Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Mar. 19, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Trading Symbol	ACMR
Entity Registrant Name	ACM RESEARCH, INC.
Entity Central Index Key	0001680062
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		12,992,768
Entity Public Float			$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 17,681	$ 10,119
Accounts receivable, less allowance for doubtful accounts of $0 and $0 as of December 31, 2017 and 2016, respectively (note 3)	26,762	16,026
Other receivables	2,491	1,763
Inventory (note 4)	15,388	11,666
Prepaid expenses	546	720
Other current assets	46	53
Total current assets	62,914	40,347
Property, plant and equipment, net (note 5)	2,340	2,262
Intangible assets, net	106	17
Deferred tax assets (note 17)	1,294	1,841
Investment in affiliates, equity method (note 11)	1,237	0
Total assets	67,891	44,467
Current liabilities:
Short-term borrowings (note 6)	5,095	4,761
Notes payable	11	11
Investors' deposit (note 8)	0	2,902
Warrant liability (note 9)	3,079	0
Accounts payable (including amounts due to a related party of $2,118and $508 at December 31, 2017 and 2016, respectively (note 12))	7,419	5,173
Advances from customers	143	215
Income tax payable	44	44
Other payables and accrued expenses (including amounts due to a related-party of $2,024 and $1,883 as of December 31, 2017 and 2016, respectively (note 12) (note 7))	6,026	3,963
Total current liabilities	21,817	17,069
Other long-term liabilities (note 10)	6,217	6,879
Total liabilities	28,034	23,948
Redeemable convertible preferred stock, par value $0.0001:
Redeemable convertible preferred stock	0	18,034
Stockholders' equity (deficit):
Additional paid in capital	49,695	7,620
Accumulated deficit	(9,961)	(9,643)
Accumulated other comprehensive income (loss)	122	(413)
Total ACM Research, Inc. stockholders’ (deficit) equity	39,857	(2,434)
Non-controlling interests	0	4,919
Total stockholders' equity	39,857	2,485
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	67,891	44,467
Series A- Convertible Preferred Stock [Member]
Redeemable convertible preferred stock, par value $0.0001:
Redeemable convertible preferred stock	0	288
Series B Convertible Preferred Stock [Member]
Redeemable convertible preferred stock, par value $0.0001:
Redeemable convertible preferred stock	0	1,572
Series C Convertible Preferred Stock [Member]
Redeemable convertible preferred stock, par value $0.0001:
Redeemable convertible preferred stock	0	2,041
Series D Convertible Preferred Stock [Member]
Redeemable convertible preferred stock, par value $0.0001:
Redeemable convertible preferred stock	0	4,975
Series E Convertible Preferred Stock [Member]
Redeemable convertible preferred stock, par value $0.0001:
Redeemable convertible preferred stock	0	0
Series F Convertible Preferred Stock [Member]
Redeemable convertible preferred stock, par value $0.0001:
Redeemable convertible preferred stock	0	9,158
Common Class A [Member]
Stockholders' equity (deficit):
Common stock	1	1
Common Class B [Member]
Stockholders' equity (deficit):
Common stock	$ 0	$ 0

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accounts receivable, allowance for doubtful accounts	$ 0	$ 0
Accounts payable, Due to a related party	2,118	508
Other payables and accrued expenses, due to a related-party	$ 2,024	$ 1,883
Redeemable convertible preferred stock, par value	$ 0.0001	$ 0.0001
Series A- Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	385,000	385,000
Redeemable preferred stock, shares issued	0	385,000
Redeemable preferred stock, shares outstanding	0	385,000
Redeemable preferred stock, liquidation value	$ 0	$ 308
Series B Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	1,572,000	1,572,000
Redeemable preferred stock, shares issued	0	1,572,000
Redeemable preferred stock, shares outstanding	0	1,572,000
Redeemable preferred stock, liquidation value	$ 0	$ 1,572
Series C Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	1,360,962	1,360,962
Redeemable preferred stock, shares issued	0	1,360,962
Redeemable preferred stock, shares outstanding	0	1,360,962
Redeemable preferred stock, liquidation value	$ 0	$ 2,041
Series D Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	2,659,975	2,659,975
Redeemable preferred stock, shares issued	0	1,326,642
Redeemable preferred stock, shares outstanding	0	1,326,642
Redeemable preferred stock, liquidation value	$ 0	$ 4,975
Series E Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	10,718,530	10,718,530
Redeemable preferred stock, shares issued	0	0
Redeemable preferred stock, shares outstanding	0	0
Series F Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	6,000,000	6,000,000
Redeemable preferred stock, shares issued	0	3,663,254
Redeemable preferred stock, shares outstanding	0	3,663,254
Redeemable preferred stock, liquidation value	$ 0	$ 9,158
Common Class A [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	12,935,546	2,228,740
Common stock, shares outstanding	12,935,546	2,228,740
Common Class B [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	7,303,533	7,303,533
Common stock, shares issued	2,409,738	2,409,738
Common stock, shares outstanding	2,409,738	2,409,738

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenue	$ 36,506	$ 27,371
Cost of revenue	19,281	14,042
Gross profit	17,225	13,329
Operating expenses, net:
Sales and marketing	5,500	3,907
Research and development	5,138	3,259
General and administrative	5,887	2,673
Total operating expenses, net	16,525	9,839
Income from operations	700	3,490
Interest income	9	16
Interest expense	(277)	(181)
Other expense, net	(794)	(343)
Equity in net income of affiliates	37	0
Income (loss) before income taxes	(325)	2,982
Income tax expense (note 17)	(547)	(595)
Net income (loss)	(872)	2,387
Less: Net income (loss) attributable to non-controlling interests	(554)	1,356
Net income (loss) attributable to ACM Research, Inc.	(318)	1,031
Comprehensive income (loss):
Net income (loss)	(872)	2,387
Foreign currency translation adjustment	472	(522)
Comprehensive income (loss)	(400)	1,865
Less: Comprehensive income (loss) attributable to non-controlling interests	(369)	1,161
Total comprehensive income (loss) attributable to ACM Research, Inc.	$ (31)	$ 704
Net income (loss) per common shares (note 2)
Basic	$ (0.05)	$ 0.3
Diluted	$ (0.05)	$ 0.18
Weighted average common stocks outstanding used in computing per share amounts (note 2)
Basic	6,865,390	2,176,315
Diluted	6,865,390	3,792,137

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ (872)	$ 2,387
Adjustments to reconcile net loss from operations to net cash provided by (used in) operating activities:
Depreciation and amortization	271	187
Undistributed earnings from investments in equity method affiliates	(37)	0
Loss on disposals of fixed assets, intangible assets and other long-term assets	1	3
Net loss from debt conversion and interest waiver	0	1,608
Stock-based compensation	1,622	383
Net changes in operating assets and liabilities:
Accounts receivable	(9,757)	(4,724)
Other receivables	332	(621)
Inventory	(3,073)	(3,055)
Prepaid expenses	256	219
Other current assets	8	(47)
Accounts payable	1,905	3,177
Advances from customers	(127)	(4,078)
Other payables and accrued expenses	1,789	276
Other long-term liabilities	(1,078)	147
Net cash provided by (used in) operating activities	(8,101)	(3,702)
Cash flows from investing activities:
Purchase of property and equipment	(651)	(795)
Purchase of intangible assets	(115)	(22)
Proceed from disposal of property and equipment	0	7
Loan to related party	(946)	0
Purchase of non-controlling interest	(20,808)	0
Investments in unconsolidated equity method affiliates	(1,200)	0
Net cash used in investing activities	(23,720)	(810)
Cash flows from financing activities:
Proceeds from short-term borrowings	11,154	5,918
Repayments of short-term borrowings	(11,110)	(7,575)
Investors’ deposit	0	2,902
Proceeds from stock option exercise to common stock	396	410
Proceed from issuance of Series E convertible preferred stock	5,800	0
Proceeds from issuance of Series F convertible preferred stock	0	9,040
Proceeds from issuance of Common Stock	18,717	0
Investment in affiliates, equity method	1,000	0
Repayments of notes payable	0	(141)
Proceeds from issuance of common stock for non-controlling interest purchase, net of direct issuanc expenses of $1,254	14,300	0
Payment of inital public offering expenses	(1,537)	0
Net cash provided by financing activities	38,720	10,554
Effect of exchange rate changes on cash and cash equivalents	663	(324)
Net increase in cash and cash equivalents	7,562	5,718
Cash and cash equivalents at beginning of period	10,119	4,401
Cash and cash equivalents at end of period	17,681	10,119
Supplemental disclosure of cash flow information:
Interest paid	277	181
Non-cash financing activities:
Debt conversion to Class A common stock	0	1,486
Debt conversion to Series F convertible preferred stock	0	119
Exercise of stock option in lieu of the cash repayment of notes payable	0	174
Preferred stock conversion to common stock in connection with initial public offering	$ 23,834	$ 0

Consolidated Statement of Changes in Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Preferred Stock Series A	Preferred Stock Series B	Preferred Stock Series C	Preferred Stock Series D	Preferred Stock Series E	Preferred Stock Series F	Preferred Stock Total	Common Stock	Common Stock Class A	Common Stock Class B	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Noncontrolling Interest	Total
Beginning balance, shares at Dec. 31, 2015	385,000	1,572,000	1,360,962	1,326,642	0	0		2,047,403	0	0
Beginning balance, amount at Dec. 31, 2015	$ 288	$ 1,572	$ 2,041	$ 4,975	$ 0	$ 0	$ 8,876	$ 280	$ 0	$ 0	$ 2,243	$ (10,675)	$ (84)	$ 3,757	$ (4,479)
Net income (loss)												1,031		1,356	2,387
Foreign currency translation adjustment													(329)	(193)	(522)
Redomestication, shares								(2,047,403)		2,047,403
Redomestication, amount								$ (280)		$ 1	(279)
Issuance of stock, shares						3,615,800
Issuance of stock, amount						$ 9,039	9,039
Debt conversion, shares						47,454			1,812,069
Debt conversion, amount						$ 119	119		$ 1		4,131				4,132
Exercise of stock option, shares									416,671	362,335
Exercise of stock option, amount									$ 0	$ 0	584				584
Stock-based compensation											383				383
Purchase of non-controlling interest															0
Convertible preferred shares converted to common shares in connection with initial public offering, amount															0
Ending balance, shares at Dec. 31, 2016	385,000	1,752,000	1,360,962	1,326,642	0	3,663,254		0	2,228,740	2,409,738
Ending balance, amount at Dec. 31, 2016	$ 288	$ 1,572	$ 2,041	$ 4,975	$ 0	$ 9,158	18,034	$ 0	$ 1	$ 1	7,620	(9,643)	(413)	4,919	2,485
Net income (loss)												(318)		(554)	(872)
Foreign currency translation adjustment													535	185	720
Exercise of stock option, shares									472,887
Exercise of stock option, amount											396				396
Stock-based compensation											1,622				1,622
Purchase of non-controlling interest											(16,258)			(4,550)	20,808
Issuance of Series E Preferred Stock, shares					4,998,508
Issuance of Series E Preferred Stock, amount					$ 5,800		5,800
Issuance of Common Stock to Ninebell, shares									133,334
Issuance of Common Stock to Ninebell, amount											1,000				1,000
Issuance of Common Stock to Shanghai and Pudong VC, shares									1,906,674
Issuance of Common Stock to Shanghai and Pudong VC, amount											14,299				14,299
Convertible preferred shares converted to common shares in connection with initial public offering, shares	(385,000)	(1,572,000)	(1,360,962)	(1,326,642)	(4,998,508)	(3,663,254)			4,627,577
Convertible preferred shares converted to common shares in connection with initial public offering, amount	$ (288)	$ (1,572)	$ (2,041)	$ (4,975)	$ (5,800)	$ (9,158)	$ (23,834)				23,834				23,834
Issuance of Class A common stock in connection with inital public offering and concurrent private placement, net of issuance costs of $2,791 and underwriter's warrant of $137, shares									3,566,334
Issuance of Class A common stock in connection with inital public offering and concurrent private placement, net of issuance costs of $2,791 and underwriter's warrant of $137, amount											17,044				17,044
Issuance of underwriter's warrant, amount											137				137
Reclassification of reverse split par value										$ (1)	1
Ending balance, shares at Dec. 31, 2017	0	0	0	0	0	0	0	0	12,935,546	2,409,738
Ending balance, amount at Dec. 31, 2017	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 1	$ 0	$ 49,695	$ (9,961)	$ 122	$ 0	$ 39,857

Description of Business

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Description of Business

ACM Research, Inc. (“ACM”) and its subsidiaries (collectively with ACM, the “Company”) develop, manufacture and sell single-wafer wet cleaning equipment used to improve the manufacturing process and yield for advanced integrated chips. The Company markets and sells, under the brand name “Ultra C,” lines of equipment 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 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. 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. (“SSTVC”). On November 8, 2017, ACM purchased the remaining 18.36% of ACM Shanghai’s equity interest held by Shanghai Pudong High-Tech Investment Co., Ltd. (“PDHTI”) and Shanghai Zhangjiang Science & Technology Venture Capital Co., Ltd. (“ZSTVC”). At December 31, 2017 and 2016, respectively, ACM owned 100% and 62.87% of the outstanding equity interests of ACM Shanghai, and indirectly through ACM Shanghai, owned 100% and 62.87% of the outstanding equity interests of ACM Wuxi, respectively.

On September 13, 2017, ACM effectuated a 1-for-3 reverse stock split (the “Reverse 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 those notes and the accompanying condensed consolidated financial statements have been adjusted retrospectively to reflect the Reverse Split.

