XML 58 R47.htm IDEA: XBRL DOCUMENT v3.23.3
STOCK-BASED COMPENSATION (Tables)
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Share Option Activities
The following table summarizes the Company’s employee share option activities during the nine months ended September 30, 2023:
Number of
Option Shares 		Weighted
Average Grant
Date Fair Value		Weighted
Average
Exercise Price 		Weighted Average
Remaining
Contractual Term
Outstanding at December 31, 20229,211,641$3.58 $8.24 6.36 years
Granted2,202,00010.3413.87  
Exercised(680,319)0.892.24  
Forfeited/cancelled(44,560)10.6521.76  
Outstanding at September 30, 202310,688,762$5.15 $9.59 6.36 years
Vested and exercisable at September 30, 20236,356,350   
    
The following table summarizes the Company’s non-employee share option activities during the nine months ended September 30, 2023:
Number of
Option Shares 		Weighted
Average Grant
Date Fair Value		Weighted
Average
Exercise Price 		Weighted
Average
Remaining
Contractual Term
Outstanding at December 31, 20221,483,658$0.38 $1.15 3.68 years
Exercised(239,129)0.240.56 
Forfeited/cancelled(10,957)0.220.50 
Outstanding at September 30, 20231,233,572$0.41 $1.27 2.85 years
Vested and exercisable at September 30, 20231,226,072
The following table summarizes the stock option activities of the ACM Shanghai 2019 Subsidiary Stock Option Plan during the nine months ended September 30, 2023:
Number of
Option Shares in
ACM Shanghai		 Weighted
Average Grant
Date Fair Value		Weighted
Average
Exercise Price 		Weighted
Average
 Remaining
Contractual Term
Outstanding at December 31, 20225,377,500$0.23 $1.93 1.76 years
Exercise(2,150,309)$0.20 $1.85 
Forfeited/cancelled(92,308)$0.22 $1.85 
Outstanding at September 30, 20233,134,883$0.23 $1.90 1.10 years
Vested and exercisable at September 30, 2023492,308
The following table summarizes the ACM Shanghai 2023 Subsidiary Stock Option Plan’s stock option activities during the nine months ended September 30, 2023:


Number of Option Shares in ACM Shanghai
 Weighted
Average Grant
Date Fair Value		Weighted
Average
Exercise Price 		Weighted
Average
 Remaining
Contractual Term
Outstanding at December 31, 2022-$— $— 0.00 years
Granted
10,648,500$9.24 $7.10 
Outstanding at September 30, 202310,648,500$9.24 $7.10 3.34 years
Vested and exercisable at September 30, 2023-
Assumptions Used to Determine Fair Value of Options Granted
The fair value of options granted to employees with a service period based condition is estimated on the grant date using the Black-Scholes valuation with following assumptions:
Nine Months Ended
September 30, 2023		Years ended December 31, 2022
Fair value of share of common stock (1)
$11.85-$13.89
$16.83-$25.45
Expected term in years(2)
5.50-6.25
5.50-6.25
Volatility(3)
84.95%-86.45%
49.43%-50.87%
Risk-free interest rate(4)
4.16%-4.17%
1.7%-3.04%
(1)Equal to closing value on the grant date.
(2)Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to ASC 718, Compensation – Stock Compensation.
(3)Volatility is calculated based on the historical volatility of ACM 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.
The fair value of options granted to employees with a service period based condition is estimated on the grant date using the Black-Scholes valuation with following assumptions:

Nine Months Ended September 30, 2023
Fair value of share of common stock (1)
RMB 105.27
Expected term in years (2)
1.5.-4.5
Volatility (3)
60.00%-60.60%
Risk-free interest rate (4)
1.50%-2.75%

(1) Equal to closing value on the grant date.
(2) Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to ASC 718.
(3) Volatility is calculated based on the historical volatility of ACM Shanghai in the period equal to the expected term of each grant.
(4) Risk-free interest rate is based on the yields of RMB deposit in mainland China with maturities similar to the expected term of the share options in effect at the time of grant.
Summary of Components of Stock-based Compensation Expense The following table summarizes the components of stock-based compensation expense included in the consolidated statements of operations and comprehensive income (loss):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Stock-based compensation expense:
Cost of revenue$588 $130 $838 $383 
Sales and marketing expense2,543 349 3,405 1,277 
Research and development expense3,421 666 4,831 1,733 
General and administrative expense4,029 748 5,592 1,843 
$10,581 $1,893 $14,666 $5,236 
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Stock-based compensation expense by type:
Employee stock option plan$2,352 $1,798 $6,345 $4,943 
Non-employee stock option plan12 12 35 35 
2019 and 2023 Subsidiary stock option plan
8,217 83 8,286 258 
$10,581 $1,893 $14,666 $5,236