315
Common stock, shares outstanding	14,176,690	14,110,315
Common Class B [Member]
Common stock, par value	$ .0001	$ 0.0001
Common stock, shares authorized	7,303,533	7,303,533
Common stock, shares issued	1,898,423	1,898,423
Common stock, shares outstanding	1,898,423	1,898,423

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenue	$ 20,479	$ 9,743
Cost of revenue	11,653	4,621
Gross profit	8,826	5,122
Operating expenses:
Sales and marketing	1,869	1,855
Research and development	2,765	1,541
General and administrative	1,941	3,630
Total operating expenses, net	6,575	7,026
Income (loss) from operations	2,251	(1,904)
Interest income	9	3
Interest expense	(139)	(103)
Other expense, net	(261)	(755)
Equity income in net income of affiliates	116	1
Income (loss) before income taxes	1,976	(2,758)
Income tax expense (note 15)	(119)	(22)
Net income (loss) attributable to ACM Research, Inc.	1,857	(2,780)
Comprehensive income (loss)
Net income (loss)	1,857	(2,780)
Foreign currency translation adjustment	657	705
Total comprehensive income (loss) (note 2)	$ 2,514	$ (2,075)
Net income (loss) per common share (note 2):
Basic	$ 0.12	$ (0.18)
Diluted	$ 0.10	$ (0.18)
Weighted average common shares outstanding used in computing per share amounts (note2):
Basic	16,044,655	15,383,086
Diluted	18,225,317	15,383,086

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Common Stock Class A	Common Stock Class B	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total
Beginning balance, shares at Dec. 31, 2017	12,935,546	2,409,738
Beginning balance, amount at Dec. 31, 2017	$ 1	$ 0	$ 49,695	$ (9,961)	$ 122	$ 39,857
Net income				(2,780)		(2,780)
Foreign currency translation adjustment					705	705
Exercise of stock option, shares	5,722
Exercise of stock option, amount			64			64
Stock-based compensation			2,175			2,175
Exercise of common stock warrant issued to SMC, shares	397,502
Exercise of common stock warrant issued to SMC, amount			2,981			2,981
Ending balance, shares at Mar. 31, 2018	13,390,270	2,409,738
Ending balance, amount at Mar. 31, 2018	$ 1	$ 0	54,915	(12,741)	827	43,002
Beginning balance, shares at Dec. 31, 2018	14,110,315	1,898,423
Beginning balance, amount at Dec. 31, 2018	$ 1	$ 0	56,567	(3,387)	(857)	52,324
Net income				1,857		1,857
Foreign currency translation adjustment					657	657
Exercise of stock option, shares	66,375
Exercise of stock option, amount			60			60
Stock-based compensation			744			744
Ending balance, shares at Mar. 31, 2019	14,176,690	1,898,423
Ending balance, amount at Mar. 31, 2019	$ 1	$ 0	$ 57,371	$ (1,530)	$ (200)	$ 55,642

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ 1,857	$ (2,780)
Adjustments to reconcile net income (loss) from operations to net cash used in operating activities:
Depreciation and amortization	191	80
Equity income in net income of affiliates	(116)	(1)
Deferred income taxes	0	0
Stock-based compensation	744	2,175
Net changes in operating assets and liabilities:
Accounts receivable	99	14
Other receivables	669	1,331
Inventory	(2,759)	(3,896)
Prepaid expenses	190	(1,791)
Other current assets	0	3
Accounts payable	(3,757)	(2,364)
Advances from customers	45	87
Income tax payable	15	0
Other payables and accrued expenses	1,013	27
Other long-term liabilities	(1,373)	(278)
Net cash used in operating activities	(3,182)	(7,393)
Cash flows from investing activities:
Purchase of property and equipment	(115)	(395)
Purchase of intangible assets	(1)	0
Net cash used in investing activities	(116)	(395)
Cash flows from financing activities:
Proceeds from short-term borrowings	8,285	7,387
Repayments of short-term borrowings	(5,084)	(2,306)
Proceeds from stock option exercise to common stock	60	62
Net cash provided by financing activities	3,261	5,143
Effect of exchange rate changes on cash and cash equivalents	280	150
Net (decrease) increase in cash and cash equivalents	243	(2,495)
Cash and cash equivalents at beginning of period	27,124	17,681
Cash and cash equivalents at end of period	27,367	15,186
Supplemental disclosure of cash flow information:
Interest paid	$ 139	$ 103

