ACM Research (ACMR) 10-Q 12 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 05, 2019
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
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
Entity Shell Company	false
Common Class A [Member]
Entity Common Stock, Shares Outstanding		14,259,479
Common Class B [Member]
Entity Common Stock, Shares Outstanding		1,883,423

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 27,578	$ 27,124
Accounts receivable, less allowance for doubtful accounts of $0 as of June 30, 2019 and $0 as of December 31, 2018 (note 3)	31,393	24,608
Other receivables	2,388	3,547
Inventories (note 4)	45,494	38,764
Prepaid expenses	1,547	1,985
Total current assets	108,400	96,028
Property, plant and equipment, net (note 5)	3,376	3,708
Operating lease right-of-use assets, net (note 8)	4,550	0
Intangible assets, net	307	274
Deferred tax assets (note 15)	1,635	1,637
Long-term investments (note 10)	1,738	1,360
Other long-term assets	263	40
Total assets	120,269	103,047
Current liabilities:
Short-term borrowings (note 6)	15,110	9,447
Accounts payable	18,238	16,673
Advances from customers	5,684	8,417
Income tax payable	1,016	1,193
Other payables and accrued expenses (note 7)	11,993	10,410
Current portion of operating lease liability (note 8)	1,360	0
Total current liabilities	53,401	46,140
Long-term operating lease liability (note 8)	3,190	0
Other long-term liabilities (note 9)	3,963	4,583
Total liabilities	60,554	50,723
Commitments and contingencies (note 16)
Stockholders' equity:
Additional paid in capital	58,101	56,567
Accumulated surplus (deficit)	2,781	(3,387)
Accumulated other comprehensive loss	(1,168)	(857)
Total stockholders' equity	59,715	52,324
Total liabilities and stockholders' equity	120,269	103,047
Common Class A [Member]
Stockholders' equity:
Common stock	1	1
Common Class B [Member]
Stockholders' equity:
Common stock	$ 0	$ 0

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 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	50,000,000	50,000,000
Common stock, shares issued	14,229,942	14,110,315
Common stock, shares outstanding	14,229,942	14,110,315
Common Class B [Member]
Common stock, par value	$ .0001	$ 0.0001
Common stock, shares authorized	2,409,738	2,409,738
Common stock, shares issued	1,883,423	1,898,423
Common stock, shares outstanding	1,883,423	1,898,423

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenue	$ 29,010	$ 20,873	$ 49,489	$ 30,616
Cost of revenue	15,879	12,149	27,532	16,770
Gross profit	13,131	8,724	21,957	13,846
Operating expenses:
Sales and marketing	2,924	2,682	4,793	4,537
Research and development	3,341	2,419	6,106	3,960
General and administrative	2,205	1,292	4,146	4,922
Total operating expenses, net	8,470	6,393	15,045	13,419
Income from operations	4,661	2,331	6,912	427
Interest income	24	14	33	17
Interest expense	(194)	(149)	(333)	(252)
Other income, net	543	1,066	282	311
Equity income in net income of affiliates	153	117	269	118
Income before income taxes	5,187	3,379	7,163	621
Income tax expense (note 15)	(876)	(164)	(995)	(186)
Net income	4,311	3,215	6,168	435
Comprehensive income:
Net income	4,311	3,215	6,168	435
Foreign currency translation adjustment	(968)	(1,036)	(311)	(331)
Total comprehensive income (note 2)	$ 3,343	$ 2,179	$ 5,857	$ 104
Net income per common share (note 2):
Basic	$ 0.27	$ .20	$ 0.38	$ 0.03
Diluted	$ 0.23	$ 0.18	$ 0.33	$ 0.02
Weighted average common shares outstanding used in computing per share amounts (note 2):
Basic	16,090,937	15,838,540	16,067,924	15,611,863
Diluted	18,604,347	18,119,733	18,455,534	17,669,650

