Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 05, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-34112 | ||
Entity Registrant Name | Energy Recovery, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 01-0616867 | ||
Entity Address, Address Line One | 1717 Doolittle Drive | ||
Entity Address, City or Town | San Leandro | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94577 | ||
City Area Code | 510 | ||
Local Phone Number | 483-7370 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | ERII | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 303 | ||
Entity Common Stock, Shares Outstanding | 57,099,715 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE As noted herein, the information called for by Part III is incorporated by reference to specified portions of the registrant’s definitive proxy statement to be filed in conjunction with the registrant’s 2021 Annual Meeting of Stockholders, which is expected to be filed not later than 120 days after the registrant’s fiscal year ended December 31, 2020. | ||
Entity Central Index Key | 0001421517 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 94,255 | $ 26,387 |
Short-term investments | 20,446 | 58,736 |
Accounts receivable, net | 11,792 | 12,979 |
Inventories, net | 11,748 | 10,317 |
Prepaid expenses and other current assets | 4,950 | 4,548 |
Total current assets | 143,191 | 112,967 |
Long-term investments | 0 | 15,419 |
Deferred tax assets, non-current | 11,030 | 16,897 |
Property and equipment, net | 20,176 | 18,843 |
Operating lease, right of use asset | 16,090 | 11,195 |
Goodwill and other intangible assets | 12,839 | 12,855 |
Other assets, non-current | 988 | 598 |
Total assets | 204,314 | 188,774 |
Current liabilities: | ||
Accounts payable | 1,118 | 1,192 |
Accrued expenses and other current liabilities | 11,816 | 9,869 |
Lease liabilities | 1,243 | 1,023 |
Contract liabilities | 1,552 | 15,746 |
Total current liabilities | 15,729 | 27,830 |
Lease liabilities, non-current | 16,443 | 11,533 |
Contract liabilities, non-current | 88 | 13,120 |
Other non-current liabilities | 430 | 278 |
Total liabilities | 32,690 | 52,761 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding at December 31, 2020 and 2019 | 0 | 0 |
Common stock, $0.001 par value; 200,000,000 shares authorized; 61,798,004 shares issued and 56,342,069 shares outstanding at December 31, 2020 and 60,717,702 shares issued and 55,261,767 shares outstanding at December 31, 2019 | 62 | 61 |
Additional paid-in capital | 179,161 | 170,028 |
Accumulated other comprehensive income (loss) | 53 | (37) |
Treasury stock, at cost, 5,455,935 shares repurchased at December 31, 2020 and 2019 | (30,486) | (30,486) |
Retained earnings (accumulated deficit) | 22,834 | (3,553) |
Total stockholders’ equity | 171,624 | 136,013 |
Total liabilities and stockholders’ equity | $ 204,314 | $ 188,774 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 61,798,004 | 60,717,702 |
Common stock, shares outstanding (in shares) | 56,342,069 | 55,261,767 |
Treasury stock, at cost, shares (in shares) | 5,455,935 | 5,455,935 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Product and Service [Extensible List] | us-gaap:ProductMember | ||
Cost, Product and Service [Extensible List] | us-gaap:ProductMember | ||
Revenue | $ 118,986 | $ 86,942 | $ 74,515 |
Operating expenses: | |||
General and administrative | 25,519 | 22,832 | 21,476 |
Sales and marketing | 8,127 | 9,434 | 7,546 |
Research and development | 23,449 | 23,402 | 17,012 |
Amortization of intangible assets | 16 | 575 | 630 |
Impairment of long-lived assets | 2,332 | 0 | 0 |
Total operating expenses | 59,443 | 56,243 | 46,664 |
Income from operations | 31,294 | 10,364 | 9,978 |
Other income (expense): | |||
Interest income | 913 | 2,010 | 1,543 |
Interest expense | 0 | 0 | (1) |
Other non-operating expense, net | (74) | (118) | (80) |
Total other income, net | 839 | 1,892 | 1,462 |
Income before income taxes | 32,133 | 12,256 | 11,440 |
Provision for (benefit from) income taxes | 5,746 | 1,343 | (10,653) |
Net income | $ 26,387 | $ 10,913 | $ 22,093 |
Earnings per share: | |||
Basic (in dollars per share) | $ 0.47 | $ 0.20 | $ 0.41 |
Diluted (in dollars per share) | $ 0.47 | $ 0.19 | $ 0.40 |
Number of shares used in per share calculations: | |||
Basic (in shares) | 55,709 | 54,740 | 53,764 |
Diluted (in shares) | 56,637 | 56,067 | 55,338 |
Product | |||
Revenue | $ 92,091 | $ 72,834 | $ 61,025 |
Product cost of revenue | 28,249 | 20,335 | 17,873 |
Product gross profit | 63,842 | 52,499 | 43,152 |
License and development | |||
Revenue | $ 26,895 | $ 14,108 | $ 13,490 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 26,387 | $ 10,913 | $ 22,093 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | 26 | (23) | (12) |
Unrealized gain on investments | 64 | 119 | 4 |
Total other comprehensive income (loss), net of tax | 90 | 96 | (8) |
Comprehensive income | $ 26,477 | $ 11,009 | $ 22,085 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Treasury stock | Retained earnings (accumulated deficit) |
Beginning Balance at Dec. 31, 2017 | $ 58 | $ 149,006 | $ (125) | $ (20,486) | $ (36,559) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net | 1 | 4,138 | ||||
Stock-based compensation | 5,260 | |||||
Foreign currency translation adjustments | (12) | |||||
Unrealized gain on investments | 4 | |||||
Repurchase of common stock for treasury | (10,000) | |||||
Total other comprehensive income (loss), net of tax | $ (8) | (8) | ||||
Net income | 22,093 | 22,093 | ||||
Ending Balance at Dec. 31, 2018 | 113,378 | $ 59 | 158,404 | (133) | $ (30,486) | (14,466) |
Beginning balance (in shares) at Dec. 31, 2017 | 58,168,433 | 4,262,833 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (in shares) | 1,227,587 | |||||
Treasury stock, shares, acquired (in shares) | 1,193,102 | |||||
Ending balance (in shares) at Dec. 31, 2018 | 59,396,020 | 5,455,935 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net | $ 2 | 5,960 | ||||
Stock-based compensation | 5,664 | |||||
Foreign currency translation adjustments | (23) | |||||
Unrealized gain on investments | 119 | |||||
Repurchase of common stock for treasury | $ 0 | |||||
Total other comprehensive income (loss), net of tax | 96 | 96 | ||||
Net income | 10,913 | 10,913 | ||||
Ending Balance at Dec. 31, 2019 | $ 136,013 | $ 61 | 170,028 | (37) | $ (30,486) | (3,553) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (in shares) | 1,321,682 | |||||
Treasury stock, shares, acquired (in shares) | 0 | |||||
Ending balance (in shares) at Dec. 31, 2019 | 55,261,767 | 60,717,702 | 5,455,935 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net | $ 1 | 4,373 | ||||
Stock-based compensation | 4,760 | |||||
Foreign currency translation adjustments | 26 | |||||
Unrealized gain on investments | 64 | |||||
Repurchase of common stock for treasury | $ 0 | |||||
Total other comprehensive income (loss), net of tax | $ 90 | 90 | ||||
Net income | 26,387 | 26,387 | ||||
Ending Balance at Dec. 31, 2020 | $ 171,624 | $ 62 | $ 179,161 | $ 53 | $ (30,486) | $ 22,834 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (in shares) | 1,080,302 | |||||
Treasury stock, shares, acquired (in shares) | 0 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 56,342,069 | 61,798,004 | 5,455,935 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 26,387,000 | $ 10,913,000 | $ 22,093,000 |
Adjustments to reconcile net income to cash provided by operating activities | |||
Stock-based compensation | 4,787,000 | 5,676,000 | 5,240,000 |
Depreciation and amortization | 5,299,000 | 4,395,000 | 3,869,000 |
Amortization of premiums and discounts on investments | 390,000 | 65,000 | 362,000 |
Deferred income taxes | 5,867,000 | 1,421,000 | (10,385,000) |
Provision for warranty claims | 403,000 | 402,000 | 326,000 |
Impairment of long-lived assets | 2,332,000 | 0 | 0 |
Other non-cash adjustments | (8,000) | 92,000 | 751,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 1,098,000 | (2,679,000) | 1,917,000 |
Contract assets | (1,200,000) | 3,391,000 | 2,196,000 |
Inventories, net | (1,622,000) | (3,256,000) | (1,872,000) |
Prepaid and other assets | 415,000 | (263,000) | (682,000) |
Accounts payable | (205,000) | (373,000) | (2,274,000) |
Accrued expenses and other liabilities | 164,000 | (600,000) | 87,000 |
Income taxes | (11,000) | 27,000 | (447,000) |
Contract liabilities | (27,226,000) | (13,943,000) | (13,616,000) |
Net cash provided by operating activities | 16,870,000 | 5,268,000 | 7,565,000 |
Cash flows from investing activities: | |||
Sales of marketable securities | 10,573,000 | 7,608,000 | 0 |
Maturities of marketable securities | 55,667,000 | 78,100,000 | 81,268,000 |
Purchases of marketable securities | (12,855,000) | (85,207,000) | (86,192,000) |
Capital expenditures | (6,785,000) | (7,382,000) | (5,235,000) |
Net cash provided by (used in) investing activities | 46,600,000 | (6,881,000) | (10,159,000) |
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 4,397,000 | 6,073,000 | 4,291,000 |
Tax payment for employee shares withheld | (23,000) | (110,000) | (150,000) |
Repayment of long-term debt | 0 | 0 | (27,000) |
Repurchase of common stock | 0 | 0 | (10,000,000) |
Net cash provided by (used in) financing activities | 4,374,000 | 5,963,000 | (5,886,000) |
Effect of exchange rate differences on cash and cash equivalents | 26,000 | 0 | (8,000) |
Net change in cash, cash equivalents and restricted cash | 67,870,000 | 4,350,000 | (8,488,000) |
Cash, cash equivalents and restricted cash, beginning of year | 26,488,000 | 22,138,000 | 30,626,000 |
Cash, cash equivalents and restricted cash, end of year | 94,358,000 | 26,488,000 | 22,138,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 0 | 0 | 1,000 |
Cash received for income tax refunds | 13,000 | 438,000 | 13,000 |
Cash paid for income taxes | 52,000 | 52,000 | 610,000 |
Supplemental disclosure on non-cash investing and financing transactions: | |||
Purchases of property and equipment in trade accounts payable, and accrued expenses and other liabilities | 322,000 | 1,080,000 | 30,000 |
Non-cash lease liabilities arising from obtaining right of use assets | $ 6,384,000 | $ 0 | $ 10,411,000 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Energy Recovery, Inc. and its wholly-owned subsidiaries (the “Company” or “Energy Recovery”) creates technologies that solve complex challenges for industrial fluid-flow markets worldwide. The Company designs and manufactures solutions that improve operational efficiency by reducing waste, energy consumption and costs across a range of industrial processes. The Company’s solutions are marketed and sold in fluid flow markets such as water, oil & gas and chemical processing under the trademarks ERI ® , Ultra PX ™ , PX ® , Pressure Exchanger ® , PX Pressure Exchanger ® (“PX”), PX PowerTrain ™ , VorTeq ™ , IsoBoost ® , AT ™ and AquaBold ™ . The Company owns, manufactures and/or develops its solutions, in whole or in part, in the United States of America (“U.S.”). Basis of Presentation The Company’s Consolidated Financial Statements include the accounts of Energy Recovery, Inc. and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Reclassifications Certain prior period amounts have been reclassified in the Consolidated Balance Sheets, Consolidated Statements of Cash Flows and certain notes to the Consolidated Financial Statements to conform to the current period presentation. Use of Estimates The preparation of Consolidated Financial Statements, in conformity with U.S. generally accepted accounting principles (“GAAP”), requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. The accounting policies that reflect the Company’s more significant estimates and judgments and that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results are revenue recognition; valuation of stock options; valuation and impairment of goodwill; inventory; deferred taxes and valuation allowances on deferred tax assets; and evaluation and measurement of contingencies. Those estimates could change, and as a result, actual results could differ materially from those estimates. Due to the novel coronavirus (“COVID-19”) pandemic, and the impact on our customers due to the reduced demand for oil and gas, as well as the oversupply of oil, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of March 12, 2021, the date of issuance of this Annual Report on Form 10-K. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. The Company undertakes no obligation to update publicly these estimates for any reason after the date of this Annual Report on Form 10-K, except as required by law. Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining contractual maturity on date of purchase of less than or equal to three months to be classified and presented as cash equivalents on the Company’s Consolidated Balance Sheet. Cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents are maintained primarily in demand deposit accounts with large financial institutions, institutional money market funds, U.S. treasury securities, and corporate notes and bonds. The Company monitors the creditworthiness of the financial institutions, institutional money market funds, and corporations in which the Company invests its surplus funds. The Company has experienced no credit losses from its cash investments. Allowance for Doubtful Accounts The Company records a provision for doubtful accounts based on historical experience and an estimate of the expected credit losses. In estimating the allowance for doubtful accounts, the Company considers, among other factors, the aging of the accounts receivable, its historical write-offs, the credit worthiness of each customer, and general economic conditions. Account balances are charged off against the allowance when the Company believes that it is probable that the receivable will not be recovered. Actual write-offs may be in excess of the Company’s estimated allowance. Short-term and Long-term Investments The Company’s short-term and long-term investments consist primarily of investment-grade debt securities, all of which are classified as available-for-sale. Available-for-sale securities are carried at fair value. Amortization or accretion of premium or discount is included in other income (expense) on the Consolidated Statements of Operations. Changes in the fair value of available-for-sale securities are reported as a component of accumulated other comprehensive income (loss) within stockholders’ equity on the Consolidated Balance Sheets. Realized gains and losses on the sale of available-for-sale securities are determined by specific identification of the cost basis of each security. The Company categorizes and classifies short-term and long-term available-for-sale investments on the Company’s Consolidated Balance Sheets as follows: • Short-term investments: Investments purchased with an original or remaining maturity at time of purchase greater than three months and that are expected to mature within 12 months from the balance sheet date are classified as short-term investments and are presented in current assets. • Long-term investments: Investments purchased with an original or remaining maturity at time of purchase greater than three months and that are expected to mature more than 12 months from the balance sheet date are classified as long-term investments and are presented in non-current assets. Inventories Inventories are stated at the lower of cost (using the first-in, first-out “FIFO” method) or net realizable value. The Company calculates inventory valuation adjustments for excess and obsolete inventory based on current inventory levels, movement, expected useful lives, and estimated future demand of the products and spare parts. Property and Equipment Property and equipment is recorded at cost and reduced by accumulated depreciation. Depreciation expense is recognized over the estimated useful lives of the assets using the straight-line method. Estimated useful lives are three years to ten years. Certain equipment used in the development and manufacturing of ceramic components is depreciated over estimated useful lives of up to ten years. Leasehold improvements represent remodeling and retrofitting costs for leased office and manufacturing space and are depreciated over the shorter of either the estimated useful lives or the term of the lease. Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and installation costs. Software is depreciated over the estimated useful lives of three years to five years. Maintenance and repairs are charged directly to expense as incurred. Estimated useful lives are periodically reviewed, and when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. The Company evaluates the recoverability of long-lived assets by comparing the carrying amount of an asset to estimated future net undiscounted cash flows generated by the asset (asset group). If such assets are considered to be impaired, the impairment recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The evaluation of recoverability involves estimates of future operating cash flows based upon certain forecasted assumptions, including, but not limited to, revenue growth rates, gross profit margins, and operating expenses. Leases The Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement and evaluates whether the lease is an operating or a finance lease at the commencement date. The Company recognizes right-of-use (“ROU”) assets and lease liabilities for operating leases with terms greater than 12 months. ROU assets represent the Company’s right to use an asset for the lease term, while lease liabilities represent the Company’s obligation to make lease payments. Operating and finance lease ROU assets and liabilities are recognized based on the present value of lease payments over the lease term at the lease commencement date. The Company uses the implicit interest rate or, if not readily determinable, its incremental borrowing rate as of the lease commencement date to determine the present value of lease payments. The incremental borrowing rate is based on the Company’s unsecured borrowing rate, adjusted for the effects of collateral. Operating and finance lease ROU assets are recognized net of any lease prepayments and incentives. In addition, the Company has elected the practical expedient, based on materiality, to account for both the non-lease components and related lease components as a single lease component. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense is recognized based on the effective-interest method over the lease term. The Company applies lease modifications that change the contractual terms and conditions of a lease, that was not part of the original lease, and grants additional right of use with a price consistent with the market, as a new lease. These modifications will be assessed in compliance with the above parameters. For other types of lease modification, the modified lease is reassessed and all new assumptions are applied in the calculation of the updated lease liability and the ROU asset. Goodwill and Other Intangible Assets The purchase price of an acquired company is allocated between intangible assets and the net tangible assets of the acquired business with the residual purchase price recorded as goodwill. The determination of the value of the intangible assets acquired involves certain judgments and estimates. These judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. Goodwill is not amortized but is evaluated annually (July 1) for impairment at the reporting unit level or when indicators of a potential impairment are present. The Company estimates the fair value of the reporting unit using the discounted cash flow and market approaches. The forecast of future cash flows, which are based on the Company’s best estimate of future net sales and operating expenses, are based primarily on expected category expansion, pricing, market segment, and general economic conditions. In addition, the Company incorporates other significant inputs to its fair value calculations, including discount rate and market multiples, to reflect current market conditions, and also considered the impact of the COVID-19 pandemic and the termination of the VorTeq License Agreement in its calculations. Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, restricted cash, investments in marketable securities, accounts receivable and accounts payable. The carrying amounts for these financial instruments reported in the Consolidated Balance Sheets approximate their fair values. See Note 5, “Investments and Fair Value Measurements,” for further discussion of fair value. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. At the inception of each contract, performance obligations are identified and the total transaction price is allocated to the performance obligations. The Company’s payment terms vary based on the credit risk of its customer. For certain customer types, the Company requires payment before the products or services are delivered to the customer. The Company performs an evaluation of customer credit worthiness on an individual contract basis to assess whether collectability is reasonably assured at the inception of the contract. As part of this evaluation, the Company considers many factors about the individual customer, including the underlying financial strength of the customer and/or partnership consortium and the Company’s prior history or industry-specific knowledge about the customer and its supplier relationships. For smaller projects, the Company requires the customer to remit payment generally within 30 days to 60 days after product delivery. In some cases, if credit worthiness cannot be determined, prepayment or other security is required. Sales commissions are expensed as incurred when product revenue is earned. These costs are recorded within sales and marketing expenses. Arrangements with Multiple Performance Obligations and Termination for Convenience The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative stand-alone selling price. The Company generally determines stand-alone selling prices based on the prices charged to customers. With respect to termination, the Company does not have the ability to cancel the contract for convenience. In general, customers can cancel for convenience upon the payment of a termination fee that covers costs and profit. It is rare for customers to cancel contracts. Practical Expedients and Exemptions In the Water segment, the time period between when the Company transfers control of products to the customer and the payment for the products is, in general, less than one year and, therefore, the practical expedient with respect to a financing component has been adopted by the Company. With respect to taxes, the Company has made the policy election to exclude taxes from the measurement of the transaction price. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less; and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. Contract Costs The Company recognizes the incremental cost of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. The costs of obtaining contracts are included in sales and marketing expenses. Product and Service Revenue Recognition - Water Segment In the Company’s Water segment, a contract is established by a written agreement (executed sales order, executed purchase order or stand-alone contract) with the customer with fixed pricing, and a credit risk assessment is completed prior to the signing of the agreement to ensure that collectability is reasonably assured. The Company adheres to consistent pricing in the stand-alone sale of products and services. The Company does not bundle performance obligations in the Water segment. Performance obligations consist of delivery of products, such as the Company’s PXs, Turbochargers, pumps and spare parts, and services. Service obligation, such as commissioning, which are not material, are deferred as contract liabilities until the services are performed. The transfer of control for the Company’s products follows transfer of title which typically occurs upon shipment of the equipment in accordance with International Commercial Terms (commonly referred to as “incoterms”). The specified product performance criteria for the Company’s products pertain to the ability of the Company’s product to meet its published performance specifications and warranty provisions, which the Company’s products have demonstrated on a consistent basis. This factor, combined with historical performance metrics, provides the Company’s management with a reasonable basis to conclude that the products will perform satisfactorily upon commissioning of the plant. Installation is relatively simple, requires no customization, and is performed by the customer under the supervision of the Company’s personnel. Based on these factors, the Company concluded that performance has been completed upon shipment when title transfers based on the shipping terms, and that product revenue is recognized at a point in time. The Company does not provide its customers with a right of product return; however, the Company will accept returns of products that are deemed to be damaged or defective when delivered that are covered by the terms and conditions of the product warranty. Product warranty is provided consistent with the industry and is considered to be an assurance warranty, not a separate performance obligation. Product returns and warranty charges have not been significant. For large projects, stand-alone contracts are utilized. For