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [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. 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	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Basis of Presentation and Principles of Consolidation 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. The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the SEC for reporting on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements herein. The unaudited condensed consolidated financial statements herein should be read in conjunction with the historical consolidated financial statements of the Company for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The accompanying condensed consolidated balance sheet as of March 31, 2019, the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2019 and 2018, and the condensed consolidated statements of cash flows for the three months ended March 31, 2019 and 2018 are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements of the Company reflect all adjustments that are necessary for a fair presentation of the Company’s financial position and results of operations. Such adjustments are of a normal recurring nature, unless otherwise noted. The balance sheet as of March 31, 2019 and the results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for any future period. Use of Estimates The preparation of condensed 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 revenue and expenses during the reported period in the condensed 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, and useful life of intangible assets. Management of the Company believes that the estimates, judgments and assumptions are reasonable, based on information available at the time they are made. Actual results could differ materially from those estimates. Basic and Diluted Net Income (Loss) per Common Share Basic and diluted net income (loss) per common share is calculated as follows: Three Months Ended March 31, 2019 2018 Numerator: Net income (loss) $ 1,857 $ (2,780 ) Denominator: Weighted average shares outstanding, basic 16,044,655 15,383,086 Effect of dilutive securities 2,180,662 - Weighted average shares outstanding, diluted 18,225,317 15,383,086 Net income (loss) per common share: Basic $ 0.12 $ (0.18 ) Diluted $ 0.10 $ (0.18 ) ACM has been authorized to issue Class A and Class B common stock since redomesticating in Delaware in November 2016. The two classes of common stock are substantially identical in all material respects, except for voting rights. Since ACM did not declare any dividends during the three months ended March 31, 2019 and 2018, 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 condensed 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. ACM’s potential dilutive securities consist of convertible preferred stocks, warrants and stock options for the three months ended March 31, 2019 and 2018. Certain potential dilutive securities were excluded from the net income (loss) per share calculation because the impact would be anti-dilutive. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) Leases Leases Effective January 1, 2019, we adopted the ASU 2016-02, Leases, Targeted Improvements to ASC 842 Leases, In June 2018, the FASB issued ASU No. 2018-07, Compensation — Stock Compensation (Topic 718) — Improvements to Nonemployee Share-Based Payment Accounting Effective January 1, 2019, we adopted ASU 2018-07 and it did not have a material impact on our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaced the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 requires use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Adoption of the standard requires using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align existing credit loss methodology with the new standard. We will adopt ASU 2016-13 effective January 1, 2020. We are currently evaluating the impact of this standard on our consolidated financial statements, including accounting policies, processes, and systems, but do not expect the standard will have a material impact on our consolidated financial statements.

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Accounts Receivable	At March 31, 2019 and December 31, 2018, accounts receivable consisted of the following: March 31, December 31, 2019 2018 Accounts receivable $ 25,070 $ 24,608 Less: Allowance for doubtful accounts - - Total $ 25,070 $ 24,608 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 March 31, 2019 or December 31, 2018. At March 31, 2019 and December 31, 2018, accounts receivable of $0 and $1,457, respectively, were pledged as collateral for borrowings from financial institutions.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	At March 31, 2019 and December 31, 2018, inventory consisted of the following: March 31, 2019 December 31, 2018 Raw materials $ 13,285 $ 12,646 Work in process 15,981 9,631 Finished goods 12,987 16,487 Total inventory, gross 42,253 38,764 Inventory reserve - - Total inventory, net $ 42,253 $ 38,764 At March 31, 2019 and December 31, 2018, the Company did not have an inventory reserve 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	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	At March 31, 2019 and December 31, 2018, property, plant and equipment consisted of the following: March 31, December 31, 2019 2018 Manufacturing equipment $ 9,894 $ 9,703 Office equipment 549 512 Transportation equipment 129 184 Leasehold improvement 1,444 1,379 Total cost 12,016 11,778 Less: Total accumulated depreciation (8,377 ) (8,102 ) Construction in progress 80 32 Total property, plant and equipment, net $ 3,719 $ 3,708 Depreciation expense was $175 and $85 for the three months ended March 31, 2019 and 2018, respectively.