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 Surplus (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				435		435
Foreign currency translation adjustment					(331)	(331)
Exercise of stock option, shares	134,726
Exercise of stock option, amount			295			295
Stock-based compensation			2,360			2,360
Conversion of class B common shares to Class A common shares, shares	489,565	(489,565)
Conversion of class B common shares to Class A common shares, amount						0
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 Jun. 30, 2018	13,957,339	1,920,173
Ending balance, amount at Jun. 30, 2018	$ 1	$ 0	55,331	(9,526)	(209)	45,597
Beginning balance, shares at Mar. 31, 2018	13,390,270	2,409,738
Beginning balance, amount at Mar. 31, 2018	$ 1	$ 0	54,915	(12,741)	827	43,002
Net income				3,215		3,215
Foreign currency translation adjustment					(1,036)	(1,036)
Exercise of stock option, shares	77,504
Exercise of stock option, amount			231			231
Stock-based compensation			185			185
Conversion of class B common shares to Class A common shares, shares	489,565	(489,565)
Conversion of class B common shares to Class A common shares, amount						0
Ending balance, shares at Jun. 30, 2018	13,957,339	1,920,173
Ending balance, amount at Jun. 30, 2018	$ 1	$ 0	55,331	(9,526)	(209)	45,597
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				6,168		6,168
Foreign currency translation adjustment					(311)	(311)
Exercise of stock option, shares	104,627
Exercise of stock option, amount			172			172
Stock-based compensation			1,362			1,362
Conversion of class B common shares to Class A common shares, shares	15,000	(15,000)
Conversion of class B common shares to Class A common shares, amount						0
Ending balance, shares at Jun. 30, 2019	14,229,942	1,883,423
Ending balance, amount at Jun. 30, 2019	$ 1	$ 0	58,101	2,781	(1,168)	59,715
Beginning balance, shares at Mar. 31, 2019	14,176,690	1,898,423
Beginning balance, amount at Mar. 31, 2019	$ 1	$ 0	57,371	(1,530)	(200)	55,642
Net income				4,311		4,311
Foreign currency translation adjustment					(965)	(968)
Exercise of stock option, shares	38,252
Exercise of stock option, amount			112			112
Stock-based compensation			618
Conversion of class B common shares to Class A common shares, shares	15,000	(15,000)
Conversion of class B common shares to Class A common shares, amount						0
Ending balance, shares at Jun. 30, 2019	14,229,942	1,883,423
Ending balance, amount at Jun. 30, 2019	$ 1	$ 0	$ 58,101	$ 2,781	$ (1,168)	$ 59,715

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 6,168	$ 435
Adjustments to reconcile net income from operations to net cash used in operating activities:
Depreciation and amortization	388	173
Loss on disposals of property, plant and equipment	299	0
Equity income in net income of affiliates	(269)	(118)
Deferred income taxes	(1)	0
Stock-based compensation	1,362	2,360
Net changes in operating assets and liabilities:
Accounts receivable	(6,837)	(6,858)
Other receivables	1,150	1,124
Inventory	(6,783)	(12,328)
Prepaid expenses	412	(1,785)
Other long-term assets	(223)	46
Accounts payable	1,600	10,486
Advances from customers	(2,703)	1,799
Income tax payable	(1,011)	187
Other payables and accrued expenses	2,453	632
Other long-term liabilities	(612)	(271)
Net cash used in operating activities	(4,607)	(4,118)
Cash flows from investing activities:
Purchase of property and equipment	(325)	(882)
Purchase of intangible assets	(71)	(157)
Investments in unconsolidated affiliates	(109)	0
Net cash used in investing activities	(505)	(1,039)
Cash flows from financing activities:
Proceeds from short-term borrowings	15,023	10,153
Repayments of short-term borrowings	(9,346)	(5,252)
Proceeds from stock option exercise to common stock	172	295
Net cash provided by financing activities	5,849	5,196
Effect of exchange rate changes on cash and cash equivalents	(283)	(285)
Net (decrease) increase in cash and cash equivalents	454	(246)
Cash and cash equivalents at beginning of period	27,124	17,681
Cash and cash equivalents at end of period	27,578	17,435
Supplemental disclosure of cash flow information:
Interest paid	$ 333	$ 252

