STATUTORY SURPLUS RESERVE

9 Months Ended

Sep. 30, 2023

STATUTORY SURPLUS RESERVE [Abstract]

STATUTORY SURPLUS RESERVE

STATUTORY SURPLUS RESERVE

In accordance with mainland China’s Foreign Enterprise Law, ACM Shanghai, ACM Lingang, and ACM Wuxi are required to make appropriation to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income in accordance with generally accepted accounting principles of mainland China (“mainland China GAAP”).

Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with mainland China GAAP until the reserve is equal to 50% of the entities’ registered capital. The amount is calculated annually at the end of each calendar year. The balances of statutory reserve funds was $16,881 as of both September 30, 2023 and December 31, 2022, and is presented as statutory surplus reserve on the Company’s condensed consolidated balance sheets.