On November 2, 2017, the Registration Statement on Form S-1 (File No. 333- 220451) for our initial public offering of Class A common stock, or IPO, was declared effective by the SEC. Shares of Class A common stock began trading on the Nasdaq Global Market on November 3, 2017.

In December 2017 ACM formed a wholly owned subsidiary in Republic of Korea, ACM Research Korea CO., LTD. (“ACM Korea”), to serve our customers based in Republic of Korea and perform sales, marketing, research and development activities. ACM Korea has not yet commenced its operation during the year ended December 31, 2017.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated accounts include ACM and its subsidiaries, ACM Shanghai, ACM Wuxi, CleanChip and ACM Korea. Subsidiaries are those entities in which ACM, directly and indirectly, controls more than one half of the voting power. All significant intercompany transactions and balances have been eliminated upon consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. The Company’s significant accounting estimates and assumptions include, but are not limited to, those used for the valuation and recognition of stock-based compensation arrangements and warrant liability, realization of deferred tax assets, assessment for impairment of long-lived assets, allowance for doubtful accounts, inventory valuation for excess and obsolete inventories, lower of cost and market value or net realizable value of inventories, depreciable lives of property and equipment, and useful life of intangible assets.

Management evaluates these estimates and assumptions on a regular basis. Actual results could differ from those estimates and assumptions.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand, bank deposits that are unrestricted as to withdrawal and use, and highly liquid investments with an original maturity date of three months or less at the date of purchase. At times, cash deposits may exceed government-insured limits.

Accounts Receivable

Accounts receivable are presented net of an allowance for doubtful accounts. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history and credit worthiness, and current economic trends. Accounts are written off after all collection efforts have been exhausted. At December 31, 2017 and 2016, the Company, based on a review of its outstanding balances and its customers, determined no allowance for doubtful accounts was necessary.

Inventory

Inventory consists of raw materials and related goods, work-in-progress, finished goods, and other consumable materials such as spare parts. Finished goods typically are shipped from the Company’s warehouse within one month of completion.

Inventory was recorded at the lower of cost or net realizable value at December 31, 2017 and 2016.

●

The cost of a general inventory item is determined using the weighted moving average method. Under the weighted moving average method, the Company calculates the new average price of all items of a particular inventory stock each time one or more items of that stock are purchased. The then-current average price of the stock is used for purposes of determining cost of inventory or cost of revenue. The cost of an inventory item purchased specifically for a customized product is determined using the specific identification method. Low-cost consumable materials and packaging materials are expensed as incurred.

●	Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete or dispose.

The Company assesses the recoverability of all inventories quarterly to determine if any adjustments are required. Potential excess or obsolete inventory is written off based on management’s analysis of inventory levels and estimates of future 12-month demand and market conditions.

Property, Plant and Equipment, Net

Property, plant and equipment are recorded at cost less accumulated depreciation and any provision for impairment in value. Depreciation begins when the asset is placed in service and is calculated by using the straight-line method over the estimated useful life of an asset (or, if shorter, over the lease term). Betterments or renewals are capitalized when incurred. Plant, property and equipment is reviewed each year to determine whether any events or circumstances indicate that the carrying amount of the assets may not be recoverable.

Estimated useful lives of assets in the United States are as follows:


Computer and office equipment	3 to 5 years
Furniture and fixtures	5 years
Leasehold improvements	shorter of lease term or estimated useful life

ACM’s subsidiaries follow regulations for depreciation of fixed assets implemented under the PRC’s Enterprise Income Tax Law, which state that the minimum useful lives used for calculating depreciation for fixed assets are as follows:


Manufacturing equipment	for small to medium-sized equipment, 5 years; for large equipment, estimated by purchasing department at time of acceptance
Furniture and fixtures	5 years
Transportation equipment	4 to 5 years
Electronic equipment	3 years
Leasehold improvements	remaining lease term for improvements on leased fixed assets or, for large improvements, estimated useful life; not less than 3 years for non-fixed asset repairs

Expenditures for maintenance and repairs that neither materially add to the value of the property nor appreciably prolong the life of the property are charged to expense as incurred. Upon retirement or sale of an asset, the cost of the asset and the related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is credited or charged to income.

Intangible Assets, Net

Intangible assets consist of software used for finance, manufacturing, and research and development purposes. Assets are valued at cost at the time of acquisition and are amortized over their beneficial periods. If a contract specifies a beneficial period, then the intangible asset is amortized over a term not exceeding the beneficial period. If the contract does not specify a beneficial period, then the intangible asset is amortized over a term not exceeding the valid period specified by local law. If neither the contract nor local law specifies a beneficial period, then the intangible asset is amortized over a period of up to 10 years. Currently, the software that the Company uses is amortized over a two-year period in accordance with the policy described above.

Valuation of Long-Lived Assets

Long-lived assets are evaluated for impairment whenever events or changes in circumstance indicate that the carrying value of the assets may not be fully recoverable or that the useful life of the assets is shorter than the Company had originally estimated. When these events or changes occur, the Company evaluates the impairment of the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flow is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value over the fair value. No impairment charge was recognized for either of the periods presented.

Leases

Each lease is classified at the inception date as either a capital lease or an operating lease. For the lessee, a lease is a capital lease if any of the following conditions exist: (a) ownership is transferred to the lessee by the end of the lease term; (b) there is a bargain purchase option; (c) the lease term is at least 75% of the property’s estimated remaining economic life; or (d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the leasor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations and comprehensive income on a straight-line basis over the terms of underlying lease. The Company had no capital lease for either of the periods presented.

Redeemable Convertible Preferred Stock

The Company recorded each series of convertible preferred stock at fair value on the date of issuance, net of issuance costs. The convertible preferred stock is recorded outside of stockholders’ equity (deficit) because, in the event of certain deemed liquidation events considered not solely within the Company’s control (such as a merger, acquisition, or sale of all or substantially all of the Company’s assets), the convertible preferred stock will become redeemable at the option of the holders. The Company has not adjusted the carrying value of any series of convertible preferred stock to the liquidation preference of such series because it is uncertain whether or when an event would occur that would obligate the Company to pay the liquidation preferences to holders of convertible preferred stock. Subsequent adjustments to the carrying values to the liquidation preferences will be made only when it becomes probable that such a liquidation event will occur.

Revenue Recognition

The Company recognizes revenue when all the following conditions are met:

●	there is persuasive evidence of an arrangement;

●	the product delivery has occurred and the Company has transferred major risks and remunerations over the ownership of the product to the buyer or a service has been fully rendered and completed;

●	the collection of the receivable is probable; and

●	the amount of the payment is fixed or determinable.

The Company derives revenue principally from sales of semiconductor capital equipment. In general, the Company recognizes revenue when the product has been demonstrated to meet the predetermined specifications and is accepted by the customer. If terms of the sale provide for a lapsing customer acceptance period, the Company recognizes revenue upon the earlier of the expiration of the lapsing acceptance period and customer acceptance. In the following circumstances, however, the Company recognizes revenue upon shipment or delivery, when the legal title of the product is passed to a customer:

●	when the customer has previously accepted the same tool with the same specifications and when the Company can objectively demonstrate that the tool meets all of the required acceptance criteria;

●	when the sales contract or purchase order contains no acceptance agreement or no lapsing acceptance provision and when the Company can objectively demonstrate that the tool meets all of the required acceptance criteria;

●	when the customer withholds acceptance due to issues unrelated to product performance, in which case revenue is recognized when the system is performing as intended and meets predetermined specifications; or

●	the Company’s sales arrangements do not include a general right of return.

Customization, production, installation and delivery are essential elements of the functionality of a delivered machine; the services offered, principally the warranty, are not essential to the functionality of the machine. The Company treats the customization, production, installation and delivery of machines, together with the provision of related warranty and other services, as a single unit of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 605-25, Revenue Recognition – Multiple-Element Arrangements. All of the Company’s products were sold in stand-alone arrangements during the year ended December 31, 2017 and 2016.

After the warranty period has expired, the Company will also provide customers with post-warranty services, which mainly include the installation and replacement of parts and small-scale modifications to the existing products. The related revenue and costs are recognized as revenue and cost of revenue, respectively, when the parts have been delivered and installed, risk of loss has passed to the customer, and collection of the resulting receivable is probable.

Cost of Revenue

Cost of revenue primarily consists of: direct materials, comprised principally of parts used in assembling equipment, together with crating and shipping costs; direct labor, including salaries and other labor related expenses attributable to the Company’s manufacturing department; and allocated overhead cost, such as personnel cost, depreciation expense, and allocated administrative costs associated with supply chain management and quality assurance activities, as well as shipping insurance premiums.

Research and Development Costs

Research and development costs relating to the development of new products and processes, including significant improvements and refinements to existing products or to the process of supporting customer evaluations of tools, including the development of new tools for evaluation by customers during the product demonstration process, are expensed as incurred.

Shipping and Handling Costs

Shipping and handling costs, which relate to transportation of products to customer locations, are charged to selling and marketing expense. For the year ended December 31 2017 and 2016, shipping and handling costs included in sales and marketing expenses were $139 and $75, respectively.

Borrowing Costs

Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets that require a substantial period of time to be ready for their intended use or sale are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the consolidated statements of operations and comprehensive income in the period in which they are incurred. No borrowing costs were capitalized for the year ended December 31, 2017 or 2016.

Warranty

For each of its products, the Company generally provides a warranty ranging from 12 to 36 months and covering replacement of the product during the warranty period. The Company accounts for the estimated warranty costs as sales and marketing expenses at the time revenue is recognized. Warranty obligations are affected by historical failure rates and associated replacement costs. Utilizing historical warranty cost records, the Company calculates a rate of warranty expenses to revenue to determine the estimated warranty charge. The Company updates these estimated charges on a regular basis. The following table shows changes in the Company’s warranty obligations for the year ended December 31, 2017 and 2016, respectively.

	Year Ended December 31,
	2017			2016
Balance at beginning of period	$	290		$	459
Additions		736			544
Utilized		(187	)		(713	)
Balance at end of period	$	839		$	290

Government Subsidies

ACM Shanghai has been awarded three subsidies from local and central governmental authorities in the PRC. The first subsidy, which was awarded in October 2008, relates to the development and commercialization of 65-45 nanometer Stress Free Polishing technology. The second subsidy was awarded in April 2009 to fund interest expenses for short-term borrowings. The third subsidy was awarded in January 2014 and relates to the development of Electro Copper Plating technology. The PRC governmental authorities will provide the majority of the funding, although ACM Shanghai is also required to invest certain amounts in the projects.

The government subsidies contain certain operating conditions and therefore are recorded as long-term liabilities upon receipt. The grant amounts are recognized in the statements of operations and comprehensive income:

●

Government subsidies relating to current expenses are recorded as reductions of those expenses in the periods in which the current expenses are recorded. For the years ended December 31, 2017 and 2016, related government subsidies recognized as reductions of relevant expenses in the consolidated statements of operations and comprehensive income were $3,421 and $6,244 respectively.

●	Government subsidies for short-term borrowings’ interest expenses are reported as reductions of interest expenses in the period the interest is accrued, which were $0 and $99 for the years ended December 31, 2017 and 2016.

●

Government subsidies related to depreciable assets are credited to income over the useful lives of the related assets for which the grant was received. For the years ended December 31, 2017 and 2016, related government subsidies recognized as other income in the consolidated statements of operations and comprehensive income were $135 and $127, respectively.

Unearned government subsidies received are deferred for recognition and recorded as other long-term liabilities (note 10) in the balance sheet until the criteria for such recognition are satisfied.

Stock-based Compensation

ACM grants stock options to employees and non-employee consultants and directors and accounts for those stock-based awards in accordance with FASB ASC Topic 718, Compensation – Stock Compensation, and FASB ASC Subtopic 505-50, Equity-Based Payments to Non-Employees.

Stock-based awards granted to employees are measured at the fair value of the awards on the grant date and are recognized as expenses either (a) immediately on grant, if no vesting conditions are required or (b) using the graded vesting method, net of estimated forfeitures, over the requisite service period. The fair value of stock options is determined using the Black-Scholes valuation model. Stock-based compensation expense, when recognized, is charged to the category of operating expense corresponding to the employee’s service function.

Stock-based awards granted to non-employees are accounted for at the fair value of the awards at the earlier of (a) the date at which a commitment for performance by the non-employee to earn the awards is reached and (b) the date at which the non-employee’s performance is complete. The fair value of such non-employee awards is re-measured at each reporting date using the fair value at each period end until the vesting date. Changes in fair value between the reporting dates are recognized by the graded vesting method.

Operating and Financial Risks

Concentration of Credit Risk

Financial instruments that potentially subject to credit risk consist principally of cash and cash equivalents and accounts receivable. The Company deposits and invests its cash with financial institutions that management believes are creditworthy.

The Company is potentially subject to concentrations of credit risks in its accounts receivable. Four customers individually accounted for greater than ten percent of the Company’s revenue for the year ended 2017 and two of those customers individually accounted for greater than ten percent of the Company’s revenue in 2016:

	Year ended December 31,
	2017			2016
Customer A		*			33.7	%
Customer B		18.10	%		25.00
Customer C		*			24.00
Customer D		12.77			16.60
Customer E		14.12			*
Customer F		10.23			*

* Customer accounted for less than 10% of revenue in the period.

Interest Rate Risk

As of December 31, 2017 and 2016, the balance of bank borrowings (note 6) was short-term in nature, matured at various dates within the following year and did not expose the Company to interest rate risk.