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 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. On June 17, 2019 ACM announced plans to complete over the next three years a listing (the “Listing”) of shares of ACM Shanghai on the Shanghai Stock Exchange’s new Sci-Tech innovAtion boaRd, known as the STAR Market, and a concurrent initial public offering (the “IPO”), of ACM Shanghai shares in the PRC. ACM Shanghai is currently our principal operating company and a wholly-owned subsidiary of ACM Research. Following the Listing and IPO, ACM Shanghai will be a majority-owned subsidiary of ACM Research. As an initial step in qualifying for the Listing and IPO, on June 12, 2019 ACM Shanghai entered into agreements with seven investors pursuant to which those investors agreed to pay a purchase price totaling RMB 187.9 million (equivalent to $27.3 million) to ACM Shanghai for shares representing 4.2% of the then-outstanding ACM Shanghai shares. Pursuant to these agreements, the investors are obligated to fund their purchases (see note 17) after ACM Shanghai made the required filings for the capital increase with the local agency of the PRC Ministry of Commerce. Once it has received payment of the purchase prices from all of the parties, ACM Shanghai is obligated to process necessary PRC governmental registrations for the capital increase with the local branch of the PRC State Administration for Market Regulation. Upon completion of those registrations, the investors will be regarded as the owners of their subscribed shares. In March 2019, ACM Shanghai formed a wholly owned subsidiary in the PRC, Shengwei Research (Shanghai), Inc., to manage activities related to addition of future long-term production capacity. The subsidiary was formed with registered capital of RMB 5.0 million ($727). As of June 30, 2019, no capital had been injected in this new subsidiary.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 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 June 30, 2019, the condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2019 and 2018, the condensed consolidated statements of changes in stockholders’ equity for the six months ended June 30, 2019 and 2018, and the condensed consolidated statements of cash flows for the six months ended June 30, 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 June 30, 2019 and the results of operations for the three and six months ended June 30, 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 per Common Share Basic and diluted net income per common share is calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net income $ 4,311 $ 3,215 $ 6,168 $ 435 Denominator: Weighted average shares outstanding, basic 16,090,937 15,838,540 16,067,924 15,611,863 Effect of dilutive securities 2,513,410 2,281,193 2,387,610 2,057,787 Weighted average shares outstanding, diluted 18,604,347 18,119,733 18,455,534 17,669,650 Net income per common share: Basic $ 0.27 $ 0.20 $ 0.38 $ 0.03 Diluted $ 0.23 $ 0.18 $ 0.33 $ 0.02 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 and six months ended June 30, 2019 and 2018, the net income per common share attributable to each class is the same under the “two-class” method. As such, the two classes of common stock have been presented on a combined basis in the condensed consolidated statements of operations and comprehensive income and in the above computation of net income per common share. Diluted net income per common share reflects the potential dilution from securities that could share in ACM’s earnings. ACM’s potential dilutive securities consist warrants and stock options for the three and six months ended June 30, 2019 and 2018. Certain potential dilutive securities were excluded from the net income 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”) 2016-02, Leases (Topic 842) Leases Leases Effective January 1, 2019, the Company adopted ASU 2016-02. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 Leases In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718)—Improvements to Nonemployee Share-Based Payment Accounting Compensation—Stock Compensation Revenue from Contracts with Customers (Topic 606) Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) In January 2017, the FASB issued ASU 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

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Accounts Receivable	At June 30, 2019 and December 31, 2018, accounts receivable consisted of the following: June 30, December 31, 2019 2018 Accounts receivable $ 31,393 $ 24,608 Less: Allowance for doubtful accounts - - Total $ 31,393 $ 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 June 30, 2019 or December 31, 2018. At June 30, 2019 and December 31, 2018, accounts receivable of $0 and $1,457, respectively, were pledged as collateral for borrowings from financial institutions.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventories	At June 30, 2019 and December 31, 2018, inventory consisted of the following: June 30, 2019 December 31, 2018 Raw materials $ 17,425 $ 12,646 Work in process 15,103 9,631 Finished goods 12,966 16,487 Total inventory, gross 45,494 38,764 Inventory reserve - - Total inventory, net $ 45,494 $ 38,764 At June 30, 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	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	At June 30, 2019 and December 31, 2018, property, plant and equipment consisted of the following: June 30, December 31, 2019 2018 Manufacturing equipment $ 3,948 $ 9,703 Office equipment 601 512 Transportation equipment 126 184 Leasehold improvement 1,424 1,379 Total cost 6,099 11,778 Less: Total accumulated depreciation (2,831 ) (8,102 ) Construction in progress 108 32 Total property, plant and equipment, net $ 3,376 $ 3,708 Depreciation expense was $177 and $88 for the three months ended June 30, 2019 and 2018, respectively, and $352 and $173 for the six months ended June 30, 2019 and 2018, respectively.

Short-Term Borrowings

Short-Term Borrowings	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Short-Term Borrowings	At June 30, 2019 and December 31, 2018, short-term borrowings consisted of the following: June 30, 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. 3,565 - 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 and fully repaid on June 6,2019. - 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 and fully repaid on June 13,2019. - 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. 1,455 - 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%. 1,455 - 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%. 728 - 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%. 728 - 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. 3,251 - Line of credit up to RMB 50,000 from China Everbright Bank, due on April 17, 2020 with an annual interest rate of 5.66%, guaranteed by the Company’s CEO. 1,164 - Line of credit up to RMB 50,000 from China Everbright Bank, due on June 26, 2020 with an annual interest rate of 5.66%, guaranteed by the Company’s CEO. 2,764 - Total $ 15,110 $ 9,447 Interest expense related to short-term borrowings amounted to $194 and $149 for the three months ended June 30, 2019 and 2018, respectively, and $333 and $252 for the six months ended June 30, 2019 and 2018, respectively.