Short-Term Borrowings

Short-Term Borrowings	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Short-Term Borrowings	At March 31, 2019 and December 31, 2018, short-term borrowings consisted of the following: March 31, 2019 December 31, 2018 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 and fully repaid on March 27, 2019 . $ - $ 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 and fully repaid on February 14, 2019. - 485 Line of credit up to RMB 50,000 from Bank of Shanghai Pudong Branch, due on January 23, 2020 with an annual interest rate of 5.22%, guaranteed by the Company’s CEO and Cleanchip Technologies Limited. 668 Line of credit up to RMB 30,000 from Bank of China Pudong Branch, due on June 06, 2019 with annual interest rate of 5.22%, secured by certain of the Company’s intellectual property and the Company’s CEO. 2,228 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. 2,228 2,186 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, and fully repaid on January 23, 2019. - 1,457 Line of credit up to RMB 20,000 from Shanghai Rural Commercial Bank, due on February 21, 2020 with an annual interest rate of 5.66%, guaranteed by the Company’s CEO and pledged by accounts receivable. 1,485 Line of credit up to RMB 20,000 from Bank of Communications, due on January 18, 2020 with an annual interest rate of 5.66%. 1,485 Line of credit up to RMB 20,000 from Bank of Communications, due on January 22, 2020 with an annual interest rate of 5.66%. 743 Line of credit up to RMB 20,000 from Bank of Communications, due on February 14, 2020 with an annual interest rate of 5.66%. 742 Line of credit up to RMB 50,000 from China Everbright Bank, due on March 25, 2020 with an annual interest rate of 4.94%, guaranteed by the Company’s CEO. 3,250 Total $ 12,829 $ 9,447 Interest expense related to short-term borrowings amounted to $139 and $103 for the three months ended March 31, 2019 and 2018, respectively.

Other Payable and Accrued Expen

Other Payable and Accrued Expenses	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
Other Payable and Accrued Expenses	At March 31, 2019 and December 31, 2018, other payable and accrued expenses consisted of the following: March 31, 2019 December 31, 2018 Lease expenses and payable for leasehold improvement due to a related party (note 11) $ - $ 53 Accrued commissions 2,663 2,931 Accrued warranty 2,017 1,710 Accrued payroll 1,240 626 Accrued professional fees 139 64 Accrued machine testing fees 2,978 3,076 Others 2,797 1,950 Total $ 11,834 $ 10,410

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	We lease space under non-cancelable operating leases for several office and manufacturing locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our right-of–use assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. The components of our lease expense are as follows: March 31, 2019 Operating lease cost $ 437 Short-term lease cost 18 Lease cost $ 455 Supplemental cash flow information related to our operating leases was as follows for the period ended March 31, 2019: Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases 455 Maturities of our lease liabilities for all operating leases are as follows as of March 31, 2019: March 31, 2019 2019 $ 1,057 2020 1,424 2021 1,456 2022 1,494 2023 53 2024 13 Total lease payments 5,497 Less: Interest (710 ) Present value of lease liabilities $ 4,787 The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2019: Remaining lease term and discount rate: March 31, 2019 Weighted average remaining lease term (years) 3.80 Weighted average discount rate 5.43 %

Other Long-Term Liabilities

Other Long-Term Liabilities	3 Months Ended
	Mar. 31, 2019
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. As of March 31, 2019, and December 31, 2018, other long-term liabilities consisted of the following unearned government subsidies: March 31, 2019 December 31, 2018 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 1,449 $ 1,483 Subsidies to Electro Copper Plating project, commenced in 2014 1,598 2,860 Subsidies to Polytetrafluoroethylene, commenced in 2018 171 178 Other 78 62 Total $ 3,296 $ 4,583

Equity Method Investment

Equity Method Investment	3 Months Ended
	Mar. 31, 2019
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.

Related Party Balances and Tran

Related Party Balances and Transactions	3 Months Ended
	Mar. 31, 2019
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 $2,320 and $970 during the three months ended March 31, 2019 and 2018. As of March 31, 2019 and December 31, 2018, accounts payable due to Ninebell were $1,476 and $1,477, respectively, and prepaid to Ninebell for material purchases were $871 and $572, 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 $150 and $172 during the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019 and December 31, 2018, payables to Zhangjiang Group for lease expenses and leasehold improvements recorded as other payables and accrued expenses amounted to $0 and $53, 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 12).

Warrant Liability

Warrant Liability	3 Months Ended
	Mar. 31, 2019
Warrant Liability
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 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.