Liquidity Risk

The Company’s working capital at December 31, 2017 and 2016 was sufficient to meet its then-current requirements. The Company may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions the Company decides to pursue. In the long run, the Company intends to rely primarily on cash flows from operations and additional borrowings from financial institutions in order to meet its cash needs. If those sources are insufficient to meet cash requirements, the Company may seek to issue additional debt or equity.

Country Risk

The Company has significant investments in the PRC. The operating results of the Company may be adversely affected by changes in the political and social conditions in the PRC and by changes in Chinese government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

Foreign Currency Risk and Translation

The Company’s consolidated financial statements are presented in U.S. dollars, which is the Company’s reporting currency, while the functional currency of ACM’s subsidiaries is the Chinese Renminbi (“RMB”). Changes in the relative values of U.S. dollars and Chinese RMB affect the Company’s reported levels of revenues and profitability as the results of its operations are translated from RMB into U.S. dollars for reporting purposes. Because the Company has not engaged in any hedging activities, it cannot predict the impact of future exchange rate fluctuations on the results of its operations and it may experience economic losses as a result of foreign currency exchange rate fluctuations.

Transactions of ACM’s subsidiaries involving foreign currencies are recorded in functional currency according to the rate of exchange prevailing on the date when the transaction occurs. The ending balances of the Company’s foreign currency accounts are converted into functional currency using the rate of exchange prevailing at the end of each reporting period. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations and comprehensive income. Total exchange gain (loss) was, respectively, $1,052 and $ (746) for the years ended December 31, 2017 and 2016.

In accordance with FASB ASC Topic 830, Foreign Currency Matters, the Company translates assets and liabilities into U.S. dollars from RMB using the rate of exchange prevailing at the applicable balance sheet date and the consolidated statements of operations and comprehensive income and consolidated statements of cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation are recorded in stockholders’ (deficit) equity as part of accumulated other comprehensive income (loss). Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of operations and comprehensive income.

Consolidated balance sheets:
At December 31, 2017	RMB 6.5359 to $1.00
At December 31, 2016	RMB 6.9348 to $1.00

Consolidated statements of operations and comprehensive income:
Year ended December 31, 2017	RMB 6.7522 to $1.00
Year ended December 31, 2016	RMB 6.6401 to $1.00

Translations of amounts from RMB into U.S. dollars were made at the following exchange rates for the respective dates and periods:

Income Taxes

The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable values.

In evaluating the ability to recover its deferred income tax assets, the Company considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, it would make an adjustment to the valuation allowance that would reduce the provision for income taxes. Conversely, in the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made.

Tax benefits related to uncertain tax positions are recognized when it is more likely than not that a tax position will be sustained during an audit. Interest and penalties related to unrecognized tax benefits are included within the provision for income tax.

Basic and Diluted Net Income (Loss) per Common Share

Basic and diluted net income (loss) per common share is calculated as follows:

	For the Year Ended December 31,
	2017			2016
Numerator:
Net income (loss)	$	(872	)	$	2,387
Net income (loss) attributable to non-controlling interest		(554	)		1,356
Net income allocated to participating securities		-			386
Net income (loss) available to common stockholders, basic and diluted	$	(318	)	$	645
Denominator:
Weighted average shares outstanding, basic		6,865,390			2,176,315
Effect of dilutive securities		-			1,615,822
Weighted average shares outstanding, diluted		6,865,390			3,792,137
Net income (loss) per common share:
Basic	$	(0.05	)	$	0.30
Diluted	$	(0.05	)	$	0.18

Basic and diluted net income (loss) per common share is presented using the two-class method, which allocates undistributed earnings to common stock and any participating securities according to dividend rights and participation rights on a proportionate basis. Under the two-class method, basic net income (loss) per common share is computed by dividing the sum of distributed and undistributed earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Shares of ACM’s Series A, B, C, D, E and F convertible preferred stock are participating securities, as the holders are entitled to participate in and receive the same dividends as may be declared for common stockholders on a pro-rata, if-converted basis.

ACM has been authorized to issue Class A and Class B common stock since redomesticating in Delaware in November 2016. The two classes of common stock are substantially identical in all material respects, except for voting rights. Since ACM did not declare any dividends for year ended December 31, 2017 and 2016, the net income (loss) per common share attributable to each class is the same under the “two-class” method. As such, the two classes of common stock have been presented on a combined basis in the consolidated statements of operations and comprehensive income (loss) and in the above computation of net income (loss) per common share.

Diluted net income (loss) per common share reflects the potential dilution from securities that could share in ACM’s earnings. All potential dilutive securities, including potentially dilutive convertible preferred stocks and stock options, if any, were excluded from the computation of dilutive net loss per common share for the year ended December 31, 2017 and 2016, as their effects are antidilutive due to our net loss for those periods. The potentially dilutive securities that were not included in the calculation of diluted net income per share in the periods presented where their inclusion would be anti-dilutive are as follows:

	Year ended December 31,
	2017		2016
Series A convertible preferred stock		-		128,334
Series B convertible preferred stock		-		524,003
Series C convertible preferred stock		-		482,288
Series D convertible preferred stock		-		605,244
Series F convertible preferred stock		-		1,221,099
Stock options		3,372,292		1,424,596
Warrants		477,502		-
		3,849,794		4,385,564

Comprehensive Income (Loss) Attributable to the Company

The Company applies FASB ASC Topic 220, Comprehensive Income, which establishes standards for the reporting and display of comprehensive income or loss, requiring its components to be reported in a financial statement with the same prominence as other financial statements. The comprehensive income (loss) attributable to the Company was $(31) and $704 for the years ended December 31, 2017 and 2016, respectively.

Appropriated Retained Earnings

The income of ACM’s PRC subsidiaries is distributable to their shareholders after transfers to reserves as required under relevant PRC laws and regulations and the subsidiaries’ Articles of Association. As stipulated by the relevant laws and regulations in the PRC, the PRC subsidiaries are required to maintain reserves, including reserves for statutory surpluses and public welfare funds that are not distributable to shareholders. A PRC subsidiary’s appropriations to the reserves are approved by its board of directors. At least 10% of annual statutory after-tax profits, as determined in accordance with PRC accounting standards and regulations, is required to be allocated to the statutory surplus reserves. If the cumulative total of the statutory surplus reserves reaches 50% of a PRC subsidiary’s registered capital, any further appropriation is optional.

Statutory surplus reserves may be used to offset accumulated losses or to increase the registered capital of a PRC subsidiary, subject to approval from the relevant PRC authorities, and are not available for dividend distribution to the subsidiary’s shareholders. The PRC subsidiaries are prohibited from distributing dividends unless any losses from prior years have been offset. Except for offsetting prior years’ losses, however, statutory surplus reserves must be maintained at a minimum of 25% of share capital after such usage. No retained earnings of either PRC subsidiary had been appropriated to statutory surplus reserves as the PRC subsidiaries recorded accumulated losses as of December 31, 2017 and 2016.

Fair Value of Financial Instruments

Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:

Level 1: Valuations for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or similar assets or liabilities.

Level 3: Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate certain unobservable assumptions and projections in determining the fair value assigned to such assets.

All transfers between fair value hierarchy levels are recognized by the Company at the end of each reporting period. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risks associated with investment in those instruments.

Fair Value Measured or Disclosed on a Recurring Basis

Short-term borrowings—Interest rates under the borrowing agreements with the lending parties were determined based on the prevailing interest rates in the market. The Company classifies the valuation techniques that use these inputs as Level 2 fair value measurement.

Warrant liability—The fair value of the warrant liability derives from the Black-Scholes valuation model which incorporates certain unobservable assumptions (note 9). The Company classifies the valuation techniques that use these inputs as Level 3 fair value measurement.

Other financial items for disclosure purpose—The fair value of other financial items of the Company for disclosure purpose, including cash and cash equivalents, accounts receivable, other receivables, prepaid expenses, other current assets, notes payable, investors’ deposits, accounts payable, advances from customers, income taxes payable, and other payables and accrued expenses, approximate their carrying value due to their short-term nature.

As of December 31, 2017 and 2016, information about inputs into the fair value measurement of the Company’s liabilities that are measured and recorded at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:

	Fair Value Measurement at Reporting Date Using
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
As of December 31, 2017:
Liabilities:
Short-term borrowings	$	—	$	5,095	$	—	$	5,095
Warrant liability		—		—		3,079		3,079

		—		5,095		3,079		8,174

As of December 31, 2016:
Liabilities:
Short-term borrowings	$	—	$	4,761	$	—	$	4,761

Fair Value Measured on a Non-Recurring Basis

The Company reviews long-lived assets for impairment annually or more frequently if events or changes in circumstances indicate the possibility of impairment. Long-lived assets are measured at fair value on a nonrecurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. In determining the fair value, the Company used projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the assets. This approach required significant judgments including the Company’s projected net cash flows, which were derived using the most recent available estimate for the reporting unit containing the assets tested. Several key assumptions included periods of operation, projections of product pricing, production levels, product costs, market supply and demand, and inflation.

Recent Accounting Pronouncements

Accounting Pronouncements Recently Adopted in the Consolidated Financial Statements for the Year ended December 31, 2017

In April 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee stock-based payment transactions. The areas for simplification in ASU No. 2016-09 include the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU were effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The adoption of ASU No. 2016-09 did not have a material impact on the Company’s consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Topic 740, Income Taxes, requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments in ASU No. 2015-17 require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of ASU No. 2015-17 did not have a material impact on the Company’s consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The amendments in this update require an entity to measure inventory within the scope of ASU No. 2015-11 (the amendments in ASU No. 2015-11 do not apply to inventory that is measured using last-in, first-out or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out or average cost) at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is uncharged for inventory measured using last-in, first-out or the retail inventory method. The amendments in ASU No. 2015-11 more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards. ASU No. 2015-11 is effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in ASU No. 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of ASU No. 2015-11 did not have a material impact on the Company’s consolidated financial statements. The relevant descriptions have been included in the inventory accounting policy.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern. The amendments in this update require management to evaluate whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern for both annual and interim reporting. The guidance is effective for the Company for the annual period ended after December 15, 2016 and interim periods thereafter. Management performed an evaluation of the Company’s ability to fund operations and to continue as a going concern according to ASC Topic 205-40, Presentation of Financial Statements—Going Concern. The adoption of ASU No. 2014-15 did not have a material impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which provides financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of ASU 2018-02 is permitted, including adoption in any interim period for the public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company is currently evaluating the impact of the adoption of ASU No. 2018-02 on its consolidated financial statements.

In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception, which addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of the adoption of ASU No. 2017-11 on its consolidated financial statements.

In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The amendments in this ASU are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this ASU should be applied prospectively to an award modified on or after the adoption date. The Company does not expect the adoption of ASU No. 2017-09 to have a material impact on its consolidated financial statements.

In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope of nonfinancial asset guidance in Subtopic 610-20. This ASU also clarifies that derecognition of all businesses and nonprofit activities (except those related to conveyances of oil and gas mineral rights or contracts with customers) should be accounted for in accordance with the derecognition and deconsolidation guidance in Subtopic 810-10. The amendments in this ASU also provide guidance on the accounting for so-called “partial sales” of nonfinancial assets within the scope of Subtopic 610-20 and contributions of nonfinancial assets to a joint venture or other noncontrolled investee. The amendments in this ASU are effective for annual reporting reports beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company does not expect the adoption of ASU No. 2017-05 to have a material impact on its consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which removes Step 2 from the goodwill impairment test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. A business entity that is a U.S. Securities and Exchange Commission filer must adopt the amendments in this ASU for its annual or any interim goodwill impairment test in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of the adoption of ASU 2017-04 on its consolidated financial statements.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this ASU do not provide a definition of restricted cash or restricted cash equivalents. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU No. 2016-18 to have a material impact on its consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses the following cash flow issues: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years and are effective for all other entities for fiscal years beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of the adoption of ASU No. 2016-15 on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The amendments in this update create Topic 842, Leases, and supersede the leases requirements in Topic 840, Leases. Topic 842 specifies the accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The main difference between Topic 842 and Topic 840 is the recognition of lease assets and lease liabilities for those leases classified as operating leases under Topic 840. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP. The amendments in ASU No. 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Early application of the amendments in ASU No. 2016-02 is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU No. 2016-02 on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date in August 2015. The amendments in ASU No. 2015-14 defer the effective date of ASU No. 2014-09. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU No. 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Further to ASU No. 2014-09 and ASU No. 2015-14, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) in March 2016, ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing in April 2016, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, respectively. The amendments in ASU No. 2016-08 clarify the implementation guidance on principal versus agent considerations, including indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. ASU No. 2016-10 clarifies guideline related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The updates in ASU No. 2016-10 include targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. It seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. ASU No. 2016-12 addresses narrow-scope improvements to the guidance on collectability, non-cash consideration, and completed contracts at transition. Additionally, the amendments in this ASU provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The amendments in ASU No. 2016-20 represents changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The effective date and transition requirements for ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-12 and ASU No. 2016-20 are the same as ASU No. 2014-09. The Company will adopt ASU No. 2014-09, ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-12 and ASU No. 2016-20 at January 1, 2018. The Company has substantially completed the implementation of these ASUs and has identified the necessary changes to its policies, business processes, systems and controls. Whilst the Company has finalized the analysis of its revenue contracts applying the above guidance, and will adopt FASB ASC Topic 606, Revenue from Contracts with Customers, effective January 1, 2018, using the modified retrospective transition approach. Under this approach, FASB ASC Topic 606 would apply to all new contracts initiated on or after January 1, 2018. For existing contracts that have remaining obligations as of January 1, 2018, any difference between the recognition criteria in these ASUs and the Company's current revenue recognition practices would be recognized using a cumulative effect adjustment to the opening balance of accumulated deficit. The Company has concluded that its revenue recognition will remain the same as previously reported and will not have material impacts to its consolidated financial statements.