these contracts, consistent with industry practice, the Company’s customers typically require their suppliers, including the Company, to accept contractual holdback provisions (also referred to as a retention payment) whereby the final amounts due under the sales contract are remitted over extended periods of time or alternatively, stand-by letters of credit are issued. These retention payments are generally 10% or less of the total contract amount and are due and payable based upon the contractual milestone billing, generally up to 24 months to 36 months from the date of product delivery. These retention payments with performance conditions are recorded as contract assets and align with the product warranty period. Given that they are not material in the context of the contract, they are not considered to be a financing component. Shipping and handling charges billed to customers are pass-through from the freight forwarder to the customer and are included in product revenue. The cost of shipping to customers is included in product cost of revenue. Cost-to-Total Cost (“CTC”) Revenue Recognition - Oil & Gas Segment The IsoBoost system is a highly engineered and customized solution that is designed and manufactured over an extended period of time, and is built specifically to meet a customer’s specifications. Given the facts and circumstances of these projects, the Company concluded that the CTC method of accounting is appropriate for the IsoBoost system. In the event that a purchase order for an IsoBoost system does not meet these facts and circumstances, then the CTC method of accounting does not apply. The Company had one CTC contract for IsoBoost turbochargers in fiscal years 2017 through 2018, which was completed in 2018, and last units were shipped in the first quarter of 2019. A standard assurance type warranty was provided. Revenue from fixed price contracts is recognized with progress measured in the ratio of costs incurred to estimated final costs. Contract costs include all direct material and labor costs related to contract performance. Pre-contract costs with no future benefit were expensed in the period in which they were incurred. Since the financial reporting of these contracts depends on estimates, which are assessed continually during the term of the contract, recognized revenues and profit are subject to revisions as the contract progresses to completion. Revisions in profit estimates are reflected in the period in which the facts that give rise to the revisions become known, using the cumulative catch-up method. If material, the effects of any changes in estimates are disclosed in the notes to the consolidated financial statements. When estimates indicate that a loss will be incurred on a contract, a provision for the expected loss is recorded in the period in which the loss becomes evident. No loss has been incurred to date. Revenue is recognized only to the extent costs have been recognized in the same period. Unbilled project costs, and cost and estimated earnings in excess of billings, are included in contract assets and contract liabilities, respectively, on the Company’s Consolidated Balance Sheets. License and Development Revenue Recognition - Oil & Gas Segment License and development revenue is comprised of revenue recognition over time of the upfront non-refundable $75.0 million exclusivity fee received in connection with a license agreement (“VorTeq License Agreement”) with Schlumberger Technology Corporation (“Schlumberger”). The VorTeq License Agreement comprised of a 15‑year exclusive license for the Company’s VorTeq technology (“VorTeq”). In performing the obligations under the license, the Company provided research and development services to commercialize the technology in accordance with the Key Performance Indicators (“KPIs”), defined in the VorTeq License Agreement. Revenue is recognized when control of the promised goods or services is transferred to customers. For example, stand-alone selling price was established at the inception of the VorTeq License Agreement by taking the transaction to market on a non-exclusive basis, and pricing in an exclusivity premium. Since the VorTeq License Agreement included an up-front non-refundable payment at the inception of the VorTeq License Agreement and future products and services are provided after initial commercialization, the Company completed an analysis and concluded that there was no material right included in the pricing of the VorTeq License Agreement. Performance obligations, such as the exclusive license to the Company’s missile technology and upgrades prior to and subsequent to the date of full commercial launch, have been identified. Value has been allocated to the performance obligations and revenue is recognized over time based on the input measure of progress of the cost of salaries, wages and travel costs related to the project prior to full commercialization, and ratably for the unspecified upgrades for the period subsequent to full commercialization until the expiration of the VorTeq License Agreement. Warranty Costs The Company sells products with a limited warranty for a period ranging from 18 months to five years. The Company accrues for warranty costs based on estimated product failure rates, historical activity, and expectations of future costs. Periodically, the Company evaluates and adjusts the warranty costs to the extent that actual warranty costs vary from the original estimates. Stock-based Compensation The Company measures and recognizes stock-based compensation expense based on the fair value measurement for all stock-based awards made to its employees, non-employee consultants and directors, including restricted stock units (“RSUs”), and incentive stock options over the requisite service period (typically the vesting period of the awards). The fair value of RSUs is based on the Company’s common stock price on the date of grant. The fair value of stock options is calculated on the date of grant using the Black-Scholes option pricing model, which requires a number of complex assumptions including the expected life to exercise a vested award, expected volatility based upon the Company’s historical stock prices, risk-free interest rate based upon the U.S. Treasury rates, and the Company’s dividend yield. The estimation of awards that will ultimately vest requires judgment, and to the extent that actual results or updated estimates differ from the Company’s current estimates, such amounts are recorded as a cumulative adjustment in the period in which the estimates are revised. See Note 1, “Description of Business and Significant Accounting Policies - Recently Adopted Accounting Pronouncements ( ASU 2018-07 Note Foreign Currency The Company’s reporting currency is the U.S. dollar. The functional currency of the Company’s Irish subsidiary is the U.S. dollar, while the functional currency of the Company’s other foreign subsidiaries is their respective local currencies. The asset and liability accounts of the Company’s foreign subsidiaries are translated from their local currencies at the rates in effect on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the period. Gains and losses resulting from the translation of the Company’s subsidiary balance sheets are recorded as a component of accumulated other comprehensive income (loss). Gains and losses from foreign currency transactions are recorded in other income (expense) in the Consolidated Statements of Operations. Income Taxes Current and non-current tax assets and liabilities are based upon an estimate of taxes refundable or payable for each of the jurisdictions in which the Company is subject to tax. In the ordinary course of business, there is inherent uncertainty in quantifying income tax positions. The Company assesses income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit is recognized in the financial statements. When applicable, associated interest and penalties are recognized as a component of income tax expense. Accrued interest and penalties are included within the related tax asset or liability on the Consolidated Balance Sheets. Deferred income taxes are provided for temporary differences arising from differences in bases of assets and liabilities for tax and financial reporting purposes. Deferred income taxes are recorded on temporary differences using enacted tax rates in effect for the year in which the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Significant judgment is required in determining whether and to what extent any valuation allowance is needed on the Company’s deferred tax assets. In making such a determination, the Company considers all available positive and negative evidence including recent results of operations, scheduled reversals of deferred tax liabilities, projected future income, and available tax planning strategies. See Note 9, “Income Taxes,” for further discussion of tax valuation allowances. The Company’s operations are subject to income and transaction taxes in the U.S. and in foreign jurisdictions. Significant estimates and judgments are required in determining the Company’s worldwide provision for income taxes. Some of these estimates are based on interpretations of existing tax laws or regulations. The ultimate amount of tax liability may be uncertain as a result. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which amends Accounting Standards Codification (“ASC”) No. 326, Financial Instruments-Credit Losses (“ASC 326”). Subsequent to the issuance of ASU 2016-13, ASC 326 was amended by various updates that amend and clarify the impact and implementation of the aforementioned update. The new guidance introduces the current expected credit loss (“CECL”) model, which requires an entity to record an allowance for credit losses for certain financial instruments and financial assets, including trade receivables, based on expected losses rather than incurred losses. Under this update, on initial recognition and at each reporting period, an entity is required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. In February 2020, the FASB issued ASU No. 2020-02, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2020-02”), which amended the language in Subtopic 326-20 and addressed questions primarily regarding documentation and company policies. ASU 2016-13 and its amendments are effective for the Company for interim and annual periods in fiscal years beginning after December 15, 2019, on a modified retrospective basis. The adoption of ASU 2016-13 and its amendments on January 1, 2020 did not have a material impact on the Consolidated Financial Statements and related disclosures. The Company will continue to actively monitor the impact of the COVID-19 pandemic, and the impact on the Company’s customers due to the reduced demand for oil & gas, as well as the oversupply of oil, on expected credit losses. In January 2017, the FASB issued ASU No. 2017-04 (“ASU 2017-04”), Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, to eliminate Step 2 from the goodwill impairment test. Entities should perform their goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The Company adopted ASU 2017-04 on January 1, 2020 on a prospective basis and the adoption of this standard did not have a material impact on the Consolidated Financial Statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). This ASU improves and clarifies various financial instruments topics, including the CECL standard issued in 2016. ASU 2020-03 included seven different issues that describe the areas of improvement and the related amendments to U.S. GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted ASU 2020-03 on January 1, 2020, and the adoption of this standard did not have a material impact on the Consolidated Financial Statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”), which provided optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. Entities may apply the provisions of the new standard as of the beginning of the reporting period when the election is made (i.e., as early as the first quarter of 2020). Unlike other topics, the provisions of this update are only available until December 31, 2022, when the reference rate replacement activity is expected to have been completed. An entity may elect to apply amendments prospectively through December 31, 2022. The optional expedients were available to be used upon issuance of this guidance but the Company has not yet applied the guidance because the Company has not yet modified its existing contract for reference rate reform. The Company does not expect the provisions of ASU 2020-04 to have a material impact on its financial condition, results of operation, and cash flows. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard is effective for interim and annual periods beginning after December 15, 2020. The Com |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | RevenueOn June 24, 2020, the Company entered into an agreement with Schlumberger to terminate the existing VorTeq License Agreement. Pursuant to the terms of the agreement, each party’s rights, duties and obligations under the VorTeq License Agreement have been terminated effective June 1, 2020. Accordingly, the Company (i) is entitled to retain all of the non-refundable upfront exclusivity payment; (ii) is not entitled to any further payments from Schlumberger; and (iii) has no future performance obligations under the VorTeq License Agreement. The Company accounted for the termination as a contract modification, which resulted in the Company recognizing the remaining amounts of the original $75.0 million non-refundable upfront exclusivity payment of $24.4 million during the second quarter of fiscal year 2020 as license and development revenue in the Consolidated Statements of Operations for such quarter. See Note 14, “VorTeq Partnership and License Agreement,” for additional discussion regarding the termination of the VorTeq License Agreement. Disaggregation of Revenue The following tables present the Company’s disaggregated revenues by product and service line, revenues by geography based on the “shipped to” addresses of the Company’s customers and product revenue by channel. Sales and usage-based taxes are excluded from revenues. The Company classifies its channel customers as follows: • Megaproject (“MPD”). MPD customers are major firms that develop, design, build, own and/or operate large-scale desalination plants. • Original Equipment Manufacturer (“OEM”). OEM customers are companies that supply equipment, packaged systems, and various operating and maintenance solutions for small to medium-sized desalination plants, utilized by commercial and industrial entities, as well as national, state and local municipalities worldwide. • Aftermarket (“AM”). AM customers are desalination plant owners and/or operators who can utilize our technology to upgrade or keep their plant running. Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Water Oil & Gas Total Water Oil & Gas Total Water Oil & Gas Total (In thousands) Revenue by product and service line PX Pressure Exchangers, pumps and turbo devices, and other $ 92,061 $ 30 $ 92,091 $ 72,730 $ 104 $ 72,834 $ 60,511 $ 514 $ 61,025 License and development — 26,895 26,895 — 14,108 14,108 — 13,490 13,490 Total revenue $ 92,061 $ 26,925 $ 118,986 $ 72,730 $ 14,212 $ 86,942 $ 60,511 $ 14,004 $ 74,515 Revenue by primary geographical markets Middle East and Africa $ 73,963 $ — $ 73,963 $ 46,574 $ 104 $ 46,678 $ 35,593 $ 514 $ 36,107 Americas 7,274 26,925 34,199 9,018 14,108 23,126 6,388 13,490 19,878 Asia 7,363 — 7,363 11,952 — 11,952 11,955 — 11,955 Europe 3,461 — 3,461 5,186 — 5,186 6,575 — 6,575 Total revenue $ 92,061 $ 26,925 $ 118,986 $ 72,730 $ 14,212 $ 86,942 $ 60,511 $ 14,004 $ 74,515 Product revenue by channel Megaproject $ 66,763 $ — $ 66,763 $ 38,164 $ — $ 38,164 $ 27,172 $ — $ 27,172 Original equipment manufacturer 15,834 — 15,834 23,014 — 23,014 21,956 — 21,956 Aftermarket 9,464 30 9,494 11,552 104 11,656 11,383 514 11,897 Total product revenue $ 92,061 $ 30 $ 92,091 $ 72,730 $ 104 $ 72,834 $ 60,511 $ 514 $ 61,025 Contract Balances The following table presents contract balances by category. December 31, 2020 2019 (In thousands) Accounts receivable, net $ 11,792 $ 12,979 Contract assets: Contract assets, current (included in prepaid expenses and other current assets) $ 1,309 $ 501 Contract assets, non-current (included in other assets, non-current) 583 191 Total contract assets $ 1,892 $ 692 Current contract liabilities: Customer deposits $ 1,157 $ 1,506 Deferred revenue: License and development — 13,846 Product 79 78 Service 316 316 Total deferred revenue 395 14,240 Total current contract liabilities 1,552 15,746 Non-current contract liabilities License and development — 13,048 Service 88 72 Total non-current contract liabilities 88 13,120 Total contract liabilities $ 1,640 $ 28,866 The Company records contract liabilities when cash payments are received in advance of the Company’s performance. The following table presents significant changes in contract liabilities during the period. Years Ended December 31, 2020 2019 2018 (In thousands) Contract liabilities balance, beginning of year $ 28,866 $ 42,809 $ 56,426 Revenue recognized (28,414) (15,247) (13,493) Cash received, excluding amounts recognized as revenue during the period 1,188 1,304 (124) Contract liabilities balance, end of year $ 1,640 $ 28,866 $ 42,809 Transaction Price Allocated to the Remaining Performance Obligation The following table presents the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied. December 31, (In thousands) Year: 2021 $ 26,510 2022 2,996 Total performance obligation $ 29,506 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Net income for the reported period is divided by the weighted average number of common shares outstanding during the reported period to calculate basic earnings per common share. Basic earnings per share exclude any dilutive effect of stock options and RSUs. Diluted earnings per common share reflects the potential dilution that would occur if outstanding stock options to purchase common stock were exercised for shares of common stock, using the treasury stock method, and the shares of common stock underlying each outstanding RSU were issued (outstanding stock options to purchase common stock and RSUs collectively referred to as, “stock awards”). Certain shares of common stock issuable under stock awards have been omitted from the diluted earnings per share calculations because their inclusion is considered anti-dilutive. The following table presents the computation of basic and diluted earnings per share. Years Ended December 31, 2020 2019 2018 (In thousands, except per share amounts) Numerator: Net income $ 26,387 $ 10,913 $ 22,093 Denominator (weighted average shares): Basic common shares outstanding 55,709 54,740 53,764 Dilutive stock awards 928 1,327 1,574 Diluted common shares outstanding 56,637 56,067 55,338 Earnings per share: Basic $ 0.47 $ 0.20 $ 0.41 Diluted $ 0.47 $ 0.19 $ 0.40 The following table presents the potential common shares issuable under stock awards that were excluded from the computation of diluted earnings per share, as their effect would have been anti-dilutive. Years Ended December 31, 2020 2019 2018 (In thousands) Anti-dilutive stock awards 2,185 1,898 2,176 |
Other Financial Information
Other Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Other Financial Information [Abstract] | |
Other Financial Information | Other Financial Information Cash, Cash Equivalents and Restricted Cash The Consolidated Statements of Cash Flows explain the changes in the total of cash, cash equivalents and restricted cash. The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of such amounts presented. December 31, 2020 2019 2018 (In thousands) Cash and cash equivalents $ 94,255 $ 26,387 $ 21,955 Restricted cash, current (included in cash, cash equivalents and restricted cash) — — 97 Restricted cash, non-current (included in other assets, non-current) 103 101 86 Total cash, cash equivalents and restricted cash $ 94,358 $ 26,488 $ 22,138 The Company pledged cash in connection with the Company’s credit cards. The Company deposited corresponding amounts into restricted accounts at several financial institutions. Accounts Receivable, net The following table presents the components of accounts receivable, net. December 31, 2020 2019 (In thousands) Accounts receivable, gross $ 12,189 $ 13,287 Allowance for doubtful accounts (397) (308) Accounts receivable, net $ 11,792 $ 12,979 Allowance for Doubtful Accounts The following table presents the allowance for doubtful accounts activities. Years Ended December 31, 2020 2019 2018 (In thousands) Balance, beginning of year $ 308 $ 396 $ 103 Changes to reserves (1) 95 17 336 Collection of specific reserves (6) (105) (43) Balance, end of year $ 397 $ 308 $ 396 (1) Includes general and specific reserves charged to expense. Inventories The following table presents inventory by category. December 31, 2020 2019 (In thousands) Raw materials $ 4,260 $ 3,742 Work in process 2,360 2,141 Finished goods 5,128 4,434 Inventories, net $ 11,748 $ 10,317 Inventories are stated at the lower of cost or net realizable value, using the first-in, first-out method. Valuation adjustments for excess and obsolete inventory reflected as a reduction of inventory was $0.5 million and $0.4 million at December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, due to the COVID-19 pandemic, the Company expensed $1.5 million to product cost of revenue related to the reduced utilization of the Company’s manufacturing facilities. Property and Equipment On June 24, 2020, the Company entered into an agreement with Schlumberger to terminate the existing VorTeq License Agreement effective June 1, 2020. As a result, the Company conducted an analysis on certain VorTeq long-lived assets that were directly related to obligations under the VorTeq License Agreement and determined that certain of those assets were impaired. The net carrying value of the impaired VorTeq-related machinery and equipment of $2.3 million was recognized in the year ended December 31, 2020 as impairment of long-lived assets in the Consolidated Statements of Operations. See Note 14, “VorTeq Partnership and License Agreement,” for additional discussion regarding the termination of the VorTeq License Agreement. December 31, 2020 2019 (In thousands) Machinery and equipment $ 30,283 $ 27,664 Leasehold improvements 14,520 10,485 Software 3,422 3,210 Office equipment, furniture, and fixtures 3,493 3,011 Automobiles 199 199 Construction in progress 670 3,910 Total property and equipment 52,587 48,479 Less: Accumulated depreciation and amortization (32,411) (29,636) Property and equipment, net $ 20,176 $ 18,843 Depreciation and Amortization Expense Years Ended December 31, 2020 2019 2018 (In thousands) Depreciation and amortization expense $ 3,875 $ 3,820 $ 3,228 Cloud Computing Arrangements The following table presents the net carrying value of the implementation costs for hosted cloud computing arrangements included in prepaid and other current assets. December 31, 2020 2019 (In thousands) Cloud computing arrangements $ 1,087 $ 981 The following table presents the cloud computing arrangement amortization expense. The Company placed its cloud computing arrangements in service in fiscal year 2020, therefore, during the years ended December 31, 2019 and 2018, there were no cloud computing amortization expense. Year Ended December 31, 2020 (In thousands) Amortization expense $ 190 Accrued Expenses and Other Current Liabilities December 31, 2020 2019 (In thousands) Payroll, incentives and commissions payable $ 8,400 $ 6,040 Warranty reserve 760 631 Other accrued expenses and current liabilities 2,656 3,198 Total accrued expenses and other current liabilities $ 11,816 $ 9,869 Accumulated Other Comprehensive Income (Loss) There were no reclassifications of amounts out of accumulated other comprehensive income (loss) for the years ended December 31, 2020, 2019, and 2018, as there have been no sales of securities or translation adjustments that impacted other comprehensive income during these periods. The tax impact of the changes in accumulated other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018, was not material. Advertising Expense Advertising expense is charged to operations during the year in which it is incurred. Total advertising expense was not material for the years ended December 31, 2020, 2019 and 2018. |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Fair Value Disclosure [Abstract] | |