Common Stock

Common Stock	3 Months Ended
	Mar. 31, 2019
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. At December 31, 2017, the number of shares of Class A common stock issued and outstanding was 12,935,546. At December 31, 2017, the number of shares of Class B common stock issued and outstanding was 2,409,738, respectively. On March 30, 2018, SMC exercised its warrant (note 12) and purchased 397,502 shares of Class A common stock. At March 31, 2018, the number of shares of Class A common stock issued and outstanding was 13,390,270. At March 31, 2018, the number of shares of Class B common stock issued and outstanding was 2,409,738. During the three months ended March 31, 2018, no share of Class B common stock was converted into Class A common stock. At December 31, 2018, the number of shares of Class A common stock issued and outstanding was 14,110,315. At December 31, 2018, the number of shares of Class B common stock issued and outstanding was 1,898,423. During the three months ended March 31, 2019, the Company issued 66,375 shares of Class A common stock, respectively, upon options exercises by certain employees and non-employees. During the three months ended March 31, 2019, no shares of Class B common stock were converted into Class A common stock. At March 31, 2019, the number of shares of Class A common stock issued and outstanding was 14,176,790. At March 31, 2019, the number of shares of Class B common stock issued and outstanding was 1,898,423.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	ACM’s stock-based compensation awards consisting of employee and non-employee awards were issued under the 1998 Stock Option Plan and 2016 Omnibus Incentive Plan and as standalone options. Employee Awards The following table summarizes the Company’s employee share option activities during the three months ended March 31, 2019: Number of Option Share Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Out standing at December 31, 2018 2,503,405 $ 0.91 $ 4.09 7.30 years Granted - - - Exercised (11,375 ) 0.65 1.68 Expired (628 ) 0.55 3.00 Forfeited - - - Outstanding at March 31, 2019 2,491,402 $ 1.53 $ 4.10 7.06 years Vested and exercisable at March 31, 2019 1,544,974 During the three months ended March 31, 2019 and 2018, the Company recognized employee stock-based compensation expense of $221 and $93, respectively. As of March 31, 2019 and December 31, 2018, $2,203 and $2,424, 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 1.41 years and 1.62 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. No options were granted to employees during the three months ended March 31, 2019. Non-employee Awards The following table summarizes the Company’s non-employee share option activities during the three months ended March 31, 2019: Number of Option Shares Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at Dec ember 31, 2018 1,212,374 $ 0.78 $ 2.57 6.66 years Granted - - - Exercised (55,000 ) 0.32 0.75 Expired - - - Forfeited - - - Outstanding at March 31, 2019 1,157,374 $ 0.78 $ 2.57 6.66 years Vested and exercisable at March 31, 2019 950,237 We adopted ASU 2018-07 on January 1, 2019 and the stock-based compensation expense for grants before the adoption of ASU 2018-07 is based on the grant date fair value as of December 31, 2018, which was the last business day before we adopted ASU 2018-07, for all nonemployee awards that have not vested as of December 31, 2018. Furthermore, for future awards, compensation expense is based on the market value of the shares at the grant date. Refer to "Note 2 - Summary of Significant Accounting Policies" for further discussion on our adoption of ASU 2018-07. During the three months ended March 31, 2019 and 2018, 2,083 As of March 31, 2019 and December 31, 2018, $1,190 and $1,713, respectively, of total unrecognized non-employee stock-based compensation expense, net of estimated forfeitures, related to stock-based awards were expected to be recognized over a weighted-average period of 1.37 years and 1.31 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted. The Company considers all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carry-forward periods), and projected taxable income in assessing the realizability of deferred tax assets. In making such judgments, significant weight is given to evidence that can be objectively verified. Based on all available evidence, in particular the Company’s three-year historical cumulative losses, recent operating results and U.S. pre-tax loss for the three months ended March 31, 2019, the Company recorded a valuation allowance against its U.S. net deferred tax assets. In order to fully realize the U.S. deferred tax assets, the Company will need to generate sufficient taxable income in future periods before the expiration of the deferred tax assets governed by the tax code. In each period since inception, the Company has recorded a valuation allowance for the full amount of net deferred tax assets in the United States, as the realization of deferred tax assets is uncertain. ACM Shanghai has shown a three-year historical cumulative profit and has projections of future income. As a result, the Company maintained a partial consolidated valuation allowance for the three months ended March 31, 2019. The Company accounts for uncertain tax positions in accordance with the authoritative guidance on income taxes under which the Company may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. The Company’s effective tax rate differs from statutory rates of 21% for U.S. federal income tax purposes and 15% to 25% for Chinese income tax purposes due to the effects of the valuation allowance and certain permanent differences from book-tax differences. As a result, the Company recorded income tax expense of $119 and $22 during the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, the Company's total unrecognized tax benefits were approximately $44, which would not affect the effective tax rate if recognized. The Company will recognize interest and penalties, when they occur, related to uncertain tax provisions as a component of tax expense. No interest or penalties were recognized for the three months ended March 31, 2019. 