Accounts Receivable

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Accounts Receivable

At December 31, 2017 and 2016, accounts receivable consisted of the following:

	December 31,
	2017		2016
Accounts receivable	$	26,762	$	16,026
Less: Allowance for doubtful accounts		—		—
Total	$	26,762	$	16,026

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 is considered necessary at December 31, 2017 and 2016. At December 31, 2017, accounts receivable of $1,805 (RMB 11,800) was pledged as collateral for borrowings from financial institutions (note 6).

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Property, Plant and Equipment, Net

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, Net

At December 31, 2017 and 2016, property, plant and equipment consisted of the following:

	December 31,
	2017			2016
Manufacturing equipment	$	9,660		$	8,566
Office equipment		463			410
Transportation equipment		203			191
Leasehold improvement		277			224
Total cost		10,603			9,391
Less: Total accumulated depreciation		(8,263	)		(7,562	)
Construction in progress		-			433
Total property, plant and equipment, net	$	2,340		$	2,262

Depreciation expense was $243 and $180 for the years ended December 31, 2017 and 2016, respectively.

Short-Term Borrowings

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Short-Term Borrowings

At December 31, 2017 and 2016, short-term borrowings consisted of the following:

	December 31, 2017		December 31, 2016
Borrowings from Bank of China, due on February 10, 2017 with annual interest rate of 4.8%, secured by certain of the Company’s intellectual property and fully repaid on February 13, 2017	$	-	$	1,222
Borrowings from Bank of Shanghai Pudong Branch, due on June 24, 2017 with an annual interest rate of 5.66%, guaranteed by the Company’s CEO and fully repaid on June 25, 2017		-		281
Line of credit up to $3,605 (RMB 25,000) from Bank of Shanghai Pudong Branch, due on July 3, 2017 with floating interest (interest rate of 5.66% at December 31, 2016), guaranteed by the Company’s CEO and fully repaid on May 18, 2017		-		1,455
Line of credit up to $3,670 from Bank of Shanghai Pudong Branch, due on July 3, 2017 with an annual interest rate of 3.2%, guaranteed by the Company’s CEO and fully repaid on June 7, 2017		-		1,803
Line of credit up to $4,590 (RMB 30,000) from Bank of China Pudong Branch, due on March 5, 2018 with floating interest rate (annual interest rate of 4.80% at December 31, 2017), secured by certain of the Company’s intellectual property		2,219		-
Line of credit up to $3,825 (RMB 25,000) from Bank of Shanghai Pudong Branch, various withdraws due in October 2018 with floating interest rate (annual interest rate of 5.66% at December 31, 2017), guaranteed by the Company’s CEO		2,111		-
Borrowings from Shanghai Rural Commercial Bank, due on November 21, 2018 with annual interest rate of 5.44%, pledged by ACM Shanghai’s accounts receivable (note 3) and guaranteed by the Company’s CEO.		765		-
Total	$	5,095	$	4,761

For the years ended December 31, 2017 and 2016, interest expense related to short-term borrowings amounted to $272 and $179 respectively.

Investors' Deposits

12 Months Ended

Dec. 31, 2017

Banking and Thrift [Abstract]

Investors' Deposits

On December 9, 2016, Shengxin (Shanghai) Management Consulting Limited Partnership (“SMC”), a related party (note 12), 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 pursuant to which, in exchange for the SMC Investment, ACM issued to SMC a warrant exercisable to purchase 397,502 shares of ACM’s Class A common stock at a price of $7.50 per share (note 9).

Warrant Liability

12 Months Ended

Dec. 31, 2017

Text Block [Abstract]

Warrant Liability

On December 9, 2016, SMC delivered the SMC Investment to ACM Shanghai for potential investment pursuant to terms to be subsequently negotiated. As of December 31, 2016, the terms of the SMC Investment had not yet been negotiated and the SMC Investment was recorded as investors’ deposit.

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 ACM’s Class A common stock at a price of $7.50 per share. Under the SMC Agreement, if SMC does not exercise the warrant by May 17, 2023, ACM Shanghai will be obligated, subject to approval of governmental authorities and ACM Shanghai’s equity holders, to deliver an equity interest of 3.6394% (subject to dilution) in satisfaction of the SMC Investment. If SMC exercises the warrant or if SMC does not exercise the warrant and the issuance of the equity interest in ACM Shanghai is not completed by August 17, 2023 due to the inability of the parties to obtain required governmental or equity holder approvals, then ACM Shanghai will be obligated to pay to SMC, in satisfaction of the SMC Investment, an amount equal to $2,981, converted into RMB at the lesser of 6.75 and the then-current RMB-to- US dollar exchange rate.

In accordance with FASB ASC 480, Distinguishing Liabilities from Equity, the warrant is classified as a liability as the warrant is conditional puttable. The fair value of the warrant is adjusted for changes in fair value at each reporting period but cannot be lower than the proceeds of the SMC Investment. The corresponding non-cash gain or loss of the changes in fair value is recorded in earnings. The methodology used to value the warrant was the Black-Scholes valuation model with the following assumptions:

	December 31,
	2017
Fair value of common share (1)	$	5.25
Expected term in years (2)		5.38
Volatility (3)		28.71	%
Risk-free interest rate (4)		2.20	%
Expected dividend (5)		0	%

(1) Common stock price was the close price at December 31, 2017.

(2) Expected term of the warrant represents the period from the current balance sheet date to the warrant expiration date.

(3) Volatility is calculated based on the historical volatility of ACM’s comparable companies in the period equal to the expected term of the warrant.

(4) Risk-free interest rate is based on the yields of U.S. treasury securities with maturities similar to the expected term of the warrant.

(5) Expected dividend is assumed to be 0% as ACM has no history or expectation of paying a dividend on its common stock.

Equity Method Investment

12 Months Ended

Dec. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investment

On September 6, 2017, ACM and Ninebell Co., Ltd. (“Ninebell”), a Korean company that is one of the Company’s principal materials suppliers, entered into an ordinary share purchase agreement, effective as of September 11, 2017, pursuant to which Ninebell issued to ACM ordinary shares representing 20% of Ninebell’s post-closing equity for a purchase price of $1,200, and a common stock purchase agreement, effective as of September 11, 2017, pursuant to which ACM issued 133,334 shares of Class A common stock to Ninebell for a purchase price of $1,000 at $7.50 per share. The investment in Ninebell is accounted for under the equity method. Undistributed earnings attributable to ACM’s equity method investment represented $37 of the consolidated retained earnings at December 31, 2017.

Related Party Balances and Transactions

12 Months Ended

Dec. 31, 2017

Related Party Balances and Transactions

On August 18, 2017, ACM and Ninebell, its equity method investment affiliate (note 11), 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 is secured by a pledge of Ninebell’s accounts receivable due from ACM and all money that Ninebell receives from ACM. As of December 31, 2017 and 2016, accounts payable due to Ninebell was $2,118 and $508, respectively.

In 2007, ACM Shanghai entered into an operating lease agreement with Shanghai Zhangjiang Group Co., Ltd. (“Zhangjiang Group”), group company of ZSTVC, which is our current investor and previous holder of non-controlling interet in ACM Shanghai (note 14), to lease manufacturing and office space located in Shanghai, China. 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. During the year ended December 31, 2017 and 2016, the Company incurred leasing expenses under the lease agreement of $638 and $640, respectively. As of December 31, 2017, and December 31, 2016, payables to Zhangjiang Group for lease expenses and leasehold improvements recorded as other payables and accrued expenses, amounted to $2,024 and $1,883, 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 (notes 8 and 9). SMC is a limited partnership incorporated in the PRC, whose partners consist of employees of ACM Shanghai. As of December 31, 2017 and 2016, investors’ deposits from SMC amounted to $0, and $2,902, respectively. 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 ACM’s Class A common stock at a price of $7.50 per share, for a total exercise price of $2,981. Under the SMC Agreement, if SMC does not exercise the warrant by May 17, 2023, ACM Shanghai will be obligated, subject to approval of governmental authorities and ACM Shanghai’s equity holders, to deliver an equity interest of 3.6394% (subject to dilution) in satisfaction of the SMC Investment. If SMC exercises the warrant or if SMC does not exercise the warrant and the issuance of the equity interest in ACM Shanghai is not completed by August 17, 2023 due to the inability of the parties to obtain required governmental or equity holder approvals, then ACM Shanghai will be obligated to pay to SMC, in satisfaction of the SMC Investment, an amount equal to $2,981, converted into RMB at the lesser of 6.75 and the then-current RMB-to-US dollar exchange rate.

Leases

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Leases

ACM entered into a two-year lease agreement in March 2015 for office and warehouse space of approximately 3,000 square feet for its headquarters in Fremont, California, at a rate of $2 per month. On March 22, 2017, ACM amended the lease agreement to extend the lease term through March 31, 2019 and increase the base rent to $3 per month.

ACM Shanghai entered into an operating lease agreement with Zhangjiang Group (a related party, see note 12) in 2007 for manufacturing and office space of approximately 63,510 square feet in Shanghai, China. The lease terms and its payment terms are subject to modification and extension with Zhangjiang Group from time to time. The lease with Zhangjiang Group expired on December 31, 2017 and we are now leasing the property on a month-to-month basis as we negotiate the terms of the lease.

ACM Wuxi leases office space in Wuxi, China, at a rate of less than $1 per month.

Future minimum lease payments under non-cancelable lease agreements as of December 31, 2017 were as follows:

	December 31, 2017
2018	$	50
2019		22
Total	$	72

Rent expense was $670 an $675 for the years ended December 31, 2017 and 2016, respectively.

Common Stock

12 Months Ended

Dec. 31, 2017

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 if declared by the Board of Directors unless the Board of Directors declares different dividends to the Class A common stock and Class B common stock by getting approval from a majority of common stock holders.

In August 2017 ACM entered into a securities purchase agreement with PDHTI and its subsidiary Pudong Science and Technology (Cayman) Co., Ltd. (“PST”), in which ACM agreed to bid, in an auction process mandated by PRC regulations, to purchase PDHTI’s 10.78% equity interests in ACM Shanghai and to sell shares of Class A common stock to PST. On September 8, 2017, ACM issued 1,119,576 shares of Class A common stock to PST for a purchase price of $7.50 per share, representing an aggregate purchase price of $8,397.

In August 2017 ACM entered into a securities purchase agreement with ZSTVC and its subsidiary Zhangjiang AJ Company Limited (“ZJAJ”), in which ACM agreed to bid, in an auction process mandated by PRC regulations, to purchase ZSTVC’s 7.58% equity interests in ACM Shanghai and to sell shares of Class A common stock to ZJAJ. On September 8, 2017, ACM issued 787,098 shares of Class A common stock to ZJAJ for a purchase price of $7.50 per share, or an aggregate purchase price of $5,903.

In September 2017 ACM issued 133,334 shares of Class A common stock to Ninebell for a purchase price of $7.50 per share, or an aggregate purchase price of $1,000 (note 11).

In November 2017 ACM issued 2,233,000 shares of Class A common stock and received net proceeds of $11,664 from IPO and concurrently ACM issued additional 1,333,334 shares of Class A common stock through a private placement for net proceeds of $7, 053.

In conection with the completion of IPO on November 2, 2017, the Company issued a five-year warrant to Roth Capital Partners, LLC, the Company’s IPO underwriter, up to 80,000 shares (“Undeerwriter’s Warrant”) of the Company’s Class A common stock at the exercise price of $6.16. The Underwriter’s Warrant is immediately exercisable and expires on November 1, 2022. The Underwriter’s Warrant is equity classified and the fair value was $137 at the IPO offering date, using the Black Scholes model with the following assumptions: volatility - 28.26%, dividend rate - 0%, and risk free discount rate- 2%.

At various dates during 2017, ACM issued 472,889 shares of Class A common stock for options exercised by certain employee and non-employees.

At December 31, 2017 and 2016, the number of shares of Class A common stock issued and outstanding was 12,935,546 and 2,228,740, respectively. At December 31, 2017 and 2016, the number of shares of Class B common stock issued and outstanding was 2,409,738.

Redeemable Convertible Preferred Stock

12 Months Ended

Dec. 31, 2017

Text Block [Abstract]

Redeemable Convertible Preferred Stock

Upon ACM’s redomestication in Delaware in November 2016, ACM had 22,696,467 authorized shares of preferred stock, of which 385,000, 1,572,000, 1,360,962, 2,659,975, 10,718,530, and 6,000,000 shares were designated as Series A, Series B, Series C, Series D, Series E and Series F preferred stock, respectively.

In March 2017 ACM entered into a securities purchase agreement, amended in July 2017, with SSTVC pursuant to which, effective as of August 31, 2017, ACM acquired SSTVC’s equity interests in ACM Shanghai for a purchase price of $6,154 (RMB 40,000) and issued to SSTVC 4,998,508 shares of Series E convertible preferred stock for a purchase price of $5,800.

The number of issued and outstanding shares of redeemable convertible preferred stock as of December 31, 2017 and 2016 were as follows:

	2017		2016
Series A convertible preferred stock		-		385,000
Series B convertible preferred stock		-		1,572,000
Series C convertible preferred stock		-		1,360,962
Series D convertible preferred stock		-		2,659,975
Series E convertible preferred stock		-		-
Series F convertible preferred stock		-		6,000,000
		-		11,977,937

Shares of ACM’s convertible preferred stock have rights, preferences and privileges as follows:

Voting Rights

Each share of Series A through Series F convertible preferred stock is entitled to a number of votes equal to the number of whole shares of common stock into which such share can be converted.

