ACM Research Inc

Previous wording

Since 2009 we have delivered more than 925 tools to our customers, more than 765 of which were repeat orders or acceptances upon contractual performance obligations having been met and thereby generated revenue to us. The balance of the delivered tools is subject to the customer's acceptance of the tool upon the tool's satisfaction of applicable contractual requirements or subject to the customer's subsequent discretionary commitment to purchase the tool. To date, substantially all of our sales of equipment for semiconductor-manufacturing have been to customers located in Asia, and we anticipate that a substantial majority of our revenue from these products will continue to come from customers located in this region for the foreseeable future. We have begun to add to our efforts to further address customers in North America, Western Europe and Southeast Asia, by expanding our direct sales teams and increasing our global marketing activities.

Current wording

Since 2009 we have delivered more than 1,025 tools to our customers, more than 840 of which were repeat orders or acceptances upon contractual performance obligations having been met and thereby generated revenue to us. The balance of the delivered tools is subject to the customer's acceptance of the tool upon the tool's satisfaction of applicable contractual requirements or subject to the customer's subsequent discretionary commitment to purchase the tool. To date, substantially all of our sales of equipment for semiconductor-manufacturing have been to customers located in Asia, and we anticipate that a substantial majority of our revenue from these products will continue to come from customers located in this region for the foreseeable future. We have begun to add to our efforts to further address customers in North America, Western Europe and Southeast Asia, by expanding our direct sales teams and increasing our global marketing activities.

Previous wording

In June 2024, ACM Research's principal operating subsidiary, ACM Shanghai (SSEC: 688082.SS) held its Annual Stockholder Meeting in Shanghai, China and approved to pay a cash dividend for an aggregate total of approximately RMB 273.2 million (approximately $38.4 million) to the stockholders of ACM Shanghai. The dividend is expected to be paid by the end of 2024. ACM Research owns 82.0% of the outstanding shares of ACM Shanghai. It is possible that ACM Shanghai may not pay the dividend per the approved resolutions, and even if paid, the net amount and the timing of any proceeds to be repatriated by ACM Research to the United States would be uncertain. If the dividend is paid, ACM Research intends to use the net proceeds, if any, for working capital and general corporate purposes.

Current wording

During the three months ended September 30, 2024, ACM Research's principal operating subsidiary, ACM Shanghai (SSEC: 688082.SS), paid a cash dividend for an aggregate total of approximately RMB 273.2 million ($38.4 million) to the stockholders of ACM Shanghai, including ACM Research, which owns 82.0% of the outstanding shares of ACM Shanghai. ACM Research intends to use the net proceeds for working capital and general corporate purposes.

Previous wording

In January 2024, ACM Research announced that ACM Shanghai intends to offer up to 43.6 million of its ordinary shares, subject to market conditions, the approval of ACM Shanghai’s stockholders, completion of the review process by the Shanghai Stock Exchange, completion of the registration process by the China Securities Regulatory Commission, and other factors, in a private offering to qualified buyers, in compliance with the requirements of the China Securities Regulatory Commission, which would constitute up to 10% of ACM Shanghai’s share capital prior to the transaction (the “Private Offering”).

Current wording

In January 2024, ACM Research announced ACM Shanghai's intended plan to offer up to 43.6 million of its ordinary shares, subject to market conditions, the approval of ACM Shanghai’s stockholders, completion of the review process by the Shanghai Stock Exchange, completion of the registration process by the China Securities Regulatory Commission, and other factors, in a private offering to qualified buyers, in compliance with the requirements of the China Securities Regulatory Commission, which would constitute up to 10% of ACM Shanghai’s share capital prior to the transaction (the “Private Offering”).

Previous wording

ACM Research estimates that if consummated in full, the proposed Private Offering would generate gross proceeds of up to RMB 4.5 billion ($625 million) to ACM Shanghai, whose management would have broad discretion over the use of such proceeds. It is unlikely that any of such proceeds would be distributed to ACM Research, and that its equity interest in

Current wording

ACM Research estimates that if consummated in full, the proposed Private Offering would generate gross proceeds of up to RMB 4.5 billion ($642.2 million) to ACM Shanghai, whose management would have broad discretion over the use of such proceeds. It is unlikely that any of such proceeds would be distributed to ACM Research. ACM Research's equity interest in ACM Shanghai, if the proposed Private Offering is consummated in full, would decline from 82.0% to approximately 74.6%. As of September 30, 2024 and the date of this report, the proposed Private Offering has not been completed.