Other Payable and Accrued Expen

Other Payable and Accrued Expenses	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Other Payable and Accrued Expenses	At June 30, 2019 and December 31, 2018, other payable and accrued expenses consisted of the following: June 30, 2019 December 31, 2018 Lease expenses and payable for leasehold improvement due to a related party (note 11) $ 52 $ 53 Accrued commissions 2,455 2,931 Accrued warranty 2,338 1,710 Accrued payroll 1,392 626 Accrued professional fees 234 64 Accrued machine testing fees 2,859 3,076 Others 2,663 1,950 Total $ 11,993 $ 10,410

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	The Company leases space under non-cancelable operating leases for several office and manufacturing locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Most leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company has a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, it applies a portfolio approach for determining the incremental borrowing rate. The components of lease expense were as follows: Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost $ 264 $ 701 Short-term lease cost 7 25 Lease cost $ 271 $ 726 Supplemental cash flow information related to operating leases was as follows for the period ended June 30, 2019: Three months ended June 30, 2019 Six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases 271 726 Maturities of lease liabilities for all operating leases were as follows as of June 30, 2019: December 31 2019 $ 728 2020 1,488 2021 1,475 2022 1,495 2023 53 2024 13 Total lease payments 5,252 Less: Interest (702 ) Present value of lease liabilities $ 4,550 The weighted average remaining lease terms and discount rates for all operating leases were as follows as of June 30, 2019: June 30, 2019 Remaining lease term and discount rate: Weighted average remaining lease term (years) 3.50 Weighted average discount rate 5.43 %

Other Long-Term Liabilities

Other Long-Term Liabilities	6 Months Ended
	Jun. 30, 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 June 30, 2019, and December 31, 2018, other long-term liabilities consisted of the following unearned government subsidies: June 30, 2019 December 31, 2018 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 1,362 $ 1,483 Subsidies to Electro Copper Plating project, commenced in 2014 2,370 2,860 Subsidies to Polytetrafluoroethylene, commenced in 2018 158 178 Other 73 62 Total $ 3,963 $ 4,583

Long-Term Investment

Long-Term Investment	6 Months Ended
	Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Long-Term 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. On June 27, 2019, ACM Shanghai and Shengyi Semiconductor Technology Co., Ltd. (“Shengyi”), a company based in Wuxi, China that is one of the Company’s components suppliers, entered into an agreement pursuant to which Shengyi issued to ACM Shanghai shares representing 15% of Shengyi’s post-closing equity for a purchase price of $109. The investment in Shengyi is accounted for under the cost method. June 30, 2019 December 31, 2018 Investment – equity method $ 1,629 $ 1,360 Investment – cost method 109 - Total $ 1,738 $ 1,360

Related Party Balances and Tran

Related Party Balances and Transactions	6 Months Ended
	Jun. 30, 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 $2,483 and $1,865 during the three months ended June 30, 2019 and 2018, and $4,803 and $2,835 during the six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019 and December 31, 2018, accounts payable due to Ninebell were $2,131 and $1,477, respectively, and prepaid expenses prepaid to Ninebell for material purchases were $751 and $572, respectively. ACM purchased materials from Shengyi amounting to $192 during the three and six months ended June 30, 2019. As of June 30, 2019, accounts payable due to Shengyi was $189. 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 pays a monthly rental fee of RMB 366 (equivalent to $55). The required security deposit was RMB 1,077 (equivalent to $163). The Company incurred leasing expenses under the lease agreement of $150 and $147 during the three months ended June 30, 2019 and 2018, respectively, and $300 and $319 during the six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019 and December 31, 2018, payables to Zhangjiang Group for lease expenses and leasehold improvements recorded as other payables and accrued expenses amounted to $52 and $53, respectively (note 7). 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. 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 (the “SMC 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 SMC Warrant in full and purchased 397,502 shares of Class A common stock (note 12).