Dividends

Holders of Series A through Series F convertible preferred stock have a non-cumulative right to participate in and receive the same dividends as may be declared for common stockholders, as and if declared by the Board of Directors, payable out of funds legally available.

Conversion

Each share of Series A through Series F convertible preferred stock is convertible at any time, at the option of the holder. At November 3, 2017, the IPO date, each share of Series A, B, E and F convertible preferred stock was convertible into one-third share of Class A common stock, each share of Series C convertible preferred stock was convertible into 0.3544 shares of Class A common stock, and each share of Series D convertible preferred stock was convertible into 0.4562 shares of Class A common stock. All Series A through Series F convertible preferred stock converted automatically into a total of 4,625,577 shares of Class A common stock upon the closing of the IPO. At December 31, 2016, 2,960,968 shares of Class A common stock were reserved for issuance upon conversion of outstanding Series A through Series F convertible preferred stock.

Liquidation Preferences

Holders of Series A through Series F convertible preferred stock are entitled to receive specified liquidation amounts in the event of a liquidation, dissolution or winding-up of ACM or of certain deemed liquidation events. The deemed liquidation events generally include (a) a merger or stock sale after which new stockholders would own a majority of the voting stock of ACM and (b) a sale of all or substantially all of the assets of the Company.

In the event of a liquidation, dissolution or winding-up of ACM or a deemed liquidation, the holders of Series A through Series F convertible preferred stock shall be entitled to be paid, prior to and in preference to the holders of common stock, an amount equal to $0.80, $1.00, $1.50, $3.75, $1.00 and $2.50 per share of Series A through Series F convertible preferred stock, respectively, plus any accumulated and unpaid dividends as of the redemption date.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

On April 29, 1998, ACM adopted the 1998 Stock Option Plan (the “1998 Plan”). The options issued under the Plan consisted of incentive stock options (“ISOs”) and nonstatutory stock options (“NSOs”) that should be determined at the time of grant. ISOs could be granted only to employees. NSOs could be granted to employees, directors and consultants. The option price of each ISO and each NSO could not be less than 100% or less than 85% of the fair market value of stock price at the time of grant, respectively. The vesting period was to be determined by the Board of Directors for each grant. The total number of shares of common stock reserved under the 1998 Plan, as amended, was 766,667. If any option granted under the 1998 Plan expires or otherwise terminates without having been exercised in full, the shares of common stock subject to that option would become available for re-grant. At March 3, 2014, the 1998 Plan terminated and no further grants under the 1998 Plan could be made thereunder, although certain previously granted options remained outstanding in accordance with their terms.

On December 28, 2016, ACM adopted the 2016 Omnibus Incentive Plan (the “2016 Plan”). Under the 2016 Plan, the aggregate number of shares of Class A common stock that may be issued shall equal the sum of (a) 2,333,334 and (b) an annual increase on the first day of each year beginning in 2018 and ending in 2026 equal to the lesser of (i) 4% of the shares of Class A and Class B common stock outstanding (on an as-converted basis) on the last day of the immediately preceding year and (ii) such smaller number of shares as may be determined by the Board. A maximum of 2,333,334 shares is available for issuance as ISOs under the 2016 Plan. Besides the stock options, the 2016 Plan also authorizes issuance of stock appreciation rights, restricted stock, restricted stock units, and other share-based and cash awards. The 2016 Plan will terminate on December 27, 2026.

Employee Awards

The following table summarizes ACM’s employee 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, 2015		1,500,010		$	0.48	$	1.02		5.60
Granted		1,009,371			0.54		3.00
Exercised		(409,004	)		0.42		0.75
Expired		-			-		-
Forfeited		-			-		-
Outstanding at December 31, 2016		2,100,377			0.54		2.03		7.83
Granted		140,002			2.28		6.75
Exercised		(174,334	)		0.45		0.75
Expired		(3,752	)		0.54		3.00
Forfeited		(16,677	)		0.54		3.00
Outstanding at December 31, 2017		2,045,616		$	0.66	$	2.46		7.57
Vested and exercisable at December 31, 2017		1,010,313

During the years ended December 31, 2017 and 2016, ACM recognized employee stock-based compensation expense of $271 and $92, respectively. As of December 31, 2017 and 2016, $729 and $726, 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 1.77 years and 2.25 years, respectively. Total unrecognized compensation cost may be adjusted for future changes in estimated forfeitures.

The fair value of each option granted to employee is estimated on the grant date using the Black-Scholes valuation model with the following assumptions.

	December 31,
	2017	2016
Fair value of common share(1)	$5.60-7.59	$2.28
Expected term in years(2)	6.25	5.75-6.25
Volatility(3)	28.62% -29.18%	29.93%
Risk-free interest rate(4)	2.21%-2.22%	2.02%-2.32%
Expected dividend(5)	0%	0%

(1)	Common stock value was the close market value on December 31, 2017.

(2)	Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to Staff Accounting Bulletin 110.

(3)	Volatility is calculated based on the historical volatility of ACM’s comparable companies in the period equal to the expected term of each grant.

(4)	Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant.

(5)	Expected dividend is assumed to be 0% as ACM has no history or expectation of paying a dividend on its common stock.

Non-employee Awards

The following table summarizes ACM’s non-employee share option activities:

				Weighted		Weighted		Weighted Average
	Number of			Average Grant		Average Exercise		Remaining
	Option Shares			Date Fair Value		Price		Contractual Term
Outstanding at December 31, 2015		1,533,343		$	0.48	$	0.99		5.53
Granted		415,225			0.54		3.00
Exercised		(370,003	)		0.45		0.75
Expired		-			-		-
Forfeited		-			-		-
Outstanding at December 31, 2016		1,578,565			0.51		1.58		6.81
Granted		196,669			2.25		6.90
Exercised		(298,555	)		0.39		0.93
Expired		(133,336	)		0.45		0.75
Forfeited		(16,667	)		2.58		7.50
Outstanding at December 31, 2017		1,326,676			0.78		2.52		7.54
Vested and exercisable at December 31, 2017		754,799

During the years ended December 31, 2017 and 2016, the Company recognized non-employee stock-based compensation expense of $1,351 and $291, respectively.

The fair value of each option granted to non-employees is re-measured at each period end until the vesting date using the Black-Scholes valuation model with the following assumptions:

	December 31,
	2017	2016
Fair value of common share(1)	$5.25-7.59	$2.28
Expected term in years(2)	3.58-6.25	2.11-6.24
Volatility(3)	28.71%-29.41 %	29.93%
Risk-free interest rate(4)	1.62%-2.43 %	1.00%-2.25 %
Expected dividend(5)	0%	0%

1.	Common stock value was the close market value on December 31, 2017.

2.	Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to Staff Accounting Bulletin 110.

3.	Volatility is calculated based on the historical volatility of ACM’s comparable companies in the period equal to the expected term of each grant.

4.	Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant.

5.	Expected dividend is assumed to be 0% as ACM has no history or expectation of paying a dividend on its common stock.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

The following represent components of the income tax benefit (expense) for the years ended December 31, 2017 and 2016:

	Year Ended December 31,
	2017			2016
Current:
U.S. federal	$	-		$	-
U.S. state		-			(1	)
Foreign		-			-
Total current tax expense		-			(1	)
Deferred:
U.S. federal		-			-
U.S. state		-			-
Foreign		(547	)		(594	)
Total deferred tax expense		(547	)		(594	)
Total income tax expense	$	(547	)	$	(595	)

Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets at December 31, 2017 and 2016 are presented below:

	December 31,
	2017			2016
Deferred tax assets:
Net operating loss carry forwards (offshore)	$	4,418		$	1,029
Net operating loss carry forwards (U.S.) and credit		683			5,815
Deferred revenue (offshore)		656			840
Accruals (U.S.)		18			18
Reserves and other (offshore)		495			43
Stock-based compensation (U.S.)		453			342
Property and equipment (U.S.)		2			3
Total gross deferred tax assets		6,725			8,090
Less: valuation allowance		(5,431	)		(6,249	)
Total deferred tax assets		1,294			1,841
Total deferred tax liabilities		-			-
Translation difference		-			-
Deferred tax assets, net	$	1,294		$	1,841

The Company considers all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carry-forward periods), and projected taxable income in assessing the realizability of deferred tax assets. In making such judgments, significant weight is given to evidence that can be objectively verified. Based on all available evidence, a partial valuation allowance has been established against some net deferred tax assets as of December 31, 2017 and 2016, based on estimates of recoverability. While the Company has optimistic plans for its business strategy, it determined that such a valuation allowance was necessary given its historical losses and the uncertainty with respect to its ability to generate sufficient profits from its business model from all tax jurisdictions. In order to fully realize the U.S. deferred tax assets, the Company must generate sufficient taxable income in future periods before the expiration of the deferred tax assets governed by the tax code. The valuation allowance in the U.S. decreased by $760 for the year ended December 31, 2017 and increased $264 for the year ended December 31, 2016. The valuation allowance in China decreased by $58 and $163 during the years ended December 31, 2017 and 2016, respectively.

The Company did not have any significant temporary differences relating to deferred tax liabilities as of December 31, 2017 or 2016.

As of December 31, 2017 and 2016, the Company had net operating loss carry-forwards of respectively, $20,116 and $15,037 for U.S federal purposes, $536 and $204 for U.S. state purposes and $6,411 and $6,822 for Chinese income tax purposes. Such losses are set to expire in 2019, 2032, and 2017 for U.S. federal, U.S. state and Chinese income tax purposes, respectively.

As of December 31, 2017 and 2016, the Company had research credit carry-forwards of $606 for U.S. federal purposes, and $377 for U.S. state purposes. Such credits are set to expire in 2025 for U.S. federal carry-forwards. There is no expiration date for U.S. state carry-forwards.

A limitation may apply to the use of the U.S. net operating loss and credit carry-forwards, under provisions of the U.S. Internal Revenue Code that would be applicable if ACM experiences an “ownership change.” Should these limitations apply, the carry-forwards would be subject to an annual limitation, resulting in a substantial reduction in the gross deferred tax assets before considering the valuation allowance. As of December 31, 2017 and 2016, the Company had not performed an analysis to determine if its net operating loss and credit carry-forwards would be subject to such limitations.

The Company’s effective tax rate differs from statutory rates of 34% for U.S. federal income tax purposes and 15%-25% for Chinese income tax purpose due to the effects of the valuation allowance and certain permanent differences as it pertains to book-tax differences in the value of client shares received for services. Pursuant to the Corporate Income Tax Law of the PRC, all of the Company’s PRC subsidiaries are liable to PRC Corporate Income Taxes at a rate of 25% except for ACM Shanghai. According to Guoshuihan 2009 No. 203, if an entity is certified as an “advanced and new technology enterprise,” it is entitled to a preferential income tax rate of 15%. ACM Shanghai obtained the certificate of “advanced and new technology enterprise” in 2012 and again in 2016 with an effective period of three years, and the provision for PRC corporate income tax for ACM Shanghai is calculated by applying the income tax rate of 15% for the years ended December 31, 2017 and 2016.

Income tax (expense) benefit for the years ended December 31, 2017 and 2016 differed from the amounts computed by applying the statutory federal income tax rate of 34% to pretax income (loss) as a result of the following:

	Year ended December 31,
	2017			2016
Effective tax rate reconciliation:
Income tax provision at statutory rate		34.00	%		(34.00	%)
State taxes, net of Federal benefit		-			-
Foreign rate differential		6.8			38.7
Other permanent difference		197.7			(20.9	)
Effect of Tax Reform		(757	)		-
Change in valuation allowance		349.9			(3.8	)
Total income tax (expense) benefit		(168.60	%)		(20.00	%)

Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The aggregate changes in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the years ended December 31, 2017 and 2016, are as follows:

	December 31,
	2017		2016
Beginning balance	$	44	$	44
Increase/(Decrease) of unrecognized tax benefits taken in prior years		-		-
Increase/(Decrease) of unrecognized tax benefits related to current year		-		-
Increase/(Decreases) of unrecognized tax benefits related to settlements		-		-
Reductions to unrecognized tax benefits related to lapsing statute of limitations		-		-
Ending balance	$	44	$	44

The Company files income tax returns in the United States, and state and foreign jurisdictions. The federal, state and foreign income tax returns are under the statute of limitations subject to tax examinations for the tax years ended December 31, 2009 through December 31, 2017. To the extent the Company has tax attribute carry-forwards, the tax years in which the attribute was generated may still be adjusted upon examination by the U.S. Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period.

The Company had $44 of unrecognized tax benefits as of December 31, 2017 and 2016.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2017 and 2016, the Company had $44 of accrued penalties and $0 of accrued penalties related to uncertain tax positions, none of which has been recognized in the Company’s consolidated statements of operations and comprehensive income for the years ended December 31, 2017 and 2016. There were no ongoing examinations by taxing authorities as of December 31, 2017 and 2016.

The Company intends to indefinitely reinvest the PRC earnings outside of the U.S. as of December 31, 2017 and December 31, 2016. Thus, deferred taxes are not provided in the U.S. for unremitted earnings in the PRC.

On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the Tax Act) was enacted into law and the new legislation contains several key tax provisions that affected us, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

The Company leases offices under non-cancelable operating lease agreements. The rental expenses were $670 and $675 for the years ended December 31, 2017 and 2016, respectively. See note 13 for future minimum lease payments under non-cancelable operating lease agreements with initial terms of one year or more.