Previous wording

Grant amounts are recognized in our statements of comprehensive income (loss) as follows:

Current wording

Grant amounts are recognized in our statements of comprehensive income as follows:

Previous wording

•Government subsidies are recorded as reductions of current expenses in the periods in which the qualified expenses are incurred. For the six months ended June 30, 2024 and 2023, government subsidies recognized as reductions of relevant expenses in the condensed consolidated statements of comprehensive income (loss) were $0.6 million and $0.8 million, respectively.

Current wording

•Government subsidies are recorded as reductions of current expenses in the periods in which the qualified expenses are incurred. For the nine months ended September 30, 2024 and 2023, government subsidies recognized as reductions of relevant expenses in the condensed consolidated statements of comprehensive income were$0.7 million and $1.5 million, respectively.

Previous wording

•Other subsidies are recorded as other income in the periods as incurred. For the six months ended June 30, 2024 and 2023, related government subsidies recognized as other income in the condensed consolidated statements of comprehensive income (loss) were $1.8 million and $0.2 million, respectively.

Current wording

•Other subsidies are recorded as other income in the periods as incurred. For the nine months ended September 30, 2024 and 2023, related government subsidies recognized as other income in the condensed consolidated statements of comprehensive income were $1.9 million and $0.4 million, respectively.

Previous wording

The increase in revenue for three months ended June 30, 2024 as compared to the same period in 2023 reflects higher sales of single wafer cleaning, Tahoe and semi-critical cleaning equipment, and ECP (front-end and packaging), furnace and other technologies, partly offset by lower Advanced packaging (excluding ECP), services and spares. The increased demand from is due in part to a longer term commitment by our mainland China-based customers to increase production capacity to achieve a greater share of the global semiconductor market.

Current wording

The increase in revenue for three months ended September 30, 2024 as compared to the same period in 2023 reflects higher sales of single wafer cleaning, Tahoe and semi-critical cleaning equipment, and ECP (front-end and packaging), furnace and other technologies, partly offset by lower Advanced packaging (excluding ECP), services and spares. The increased demand is due in part to a longer term commitment by our mainland China-based customers to increase production capacity to achieve a greater share of the global semiconductor market.

Previous wording

Cost of revenue and gross profit increased in the three months ended June 30, 2024 as compared to the corresponding period in 2023 due to the increased sales volume together with a slight increase in gross margin. The increase in gross margin versus the prior-year period was primarily due to revenue mix between product categories, net of a favorable impact from fluctuations in the RMB to U.S. dollar exchange rate. Gross margin may vary from period to period, primarily related to the level of utilization and the timing and mix of revenue. We expect gross margin to be between 40.0% and 45.0% for the foreseeable future, with direct manufacturing costs approximating 50.0% to 55.0% of revenue and overhead costs totaling 5.0% of revenue.

Current wording

Cost of revenue and gross profit increased in the three months ended September 30, 2024 as compared to the corresponding period in 2023 due to the increased sales volume, partly offset by a slight decrease in gross margin. The decrease in gross margin versus the prior-year period was primarily due to revenue mix between product categories, net of a favorable impact from fluctuations in the RMB to U.S. dollar exchange rate. Gross margin may vary from period to period, primarily related to the level of utilization and the timing and mix of revenue. We expect gross margin to be between 40.0% and 45.0% for the foreseeable future, with direct manufacturing costs approximating 50.0% to 55.0% of revenue and overhead costs totaling 5.0% of revenue.

Previous wording

Sales and marketing expense increased in the three months ended June 30, 2024 as compared to the corresponding period in 2023, reflecting an increase of $3.5 million due to increased costs for personnel, commissions, travel & entertainment, outside service, and professional services, and $2.6 million in stock-based compensation, offset by $0.4 million decrease in warranty expense.