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, 1999 through December 31, 2017. This is due to the Company’s 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 Tax Cuts and Jobs Act (the "Tax Act"), enacted on December 22, 2017, introduced significant changes to U.S. income tax law. Effective January 1, 2018, the Tax Act reduced the U.S. statutory tax rate from 35% to 21% and created new taxes on certain foreign-sourced earnings and certain intercompany payments. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in its financial statements as of December 31, 2017. There were no adjustments made in the three months ended March 31, 2019. The accounting for the tax effects of the Tax Act was completed in 2018.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	The Company leases offices under non-cancelable operating lease agreements. See note 12 for future minimum lease payments under non-cancelable operating lease agreements with initial terms of one year or more. As of March 31, 2019, the Company did not have any capital commitments. 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. As of March 31, 2019, the Company did not have any legal proceedings.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	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. The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the SEC for reporting on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements herein. The unaudited condensed consolidated financial statements herein should be read in conjunction with the historical consolidated financial statements of the Company for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The accompanying condensed consolidated balance sheet as of March 31, 2019, the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2019 and 2018, and the condensed consolidated statements of cash flows for the three months ended March 31, 2019 and 2018 are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements of the Company reflect all adjustments that are necessary for a fair presentation of the Company’s financial position and results of operations. Such adjustments are of a normal recurring nature, unless otherwise noted. The balance sheet as of March 31, 2019 and the results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for any future period.
Use of Estimates	The preparation of condensed 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 revenue and expenses during the reported period in the condensed 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, and useful life of intangible assets. Management of the Company believes that the estimates, judgments and assumptions are reasonable, based on information available at the time they are made. Actual results could differ materially from those estimates.
Basic and Diluted Net Income (Loss) per Common Share	Basic and diluted net income (loss) per common share is calculated as follows: Three Months Ended March 31, 2019 2018 Numerator: Net income (loss) $ 1,857 $ (2,780 ) Denominator: Weighted average shares outstanding, basic 16,044,655 15,383,086 Effect of dilutive securities 2,180,662 - Weighted average shares outstanding, diluted 18,225,317 15,383,086 Net income (loss) per common share: Basic $ 0.12 $ (0.18 ) Diluted $ 0.10 $ (0.18 ) ACM has been authorized to issue Class A and Class B common stock since redomesticating in Delaware in November 2016. The two classes of common stock are substantially identical in all material respects, except for voting rights. Since ACM did not declare any dividends during the three months ended March 31, 2019 and 2018, 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 condensed 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. ACM’s potential dilutive securities consist of convertible preferred stocks, warrants and stock options for the three months ended March 31, 2019 and 2018. Certain potential dilutive securities were excluded from the net income (loss) per share calculation because the impact would be anti-dilutive.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) Leases Leases Effective January 1, 2019, we adopted the ASU 2016-02, Leases, Targeted Improvements to ASC 842 Leases, In June 2018, the FASB issued ASU No. 2018-07, Compensation — Stock Compensation (Topic 718) — Improvements to Nonemployee Share-Based Payment Accounting Effective January 1, 2019, we adopted ASU 2018-07 and it did not have a material impact on our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaced the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 requires use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Adoption of the standard requires using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align existing credit loss methodology with the new standard. We will adopt ASU 2016-13 effective January 1, 2020. We are currently evaluating the impact of this standard on our consolidated financial statements, including accounting policies, processes, and systems, but do not expect the standard will have a material impact on our consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Calculation of basic and diluted net loss per common share	Three Months Ended March 31, 2019 2018 Numerator: Net income (loss) $ 1,857 $ (2,780 ) Denominator: Weighted average shares outstanding, basic 16,044,655 15,383,086 Effect of dilutive securities 2,180,662 - Weighted average shares outstanding, diluted 18,225,317 15,383,086 Net income (loss) per common share: Basic $ 0.12 $ (0.18 ) Diluted $ 0.10 $ (0.18 )