The Company did not have any capital commitments during the reported periods.

From time to time the Company is subject to legal proceedings, including claims in the ordinary course of business and claims with respect to patent infringements.

Subsequent Events

12 Months Ended

Dec. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

On January 12, 2018, ACM Shanghai entered into an operating lease for manufacturing space of approximately 103,318 square feet in Shanghai, China effective as of January 16, 2018. The lease term is five years and expires on January 15, 2022. During the first year, the lease space is 51,659 square feet with monthly payments of RMB 270 starting from the second month of the lease. From January 16, 2019, the lease space will be increased to 103,318 square feet with monthly payments of RMB 390. The monthly payments for the third and four year is RMB 409 and RMB 430 for the fifth year.

On January 25, 2018, the Company’s board approved a total of 500,000 shares of stock options to its employees and consultants at the exercise price of $5.31 per share.

Parent Company Only Condensed Financial Information

12 Months Ended

Dec. 31, 2017

Parent Company Only Condensed Financial Information

Parent Company Only Condensed Financial Information

The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with Rule 4-08(e)(3) of Regulation S-X of the SEC and concluded that it was applicable for the Company to disclose the financial information for ACM only. Certain information and footnote disclosures generally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The footnote disclosure contains supplemental information relating to the operations of ACM separately.

ACM’s subsidiaries did not pay any dividends to ACM during the periods presented.

ACM did not have significant capital or other commitments, long-term obligations, or guarantees as of December 31, 2017 and 2016.

The following represents condensed unconsolidated financial information of ACM only as of and for the years ended December 31, 2017 and 2016:

CONDENSED BALANCE SHEET

	December 31,
	2017		2016
Assets
Current assets:
Cash and cash equivalents	$	10,874	$	7,264
Accounts Receivable		118		-
Inventory		565		1,042
Due from intercompany		12,669		1,986
Other receivable		50		3
Total current assets		24,276		10,295
Investment in unconsolidated subsidiaries		15,476		6,583
Due from related party		946		-
Total assets		40,698		16,878
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
Notes payable		11		11
Accounts payable		739		1,176
Other payable		47		47
Income taxes payable		44		44
Total liabilities		841		1,278
Total redeemable convertible preferred stocks		-		18,034
Total stockholders’ equity (deficit)		39,857		(2,434	)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	$	40,698	$	16,878

CONDENSED STATEMENT OF OPERATIONS

	Year Ended December 31,
	2017			2016
Revenue	$	6,985		$	5,803
Cost of revenue		(6,394	)		(5,346	)
Gross profit		591			457
Operating expenses:
Sales and marketing expenses		(368	)		(64	)
General and administrative expenses		(3,961	)		(1,202	)
Research and development expenses		(50	)		(6	)
Loss from operations		(3,788	)		(815	)
Equity in earnings of unconsolidated subsidiaries		3,475			3,561
Other income (expense), net		-			(1,608	)
Interest expense, net		(5	)		(106	)
Income (loss) before income taxes		(318	)		1,032
Income tax expense (benefit)		-			(1	)
Net income (loss)	$	(318	)	$	1,031

Condensed Statement of Cash Flows

	Year Ended December 31,
	2017			2016
Net cash used in operating activities	$	(13,848	)	$	(2,220	)
Net cash used in investing activities		(21,754	)		-
Net cash provided by financing activities		38,676			9,309
Net increase in cash and cash equivalents		3,074			7,089
Cash and cash equivalents, beginning of year		7,264			504
Effect of exchange rate changes on cash and cash equivalents		536			(329	)
Cash and cash equivalents, end of year	$	10,874		$	7,264

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

Use of Estimates

Management evaluates these estimates and assumptions on a regular basis. Actual results could differ from those estimates and assumptions.

Cash and cash equivalents

Accounts receivable

Inventory

Inventory was recorded at the lower of cost or net realizable value at December 31, 2017 and 2016.

●

●	Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete or dispose.

Property, Plant and Equipment, Net

Estimated useful lives of assets in the United States are as follows:


Computer and office equipment	3 to 5 years
Furniture and fixtures	5 years
Leasehold improvements	shorter of lease term or estimated useful life


Manufacturing equipment	for small to medium-sized equipment, 5 years; for large equipment, estimated by purchasing department at time of acceptance
Furniture and fixtures	5 years
Transportation equipment	4 to 5 years
Electronic equipment	3 years
Leasehold improvements	remaining lease term for improvements on leased fixed assets or, for large improvements, estimated useful life; not less than 3 years for non-fixed asset repairs

Intangible Assets, Net

Valuation of Long-Lived Assets

Leases

Redeemable Convertible Preferred Stock

Revenue Recognition

The Company recognizes revenue when all the following conditions are met:

●	there is persuasive evidence of an arrangement;

●	the product delivery has occurred and the Company has transferred major risks and remunerations over the ownership of the product to the buyer or a service has been fully rendered and completed;

●	the collection of the receivable is probable; and

●	the amount of the payment is fixed or determinable.

●	when the customer has previously accepted the same tool with the same specifications and when the Company can objectively demonstrate that the tool meets all of the required acceptance criteria;

●	when the sales contract or purchase order contains no acceptance agreement or no lapsing acceptance provision and when the Company can objectively demonstrate that the tool meets all of the required acceptance criteria;

●	when the customer withholds acceptance due to issues unrelated to product performance, in which case revenue is recognized when the system is performing as intended and meets predetermined specifications; or

●	the Company’s sales arrangements do not include a general right of return.

Cost of Revenue

Research and Development Costs

Shipping and Handling Costs

Borrowing Costs

Warranty

	Year Ended December 31,
	2017			2016
Balance at beginning of period	$	290		$	459
Additions		736			544
Utilized		(187	)		(713	)
Balance at end of period	$	839		$	290

Government Subsidies

●

●	Government subsidies for short-term borrowings’ interest expenses are reported as reductions of interest expenses in the period the interest is accrued, which were $0 and $99 for the years ended December 31, 2017 and 2016.

●

Unearned government subsidies received are deferred for recognition and recorded as other long-term liabilities (note 10) in the balance sheet until the criteria for such recognition are satisfied.

Stock-based Compensation

Operating and Financial Risks

Concentration of Credit Risk

	Year ended December 31,
	2017			2016
Customer A		*			33.7	%
Customer B		18.10	%		25.00
Customer C		*			24.00
Customer D		12.77			16.60
Customer E		14.12			*
Customer F		10.23			*

* Customer accounted for less than 10% of revenue in the period.

Interest Rate Risk

Liquidity Risk

Country Risk

Foreign Currency Risk and Translation

Consolidated balance sheets:
At December 31, 2017	RMB 6.5359 to $1.00
At December 31, 2016	RMB 6.9348 to $1.00

Consolidated statements of operations and comprehensive income:
Year ended December 31, 2017	RMB 6.7522 to $1.00
Year ended December 31, 2016	RMB 6.6401 to $1.00

Translations of amounts from RMB into U.S. dollars were made at the following exchange rates for the respective dates and periods:

Income Taxes

Basic and Diluted Net Income (Loss) per Common Share

Basic and diluted net income (loss) per common share is calculated as follows:

	For the Year Ended December 31,
	2017			2016
Numerator:
Net income (loss)	$	(872	)	$	2,387
Net income (loss) attributable to non-controlling interest		(554	)		1,356
Net income allocated to participating securities		-			386
Net income (loss) available to common stockholders, basic and diluted	$	(318	)	$	645
Denominator:
Weighted average shares outstanding, basic		6,865,390			2,176,315
Effect of dilutive securities		-			1,615,822
Weighted average shares outstanding, diluted		6,865,390			3,792,137
Net income (loss) per common share:
Basic	$	(0.05	)	$	0.30
Diluted	$	(0.05	)	$	0.18

	Year ended December 31,
	2017		2016
Series A convertible preferred stock		-		128,334
Series B convertible preferred stock		-		524,003
Series C convertible preferred stock		-		482,288
Series D convertible preferred stock		-		605,244
Series F convertible preferred stock		-		1,221,099
Stock options		3,372,292		1,424,596
Warrants		477,502		-
		3,849,794		4,385,564

Comprehensive Income (Loss) Attributable to the Company

Appropriated Retained Earnings

Fair Value of Financial Instruments

Fair Value Measured or Disclosed on a Recurring Basis

	Fair Value Measurement at Reporting Date Using
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
As of December 31, 2017:
Liabilities:
Short-term borrowings	$	—	$	5,095	$	—	$	5,095
Warrant liability		—		—		3,079		3,079

		—		5,095		3,079		8,174

As of December 31, 2016:
Liabilities:
Short-term borrowings	$	—	$	4,761	$	—	$	4,761

Fair Value Measured on a Non-Recurring Basis

Recent Accounting Pronouncements

Accounting Pronouncements Recently Adopted in the Consolidated Financial Statements for the Year ended December 31, 2017

Recent Accounting Pronouncements Not Yet Adopted

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Property, plant, and equipment, net

Estimated useful lives of assets in the United States are as follows:


Computer and office equipment	3 to 5 years
Furniture and fixtures	5 years
Leasehold improvements	shorter of lease term or estimated useful life


Manufacturing equipment	for small to medium-sized equipment, 5 years; for large equipment, estimated by purchasing department at time of acceptance
Furniture and fixtures	5 years
Transportation equipment	4 to 5 years
Electronic equipment	3 years
Leasehold improvements	remaining lease term for improvements on leased fixed assets or, for large improvements, estimated useful life; not less than 3 years for non-fixed asset repairs

Warranty obligations

	Year Ended December 31,
	2017			2016
Balance at beginning of period	$	290		$	459
Additions		736			544
Utilized		(187	)		(713	)
Balance at end of period	$	839		$	290

Concentration of credit risks

	Year ended December 31,
	2017			2016
Customer A		*			33.7	%
Customer B		18.10	%		25.00
Customer C		*			24.00
Customer D		12.77			16.60
Customer E		14.12			*
Customer F		10.23			*

Foreign Currency Risk and Translation

Consolidated balance sheets:
At December 31, 2017	RMB 6.5359 to $1.00
At December 31, 2016	RMB 6.9348 to $1.00

Consolidated statements of operations and comprehensive income:
Year ended December 31, 2017	RMB 6.7522 to $1.00
Year ended December 31, 2016	RMB 6.6401 to $1.00

Calculation of Basic and Diluted Net Income (Loss) per Common Share

	For the Year Ended December 31,
	2017			2016
Numerator:
Net income (loss)	$	(872	)	$	2,387
Net income (loss) attributable to non-controlling interest		(554	)		1,356
Net income allocated to participating securities		-			386
Net income (loss) available to common stockholders, basic and diluted	$	(318	)	$	645
Denominator:
Weighted average shares outstanding, basic		6,865,390			2,176,315
Effect of dilutive securities		-			1,615,822
Weighted average shares outstanding, diluted		6,865,390			3,792,137
Net income (loss) per common share:
Basic	$	(0.05	)	$	0.30
Diluted	$	(0.05	)	$	0.18

Antidilutive securities

	Year ended December 31,
	2017		2016
Series A convertible preferred stock		-		128,334
Series B convertible preferred stock		-		524,003
Series C convertible preferred stock		-		482,288
Series D convertible preferred stock		-		605,244
Series F convertible preferred stock		-		1,221,099
Stock options		3,372,292		1,424,596
Warrants		477,502		-
		3,849,794		4,385,564

Fair Value Measured or Disclosed on a Recurring Basis

	Fair Value Measurement at Reporting Date Using
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
As of December 31, 2017:
Liabilities:
Short-term borrowings	$	—	$	5,095	$	—	$	5,095
Warrant liability		—		—		3,079		3,079

		—		5,095		3,079		8,174

As of December 31, 2016:
Liabilities:
Short-term borrowings	$	—	$	4,761	$	—	$	4,761

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details

Inventory (Tables)

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Inventory

	December 31,
	2017		2016
Raw materials	$	6,181	$	7,698
Work in process		4,328		1,260
Finished goods		4,879		2,708

Total inventory, gross		15,388		11,666
Inventory reserve		—		—
Total inventory, net	$	15,388	$	11,666

Short-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Short-term borrowing

	December 31, 2017		December 31, 2016
Borrowings from Bank of China, due on February 10, 2017 with annual interest rate of 4.8%, secured by certain of the Company’s intellectual property and fully repaid on February 13, 2017	$	-	$	1,222
Borrowings from Bank of Shanghai Pudong Branch, due on June 24, 2017 with an annual interest rate of 5.66%, guaranteed by the Company’s CEO and fully repaid on June 25, 2017		-		281
Line of credit up to $3,605 (RMB 25,000) from Bank of Shanghai Pudong Branch, due on July 3, 2017 with floating interest (interest rate of 5.66% at December 31, 2016), guaranteed by the Company’s CEO and fully repaid on May 18, 2017		-		1,455
Line of credit up to $3,670 from Bank of Shanghai Pudong Branch, due on July 3, 2017 with an annual interest rate of 3.2%, guaranteed by the Company’s CEO and fully repaid on June 7, 2017		-		1,803
Line of credit up to $4,590 (RMB 30,000) from Bank of China Pudong Branch, due on March 5, 2018 with floating interest rate (annual interest rate of 4.80% at December 31, 2017), secured by certain of the Company’s intellectual property		2,219		-
Line of credit up to $3,825 (RMB 25,000) from Bank of Shanghai Pudong Branch, various withdraws due in October 2018 with floating interest rate (annual interest rate of 5.66% at December 31, 2017), guaranteed by the Company’s CEO		2,111		-
Borrowings from Shanghai Rural Commercial Bank, due on November 21, 2018 with annual interest rate of 5.44%, pledged by ACM Shanghai’s accounts receivable (note 3) and guaranteed by the Company’s CEO.		765		-
Total	$	5,095	$	4,761