Current wording

Sales and marketing expense decreased in the three months ended September 30, 2024 as compared to the corresponding period in 2023, reflecting a net decrease of $1.1 million due to costs for personnel, commissions, travel & entertainment, outside service, professional services, and other expenses, offset by a $0.1 million increase in stock-based compensation.

Previous wording

Research and development expense increased in the three months ended June 30, 2024 as compared to the corresponding period in 2023, reflecting an increase of $3.5 million in stock-based compensation, $2.0 million in R&D-related personnel costs, and $1.6 million in depreciation, outside services and other R&D-related costs, offset by a $1.2 million decrease in costs of components for tools built for product development purposes.

Current wording

Research and development expense increased in the three months ended September 30, 2024 as compared to the corresponding period in 2023, reflecting an increase of $2.7 million R&D-related personnel and other costs, and $0.1 million in depreciation, outside services and other R&D-related costs, offset by a $1.1 million decrease in costs of components for tools built for product development purposes.

Previous wording

Research and development expense represented 12.8% and 13.9% of our revenue in the three months ended June 30, 2024 and 2023, respectively. Without reduction by grant amounts received from mainland China governmental authorities (see ‘–Mainland China Government Research and Development Funding’’), gross research and development expense totaled $26.1 million, or 12.9% of total revenue, in the three months ended June 30, 2024 as compared to $20.3 million, or 14.1% of revenue, in the corresponding period in 2023.

Current wording

Research and development expense represented 13.6% and 15.5% of our revenue in the three months ended September 30, 2024 and 2023, respectively. Without reduction by grant amounts received from mainland China governmental authorities (see ‘–Mainland China Government Research and Development Funding’’), gross research and development expense totaled $27.9 million, or 13.7% of total revenue, in the three months ended September 30, 2024 as compared to $26.4 million, or 15.7% of revenue, in the corresponding period in 2023.

Previous wording

General and administrative expense increased in the three months ended June 30, 2024 as compared to the corresponding period in 2023, primarily reflecting a $5.6 million increase in stock based compensation, a $3.2 million in personnel and other costs related to general and administrative costs, and a $0.6 million increase in allowance for credit losses.

Current wording

General and administrative expense increased in the three months ended September 30, 2024 as compared to the corresponding period in 2023, primarily reflecting a $1.4 million increase in stock based compensation, and a $2.7 million increase in allowance for credit losses, and a $0.6 million increase in personnel and other costs related to general and administrative costs.

Previous wording

Interest income, net, Other Income, net

Current wording

Interest income, net, Other expense, net

Previous wording

Interest income (expense), net consists of interest earned on our cash and cash equivalents, restricted cash accounts, and short-term and long-term time deposits, offset by interest expense incurred from outstanding short-term and long-term borrowings. Interest income (expense), net decreased in the three months ended June 30, 2024 as compared to the corresponding period in 2023, as a result of changes in balances of cash, cash equivalents, time deposits, and debt, together with changes in interest rates earned or expensed on the respective balances.

Current wording

Interest income (expense), net consists of interest earned on our cash and cash equivalents, restricted cash accounts, and short-term and long-term time deposits, offset by interest expense incurred from outstanding short-term and long-term borrowings. Interest income (expense), net increased in the three months ended September 30, 2024 as compared to the corresponding period in 2023, as a result of changes in balances of cash, cash equivalents, time deposits, and debt, together with changes in interest rates earned or expensed on the respective balances.

Previous wording

Other income, net primarily reflects (a) gain recognized from the impact of exchange rates on our working-capital which was $1.3 million for the three months ended June 30, 2024 compared to $1.5 million loss recognized from the impact of exchange rates on our working capital for the three months ended June 30, 2023, (b) government subsidies, as described under “—Mainland China Government Research and Development Funding” above, and other factors.

Current wording

Other expense, net primarily reflects (a) loss recognized from the impact of exchange rates on our working-capital which was $(5.4) million for the three months ended September 30, 2024 compared to $(1.7) million loss recognized from the impact of exchange rates on our working capital for the three months ended September 30, 2023, (b) government subsidies, as described under “—Mainland China Government Research and Development Funding” above, and other factors.