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Accounts receivable	March 31, December 31, 2019 2018 Accounts receivable $ 25,070 $ 24,608 Less: Allowance for doubtful accounts - - Total $ 25,070 $ 24,608

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventory	March 31, 2019 December 31, 2018 Raw materials $ 13,285 $ 12,646 Work in process 15,981 9,631 Finished goods 12,987 16,487 Total inventory, gross 42,253 38,764 Inventory reserve - - Total inventory, net $ 42,253 $ 38,764

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Property, plant and equipment	March 31, December 31, 2019 2018 Manufacturing equipment $ 9,894 $ 9,703 Office equipment 549 512 Transportation equipment 129 184 Leasehold improvement 1,444 1,379 Total cost 12,016 11,778 Less: Total accumulated depreciation (8,377 ) (8,102 ) Construction in progress 80 32 Total property, plant and equipment, net $ 3,719 $ 3,708

Short-Term Borrowings (Tables)

Short-Term Borrowings (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Short-term borrowings	March 31, 2019 December 31, 2018 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 and fully repaid on March 27, 2019 . $ - $ 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 and fully repaid on February 14, 2019. - 485 Line of credit up to RMB 50,000 from Bank of Shanghai Pudong Branch, due on January 23, 2020 with an annual interest rate of 5.22%, guaranteed by the Company’s CEO and Cleanchip Technologies Limited. 668 Line of credit up to RMB 30,000 from Bank of China Pudong Branch, due on June 06, 2019 with annual interest rate of 5.22%, secured by certain of the Company’s intellectual property and the Company’s CEO. 2,228 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. 2,228 2,186 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, and fully repaid on January 23, 2019. - 1,457 Line of credit up to RMB 20,000 from Shanghai Rural Commercial Bank, due on February 21, 2020 with an annual interest rate of 5.66%, guaranteed by the Company’s CEO and pledged by accounts receivable. 1,485 Line of credit up to RMB 20,000 from Bank of Communications, due on January 18, 2020 with an annual interest rate of 5.66%. 1,485 Line of credit up to RMB 20,000 from Bank of Communications, due on January 22, 2020 with an annual interest rate of 5.66%. 743 Line of credit up to RMB 20,000 from Bank of Communications, due on February 14, 2020 with an annual interest rate of 5.66%. 742 Line of credit up to RMB 50,000 from China Everbright Bank, due on March 25, 2020 with an annual interest rate of 4.94%, guaranteed by the Company’s CEO. 3,250 Total $ 12,829 $ 9,447

Other Payable and Accrued Exp_2

Other Payable and Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
Other payable and accrued expenses	March 31, 2019 December 31, 2018 Lease expenses and payable for leasehold improvement due to a related party (note 11) $ - $ 53 Accrued commissions 2,663 2,931 Accrued warranty 2,017 1,710 Accrued payroll 1,240 626 Accrued professional fees 139 64 Accrued machine testing fees 2,978 3,076 Others 2,797 1,950 Total $ 11,834 $ 10,410

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Lease expense	March 31, 2019 Operating lease cost $ 437 Short-term lease cost 18 Lease cost $ 455
Supplemental cash flow information related to operating lease	Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases 455
Maturities of our lease liabilities for all operating leases	March 31, 2019 2019 $ 1,057 2020 1,424 2021 1,456 2022 1,494 2023 53 2024 13 Total lease payments 5,497 Less: Interest (710 ) Present value of lease liabilities $ 4,787
Weighted average remaining lease terms and discount rates	Remaining lease term and discount rate: March 31, 2019 Weighted average remaining lease term (years) 3.80 Weighted average discount rate 5.43 %

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	3 Months Ended
	Mar. 31, 2019
Other Liabilities Disclosure [Abstract]
Other long-term liabilities	March 31, 2019 December 31, 2018 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 1,449 $ 1,483 Subsidies to Electro Copper Plating project, commenced in 2014 1,598 2,860 Subsidies to Polytetrafluoroethylene, commenced in 2018 171 178 Other 78 62 Total $ 3,296 $ 4,583

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Employee Stock Option [Member]
Summary of share option activities	Number of Option Share Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Out standing at December 31, 2018 2,503,405 $ 0.91 $ 4.09 7.30 years Granted - - - Exercised (11,375 ) 0.65 1.68 Expired (628 ) 0.55 3.00 Forfeited - - - Outstanding at March 31, 2019 2,491,402 $ 1.53 $ 4.10 7.06 years Vested and exercisable at March 31, 2019 1,544,974
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 Dec ember 31, 2018 1,212,374 $ 0.78 $ 2.57 6.66 years Granted - - - Exercised (55,000 ) 0.32 0.75 Expired - - - Forfeited - - - Outstanding at March 31, 2019 1,157,374 $ 0.78 $ 2.57 6.66 years Vested and exercisable at March 31, 2019 950,237