Redeemable Convertible Preferred Stock (Tables)

12 Months Ended

Dec. 31, 2017

Redeemable Convertible Preferred Stock Tables

Preferred stock issued and outstanding

	2017		2016
Series A convertible preferred stock		-		385,000
Series B convertible preferred stock		-		1,572,000
Series C convertible preferred stock		-		1,360,962
Series D convertible preferred stock		-		2,659,975
Series E convertible preferred stock		-		-
Series F convertible preferred stock		-		6,000,000
		-		11,977,937

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
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+ Details

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Employee Stock Option [Member]

Summary of Share Option Activities

	Number of Option Shares			Weighted Average Grant Date Fair Value		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Outstanding at December 31, 2015		1,500,010		$	0.48	$	1.02		5.60
Granted		1,009,371			0.54		3.00
Exercised		(409,004	)		0.42		0.75
Expired		-			-		-
Forfeited		-			-		-
Outstanding at December 31, 2016		2,100,377			0.54		2.03		7.83
Granted		140,002			2.28		6.75
Exercised		(174,334	)		0.45		0.75
Expired		(3,752	)		0.54		3.00
Forfeited		(16,677	)		0.54		3.00
Outstanding at December 31, 2017		2,045,616		$	0.66	$	2.46		7.57
Vested and exercisable at December 31, 2017		1,010,313

Summary of Assumptions used to Determine Fair Value of Share Options Granted

	December 31,
	2017	2016
Fair value of common share(1)	$5.60-7.59	$2.28
Expected term in years(2)	6.25	5.75-6.25
Volatility(3)	28.62% -29.18%	29.93%
Risk-free interest rate(4)	2.21%-2.22%	2.02%-2.32%
Expected dividend(5)	0%	0%

Non Employee Awards [Member]

Summary of Share Option Activities

				Weighted		Weighted		Weighted Average
	Number of			Average Grant		Average Exercise		Remaining
	Option Shares			Date Fair Value		Price		Contractual Term
Outstanding at December 31, 2015		1,533,343		$	0.48	$	0.99		5.53
Granted		415,225			0.54		3.00
Exercised		(370,003	)		0.45		0.75
Expired		-			-		-
Forfeited		-			-		-
Outstanding at December 31, 2016		1,578,565			0.51		1.58		6.81
Granted		196,669			2.25		6.90
Exercised		(298,555	)		0.39		0.93
Expired		(133,336	)		0.45		0.75
Forfeited		(16,667	)		2.58		7.50
Outstanding at December 31, 2017		1,326,676			0.78		2.52		7.54
Vested and exercisable at December 31, 2017		754,799

Summary of Assumptions used to Determine Fair Value of Share Options Granted

	December 31,
	2017	2016
Fair value of common share(1)	$5.25-7.59	$2.28
Expected term in years(2)	3.58-6.25	2.11-6.24
Volatility(3)	28.71%-29.41 %	29.93%
Risk-free interest rate(4)	1.62%-2.43 %	1.00%-2.25 %
Expected dividend(5)	0%	0%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes Tables

Components of the income tax benefit (expense)

	Year Ended December 31,
	2017			2016
Current:
U.S. federal	$	-		$	-
U.S. state		-			(1	)
Foreign		-			-
Total current tax expense		-			(1	)
Deferred:
U.S. federal		-			-
U.S. state		-			-
Foreign		(547	)		(594	)
Total deferred tax expense		(547	)		(594	)
Total income tax expense	$	(547	)	$	(595	)

Deferred tax assets

	December 31,
	2017			2016
Deferred tax assets:
Net operating loss carry forwards (offshore)	$	4,418		$	1,029
Net operating loss carry forwards (U.S.) and credit		683			5,815
Deferred revenue (offshore)		656			840
Accruals (U.S.)		18			18
Reserves and other (offshore)		495			43
Stock-based compensation (U.S.)		453			342
Property and equipment (U.S.)		2			3
Total gross deferred tax assets		6,725			8,090
Less: valuation allowance		(5,431	)		(6,249	)
Total deferred tax assets		1,294			1,841
Total deferred tax liabilities		-			-
Translation difference		-			-
Deferred tax assets, net	$	1,294		$	1,841

Income tax rate

	Year ended December 31,
	2017			2016
Effective tax rate reconciliation:
Income tax provision at statutory rate		34.00	%		(34.00	%)
State taxes, net of Federal benefit		-			-
Foreign rate differential		6.8			38.7
Other permanent difference		197.7			(20.9	)
Effect of Tax Reform		(757	)		-
Change in valuation allowance		349.9			(3.8	)
Total income tax (expense) benefit		(168.60	%)		(20.00	%)

Aggregate changes in the balance of gross unrecognized tax benefits

	December 31,
	2017		2016
Beginning balance	$	44	$	44
Increase/(Decrease) of unrecognized tax benefits taken in prior years		-		-
Increase/(Decrease) of unrecognized tax benefits related to current year		-		-
Increase/(Decreases) of unrecognized tax benefits related to settlements		-		-
Reductions to unrecognized tax benefits related to lapsing statute of limitations		-		-
Ending balance	$	44	$	44

Parent Company Only Condensed Financial Information (Tables)

12 Months Ended

Dec. 31, 2017

Parent Company Only Condensed Financial Information Tables

Condensed balance sheet

	December 31,
	2017		2016
Assets
Current assets:
Cash and cash equivalents	$	10,874	$	7,264
Accounts Receivable		118		-
Inventory		565		1,042
Due from intercompany		12,669		1,986
Other receivable		50		3
Total current assets		24,276		10,295
Investment in unconsolidated subsidiaries		15,476		6,583
Due from related party		946		-
Total assets		40,698		16,878
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
Notes payable		11		11
Accounts payable		739		1,176
Other payable		47		47
Income taxes payable		44		44
Total liabilities		841		1,278
Total redeemable convertible preferred stocks		-		18,034
Total stockholders’ equity (deficit)		39,857		(2,434	)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	$	40,698	$	16,878

Condensed statement of operations

	Year Ended December 31,
	2017			2016
Revenue	$	6,985		$	5,803
Cost of revenue		(6,394	)		(5,346	)
Gross profit		591			457
Operating expenses:
Sales and marketing expenses		(368	)		(64	)
General and administrative expenses		(3,961	)		(1,202	)
Research and development expenses		(50	)		(6	)
Loss from operations		(3,788	)		(815	)
Equity in earnings of unconsolidated subsidiaries		3,475			3,561
Other income (expense), net		-			(1,608	)
Interest expense, net		(5	)		(106	)
Income (loss) before income taxes		(318	)		1,032
Income tax expense (benefit)		-			(1	)
Net income (loss)	$	(318	)	$	1,031

Condensed statement of cash flows

	Year Ended December 31,
	2017			2016
Net cash used in operating activities	$	(13,848	)	$	(2,220	)
Net cash used in investing activities		(21,754	)		-
Net cash provided by financing activities		38,676			9,309
Net increase in cash and cash equivalents		3,074			7,089
Cash and cash equivalents, beginning of year		7,264			504
Effect of exchange rate changes on cash and cash equivalents		536			(329	)
Cash and cash equivalents, end of year	$	10,874		$	7,264

Summary of Significant Accounting Policies (Details)	12 Months Ended
Summary of Significant Accounting Policies (Details)	Dec. 31, 2017
Computer and office equipment [Member]
Useful lives	3 to 5 years
Computer and office equipment [Member] \| ACM Subsidiaries
Useful lives	for small to medium-sized equipment, 5 years; for large equipment, estimated by purchasing department at time of acceptance
Furniture and fixtures
Useful lives	5 years
Furniture and fixtures \| ACM Subsidiaries
Useful lives	5 years
Leasehold improvements
Useful lives	shorter of lease term or estimated useful life
Leasehold improvements \| ACM Subsidiaries
Useful lives	remaining lease term for improvements on leased fixed assets or, for large improvements, estimated useful life; not less than 3 years for non-fixed asset repairs
Transportation equipment \| ACM Subsidiaries
Useful lives	4 to 5 years
Electronic equipment \| ACM Subsidiaries
Useful lives	3 years

Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Summary Of Significant Accounting Policies Details 1
Beginning	$ 290	$ 459
Additions	736	544
Utilized	(187)	(713)
Ending	$ 839	$ 290

Summary of Significant Accounting Policies (Details 2)	12 Months Ended
Summary of Significant Accounting Policies (Details 2)	Dec. 31, 2017	Dec. 31, 2016
Customer A
Concentration of credit risk	0.00%	33.70%
Customer B
Concentration of credit risk	18.10%	25.00%
Customer C
Concentration of credit risk	0.00%	24.00%
Customer D
Concentration of credit risk	12.77%	16.60%
Customer E
Concentration of credit risk	14.12%	0.00%
Customer F
Concentration of credit risk	10.23%	0.00%

Summary of Significant Accounting Policies (Details 4) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Numerator:
Net income (loss)	$ (872)	$ 2,387
Net income (loss) attributable to non-controlling interest	(554)	1,356
Net income allocated to participating securities	0	386
Net income (loss) available to common stockholders, basic and diluted	$ (318)	$ 645
Denominator:
Weighted average shares outstanding, basic	6,865,390	2,176,315
Effect of dilutive securities	0	1,615,822
Weighted average shares outstanding, diluted	6,865,390	3,792,137
Net income (loss) per common share:
Basic	$ (0.05)	$ 0.3
Diluted	$ (0.05)	$ 0.18

Summary of Significant Accounting Policies (Details 5) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Antidilutive securities	3,849,794	4,385,564
Series A- Convertible Preferred Stock [Member]
Antidilutive securities	0	128,334
Series B Convertible Preferred Stock [Member]
Antidilutive securities	0	524,003
Series C Convertible Preferred Stock [Member]
Antidilutive securities	0	482,288
Series D Convertible Preferred Stock [Member]
Antidilutive securities	0	605,244
Series F Convertible Preferred Stock [Member]
Antidilutive securities	0	1,221,099
Stock Options
Antidilutive securities	3,372,292	1,424,596
Warrants
Antidilutive securities	477,502	0

Summary of Significant Accounting Policies (Details 6) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Liabilities:
Short-term borrowings	$ 5,095	$ 4,761
Warrant liability	3,079
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total	8,174	4,761
Fair Value, Inputs, Level 1 [Member]
Liabilities:
Short-term borrowings	0	0
Warrant liability	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total	0	0
Fair Value, Inputs, Level 2 [Member]
Liabilities:
Short-term borrowings	5,095	4,761
Warrant liability	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total	5,095	4,761
Fair Value, Inputs, Level 3 [Member]
Liabilities:
Short-term borrowings	0	0
Warrant liability	3,079
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total	$ 3,079	$ 0

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Shipping and handling charged to Selling and marketing expenses	$ 139	$ 75
Other Shipping and handling charged to Selling and marketing expenses	$ 135	$ 127

Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Accounts receivable	$ 26,762	$ 16,026
Less: Allowance for doubtful accounts	0	0
Total	$ 26,762	$ 16,026

Accounts Receivable (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Allowance for doubtful accounts	$ 0	$ 0
Accounts receivable were pledged as collateral for borrowings	$ 1,805	$ 0

Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 6,181	$ 7,698
Work in process	4,328	1,260
Finished goods	4,879	2,708
Total inventory, gross	15,388	11,666
Inventory reserve	0	0
Total inventory, net	$ 15,388	$ 11,666

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Total cost	$ 10,603	$ 9,391
Less: Total accumulated depreciation	(8,263)	(7,562)
Construction in progress	0	433
Total property, plant and equipment, net	2,340	2,262
Tools, Dies and Molds [Member]
Total cost	9,660	8,566
Total property, plant and equipment, net	9,660	8,566
Office Equipment [Member]
Total cost	463	410
Total property, plant and equipment, net	463	410
Transportation Equipment [Member]
Total cost	203	191
Total property, plant and equipment, net	203	191
Leasehold Improvements [Member]
Total cost	277	224
Total property, plant and equipment, net	$ 277	$ 224

Short-Term Borrowing (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Short-term borrowings	$ 5,095	$ 4,761
Borrowings One
Short-term borrowings	0	1,222
Borrowings Two
Short-term borrowings	0	281
Borrowings Three
Short-term borrowings	765	0
Line of Credit One
Short-term borrowings	0	1,455
Line of Credit Two
Short-term borrowings	0	1,803
Line of Credit Three
Short-term borrowings	2,219	0
Line of Credit Four
Short-term borrowings	$ 2,111	$ 0

Other Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Lease expenses and payable for leasehold improvement due to a related party (note 12)	$ 2,024	$ 1,883
Commissions	836	757
Accrued warranty	839	290	$ 459
Accrued payroll	745	398
Accrued professional fees	60	46
Accrued machine testing fee	684	0
Others	838	589
Total	$ 6,026	$ 3,963

Warrant Liability (Details) - Warrants	12 Months Ended
Warrant Liability (Details) - Warrants	Dec. 31, 2017 $ / shares
Fair value of common share	$ 5.25
Expected term in years	5 years 4 months 17 days
Volatility	28.71%
Risk-free interest rate	2.20%
Expected dividend	0.00%

Equity Method Investment (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Post-closing equity purchase price	$ 1,200	$ 0
Ninebell [Member]
Undistributed earnings attributable to ACM's equity method investment	$ 37