Previous wording

We did not record a realized gain from sale of short term investments for the three months ended June 30, 2024 as compared to $3.9 million in the prior-year period due to a sale of short-term investments (note 15).

Current wording

We recorded a realized gain from sale of short term investments of $0.2 million for the three months ended September 30, 2024 as compared to $0.7 million in the prior-year period due to a sale of short-term investments (note 15).

Previous wording

We recorded an unrealized gain on short term investments of $1.0 million for the three months ended June 30, 2024 as compared to an unrealized loss of $2.5 million for the same period in 2023, based on a change in market value of ACM Shanghai’s short-term investments (note 15).

Current wording

We recorded an unrealized gain on short term investments of $0.4 million for the three months ended September 30, 2024 as compared to an unrealized loss of $1.3 million for the same period in 2023, based on a change in market value of ACM Shanghai’s short-term investments (note 15).

Previous wording

Loss from equity investments was $0.7 million for the three months ended June 30, 2024 as compared to income from equity method investments of $3.9 million in the same period in 2023 due to a decrease of net income from investments in affiliates (note 14).

Current wording

Income from equity investments was $1.3 million for the three months ended September 30, 2024 as compared to loss from equity method investments of $0.2 million in the same period in 2023 due to an increase of net income from investments in affiliates (note 14).

Previous wording

We recognized a tax expense of $9.3 million for the three months ended June 30, 2024 as compared to a tax expense of $7.6 million for the prior year period. The tax expense for the three months ended June 30, 2024 primarily resulted from the tax effect of an increase in our effective income tax rate applied to an increase in operating profit for the period. The increase in our effective income tax rate for the three months ended June 30, 2023 compared to the same period of the prior year was primarily due to an increase in capitalized R&D expenses in certain foreign jurisdictions.

Current wording

We recognized a tax expense of $4.0 million for the three months ended September 30, 2024 as compared to a tax expense of $0.7 million for the prior year period. The tax expense for the three months ended September 30, 2024 primarily resulted from the tax effect of an increase in our effective income tax rate applied to an increase in operating profit for the period. The increase in our effective income tax rate for the three months ended September 30, 2023 compared to the same period of the prior year was primarily due to an increase in capitalized R&D expenses in certain foreign jurisdictions.

Previous wording

We recorded a gain of foreign currency translation adjustmentof $0.1 million for the three months ended June 30, 2024, as compared to a loss of $35.3 million for the same period in 2023, primarily based on the net effect of RMB to dollar exchange rate fluctuations for the period on the converted value of ACM Shanghai’s RMB-denominated balances to U.S. dollar equivalents.

Current wording

We recorded a gain of foreign currency translation adjustmentof $17.1 million for the three months ended September 30, 2024, as compared to a gain of $4.0 million for the same period in 2023, primarily based on the net effect of RMB to dollar exchange rate fluctuations for the period on the converted value of ACM Shanghai’s RMB-denominated balances to U.S. dollar equivalents.

Previous wording

Comprehensive income attributable to non-controlling interestsfor the three months ended June 30, 2024 increased by $6.6 million as compared to the same period in 2023, reflecting a change in net income attributable to the non-controlling interests for the period together with the impact of foreign exchange rate fluctuations on the cumulative balance.

Current wording

Comprehensive income attributable to non-controlling interestsfor the three months ended September 30, 2024 increased by $3.1 million as compared to the same period in 2023, reflecting a change in net income attributable to the non- controlling interests for the period together with the impact of foreign exchange rate fluctuations on the cumulative balance.

Previous wording

The increase in revenue for six months ended June 30, 2024 as compared to the same period in 2023 reflects higher sales of single wafer cleaning, Tahoe and semi-critical cleaning equipment, ECP (front-end and packaging), furnace and other technologies, and Advanced packaging (excluding ECP), services and spares. The increased demand from is due in part to a longer term commitment by our mainland China-based customers to increase production capacity to achieve a greater share of the global semiconductor market.

Current wording

The increase in revenue for nine months ended September 30, 2024 as compared to the same period in 2023 reflects higher sales of single wafer cleaning, Tahoe and semi-critical cleaning equipment, ECP (front-end and packaging), furnace and other technologies, and Advanced packaging (excluding ECP), services and spares. The increased demand from is due in part to a longer term commitment by our mainland China-based customers to increase production capacity to achieve a greater share of the global semiconductor market.