Warrant Liability

Warrant Liability	6 Months Ended
	Jun. 30, 2019
Warrant Liability
Warrant Liability	On December 9, 2016, ACM Shanghai received the SMC Investment from SMC for potential investment pursuant to terms to be subsequently negotiated, and on March 14, 2017, ACM, ACM Shanghai and SMC entered into the SMC Agreement pursuant to which, in exchange for the SMC Investment, ACM issued the SMC Warrant to SMC (note 11). The SMC Warrant, 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 the SMC Warrant in full by issuing to ACM a senior secured promissory note in the principal amount of $3,000. ACM then transferred such note to ACM Shanghai in exchange for an intercompany promissory note of ACM Shanghai in the principal amount of $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 SMC 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	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Common Stock	ACM is authorized to issue 50,000,000 shares of Class A common stock and 2,409,738 shares of Class B common stock, each with a par value of $0.0001. Each share of Class A common stock is entitled to one vote, and each share of Class B common stock is entitled to twenty votes and is convertible at any time into one share of Class A common stock. Shares of Class A common stock and Class B common stock are treated equally, identically and ratably with respect to any dividends declared by the Board of Directors unless the Board of Directors declares different dividends to the Class A common stock and Class B common stock by getting approval from a majority of common stockholders. On March 30, 2018, SMC exercised the SMC Warrant in full (note 12) to purchase 397,502 shares of Class A common stock. During the six months ended June 30, 2019, the Company issued 104,627 shares of Class A common stock upon option exercises by employees and non-employees and an additional 15,000 shares of Class A common stock upon conversion of an equal number of shares of Class B common stock. There were issued and outstanding 14,229,942 shares of Class A common stock and 1,883,423 shares of Class B common stock at June 30, 2019 and 14,110,315 shares of Class A common stock and 1,898,423 shares of Class B common stock at December 31, 2018.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [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 six months ended June 30, 2019: Number of Option Share Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighed Average Remaining Contractual Term Outstanding at December 31, 2018 2,503,405 0.91 4.09 7.30 years Granted 295,000 6.50 16.81 Exercised (48,098 ) 0.78 2.62 Expired (628 ) 0.55 3.00 Forfeited (4,085 ) 1.90 4.83 Outstanding at June 30, 2019 2,745,594 2.07 5.48 7.14 years Vested and exercisable at June 30, 2019 1,608,352 During the three months ended June 30, 2019 and 2018, the Company recognized employee stock-based compensation expense of $291 and $170, respectively. During the six months ended June 30, 2019 and 2018, the Company recognized employee stock-based compensation expense of $512 and $263, respectively. As of June 30, 2019 and December 31, 2018, $3,662 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 1.51 years and 1.62 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. Stock options to acquire 295,000 and 295,000 shares, respectively, of Class A common stock were granted to employees during the three and six months ended June 30, 2019. The following table summarizes the Company’s non-employee share option activities during the six months ended June 30, 2019: Number of Option Shares Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2018 1,212,374 $ 0.78 $ 2.57 6.66 years Granted - - - - Exercised (56,529 ) 0.33 0.81 - Expired - - - - Forfeited - - - - Outstanding at June 30, 2019 1,155,845 $ 0.81 $ 2.66 6.62 years Vested and exercisable at June 30, 2019 986,572 The Company 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 the Company adopted ASU 2018-07, for all nonemployee awards that have not vested as of December 31, 2018. The cumulative-effect adjustment to retained earnings as of January 1, 2019 was immaterial to the financial statements as a whole. Accordingly, the Company did not record this adjustment as of January 1, 2019. Furthermore, for future awards, compensation expense is based on the market value of the shares at the grant date. During the three months ended June 30, 2019 and 2018, 14 During the six months ended June 30, 2019 and 2018, 2,097 As of June 30, 2019 and December 31, 2018, $863 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 0.64 years and 1.31 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 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 six months ended June 30, 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 and six months ended June 30, 2019 and December 31, 2018. 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 $876 and $164 during the three months ended June 30, 2019 and 2018, respectively, and $995 and $186 during the six months ended June 30, 2019 and 2018, respectively. As of June 30, 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 six months ended June 30, 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 six months ended June 30, 2019. The accounting for the tax effects of the Tax Act was completed in 2018.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2019, the Company did not have any legal proceedings.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	In connection with the Listing and the IPO, in July 2019, ACM Shanghai submitted the required filings for approval of its capital increase with the local agency of the PRC Ministry of Commerce (see note 1). Once ACM Shanghai has received payment of the funding from all committed investors, ACM Shanghai is to process additional PRC governmental registrations for the capital increase with the local branch of the PRC State Administration for Market Regulation. Upon successful completion of those registrations, the investors will be issued additional equity, representing 4.2% of the outstanding ACM Shanghai shares.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 June 30, 2019, the condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2019 and 2018, the condensed consolidated statements of changes in stockholders’ equity for the six months ended June 30, 2019 and 2018, and the condensed consolidated statements of cash flows for the six months ended June 30, 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 June 30, 2019 and the results of operations for the three and six months ended June 30, 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 per Common Share	Basic and diluted net income per common share is calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net income $ 4,311 $ 3,215 $ 6,168 $ 435 Denominator: Weighted average shares outstanding, basic 16,090,937 15,838,540 16,067,924 15,611,863 Effect of dilutive securities 2,513,410 2,281,193 2,387,610 2,057,787 Weighted average shares outstanding, diluted 18,604,347 18,119,733 18,455,534 17,669,650 Net income per common share: Basic $ 0.27 $ 0.20 $ 0.38 $ 0.03 Diluted $ 0.23 $ 0.18 $ 0.33 $ 0.02 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 and six months ended June 30, 2019 and 2018, the net income per common share attributable to each class is the same under the “two-class” method. As such, the two classes of common stock have been presented on a combined basis in the condensed consolidated statements of operations and comprehensive income and in the above computation of net income per common share. Diluted net income per common share reflects the potential dilution from securities that could share in ACM’s earnings. ACM’s potential dilutive securities consist warrants and stock options for the three and six months ended June 30, 2019 and 2018. Certain potential dilutive securities were excluded from the net income 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”) 2016-02, Leases (Topic 842) Leases Leases Effective January 1, 2019, the Company adopted ASU 2016-02. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 Leases In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718)—Improvements to Nonemployee Share-Based Payment Accounting Compensation—Stock Compensation Revenue from Contracts with Customers (Topic 606) Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) In January 2017, the FASB issued ASU 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