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net income (loss)	$ 1,857	$ (2,780)
Denominator:
Weighted average shares outstanding, basic	16,044,655	15,383,086
Effect of dilutive securities	2,180,662	0
Weighted average shares outstanding, diluted	18,225,317	15,383,086
Net income (loss) attributable to ACM per common share:
Basic	$ 0.12	$ (0.18)
Diluted	$ 0.10	$ (0.18)

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable	$ 25,070	$ 24,608
Less: allowance for doubtful accounts	0	0
Total	$ 25,070	$ 24,608

Accounts Receivable (Details Na

Accounts Receivable (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Allowance for doubtful accounts	$ 0	$ 0
Accounts receivable were pledged as collateral for borrowings	$ 0	$ 1,457

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 13,285	$ 12,646
Work in process	15,981	9,631
Finished goods	12,987	16,487
Total inventory, gross	42,253	38,764
Inventory reserve	0	0
Total inventory, net	$ 42,253	$ 38,764

Inventories (Details Narrative)

Inventories (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventory reserve	$ 0	$ 0
Inventory pledged as collateral for borrowings	$ 0	$ 0

Property, Plant and Equipment (

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Total cost	$ 12,016	$ 11,778
Less: total accumulated depreciation	(8,377)	(8,102)
Construction in progress	80	32
Total property, plant and equipment, net	3,719	3,708
Manufacturing Equipment [Member]
Total cost	9,894	9,703
Office Equipment [Member]
Total cost	549	184
Transportation Equipment [Member]
Total cost	129	1,379
Leasehold Improvements [Member]
Total cost	$ 1,444	$ 512

Property, Plant and Equipment_3

Property, Plant and Equipment, Net (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 175	$ 85

Short-Term Borrowing (Details)

Short-Term Borrowing (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Short-term borrowings	$ 12,829	$ 9,447
Short-term borrowings 1
Short-term borrowings	0	3,133
Short-term borrowings 2
Short-term borrowings	0	485
Short-term borrowings 3
Short-term borrowings	668	0
Short-term borrowings 4
Short-term borrowings	2,228	2,186
Short-term borrowings 5
Short-term borrowings	2,228	2,186
Short-term borrowings 6
Short-term borrowings	0	1,457
Short-term borrowings 7
Short-term borrowings	1,485	0
Short-term borrowings 8
Short-term borrowings	1,485	0
Short-term borrowings 9
Short-term borrowings	743	0
Short-term borrowings 10
Short-term borrowings	742	0
Short-term borrowings 11
Short-term borrowings	$ 3,250	$ 0

Short-Term Borrowings (Details

Short-Term Borrowings (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Debt Disclosure [Abstract]
Interest expense related to short-term borrowings	$ 139	$ 103

Other Payable and Accrued Exp_3

Other Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Lease expenses and payable for leasehold improvement due to a related party (note 11)	$ 0	$ 53
Accrued commissions	2,663	2,931
Accrued warranty	2,017	1,710
Accrued payroll	1,240	626
Accrued professional fees	139	64
Accrued machine testing fee	2,978	3,076
Others	2,797	1,950
Total	$ 11,834	$ 10,410

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 437
Short-term lease cost	18
Lease cost	$ 455

Leases (Details 1)

Leases (Details 1)	3 Months Ended
	Mar. 31, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$ 455

Leases (Details 2)

Leases (Details 2) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating cash outflow from operating leases	$ 455

Leases (Details 3)

Leases (Details 3) $ in Thousands	Mar. 31, 2019USD ($)
Leases [Abstract]
2019	$ 1,057
2020	1,424
2021	1,456
2022	1,494
2023	53
2024	13
Total payments	5,497
Less: interest	(710)
Present value of lease liabilities	$ 4,787

Leases (Details 4)

Leases (Details 4)	Mar. 31, 2019
Leases [Abstract]
Weighted average remaining lease term (years)	3 years 9 months 18 days
Weighted average discount rate	5.43%

Other Long-Term Liabilities (De

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Other long-term liabilities	$ 3,296	$ 4,583
Subsidies to Stress Free Polishing project [Member]
Other long-term liabilities	1,449	1,483
Subsidies to Electro Copper Plating project [Member]
Other long-term liabilities	1,597	2,860
Subsidies to Polytetrafluoroethylene [Member]
Other long-term liabilities	171	178
Other [Member]
Other long-term liabilities	$ 78	$ 62