Related Party Balances and Transactions (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accounts payable-related party	$ 2,118	$ 508
Investors' deposit	0	2,902
Operating Lease Agreement [Member] \| Shanghai Zhangjiang Group Co., Ltd. [Member]
Leasing expense under lease agreement	638	640
Lease expenses and payable for leasehold improvement due to a related party	$ 2,024	$ 1,883

Leases (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Operating Leases, Future Minimum Payments Receivable [Abstract]
2018	$ 50
2019	22
Total	$ 72

Common Stock (Details Narrative) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Common Class A [Member]
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares issued	12,935,546	2,228,740
Common stock, shares outstanding	12,935,546	2,228,740
Common Class B [Member]
Common stock, shares authorized	7,303,533	7,303,533
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares issued	2,409,738	2,409,738
Common stock, shares outstanding	2,409,738	2,409,738

Redeemable Convertible Preferred Stock (Details) - shares	Dec. 31, 2017	Dec. 31, 2016
Preferred stock outstanding	0	11,977,937
Series A- Convertible Preferred Stock [Member]
Preferred stock outstanding	0	1,572,000
Series B Convertible Preferred Stock [Member]
Preferred stock outstanding	0	1,360,962
Series C Convertible Preferred Stock [Member]
Preferred stock outstanding	0	2,659,975
Series D Convertible Preferred Stock [Member]
Preferred stock outstanding	0	0
Series E Convertible Preferred Stock [Member]
Preferred stock outstanding	0	385,000
Series F Convertible Preferred Stock [Member]
Preferred stock outstanding	0	6,000,000

Redeemable Convertible Preferred Stock (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Purchase of non-controlling interest	$ 20,808	$ 0
Redeemable convertible preferred stock	$ 0	$ 18,034
Series A- Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	385,000	385,000
Redeemable preferred stock, shares issued	0	385,000
Redeemable convertible preferred stock	$ 0	$ 288
Redeemable preferred stock, shares outstanding	0	385,000
Series B Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	1,572,000	1,572,000
Redeemable preferred stock, shares issued	0	1,572,000
Redeemable convertible preferred stock	$ 0	$ 1,572
Redeemable preferred stock, shares outstanding	0	1,572,000
Series C Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	1,360,962	1,360,962
Redeemable preferred stock, shares issued	0	1,360,962
Redeemable convertible preferred stock	$ 0	$ 2,041
Redeemable preferred stock, shares outstanding	0	1,360,962
Series D Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	2,659,975	2,659,975
Redeemable preferred stock, shares issued	0	1,326,642
Redeemable convertible preferred stock	$ 0	$ 4,975
Redeemable preferred stock, shares outstanding	0	1,326,642
Series F Convertible Preferred Stock [Member]
Redeemable preferred stock, shares authorized	6,000,000	6,000,000
Redeemable preferred stock, shares issued	0	3,663,254
Redeemable convertible preferred stock	$ 0	$ 9,158
Redeemable preferred stock, shares outstanding	0	3,663,254

Stock-Based Compensation (Details) - $ / shares	12 Months Ended
Stock-Based Compensation (Details) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Employee Stock Option [Member]
Number of Option Shares, Outstanding, Beginning balance	2,100,377	1,500,010
Number of Option Shares, Outstanding, Granted	140,002	1,009,371
Number of Option Shares, Outstanding, Exercised	(174,334)	(409,004)
Number of Option Shares, Outstanding, Expired	(3,752)	0
Number of Option Shares, Outstanding, Forfeited	(16,677)	0
Number of Option Shares, Outstanding, Ending balance	2,045,616	2,100,377
Vested and exercisable	1,010,313
Weighted Average Grant Date Fair Value, Outstanding, Beginning balance	$ 0.54	$ 0.48
Weighted Average Grant Date Fair Value, Granted	2.28	0.54
Weighted Average Grant Date Fair Value, Exercised	0.45	0.42
Weighted Average Grant Date Fair Value, Expired	0.54	0
Weighted Average Grant Date Fair Value, Forfeited	0.54	0
Weighted Average Grant Date Fair Value, Outstanding, Ending balance	0.66	0.54
Weighted Average Exercise Price, Outstanding, Beginning balance	2.03	1.02
Weighted Average Exercise Price, Granted	6.75	3
Weighted Average Exercise Price, Exercised	0.75	0.75
Weighted Average Exercise Price, Expired	3	0
Weighted Average Exercise Price, Forfeited	3	0
Weighted Average Exercise Price, Outstanding, Ending balance	$ 2.46	$ 2.03
Weighted Average Remaining Contractual Term, Outstanding	7 years 6 months 25 days	7 years 9 months 29 days
Non Employee Awards [Member]
Number of Option Shares, Outstanding, Beginning balance	1,578,565	1,533,343
Number of Option Shares, Outstanding, Granted	196,669	415,225
Number of Option Shares, Outstanding, Exercised	(298,555)	(370,003)
Number of Option Shares, Outstanding, Expired	(133,336)	0
Number of Option Shares, Outstanding, Forfeited	(16,667)	0
Number of Option Shares, Outstanding, Ending balance	1,326,676	1,578,565
Vested and exercisable	754,799
Weighted Average Grant Date Fair Value, Outstanding, Beginning balance	$ 0.51	$ 0.48
Weighted Average Grant Date Fair Value, Granted	2.25	0.54
Weighted Average Grant Date Fair Value, Exercised	0.39	0.45
Weighted Average Grant Date Fair Value, Expired	0.45	0
Weighted Average Grant Date Fair Value, Forfeited	2.58	0
Weighted Average Grant Date Fair Value, Outstanding, Ending balance	0.78	0.51
Weighted Average Exercise Price, Outstanding, Beginning balance	1.58	0.99
Weighted Average Exercise Price, Granted	6.90	3.00
Weighted Average Exercise Price, Exercised	0.93	0.75
Weighted Average Exercise Price, Expired	0.75	0
Weighted Average Exercise Price, Forfeited	7.5	0
Weighted Average Exercise Price, Outstanding, Ending balance	$ 2.52	$ 1.58
Weighted Average Remaining Contractual Term, Outstanding	7 years 6 months 14 days	6 years 9 months 22 days

Stock-Based Compensation (Details 1) - $ / shares	12 Months Ended
Stock-Based Compensation (Details 1) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Employee Stock Option [Member]
Fair value of common share		$ 2.28
Expected term in years	6 years 3 months
Expected dividend	0.00%	0.00%
Employee Stock Option [Member] \| Minimum [Member]
Fair value of common share	$ 5.60
Expected term in years		5 years 9 months
Volatility	28.62%	29.93%
Risk-free interest rate	2.21%	2.02%
Employee Stock Option [Member] \| Maximum [Member]
Fair value of common share	$ 7.59
Expected term in years		6 years 3 months
Volatility	29.18%	29.93%
Risk-free interest rate	2.22%	2.32%
Non Employee Awards [Member]
Fair value of common share		$ 2.28
Volatility		29.93%
Expected dividend	0.00%	0.00%
Non Employee Awards [Member] \| Minimum [Member]
Fair value of common share	$ 5.25
Expected term in years	3 years 6 months 29 days	2 years 1 month 10 days
Volatility	28.71%
Risk-free interest rate	1.62%	1.00%
Non Employee Awards [Member] \| Maximum [Member]
Fair value of common share	$ 7.59
Expected term in years	6 years 3 months	6 years 2 months 26 days
Volatility	29.41%
Risk-free interest rate	2.43%	2.25%

Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Non Employee Awards [Member]
Stock-based compensation expense	$ 1,351	$ 291
Number of options granted	196,669	415,225
Employee Stock Option [Member]
Stock-based compensation expense	$ 271	$ 92
Unrecognized employee stock-based compensation expense, net of estimated forfeitures	$ 729	$ 726
Weighted-average period over which unrecognized compensation is expected to be recognized	1 year 9 months 7 days	2 years 3 months
Number of options granted	140,002	1,009,371

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current:
U.S. federal	$ 0	$ 0
U.S. state	0	(1)
Foreign	0	0
Total current tax expense	0	(1)
Deferred:
U.S. federal	0	0
U.S. state	0	0
Foreign	(547)	(594)
Total deferred tax expense	(547)	(594)
Total income tax expense	$ 547	$ 595

Income Taxes (Details 1) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Net operating loss carry forwards (offshore)	$ 4,418	$ 1,029
Net operating loss carry forwards (U.S.) and credit	683	5,815
Deferred revenue (offshore)	656	840
Accruals (U.S.)	18	18
Reserves and other (offshore)	495	43
Stock-based compensation (U.S.)	453	342
Property and equipment (U.S.)	2	3
Total gross deferred tax assets	6,725	8,090
Less: valuation allowance	(5,431)	(6,249)
Total deferred tax assets	1,294	1,841
Total deferred tax liabilities	0	0
Translation difference	0	0
Deferred tax assets, net	$ 1,294	$ 1,841

Income Taxes (Details 2)	12 Months Ended
Income Taxes (Details 2)	Dec. 31, 2017	Dec. 31, 2016
Effective tax rate reconciliation:
Income tax provision at statutory rate	34.00%	(34.00%)
State taxes, net of Federal benefit	0.00%	0.00%
Foreign rate differential	6.80%	38.70%
Other permanent difference	197.70%	(20.90%)
Effect of Tax Reform	(757.00%)	0.00%
Change in valuation allowance	349.90%	(3.80%)
Total income tax (expense) benefit	(168.60%)	(20.00%)

Income Taxes (Details 3) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 3) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Income Taxes Details 3
Beginning balance	$ 44	$ 44
Increase/(Decrease) of unrecognized tax benefits taken in prior years	0	0
Increase/(Decrease) of unrecognized tax benefits related to current year	0	0
Increase/(Decreases) of unrecognized tax benefits related to settlements	0	0
Reductions to unrecognized tax benefits related to lapsing statute of limitations	0	0
Ending balance	$ 44	$ 44

Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Statutory U.S federal income tax rate	34.00%	(34.00%)
Statutory Chinese income tax rate	6.80%	38.70%
Income tax provision (benefit)	$ 547	$ 595
Unrecognized tax benefits	$ 44	$ 44

Parent Company Only Condensed Financial Information (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 17,681	$ 10,119	$ 4,401
Accounts Receivable	26,762	16,026
Inventory	15,388	11,666
Total current assets	62,914	40,347
Total assets	67,891	44,467
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
Total liabilities	28,034	23,948
Total stockholders’ deficit	39,857	(2,434)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	67,891	44,467
Parent
Current assets:
Cash and cash equivalents	10,874	7,264	$ 504
Accounts Receivable	118	0
Inventory	565	1,042
Due from intercompany	12,669	1,986
Other receivable	50	3
Total current assets	24,276	10,295
Investment in unconsolidated subsidiaries	15,476	6,583
Due from related party	946	0
Total assets	40,698	16,878
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
Notes payable	11	11
Accounts payable	739	1,176
Other payable	47	47
Income taxes payable	44	44
Total liabilities	841	1,278
Total redeemable convertible preferred stocks	0	18,034
Total stockholders’ deficit	39,857	(2,434)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	$ 40,698	$ 16,878

Parent Company Only Condensed Financial Information (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Revenue	$ 36,506	$ 27,371
Cost of revenue	19,281	14,042
Gross profit	17,225	13,329
Operating expenses:
General and administrative expenses	5,887	2,673
Research and development expenses	5,138	3,259
Other income (expense), net	(794)	(343)
Interest expense, net	277	181
Income (loss) before income taxes	(325)	2,982
Income tax expense (benefit)	547	595
Net income (loss)	(318)	1,031
Parent
Revenue	6,985	5,803
Cost of revenue	(6,394)	(5,346)
Gross profit	591	457
Operating expenses:
Sales and marketing expenses	(368)	(64)
General and administrative expenses	(3,961)	(1,202)
Research and development expenses	(50)	(6)
Loss from operations	(3,788)	(815)
Equity in earnings of unconsolidated subsidiaries	3,475	3,561
Other income (expense), net	0	(1,608)
Interest expense, net	(5)	(106)
Income (loss) before income taxes	(318)	1,032
Income tax expense (benefit)	0	(1)
Net income (loss)	$ (318)	$ 1,031

Parent Company Only Condensed Financial Information (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net increase in cash and cash equivalents	$ 7,562	$ 5,718
Cash and cash equivalents at beginning of period	10,119	4,401
Effect of exchange rate changes on cash and cash equivalents	663	(324)
Cash and cash equivalents at end of period	17,681	10,119
Parent
Net cash used in operating activities	(13,848)	(2,220)
Net cash used in investing activities	(21,754)	0
Net cash provided by financing activities	38,676	9,309
Net increase in cash and cash equivalents	3,074	7,089
Cash and cash equivalents at beginning of period	7,264	504
Effect of exchange rate changes on cash and cash equivalents	536	(329)
Cash and cash equivalents at end of period	$ 10,874	$ 7,264

Description of Business (Details Narrative)	Dec. 31, 2017	Dec. 31, 2016
ACM Shanghai [Member]
Outstanding equity interest	100.00%	62.87%

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Other long-term liabilities	$ 6,217	$ 6,879
Subsidies to Stress Free Polishing project [Member]
Other long-term liabilities	1,952	1,958
Subsidies to Electro Copper Plating project [Member]
Other long-term liabilities	$ 4,265	$ 4,921

Property, Plant and Equipment, Net (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property Plant And Equipment Capitalized Interest Costs [Abstract]
Depreciation expense	$ 243	$ 180

Leases (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
Leases (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Leases [Abstract]
Rent expense	$ 670	$ 675
Rent expense	$ 670	$ 675