Previous wording

Cost of revenue and gross profit increased in the six months ended June 30, 2024 as compared to the corresponding period in 2023 due to the increased sales volume, and consistent gross margin. The decrease in gross margin versus the prior-year period was primarily due to revenue mix between product categories, net of a favorable impact from fluctuations in the RMB to U.S. dollar exchange rate.

Current wording

Cost of revenue and gross profit increased in the nine months ended September 30, 2024 as compared to the corresponding period in 2023 due to the increased sales volume, offset by a slight decrease in gross margin. The decrease in gross margin versus the prior-year period was primarily due to revenue mix between product categories, net of a favorable impact from fluctuations in the RMB to U.S. dollar exchange rate.

Previous wording

Sales and marketing expense increased in the six months ended June 30, 2024 as compared to the corresponding period in 2023, reflecting an increase of $5.7 million due to increased costs for personnel, commissions, travel & entertainment and professional services, $5.2 million in stock-based compensation, $0.6 million in office and outside service, offset by a decrease of $1.0 million from promotional tools.

Current wording

Sales and marketing expense increased in the nine months ended September 30, 2024 as compared to the corresponding period in 2023, reflecting an increase of $5.3 million in stock-based compensation, and a net increase of $4.2 million due to increased costs for personnel, commissions, travel & entertainment, professional services, office, outside service, and other expenses

Previous wording

Research and development expense increased in the six months ended June 30, 2024 as compared to the corresponding period in 2023, reflecting an increase of $7.3 million in stock-based compensation, $4.5 million in R&D-related personnel costs, $2.4 million in costs of components for tools built for product development purposes, and a$2.6 million increase in other R&D-related costs, travel and entertainment, and depreciation, offset by a $1.0 million decrease in outside service.

Current wording

Research and development expense increased in the nine months ended September 30, 2024 as compared to the corresponding period in 2023, reflecting an increase of $7.3 million in stock-based compensation, $6.9 million in R&D-related personnel costs, $1.4 million in costs of components for tools built for product development purposes, and a $2.5 million increase in other R&D-related costs, depreciation and other expenses, offset by a $0.6 million decrease in outside services.

Previous wording

Research and development expense represented 14.1% and 15.6% of our revenue in the six months ended June 30, 2024 and 2023, respectively. Without reduction by grant amounts received from mainland China governmental authorities (see ‘–Mainland China Government Research and Development Funding’’), gross research and development expense totaled $50.5 million, or 14.2% of total revenue, in the six months ended June 30, 2024 as compared to $34.8 million, or 15.9% of revenue, in the corresponding period in 2023.

Current wording

Research and development expense represented 13.9% and 15.6% of our revenue in the nine months ended September 30, 2024 and 2023, respectively. Without reduction by grant amounts received from mainland China governmental authorities (see ‘–Mainland China Government Research and Development Funding’’), gross research and development expense totaled $78.4 million, or 14.0% of total revenue, in the nine months ended September 30, 2024 as compared to $61.7 million, or 15.9% of revenue, in the corresponding period in 2023.

Previous wording

General and administrative expense increased in the six months ended June 30, 2024 as compared to the corresponding period in 2023, primarily reflecting a $11.0 million increase in stock based compensation, a $1.5 million increase in allowance for credit losses, and $5.1 million in personnel and other costs related to general and administrative costs, offset by $0.2 million decrease in professional services expenses.

Current wording

General and administrative expense increased in the nine months ended September 30, 2024 as compared to the corresponding period in 2023, primarily reflecting a $12.5 million increase in stock based compensation, a $4.1 million increase in allowance for credit losses, a $4.4 million increase other costs related to general and administrative activities, and a $1.1 million increase in personnel and professional services.