Related Party Balances and Tr_2

Related Party Balances and Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Ninebell [Member]
Purchased materials amount	$ 2,320	$ 970
Accounts payable-related party	1,479		$ 1,477
Prepaid for material purchases	871		$ 572
Shanghai Zhangjiang Group Co., Ltd. [Member]
Leasing expense under lease agreement	150	172
Lease expenses and payable for leasehold improvement due to a related party	$ 0	$ 53

Common Stock (Details Narrative

Common Stock (Details Narrative) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Common Class A [Member]
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value	$ .0001	$ 0.0001
Common stock, shares issued	14,176,690	14,110,315
Common stock, shares outstanding	14,176,690	14,110,315
Common Class B [Member]
Common stock, shares authorized	7,303,533	7,303,533
Common stock, par value	$ .0001	$ 0.0001
Common stock, shares issued	1,898,423	1,898,423
Common stock, shares outstanding	1,898,423	1,898,423

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Employee Stock Option [Member]
Number of Option Shares, Outstanding, Beginning balance | shares	2,503,405
Number of Option Shares, Outstanding, Granted | shares	0
Number of Option Shares, Outstanding, Exercised | shares	(11,375)
Number of Option Shares, Outstanding, Expired | shares	(628)
Number of Option Shares, Outstanding, Forfeited | shares	0
Number of Option Shares, Outstanding, Ending balance | shares	2,491,402
Vested and Exercisable | shares	1,544,974
Weighted Average Grant Date Fair Value, Outstanding, Beginning balance	$ .91
Weighted Average Grant Date Fair Value, Granted	.00
Weighted Average Grant Date Fair Value, Exercised	.65
Weighted Average Grant Date Fair Value, Expired	.55
Weighted Average Grant Date Fair Value, Forfeited	.00
Weighted Average Grant Date Fair Value, Outstanding, Ending balance	1.53
Weighted Average Exercise Price, Outstanding, Beginning balance	4.09
Weighted Average Exercise Price, Granted	.00
Weighted Average Exercise Price, Exercised	1.68
Weighted Average Exercise Price, Expired	3
Weighted Average Exercise Price, Forfeited	.00
Weighted Average Exercise Price, Outstanding, Ending balance	$ 4.10
Weighted Average Remaining Contractual Term, Outstanding	7 years 22 days
Non Employee Awards [Member]
Number of Option Shares, Outstanding, Beginning balance | shares	1,212,374
Number of Option Shares, Outstanding, Granted | shares	0
Number of Option Shares, Outstanding, Exercised | shares	(55,000)
Number of Option Shares, Outstanding, Expired | shares	0
Number of Option Shares, Outstanding, Forfeited | shares	0
Number of Option Shares, Outstanding, Ending balance | shares	1,157,374
Vested and Exercisable | shares	950,237
Weighted Average Grant Date Fair Value, Outstanding, Beginning balance	$ .78
Weighted Average Grant Date Fair Value, Granted	.00
Weighted Average Grant Date Fair Value, Exercised	.32
Weighted Average Grant Date Fair Value, Expired	.00
Weighted Average Grant Date Fair Value, Forfeited	.00
Weighted Average Grant Date Fair Value, Outstanding, Ending balance	.78
Weighted Average Exercise Price, Outstanding, Beginning balance	2.57
Weighted Average Exercise Price, Granted	.00
Weighted Average Exercise Price, Exercised	.75
Weighted Average Exercise Price, Expired	.00
Weighted Average Exercise Price, Forfeited	.00
Weighted Average Exercise Price, Outstanding, Ending balance	$ 2.57
Weighted Average Remaining Contractual Term, Outstanding	6 years 7 months 28 days

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Employee Stock Option [Member]
Stock-based compensation expense	$ 221	$ 933
Unrecognized employee stock-based compensation expense, net of estimated forfeitures	$ 2,203		$ 2,424
Weighted-average period over which unrecognized compensation is expected to be recognized	1 year 4 months 28 days		1 year 7 months 13 days
Non Employee Awards [Member]
Stock-based compensation expense	$ 523	$ 2,083
Unrecognized employee stock-based compensation expense, net of estimated forfeitures	$ 1,190		$ 1,713
Weighted-average period over which unrecognized compensation is expected to be recognized	1 year 4 months 13 days		1 year 3 months 22 days

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statutory U.S federal income tax rate	21.00%
Income tax provision (benefit)	$ 119	$ 22
Unrecognized tax benefits	$ 44
Minimum [Member]
Statutory Chinese income tax rate	15.00%
Maximum [Member]
Statutory Chinese income tax rate	25.00%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) $ in Thousands	Mar. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Commitments	$ 0