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Calculation of basic and diluted net loss per common share	Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net income $ 4,311 $ 3,215 $ 6,168 $ 435 Denominator: Weighted average shares outstanding, basic 16,090,937 15,838,540 16,067,924 15,611,863 Effect of dilutive securities 2,513,410 2,281,193 2,387,610 2,057,787 Weighted average shares outstanding, diluted 18,604,347 18,119,733 18,455,534 17,669,650 Net income per common share: Basic $ 0.27 $ 0.20 $ 0.38 $ 0.03 Diluted $ 0.23 $ 0.18 $ 0.33 $ 0.02

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Accounts receivable	June 30, December 31, 2019 2018 Accounts receivable $ 31,393 $ 24,608 Less: Allowance for doubtful accounts - - Total $ 31,393 $ 24,608

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventory	June 30, 2019 December 31, 2018 Raw materials $ 17,425 $ 12,646 Work in process 15,103 9,631 Finished goods 12,966 16,487 Total inventory, gross 45,494 38,764 Inventory reserve - - Total inventory, net $ 45,494 $ 38,764

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property, plant and equipment	June 30, December 31, 2019 2018 Manufacturing equipment $ 3,948 $ 9,703 Office equipment 601 512 Transportation equipment 126 184 Leasehold improvement 1,424 1,379 Total cost 6,099 11,778 Less: Total accumulated depreciation (2,831 ) (8,102 ) Construction in progress 108 32 Total property, plant and equipment, net $ 3,376 $ 3,708

Short-Term Borrowings (Tables)

Short-Term Borrowings (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Short-term borrowings	June 30, 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. 3,565 - 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 and fully repaid on June 6,2019. - 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 and fully repaid on June 13,2019. - 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. 1,455 - 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%. 1,455 - 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%. 728 - 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%. 728 - 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. 3,251 - Line of credit up to RMB 50,000 from China Everbright Bank, due on April 17, 2020 with an annual interest rate of 5.66%, guaranteed by the Company’s CEO. 1,164 - Line of credit up to RMB 50,000 from China Everbright Bank, due on June 26, 2020 with an annual interest rate of 5.66%, guaranteed by the Company’s CEO. 2,764 - Total $ 15,110 $ 9,447

Other Payable and Accrued Exp_2

Other Payable and Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Other payable and accrued expenses	June 30, 2019 December 31, 2018 Lease expenses and payable for leasehold improvement due to a related party (note 11) $ 52 $ 53 Accrued commissions 2,455 2,931 Accrued warranty 2,338 1,710 Accrued payroll 1,392 626 Accrued professional fees 234 64 Accrued machine testing fees 2,859 3,076 Others 2,663 1,950 Total $ 11,993 $ 10,410

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Lease expense	Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost $ 264 $ 701 Short-term lease cost 7 25 Lease cost $ 271 $ 726
Supplemental cash flow information related to operating lease	Three months ended June 30, 2019 Six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases 271 726
Maturities of our lease liabilities for all operating leases	December 31 2019 $ 728 2020 1,488 2021 1,475 2022 1,495 2023 53 2024 13 Total lease payments 5,252 Less: Interest (702 ) Present value of lease liabilities $ 4,550
Weighted average remaining lease terms and discount rates	June 30, 2019 Remaining lease term and discount rate: Weighted average remaining lease term (years) 3.50 Weighted average discount rate 5.43 %

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	6 Months Ended
	Jun. 30, 2019
Other Liabilities Disclosure [Abstract]
Other long-term liabilities	June 30, 2019 December 31, 2018 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 1,362 $ 1,483 Subsidies to Electro Copper Plating project, commenced in 2014 2,370 2,860 Subsidies to Polytetrafluoroethylene, commenced in 2018 158 178 Other 73 62 Total $ 3,963 $ 4,583

Long-Term Investment (Tables)

Long-Term Investment (Tables)	6 Months Ended
	Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Long-term investment	June 30, 2019 December 31, 2018 Investment – equity method $ 1,629 $ 1,360 Investment – cost method 109 - Total $ 1,738 $ 1,360