Previous wording

Interest income, net, Other Income, net

Current wording

Interest income, net, Other income (expense), net

Previous wording

Interest income (expense), net consists of interest earned on our cash and cash equivalents, restricted cash accounts, and short-term and long-term time deposits, offset by interest expense incurred from outstanding short-term and long-term borrowings. Interest income (expense), net decreased in the six months ended June 30, 2024 as compared to the corresponding period in 2023, as a result of changes in balances of cash, cash equivalents, time deposits, and debt, together with changes in interest rates earned or expensed on the respective balances.

Current wording

Interest income (expense), net consists of interest earned on our cash and cash equivalents, restricted cash accounts, and short-term and long-term time deposits, offset by interest expense incurred from outstanding short-term and long-term borrowings. Interest income (expense), net decreased in the nine months ended September 30, 2024 as compared to the corresponding period in 2023, as a result of changes in balances of cash, cash equivalents, time deposits, and debt, together with changes in interest rates earned or expensed on the respective balances.

Previous wording

Other income, net primarily reflects (a) gain recognized from the impact of exchange rates on our working-capital which was $2.7 million for the six months ended June 30, 2024 compared to $1.7 million gain recognized from the impact of exchange rates on our working capital for the six months ended June 30, 2023, (b) government subsidies, as described under “—Mainland China Government Research and Development Funding” above, and other factors.

Current wording

Other income (expense), net primarily reflects (a) loss recognized from the impact of exchange rates on our working-capital which was $2.6 million for the nine months ended September 30, 2024 compared to less than $0.1 million recognized from the impact of exchange rates on our working capital for the nine months ended September 30, 2023, (b) government subsidies, as described under “—Mainland China Government Research and Development Funding” above, and other factors.

Previous wording

We recorded a realized gain from sale of equity investment of $0.3 million for the six months ended June 30, 2024 as compared to $7.9 million in the prior-year period due to a sale of short-term investments (note 15).

Current wording

We recorded a realized gain from sale of equity investment of $0.4 million for the nine months ended September 30, 2024 as compared to $8.6 million in the prior-year period due to a sale of short-term investments (note 15).

Previous wording

We recorded an unrealized loss on short-term investments of $1.6 million for the six months ended June 30, 2024 as compared to an unrealized loss of $3.1 million for the same period in 2023, based on a change in market value of ACM Shanghai’s short-term investments (note 15).

Current wording

We recorded an unrealized loss on short-term investments of $1.2 million for the nine months ended September 30, 2024 as compared to an unrealized loss of $4.4 million for the same period in 2023, based on a change in market value of ACM Shanghai’s short-term investments (note 15).

Previous wording

Loss from equity investments was $1.2 million for the six months ended June 30, 2024 as compared to income from equity method investments of $3.9 million in the same period in 2023 due to a decrease of net income from investments in affiliates (note 14).

Current wording

Gain from equity investments was $0.1 million for the nine months ended September 30, 2024 as compared to income from equity method investments of $3.7 million in the same period in 2023 due to a decrease of net income from investments in affiliates (note 14).

Previous wording

We recognized a tax expense of $13.7 million for the six months ended June 30, 2024 as compared to a tax expense of $10.5 million for the prior year period. The tax expense for the six months ended June 30, 2024 primarily resulted from the tax effect of an increase in our effective income tax rate applied to an increase in operating profit for the period. The increase in our effective income tax rate for the six months ended June 30, 2024 compared to the same period of the prior year was primarily due to an increase in capitalized R&D expenses in certain foreign jurisdictions.

Current wording

We recognized a tax expense of $17.7 million for the nine months ended September 30, 2024 as compared to a tax expense of $11.2 million for the prior year period. The tax expense for the nine months ended September 30, 2024 primarily resulted from the tax effect of an increase in our effective income tax rate applied to an increase in operating profit for the period. The increase in our effective income tax rate for the nine months ended September 30, 2024, compared to the same period of the prior year, was primarily due to a decrease in certain permanent deductions in certain foreign jurisdictions.

Previous wording

We recorded a loss of foreign currency translation adjustmentof ($6.7 million) for the six months ended June 30, 2024, as compared to $(25.8 million) for the same period in 2023, primarily based on the net effect of RMB to dollar exchange rate fluctuations for the period on the converted value of ACM Shanghai’s RMB-denominated balances to U.S. dollar equivalents.