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Employee Stock Option [Member]
Summary of share option activities	Number of Option Share Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighed Average Remaining Contractual Term Outstanding at December 31, 2018 2,503,405 0.91 4.09 7.30 years Granted 295,000 6.50 16.81 Exercised (48,098 ) 0.78 2.62 Expired (628 ) 0.55 3.00 Forfeited (4,085 ) 1.90 4.83 Outstanding at June 30, 2019 2,745,594 2.07 5.48 7.14 years Vested and exercisable at June 30, 2019 1,608,352
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, 2018 1,212,374 $ 0.78 $ 2.57 6.66 years Granted - - - - Exercised (56,529 ) 0.33 0.81 - Expired - - - - Forfeited - - - - Outstanding at June 30, 2019 1,155,845 $ 0.81 $ 2.66 6.62 years Vested and exercisable at June 30, 2019 986,572

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net income	$ 4,311	$ 3,215	$ 6,168	$ 435
Denominator:
Weighted average shares outstanding, basic	16,090,937	15,838,540	16,067,924	15,611,863
Effect of dilutive securities	2,513,410	2,281,193	2,387,610	2,057,787
Weighted average shares outstanding, diluted	18,604,347	18,119,733	18,455,534	17,669,650
Net income per common share:
Basic	$ 0.27	$ .20	$ 0.38	$ 0.03
Diluted	$ 0.23	$ 0.18	$ 0.33	$ 0.02

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable	$ 31,393	$ 24,608
Less: allowance for doubtful accounts	0	0
Total	$ 31,393	$ 24,608

Accounts Receivable (Details Na

Accounts Receivable (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 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	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 17,425	$ 12,646
Work in process	15,103	9,631
Finished goods	12,966	16,487
Total inventory, gross	45,494	38,764
Inventory reserve	0	0
Total inventory, net	$ 45,494	$ 38,764

Inventories (Details Narrative)

Inventories (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 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	Jun. 30, 2019	Dec. 31, 2018
Total cost	$ 6,099	$ 11,778
Less: total accumulated depreciation	(2,831)	(8,102)
Construction in progress	108	32
Total property, plant and equipment, net	3,376	3,708
Manufacturing Equipment [Member]
Total cost	3,948	9,703
Office Equipment [Member]
Total cost	601	184
Transportation Equipment [Member]
Total cost	126	1,379
Leasehold Improvements [Member]
Total cost	$ 1,424	$ 512

Property, Plant and Equipment_3

Property, Plant and Equipment, Net (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 177	$ 88	$ 352	$ 173

Short-Term Borrowing (Details)

Short-Term Borrowing (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Short-term borrowings	$ 15,110	$ 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	3,565	0
Short-term borrowings 4
Short-term borrowings	0	2,186
Short-term borrowings 5
Short-term borrowings	0	2,186
Short-term borrowings 6
Short-term borrowings	0	1,457
Short-term borrowings 7
Short-term borrowings	1,455	0
Short-term borrowings 8
Short-term borrowings	1,455	0
Short-term borrowings 9
Short-term borrowings	728	0
Short-term borrowings 10
Short-term borrowings	728	0
Short-term borrowings 11
Short-term borrowings	3,251	0
Short-term borrowings 12
Short-term borrowings	1,164	0
Short-term borrowings 13
Short-term borrowings	$ 2,764	$ 0

Short-Term Borrowings (Details

Short-Term Borrowings (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Debt Disclosure [Abstract]
Interest expense related to short-term borrowings	$ 194	$ 149	$ 333	$ 252

Other Payable and Accrued Exp_3

Other Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Lease expenses and payable for leasehold improvement due to a related party (note 11)	$ 52	$ 53
Accrued commissions	2,455	2,931
Accrued warranty	2,338	1,710
Accrued payroll	1,392	626
Accrued professional fees	234	64
Accrued machine testing fee	2,859	3,076
Others	2,663	1,950
Total	$ 11,993	$ 10,410

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 264	$ 701
Short-term lease cost	7	25
Lease cost	$ 271	$ 726

Leases (Details 1)

Leases (Details 1) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$ 271	$ 726

Leases (Details 2)

Leases (Details 2) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
2019	$ 728
2020	1,488
2021	1,475
2022	1,495
2023	53
2024	13
Total payments	5,252
Less: interest	(702)
Present value of lease liabilities	$ 4,550

Leases (Details 3)

Leases (Details 3)	Jun. 30, 2019
Leases [Abstract]
Weighted average remaining lease term (years)	3 years 6 months
Weighted average discount rate	5.43%

Other Long-Term Liabilities (De

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Other long-term liabilities	$ 3,963	$ 4,583
Subsidies to Stress Free Polishing project [Member]
Other long-term liabilities	1,362	1,483
Subsidies to Electro Copper Plating project [Member]
Other long-term liabilities	2,370	2,860
Subsidies to Polytetrafluoroethylene [Member]
Other long-term liabilities	158	178
Other [Member]
Other long-term liabilities	$ 73	$ 62

Long-Term Investment (Details)

Long-Term Investment (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Investment - equity method	$ 1,629	$ 1,360
Investment - cost method	109	0
Total	$ 1,738	$ 1,360

Related Party Balances and Tr_2

Related Party Balances and Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Ninebell [Member]
Purchased materials amount	$ 2,483	$ 1,865	$ 4,803	$ 2,835
Accounts payable-related party	2,131		2,131		$ 1,477
Prepaid for material purchases	751		751		$ 572
Shengyi [Member]
Purchased materials amount	192		192
Accounts payable-related party	189		189
Shanghai Zhangjiang Group Co., Ltd. [Member]
Leasing expense under lease agreement	$ 150	$ 147	300	319
Lease expenses and payable for leasehold improvement due to a related party			$ 52	$ 53

Common Stock (Details Narrative

Common Stock (Details Narrative) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Common Class A [Member]
Common stock, shares authorized	50,000,000	50,000,000
Common stock, par value	$ .0001	$ 0.0001
Common stock, shares issued	14,229,942	14,110,315
Common stock, shares outstanding	14,229,942	14,110,315
Common Class B [Member]
Common stock, shares authorized	2,409,738	2,409,738
Common stock, par value	$ .0001	$ 0.0001
Common stock, shares issued	1,883,423	1,898,423
Common stock, shares outstanding	1,883,423	1,898,423

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - $ / shares	6 Months Ended
	Jun. 30, 2019
Employee Stock Option [Member]
Number of Option Shares, Outstanding, Beginning balance	2,503,405
Number of Option Shares, Outstanding, Granted	295,000
Number of Option Shares, Outstanding, Exercised	(48,098)
Number of Option Shares, Outstanding, Expired	(628)
Number of Option Shares, Outstanding, Forfeited	(4,082)
Number of Option Shares, Outstanding, Ending balance	2,745,594
Vested and Exercisable	1,608,352
Weighted Average Grant Date Fair Value, Outstanding, Beginning balance	$ .91
Weighted Average Grant Date Fair Value, Granted	6.50
Weighted Average Grant Date Fair Value, Exercised	.78
Weighted Average Grant Date Fair Value, Expired	.55
Weighted Average Grant Date Fair Value, Forfeited	1.90
Weighted Average Grant Date Fair Value, Outstanding, Ending balance	2.07
Weighted Average Exercise Price, Outstanding, Beginning balance	4.09
Weighted Average Exercise Price, Granted	16.81
Weighted Average Exercise Price, Exercised	2.62
Weighted Average Exercise Price, Expired	3
Weighted Average Exercise Price, Forfeited	4.83
Weighted Average Exercise Price, Outstanding, Ending balance	$ 5.48
Weighted Average Remaining Contractual Term Outstanding, Beginning balance	7 years 3 months 18 days
Weighted Average Remaining Contractual Term Outstanding, Ending balance	7 years 1 month 20 days
Non Employee Awards [Member]
Number of Option Shares, Outstanding, Beginning balance	1,212,374
Number of Option Shares, Outstanding, Granted	0
Number of Option Shares, Outstanding, Exercised	(56,529)
Number of Option Shares, Outstanding, Expired	0
Number of Option Shares, Outstanding, Forfeited	0
Number of Option Shares, Outstanding, Ending balance	1,155,845
Vested and Exercisable	986,572
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	.33
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	.81
Weighted Average Exercise Price, Outstanding, Beginning balance	2.57
Weighted Average Exercise Price, Granted	.00
Weighted Average Exercise Price, Exercised	.81
Weighted Average Exercise Price, Expired	.00
Weighted Average Exercise Price, Forfeited	.00
Weighted Average Exercise Price, Outstanding, Ending balance	$ 2.66
Weighted Average Remaining Contractual Term Outstanding, Beginning balance	6 years 7 months 28 days
Weighted Average Remaining Contractual Term Outstanding, Ending balance	6 years 7 months 13 days

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Employee Stock Option [Member]
Stock-based compensation expense	$ 291	$ 170	$ 512	$ 263
Unrecognized employee stock-based compensation expense, net of estimated forfeitures	3,662		$ 3,662		$ 2,424
Weighted-average period over which unrecognized compensation is expected to be recognized			1 year 6 months 4 days		1 year 7 months 13 days
Non Employee Awards [Member]
Stock-based compensation expense	327	$ 14	$ 850	$ 2,097
Unrecognized employee stock-based compensation expense, net of estimated forfeitures	$ 863		$ 863		$ 1,713
Weighted-average period over which unrecognized compensation is expected to be recognized			7 months 20 days		1 year 3 months 22 days

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statutory U.S federal income tax rate			21.00%
Income tax provision (benefit)	$ 876	$ 164	$ 995	$ 186
Unrecognized tax benefits	$ 44		$ 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	Jun. 30, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Commitments	$ 0