Current wording

We recorded a gain of foreign currency translation adjustmentof $10.4 million for the nine months ended September 30, 2024, as compared to a loss of foreign currency translation adjustment of $(21.8 million) for the same period in 2023, primarily based on the net effect of RMB to dollar exchange rate fluctuations for the period on the converted value of ACM Shanghai’s RMB-denominated balances to U.S. dollar equivalents.

Previous wording

Comprehensive income attributable to non-controlling interestsfor the six months ended June 30, 2024 increased as compared to the prior-year period, reflecting a change in net income attributable to the non-controlling interests for the period together with the impact of foreign exchange rate fluctuations on the cumulative balance.

Current wording

Comprehensive income attributable to non-controlling interestsfor the nine months ended September 30, 2024 increased as compared to the prior-year period, reflecting a change in net income attributable to the non-controlling interests for the period together with the impact of foreign exchange rate fluctuations on the cumulative balance.

Previous wording

During the first six months of 2024, we funded our technology development and operations principally through our beginning global cash balances, including the cash balances at ACM Shanghai, borrowings by ACM Shanghai from local financial institutions, and our loan from China CITIC Bank, and cash flow from operations.

Current wording

During the first nine months of 2024, we funded our technology development and operations principally through our beginning global cash balances, including the cash balances at ACM Shanghai, borrowings by ACM Shanghai from local financial institutions, and our loan from China CITIC Bank, and cash flow from operations.

Previous wording

Cash and cash equivalents, restricted cash, short-term time deposits and long-term time deposits were $366.8 million at June 30, 2024, compared to $304.5 million at December 31, 2023. The $62.3 million increase was primarily driven by $51.9 million of cash provided by operations, ($48.4 million), excluding the change in net cash related to time deposits, used in investing activities, $58.3 million net cash provided by financing activities, and a $0.5 million increase from the effect ofexchange rate on cash, cash equivalents, restricted cash and non-cash items.

Current wording

Cashand cash equivalents, restricted cash, short-term time deposits and long-term time deposits were $369.1 million at September 30, 2024, compared to $304.5 million at December 31, 2023. The $64.6 million increase was primarily driven by $63.9 million of cash provided by operations, ($78.6 million), excluding the change in net cash related to time deposits, used in investing activities, $77.0 million net cash provided by financing activities, and a $2.3 million increase from the effect of exchange rate on cash, cash equivalents, restricted cash and non-cash items.

Previous wording

ACM Shanghai has historically participated in certain mainland China government-sponsored grant and subsidy programs, as described under “—Mainland China Government Research and Development Funding” and “—Contractual Obligations” and we expect that ACM Shanghai will continue to take advantage of these programs when they are available and fit with our business strategy. ACM Shanghai generally applies for these grants and subsidies through the applicable mainland China government agency’s defined processes. Periodically, the public relations department researches the availability of these grants and subsidies through mainland China government agencies with whom ACM Shanghai files business surveys and taxes. Management of ACM Shanghai then assesses which grants and subsidies for which ACM Shanghai may be eligible and submits the relevant application. The decision to award the grant to ACM Shanghai is made by the relevant mainland China government agencies based on suitability and the merits of the application. Neither ACM

Current wording

ACM Shanghai has historically participated in certain mainland China government-sponsored grant and subsidy programs, as described under “—Mainland China Government Research and Development Funding” and “—Contractual Obligations” and we expect that ACM Shanghai will continue to take advantage of these programs when they are available and fit with our business strategy. ACM Shanghai generally applies for these grants and subsidies through the applicable mainland China government agency’s defined processes. Periodically, the public relations department researches the availability of these grants and subsidies through mainland China government agencies with whom ACM Shanghai files business surveys and taxes. Management of ACM Shanghai then assesses which grants and subsidies for which ACM Shanghai may be eligible and submits the relevant application. The decision to award the grant to ACM Shanghai is made by the relevant mainland China government agencies based on suitability and the merits of the application. Neither ACM Research, nor ACM Shanghai or any of our other subsidiaries, has any direct relationship with any mainland China government agency, and our anticipated cash needs for the next twelve months neither anticipate, nor require, receipt of any mainland China government grants or subsidies.