Investments and Fair Value Measurements | Investments and Fair Value Measurements Available-for-Sale Investments The Company’s investments in U.S. treasury securities and corporate notes and bonds are classified as available-for-sale. As of December 31, 2020 and 2019, all available-for-sale investments were either classified as cash equivalents, or short-term and long-term investments. All of the Company’s financial assets and liabilities are remeasured and reported at fair value at each reporting period; and are classified and disclosed in one of the following three pricing category levels: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 — Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 — Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions that market participants would use in pricing. The following table presents the Company’s financial assets measured on a recurring basis by contractual maturity, including their pricing category, amortized cost, gross unrealized holding gains and losses, and fair value. December 31, 2020 December 31, 2019 Pricing Category Amortized Gross Gross Fair Amortized Gross Gross Fair (In thousands) Cash equivalents Money market securities Level 1 $ 59,132 $ — $ — $ 59,132 $ 86 $ — $ — $ 86 U.S. treasury securities Level 2 — — — — 11,582 — — 11,582 Total cash equivalents 59,132 — — 59,132 11,668 — — 11,668 Short-term investments U.S. treasury securities Level 2 1,614 7 — 1,621 2,746 1 — 2,747 Corporate notes and bonds Level 2 18,708 117 — 18,825 55,951 49 (11) 55,989 Total short-term investments 20,322 124 — 20,446 58,697 50 (11) 58,736 Long-term investments Corporate notes and bonds Level 2 — — — — 15,415 9 (5) 15,419 Total long-term investments — — — — 15,415 9 (5) 15,419 Total short and long-term investments 20,322 124 — 20,446 74,112 59 (16) 74,155 Total $ 79,454 $ 124 $ — $ 79,578 $ 85,780 $ 59 $ (16) $ 85,823 The following table presents a summary of the fair value and gross unrealized holding losses on the available-for-sale securities that have been in a continuous unrealized loss position, aggregated by type of investment instrument. As of December 31, 2020, there were no available-for-sale securities that were in a continuous unrealized loss position. The available-for-sale securities that were in an unrealized gain position have been excluded from the table. December 31, 2019 Fair Gross (In thousands) Corporate notes and bonds $ 18,754 $ (16) Sales of Available-for-Sale Investments The following table presents the sales of available-for-sale investments. Years Ended December 31, 2020 2019 (In thousands) U.S. treasury securities $ — $ 2,043 Corporate notes and bonds 10,573 5,565 Total sales of securities $ 10,573 $ 7,608 During the year ended December 31, 2018, there were no sales of available-for-sale investments. Realized gain and loss on sales of securities was immaterial during the years ended December 31, 2020, 2019 and 2018. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets December 31, 2020 2019 (In thousands) Goodwill $ 12,790 $ 12,790 Other intangible assets Gross other intangible assets 286 6,386 Accumulated amortization (237) (6,321) Net other intangible assets 49 65 Total goodwill and other intangible assets $ 12,839 $ 12,855 The reduction in the gross other intangible assets and related accumulated amortization balances was due to the retirement of fully amortized patent assets during the year ended December 31, 2020. Goodwill Goodwill is tested for impairment annually in the third quarter (July 1) of the Company’s fiscal year or more frequently if indicators of potential impairment exist. The recoverability of goodwill is measured at the reporting unit level, which represents the operating segment. On July 1, 2020, the Company estimated the fair value of its reporting units using both the discounted cash flow and market approaches. The forecast of future cash flows, which are based on the Company’s best estimate of future net sales and operating expenses, are based primarily on expected category expansion, pricing, market segment, and general economic conditions. The Company incorporates other significant inputs to its fair value calculations, including discount rate and market multiples, to reflect current market conditions, and also considered the impact of the COVID-19 pandemic and the termination of the VorTeq License Agreement in its calculations. The analysis performed indicated that the fair value of each reporting unit that is allocated goodwill significantly exceed their carrying value. As a result, no impairment charge was recorded during the year ended December 31, 2020. The Company continues to actively monitor the industries in which it operates and its businesses’ performance for indicators of potential impairment. Other Intangible Assets The following table presents the components of active identifiable intangible assets, all of which are finite-lived, at the beginning of each respective year and their related accumulated amortization and carrying value at the end of each respective year. All intangible assets are amortized on a straight-line basis over their useful life. Weighted Average Useful Life December 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands, except for weighted average useful life) Developed technology 10 years $ — $ — $ — $ 6,100 $ (6,100) $ — Patents 18 years 286 (237) 49 286 (221) 65 Total $ 286 $ (237) $ 49 $ 6,386 $ (6,321) $ 65 There was no impairment of intangible assets recorded during the years ended December 31, 2020, 2019 and 2018. The following table presents the intangible asset amortization expense recognized. Years Ended December 31, 2020 2019 2018 (In thousands) Amortization of intangible assets $ 16 $ 575 $ 630 The following table presents the future estimated amortization expense on intangible assets as of December 31, 2020. Estimated Future Amortization (In thousands) Year: 2021 $ 12 2022 11 2023 11 2024 11 2025 4 Total $ 49 |
Lines of Credit
Lines of Credit | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Lines of Credit | Lines of Credit Loan and Pledge Agreement The Company entered into a loan and pledge agreement with a financial institution during January 2017, which has been amended multiple times to accommodate the growth of the Company (the original loan and pledge agreement and its subsequent amendments are hereinafter referred to as the “Loan and Pledge Agreement”). The Loan and Pledge Agreement, which will expire on June 30, 2022, currently provides for a committed revolving credit line of $16.0 million and an uncommitted revolving credit line of $4.0 million. The covenants of the Loan and Pledge Agreement allow the Company to incur indebtedness owed to a foreign subsidiary in an aggregate amount not to exceed $66.0 million, which amount is subordinated to any amounts outstanding under the Loan and Pledge Agreement. Revolving Loans Revolving loans under the Loan and Pledge Agreement incur interest per annum at a base rate equal to the London Inter-bank Offered Rate (“LIBOR”) plus 1.5%. Any default bears the aforementioned interest rate plus an additional 2%. The unused portion of the credit line is subject to a fee equal to the product of 0.2% per annum multiplied by the difference, if positive, between $16.0 million and the average daily balance of all advances under the committed facility plus aggregate average daily undrawn amounts of all letters of credit issued under the committed facility during the immediately preceding month or portion thereof. As of December 31, 2020 and 2019, there were no debt outstanding under the Loan and Pledge Agreement. Letters of Credit Under the Loan and Pledge Agreement, the Company is allowed to borrow and request letters of credit, which are limited to a term of three years, against the eligible assets held from time to time in the pledged account maintained with the financial institution. As of December 31, 2020 and 2019, there were no letters of credit outstanding under the Loan and Pledge Agreement. Stand-By Letters of Credit Under the Loan and Pledge Agreement, the Company is allowed to issue stand-by letters of credit (“SBLCs”) up to one year past the expiration date of the Loan and Pledge Agreement and to hold SBLCs with other financial institutions up to $5.1 million. SBLCs have a term limit of three years, are secured by pledged U.S. investments, and do not have any cash collateral balance requirements. SBLCs are deducted from the total revolving credit line under the Loan and Pledge Agreement and are subject to a non-refundable quarterly fee that is in an amount equal to 0.7% per annum of the face amount of the outstanding SBLCs. As of December 31, 2020 and 2019, there were outstanding SBLCs of $13.3 million and $11.8 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Obligations The following table presents a summary of operating lease, right of use assets and lease liabilities. December 31, 2020 2019 (In thousands) Operating lease, right of use asset $ 16,090 $ 11,195 Lease liabilities $ 1,243 $ 1,023 Lease liabilities, non-current 16,443 11,533 Total lease liability $ 17,686 $ 12,556 The Company leases office facilities and equipment under operating leases that expire on various dates through fiscal year 2030. On January 10, 2019, the Company entered into an industrial lease agreement, which commenced on January 1, 2020. This lease for the Company’s Katy, Texas facility for manufacturing, testing and training (the “Katy Lease”), included an office, manufacturing and warehouse space of approximately 25,200 square feet (“sq.Ft.”) and land of approximately 4.5 acres. The Company’s annual base rent obligation, paid monthly, is approximately $0.3 million with an increase of approximately 3% annually thereafter, totaling approximately $3.6 million, over the term of the lease. The initial term of the Katy Lease is 120 months after the commencement date, and the Company has two options to extend the lease by an additional five-year term per option, which must be exercised by written notice by the Company at least six months prior to the end of the relevant term. On February 10, 2020, the Company entered into a lease agreement, that commenced on March 1, 2020, for an additional manufacturing and warehousing space of approximately 54,429 sq.Ft., located in Tracy, California (the “Tracy Lease”). This lease supplements the existing manufacturing, warehousing and distribution of the Company’s energy recovery devices (“ERDs”) and other products. The Company’s annual base rent obligation, paid monthly, is approximately $0.4 million, with an increase of approximately 3% annually thereafter, totaling approximately $5.0 million, over the term of the lease. The initial term of the Tracy Lease is 122 months after the commencement date, and the Company has one option to extend the lease by an additional five-year term, which must be exercised by written notice by the Company at least nine months prior to the end of the original lease term. The following table presents operating lease activities related to all leased properties. Years Ended December 31, 2020 2019 2018 (In thousands) Operating lease expense $ 2,589 $ 1,894 $ 1,888 Cash payments 2,398 1,824 964 Non-cash lease liabilities arising from obtaining right-of-use assets 6,384 — 10,411 The following table presents other information related to outstanding operating leases as of December 31, 2020. Weighted average remaining lease term 8.4 years Weighted average discount rate 7.0 % The following table presents the minimum lease payments under noncancelable operating leases, exclusive of executory costs as of December 31, 2020. Lease Amounts (In thousands) Year: 2021 $ 2,431 2022 2,650 2023 2,580 2024 2,812 2025 2,736 2026 and thereafter 10,462 Total 23,671 Less imputed lease interest (5,985) Total lease liabilities $ 17,686 Warranty The following table presents the changes in the Company’s accrued product warranty reserve. Years Ended December 31, 2020 2019 2018 (In thousands) Warranty reserve balance, beginning of year $ 631 $ 478 $ 366 Warranty costs charged to cost of revenue 403 402 340 Utilization charges against reserve (36) (56) (48) Release of accrual related to expired warranties (238) (193) (180) Warranty reserve balance, end of year $ 760 $ 631 $ 478 Purchase Obligations The Company has purchase order arrangements with its vendors for which the Company has not received the related goods or services as of December 31, 2020. These arrangements are subject to change based on the Company’s sales demand forecasts. The Company has the right to cancel the arrangements prior to the date of delivery. The purchase order arrangements are related to various raw materials and component parts, as well as capital equipment. As of December 31, 2020, the Company had approximately $6.3 million of such open cancellable purchase order arrangements. Guarantees The Company enters into indemnification provisions under its agreements with other companies in the ordinary course of business, typically with its customers. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities, generally limited to personal injury and property damage caused by the Company’s employees at a customer’s plant, and in proportion to the employee’s percentage of fault for the accident. Damages incurred for these indemnifications would be covered by the Company’s general liability insurance to the extent provided by the policy limitations. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the estimated valuation of the potential liability arising from these agreements is not material. Accordingly, the Company recorded no liabilities for these agreements as of December 31, 2020 and 2019. In certain cases, the Company issues warranty and product performance guarantees to its customers for amounts generally equal to 10% or less of the total sales agreement to endorse the execution of product delivery and to the warranty of design work, fabrication and operating performance of our devices. These guarantees are generally SBLCs that typically remain in place for a period of 24 months to 36 months. See Note 7, “Lines of Credit – Stand-By Letters of Credit,” for information related to SBLCs. Litigation The Company is named in and subject to various proceedings and claims in connection with its business. The outcome of matters the Company has been, and currently is, involved in cannot be determined at this time, and the results cannot be predicted with certainty. There can be no assurance that these matters will not have a material effect on the Company’s results of operations in any future period, and a significant judgment could have a material impact on the Company’s financial condition, results of operations and cash flows. The Company may in the future become involved in additional litigation in the ordinary course of business, including litigation that could be material to its business. The Company considers all claims on a quarterly basis and, based on known facts, assesses whether potential losses are considered reasonably possible, probable and estimable. Based upon this assessment, the Company then evaluates disclosure requirements and whether to accrue for such claims in its consolidated financial statements. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and are adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. As of December 31, 2020, there were no material losses which were probable or reasonably possible. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome Taxes The following table presents the Company’s U.S. and foreign components of consolidated income before income taxes and the provision for (benefit from) income taxes. Years Ended December 31, 2020 2019 2018 (In thousands) Income before income taxes: U.S. $ 32,046 $ 12,180 $ 12,139 Foreign 87 76 (699) Total income before income taxes $ 32,133 $ 12,256 $ 11,440 Current tax benefit: Federal $ (148) $ (120) $ (297) State 5 3 (2) Foreign 40 66 25 Current tax benefit (103) (51) (274) Deferred tax provision (benefit): Federal 5,547 949 (9,773) State 302 445 (606) Total deferred tax provision (benefit) 5,849 1,394 (10,379) Total provision for (benefit from) income taxes $ 5,746 $ 1,343 $ (10,653) For the year ended December 31, 2020, the Company recognized an income tax expense of $5.7 million. The tax expense of $5.7 million included a tax benefit of $0.7 million related to tax deductions from stock-based compensation. For the year ended December 31, 2019, the Company recognized an income tax expense of $1.3 million. The tax expense of $1.3 million included a deferred tax benefit of $1.0 million related to an increase in prior year U.S. federal research and development credits and a tax benefit of $0.5 million related to tax deductions from stock-based compensation, partially offset by deferred tax expense of $0.3 million due primarily to a remeasurement of the Company’s state deferred tax assets due to an adjustment to the Company’s estimated blended state effective tax rate. For the year ended December 31, 2018, the Company recognized an income tax benefit of $10.7 million. The tax benefit of $10.7 million included a tax benefit of $12.3 million related to the income tax effects of a tax election related to a change to the Company’s international tax structure in Ireland that was effective in the second quarter of 2018. This resulted in a deferred tax asset related to tax expense recorded on earnings and profits under the U.S. Tax Cut and Jobs Act (“Tax Act”) on deferred revenue not yet recognized under U.S. GAAP. In addition, the tax benefit also included a $0.8 million discrete tax benefit related to tax deductions from stock-based compensation. The Company has evaluated the impact of the global intangible low taxed income (“GILTI”) and has concluded that the impact to the Company is immaterial. The following table presents a reconciliation of income taxes computed at the statutory federal income tax rate to the effective tax rate implied by the accompanying Consolidated Statements of Operations. Years Ended December 31, 2020 2019 2018 U.S. federal taxes at statutory rate 21 % 21 % 21 % State income tax, net of federal benefit 1 4 (6) Deferred tax re-measurement - Change in tax rates — — 1 Foreign rate differential — — (1) Change in tax status of foreign operations — — (102) Stock-based compensation (2) (1) (3) Non-deductible expenses 1 2 1 Federal research credits (3) (16) (6) Valuation allowance — — 3 Other — 1 (1) Effective tax rate 18 % 11 % (93 %) The following table presents the components of the Company’s net deferred tax asset, which is presented in other assets, non-current on the Consolidated Balance Sheets. December 31, 2020 2019 (In thousands) Deferred tax assets: Net operating loss carry forwards $ 6,285 $ 6,488 Accruals and reserves 3,852 8,922 Operating lease liabilities 3,848 2,750 Research and development, and foreign tax credit carry forwards 8,851 7,533 Acquired intangibles 641 804 Charitable contributions 45 26 Total deferred tax assets 23,522 26,523 Valuation allowance (4,403) (3,933) Net deferred tax assets 19,119 22,590 Deferred tax liabilities: Depreciation on property and equipment (2,985) (1,854) Right of use asset (3,489) (2,443) Unrecognized gain on translation of foreign currency (54) (33) Goodwill (1,561) (1,363) Total deferred tax liabilities (8,089) (5,693) Net deferred tax asset $ 11,030 $ 16,897 The Company had gross deferred tax assets of $23.5 million and $26.5 million at December 31, 2020 and 2019, respectively. In asserting the recoverability of deferred tax assets, management considers whether it is more likely than not that the 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 deductible. The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. In making such a determination, the Company considers all available positive and negative evidence, including recent results of operations, scheduled reversals of deferred tax liabilities, projected future income, and available tax planning strategies. A significant piece of objective positive evidence evaluated was the cumulative profit incurred in the U.S. and the cumulative losses incurred in Ireland over the three-year period ended December 31, 2020. On the basis of this evaluation, as of December 31, 2020, the Company recognized all of its U.S. federal and state deferred tax assets with the exception that the Company continues to maintain a valuation allowance on its California research and development (“R&D”) credit carryovers of $3.1 million. The Company will maintain a valuation allowance on its California R&D credit carryovers because it is more likely than not that the Company will continue to annually generate more California R&D tax credits than it utilizes, resulting in no net reduction of credits. The Company’s policy with respect to California R&D credits is that they are utilized on a last-in, first-out basis. In addition, as of December 31, 2020, the Company is reporting a full valuation allowance on its Irish entity’s deferred tax assets totaling $1.3 million. The valuation allowance represents a provision for uncertainty as to the realization of tax benefits from these deferred income tax assets. The Company will continue to evaluate the tax benefit uncertainty and will adjust, if warranted, the valuation allowance in future periods to the extent that the Company’s deferred income tax assets become more likely than not to be realizable. The Company continues to assert that the accumulated foreign earnings of its subsidiaries in Spain and Canada are permanently reinvested. Due to the Tax Act, any future repatriation of the earnings of its subsidiaries in Spain and Canada would not be subject to U.S. federal income tax. The Company has estimated that the foreign withholding taxes and U.S. state income taxes related to a potential future repatriation of these earnings would be immaterial. The following table presents the Company’s net operating loss carryforwards by taxing authority. December 31, 2020 2019 (In thousands) Federal $ 19,913 $ 21,153 California 11,043 11,840 Ireland 10,376 9,363 Total net operating loss carryforwards $ 41,332 $ 42,356 The net operating loss carryforwards, if not utilized, will begin to expire in years 2034 and 2031 for Federal and California, respectively. Utilization of the net operating loss carryforward may be subject to a substantial annual limitation due to the ownership change limitations provided by the U.S. Internal Revenue Code (“IRC”) and similar California provisions. The annual limitation will result in the expiration of the net operating loss carryforwards before utilization. The Company has estimated the amount which may ultimately be realized and recorded deferred tax assets accordingly. The Ireland net operating loss carryforwards do not have an expiration date. The following table presents the Company’s R&D credit by taxing authority, minimum tax credit and foreign tax credit carryforwards. December 31, 2020 2019 (In thousands) Federal $ 5,733 $ 4,761 California 3,947 3,509 Total credit carryforwards $ 9,680 $ 8,270 The federal R&D credit carryforwards, if not utilized, will begin to expire in year 2030. The California credit carryforwards do not expire. Utilization of the credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the IRC and similar California provisions. Accounting for uncertain tax positions is based on judgment regarding the largest amount that is greater than 50% likely of being realized upon the ultimate settlement with a taxing authority. The following table presents the aggregate changes in the balance of the gross unrecognized tax benefits. Years Ended December 31, 2020 2019 2018 (In thousands) Gross unrecognized tax benefits, beginning of year $ 963 $ 1,162 $ 911 Additions: Prior year tax position 9 27 — Current year tax position 167 163 251 Reductions: Prior year tax position (5) (389) — Gross unrecognized tax benefits, end of year $ 1,134 $ 963 $ 1,162 As of December 31, 2020, the Company had unrecognized tax benefits of $1.1 million, of which $0.7 million, if recognized, would affect the Company’s effective tax rate. The Company adopted the accounting policy that interest and penalties are classified as part of its income taxes. As of December 31, 2020, there were no accrued interest or penalties associated with any unrecognized tax benefits. There are currently no examinations by Federal, California, and foreign tax authorities. The Company believes that, as of December 31, 2020, the gross unrecognized tax benefits will not materially change in the next twelve months. The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to any tax audits and that any settlement will not have a material adverse effect on the consolidated financial position or results of operations. However, there can be no assurances as to the possible outcomes. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholder's Equity Preferred Stock The Company has the authority to issue 10,000,000 shares of preferred stock with a par value of $0.001 per share. The Board of Directors has the authority, without action by the Company’s stockholders, to designate and issue shares of preferred stock in one or more series. The Board of Directors is also authorized to designate the rights, preferences, and voting powers of each series of preferred stock, any or all of which may be greater than the rights of the common stock including restrictions of dividends on the common stock, dilution of the voting power of the common stock, reduction of the liquidation rights of the common stock, and delaying or preventing a change in control of the Company without further action by the Company’s stockholders. To date, the Board of Directors has not designated any rights, preferences, or powers of any preferred stock, and as of December 31, 2020 and 2019, no shares of preferred stock were issued or outstanding. Common Stock The Company has the authority to issue 200,000,000 shares of common stock with a par value of $0.001 per share. Subject to the preferred rights of the holders of shares of any class or series of preferred stock as provided by the Board of Directors with respect to any such class or series of preferred stock, the holders of the common stock shall be entitled to receive dividends, as and when declared by the Board of Directors. In the event of any liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary, after the distribution or payment to the holders of shares of any class or series of preferred stock as provided by the Board of Directors with respect to any such class or series of preferred stock, the remaining assets of the Company available for distribution to stockholders shall be distributed among and paid to the holders of common stock ratably in proportion to the number of shares of common stock held by them. The follow table presents the Company’s common shares issued and outstanding. December 31, 2020 2019 Issued 61,798,004 60,717,702 Outstanding 56,342,069 55,261,767 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based CompensationStock-based CompensationStock-based Compensation Stock Option Plans In July 2020, the stockholders approved the 2020 Incentive Plan (the “2020 Plan”), that permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock awards (“RSA”), RSUs, performance units, performance shares, and other stock-based awards to employees, officers, directors, and consultants. Prior to the approval of the 2020 Plan, the Company maintained the 2016 Incentive Plan, the Amended and Restated 2008 Equity Incentive Plan, and the 2008 Equity Incentive Plan (hereinafter referred to as the “Predecessor Plans”). Subject to adjustments, as provided in the 2020 Plan, the number of shares of common stock initially authorized for issuance under the 2020 Plan was 5,894,727 shares (which consist of 4,500,000 new share awards plus 1,394,727 share awards that were authorized and unissued under the Predecessor Plans) plus up to 4,850,630 shares that were set aside for awards granted under the Predecessor Plans that are subsequently forfeited. The 2020 Plan supersedes all previously issued stock incentive plans (including the Predecessor Plans) and is currently the only available plan from which awards may be granted. The Company’s 2020 Plan and Predecessor Plans are hereinafter referred to as “Equity Incentive Plans.” Shares available for grant under the 2020 Plan at December 31, 2020 was 5,885,313 shares. There were no shares available for grant under the Predecessor Plans after July 15, 2020. Stock Options Stock options outstanding at December 31, 2020 and to be granted subsequently after December 31, 2020, generally vest over four years and expire no more than 10 years after the date of grant. Restricted Stock Awards There were no RSAs outstanding as of December 31, 2020. Restricted Stock Units RSUs outstanding at, and to be awarded subsequently after, December 31, 2020, generally vest 25% annually over the four years from date of grant and are dependent upon continued employment. As RSUs vest, the units will be settled in shares of common stock based on a one-to-one ratio. The units were valued based on the market price on the date of grant. Fair Value Assumptions Stock Options The fair value of stock options granted to employees is based on the Black-Scholes option pricing model. To determine the inputs for the Black-Scholes option pricing model, the Company is required to develop several assumptions, which are highly subjective. The Company determines these assumptions as follows: • Expected Term: The Company uses its historical data to determine the expected term of options based on historical exercise data. As there was no historical exercise data for non-employee directors, the Company determines the expected term based on the simplified method. • Expected Volatility: The Company determines expected volatility based on its historical data and the corresponding expected term that was determined using the Company’s historical exercise data. • Risk-Free Interest Rate: The risk-free rate is based on U.S. Treasury issues with remaining terms similar to the expected term on the stock options granted. • Dividend Yield: The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future; therefore, the Company uses an expected dividend yield of zero in the valuation model. The following table presents assumptions used in the Black-Scholes option pricing model to determine the estimated grant date fair values of stock options granted to employees. Years Ended December 31, 2020 2019 2018 Weighted average expected life (years) 5.1 4.6 4.2 Weighted average expected volatility 71.7% 75.9% 67.4% Risk-free interest rate 0.29% – 1.32% 1.55% – 2.57% 2.48% – 3.01% Weighted average dividend yield —% —% —% Restricted Stock Units The fair value of RSUs granted to employees is based on the Company’s common stock price on the date of grant. Stock-based Compensation Expense The following table presents the stock-based compensation expense related to the fair value measurement of awards granted to employees by expense category and by type of award. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, generally the vesting periods. Years Ended December 31, 2020 2019 2018 (In thousands) Stock-based compensation expense charged to: Product cost of revenue $ 135 $ 130 $ 87 General and administrative 2,615 3,090 3,266 Sales and marketing 893 836 694 Research and development 1,151 1,625 1,193 Total stock-based compensation expense $ 4,794 $ 5,681 $ 5,240 Stock-based compensation expense by type of award: Options $ 3,004 $ 3,940 $ 3,873 RSUs 1,790 1,741 1,367 Total stock-based compensation expense $ 4,794 $ 5,681 $ 5,240 Modifications of Equity Awards During the year ended December 31, 2019, the Company recorded additional stock-based compensation expense of $0.6 million related to the modification of certain equity awards resulting from the Company’s former Chairman of the Board’s retirement from service, on June 13, 2019, in consideration for his entering into a Settlement Agreement and Release, and the Company’s former President and Chief Executive Officer’s resignation, on November 1, 2019, in consideration for his entering into a Settlement Agreement and Release. During the year ended December 31, 2018, the Company recorded additional stock-based compensation expense of $0.9 million primarily related to the modification of certain equity awards resulting from the Company’s former President and Chief Executive Officer’s resignation, on February 24, 2018, in consideration for his entering into a Settlement Agreement and Release. Forfeitures The Company estimates forfeitures at the time of grant and revises those estimates periodically in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. If the Company’s actual forfeiture rate is materially different from its estimate, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. The following table presents the estimated forfeiture rates used in determining the expense in the stock-based compensation expense table above. Years Ended December 31, 2020 2019 2018 Stock options and RSUs vested over 4-years 11.2% 11.6% 14.9% Unamortized Stock-Based Compensation Costs Stock-based compensation costs related to unvested stock options and RSUs will generally be amortized on a straight-line basis over the remaining average service period of each award. The following table presents the unamortized compensation costs and weighted average service period of all unvested outstanding awards as of December 31, 2020. Unamortized Compensation Costs Weighted Average Service Period (In thousands) (In years) Stock options $ 5,189 2.5 RSUs 4,938 2.7 Total unamortized compensation costs, net of adjusted forfeitures $ 10,127 Stock Option Activities The following table presents stock option activities under the Equity Incentive Plans. Number Weighted Weighted Aggregate Intrinsic Value (1) (In thousands) (Per share) (In years) (In thousands) Balance, December 31, 2017 5,092 $ 5.43 Granted 1,232 7.96 Exercised (1,160) 3.73 $ 4,735 Forfeited (182) 3.98 Balance, December 31, 2018 4,982 6.36 Granted 568 8.31 Exercised (1,133) 5.36 4,781 Forfeited (490) 8.49 Balance, December 31, 2019 3,927 6.66 Granted 806 8.78 Exercised (926) 4.79 4,637 Forfeited (187) 9.15 Balance, December 31, 2020 3,620 $ 7.48 6.6 $ 22,293 Vested and exercisable as of December 31, 2020 2,427 $ 6.99 5.6 $ 16,153 Vested and exercisable as of December 31, 2020 and expected to vest thereafter 3,484 $ 7.44 6.5 $ 21,602 (1) The aggregate intrinsic value of an exercised option is calculated as the difference between the exercise price of the underlying option and the fair value of the Company’s common stock at the time of exercise. The aggregate intrinsic value at December 31, 2020 is calculated as the difference between the exercise price of the underlying outstanding options and the fair value of the Company’s common stock as of December 31, 2020 or the last trading day prior to December 31, 2020. Restricted Stock Unit Activities The following table presents RSU activities under the Equity Incentive Plans. Number Weighted (In thousands) (Per share) Balance, December 31, 2017 274 $ 9.54 Awarded 279 7.74 Vested (90) 9.33 Balance, December 31, 2018 463 8.49 Awarded 415 7.80 Vested (201) 8.62 Forfeited (133) 8.37 Balance, December 31, 2019 544 7.95 Awarded 368 10.33 Vested (161) 8.12 Forfeited (64) 8.86 Balance, December 31, 2020 687 9.10 Vested Stock Options and RSUs The following table presents the total grant date fair value of stock options and RSUs vested during the period. Years Ended December 31, 2020 2019 2018 (In thousands) Stock options $ 2,915 $ 4,025 $ 3,607 RSUs 1,310 1,733 841 Total grant date fair value of stock options and RSUs vested during the period $ 4,225 $ 5,758 $ 4,448 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s chief operating decision-maker (“CODM”) is its chief executive officer. The Company’s reportable segments consist of the Water segment and the Oil & Gas segment. These segments are based on the industries in which the products are sold, the type of products sold and the related products and services. The Water segment consists of revenue associated with products sold for use in reverse osmosis desalination as well as the related identifiable expenses. The Oil & Gas segment for fiscal years 2018, 2019 and 2020 consists solely of revenue associated with products sold for use in gas processing, chemical processing and hydraulic fracturing as well as license and development revenue associated therewith. The Company continues to monitor and review its segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact its reportable segments. As a result of the evolution of the Company’s operations and its R&D efforts in new product development, starting in 2021, the Company’s reportable segments will be the Water segment and the Emerging Technologies segment. The Company’s Water segment will include both seawater desalination sales and service, industrial wastewater R&D and marketing efforts, and other water-related R&D activities, and the Company’s Emerging Technologies segment will include the Company’s R&D efforts in continued development of the VorTeq, its sale and support of the IsoBoost in natural gas processing, and its R&D efforts for new product development for other non-water fluid processing applications, which are currently reported as R&D under the Company’s corporate expenses. In addition, certain amounts in the Company’s general and administrative (“G&A”) and sales and marketing (“S&M”) expenses will be reallocated to the Water and Emerging Technologies segments. For each of the years presented in the following tables, operating income (loss) for each segment excludes other income and expenses and certain corporate expenses managed outside the operating segment such as income taxes and other separately managed general and administrative expenses not related to the identified segments. Assets and liabilities are reviewed at the consolidated level by the CODM and are not accounted for by segment. The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income. Segment Financial Information The following table presents a summary of the Company’s financial information by segment and corporate operating expenses. Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Water Oil & Gas Total Water Oil & Gas Total Water Oil & Gas Total (In thousands) Product revenue $ 92,061 $ 30 $ 92,091 $ 72,730 $ 104 $ 72,834 $ 60,512 $ 513 $ 61,025 Product cost of revenue 28,239 10 28,249 20,148 187 20,335 17,211 662 17,873 Product gross profit (loss) 63,822 20 63,842 52,582 (83) 52,499 43,301 (149) 43,152 License and development revenue — 26,895 26,895 — 14,108 14,108 — 13,490 13,490 Operating expenses General and administrative 2,196 2,058 4,254 1,501 1,576 3,077 2,078 1,771 3,849 Sales and marketing 5,958 112 6,070 7,072 741 7,813 5,783 1,264 7,047 Research and development 2,973 15,859 18,832 3,825 19,085 22,910 1,711 15,276 16,987 Amortization of intangible assets 16 — 16 575 — 575 629 — 629 Impairment of long-lived assets — 2,332 2,332 — — — — — — Total operating expenses 11,143 20,361 31,504 12,973 21,402 34,375 10,201 18,311 28,512 Operating income (loss) $ 52,679 $ 6,554 59,233 $ 39,609 $ (7,377) 32,232 $ 33,100 $ (4,970) 28,130 Less: Corporate operating expenses 27,939 21,868 18,152 Income from operations 31,294 10,364 9,978 Other income, net 839 1,892 1,462 Income before income taxes $ 32,133 $ 12,256 $ 11,440 Segment Depreciation and Amortization Expense The following table presents a summary of the Company’s depreciation and amortization by segment and corporate operating expenses. Years Ended December 31, 2020 2019 2018 (In thousands) Water $ 1,354 $ 1,824 $ 2,060 Oil & Gas 2,125 2,251 1,377 Corporate 412 320 432 Total depreciation and amortization $ 3,891 $ 4,395 $ 3,869 |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations Product Revenue by Geographic Location The following table presents the Company’s product revenue by geographic locations. The geographic information includes product revenue from our domestic and international customers based on the customers’ requested delivery locations, except for certain cases in which the customer directed the Company to deliver its products to a location that differs from the known ultimate location of use. In such cases, the ultimate location of use rather than the delivery location is reflected in the table. Years Ended December 31, 2020 2019 2018 Product revenue by geographic location: United States 2% 2% 3% International 98% 98% 97% Total product revenue 100% 100% 100% Product revenue by country: (1) Saudi Arabia 34% 29% 31% United Arab Emirates 18% 10% ** Egypt 10% ** 17% Others (2) 38% 61% 52% Total 100% 100% 100% (1) Countries representing more than 10% of product revenues for the periods presented. (2) Countries in the aggregate, individually representing less than 10% of product revenues for the periods presented. ** Zero or less than 10%. Product Revenue The following table presents customers accounting for 10% or more of the Company’s product revenue by segment. Although certain customers might account for greater than 10% of the Company’s product revenue at any one point in time, the concentration of product revenue between a limited number of MPD customers shifts regularly, depending on contract negotiations. The percentages by customer reflect specific relationships or contracts that would concentrate the Company’s product revenue for the periods presented and does not indicate a trend specific to any one customer. Years Ended December 31, Segment 2020 2019 2018 Customer A Water 27% ** ** Customer B Water 23% 19% ** Customer C Water ** ** 15% Customer D Water ** ** 11% ** Zero or less than 10%. License and Development Revenue One international Oil & Gas segment customer accounted for 100% of the Company’s license and development revenue for the years ended December 31, 2020, 2019 and 2018. Long-lived Assets All of the Company’s long-lived assets were located in the United States at December 31, 2020 and 2019. Major Supply Vendors The following table presents the major supply vendors accounting for 10% or more of the Company’s consolidated supply and manufacturing costs purchases during the years ended December 31, 2020 and 2019. Years Ended December 31, 2020 2019 Vendor A 19% 22% Vendor B 16% 13% |
VorTeq Partnership and License
VorTeq Partnership and License Agreement | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VorTeq Partnership and License Agreement | VorTeq Partnership and License Agreement On October 14, 2015, the Company and Schlumberger entered into the VorTeq License Agreement, which provided Schlumberger with exclusive worldwide rights to the Company’s VorTeq technology for use in hydraulic fracturing onshore applications. In performing the obligations under the agreement, the Company provided research and development services to commercialize the technology in accordance with the KPIs, as defined in the VorTeq License Agreement. The VorTeq License Agreement included up to $125.0 million in upfront consideration paid in the following stages: (i) a $75.0 million non-refundable upfront exclusivity payment; and (ii) two non-refundable milestone payments of $25.0 million each made upon achievement of successful tests in accordance with the KPIs specified in the VorTeq License Agreement (“M1” and “M2”).On June 24, 2020, prior to activating the M1 test, the Company and Schlumberger entered into an agreement to terminate the VorTeq License Agreement effective June 1, 2020. Prior to the termination of the VorTeq License Agreement, the Company had been recognizing license and development revenue related to the non-refundable exclusivity payment under the cost to total cost method of accounting. Pursuant to the terms of the agreement, each party’s rights, duties and obligations under the VorTeq License Agreement have been terminated. Accordingly, the Company (i) is entitled to retain all of the non-refundable upfront exclusivity payment; (ii) is not entitled to any further payments from Schlumberger, and (iii) has no future performance obligations under the VorTeq License Agreement. The Company accounted for the termination as a contract modification, which resulted in the Company recognizing the remaining amounts of the original $75.0 million non-refundable upfront exclusivity payment of $24.4 million during the second quarter of fiscal year 2020 as license and development revenue in the Consolidated Statements of Operations. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s Consolidated Financial Statements include the accounts of Energy Recovery, Inc. and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified in the Consolidated Balance Sheets, Consolidated Statements of Cash Flows and certain notes to the Consolidated Financial Statements to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of Consolidated Financial Statements, in conformity with U.S. generally accepted accounting principles (“GAAP”), requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. The accounting policies that reflect the Company’s more significant estimates and judgments and that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results are revenue recognition; valuation of stock options; valuation and impairment of goodwill; inventory; deferred taxes and valuation allowances on deferred tax assets; and evaluation and measurement of contingencies. Those estimates could change, and as a result, actual results could differ materially from those estimates. Due to the novel coronavirus (“COVID-19”) pandemic, and the impact on our customers due to the reduced demand for oil and gas, as well as the oversupply of oil, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of March 12, 2021, the date of issuance of this Annual Report on Form 10-K. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. The Company undertakes no obligation to update publicly these estimates for any reason after the date of this Annual Report on Form 10-K, except as required by law. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining contractual maturity on date of purchase of less than or equal to three months to be classified and presented as cash equivalents on the Company’s Consolidated Balance Sheet. Cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents are maintained primarily in demand deposit accounts with large financial institutions, institutional money market funds, U.S. treasury securities, and corporate notes and bonds. The Company monitors the creditworthiness of the financial institutions, institutional money market funds, and corporations in which the Company invests its surplus funds. The Company has experienced no credit losses from its cash investments. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company records a provision for doubtful accounts based on historical experience and an estimate of the expected credit losses. In estimating the allowance for doubtful accounts, the Company considers, among other factors, the aging of the accounts receivable, its historical write-offs, the credit worthiness of each customer, and general economic conditions. Account balances are charged off against the allowance when the Company believes that it is probable that the receivable will not be recovered. Actual write-offs may be in excess of the Company’s estimated allowance. |
Short-term and Long-term Investments | Short-term and Long-term Investments The Company’s short-term and long-term investments consist primarily of investment-grade debt securities, all of which are classified as available-for-sale. Available-for-sale securities are carried at fair value. Amortization or accretion of premium or discount is included in other income (expense) on the Consolidated Statements of Operations. Changes in the fair value of available-for-sale securities are reported as a component of accumulated other comprehensive income (loss) within stockholders’ equity on the Consolidated Balance Sheets. Realized gains and losses on the sale of available-for-sale securities are determined by specific identification of the cost basis of each security. The Company categorizes and classifies short-term and long-term available-for-sale investments on the Company’s Consolidated Balance Sheets as follows: • Short-term investments: Investments purchased with an original or remaining maturity at time of purchase greater than three months and that are expected to mature within 12 months from the balance sheet date are classified as short-term investments and are presented in current assets. • Long-term investments: Investments purchased with an original or remaining maturity at time of purchase greater than three months and that are expected to mature more than 12 months from the balance sheet date are classified as long-term investments and are presented in non-current assets. |
Inventories | Inventories Inventories are stated at the lower of cost (using the first-in, first-out “FIFO” method) or net realizable value. The Company calculates inventory valuation adjustments for excess and obsolete inventory based on current inventory levels, movement, expected useful lives, and estimated future demand of the products and spare parts. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost and reduced by accumulated depreciation. Depreciation expense is recognized over the estimated useful lives of the assets using the straight-line method. Estimated useful lives are three years to ten years. Certain equipment used in the development and manufacturing of ceramic components is depreciated over estimated useful lives of up to ten years. Leasehold improvements represent remodeling and retrofitting costs for leased office and manufacturing space and are depreciated over the shorter of either the estimated useful lives or the term of the lease. Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and installation costs. Software is depreciated over the estimated useful lives of three years to five years. Maintenance and repairs are charged directly to expense as incurred. |
Leases | Leases The Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement and evaluates whether the lease is an operating or a finance lease at the commencement date. The Company recognizes right-of-use (“ROU”) assets and lease liabilities for operating leases with terms greater than 12 months. ROU assets represent the Company’s right to use an asset for the lease term, while lease liabilities represent the Company’s obligation to make lease payments. Operating and finance lease ROU assets and liabilities are recognized based on the present value of lease payments over the lease term at the lease commencement date. The Company uses the implicit interest rate or, if not readily determinable, its incremental borrowing rate as of the lease commencement date to determine the present value of lease payments. The incremental borrowing rate is based on the Company’s unsecured borrowing rate, adjusted for the effects of collateral. Operating and finance lease ROU assets are recognized net of any lease prepayments and incentives. In addition, the Company has elected the practical expedient, based on materiality, to account for both the non-lease components and related lease components as a single lease component. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense is recognized based on the effective-interest method over the lease term. The Company applies lease modifications that change the contractual terms and conditions of a lease, that was not part of the original lease, and grants additional right of use with a price consistent with the market, as a new lease. These modifications will be assessed in compliance with the above parameters. For other types of lease modification, the modified lease is reassessed and all new assumptions are applied in the calculation of the updated lease liability and the ROU asset. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The purchase price of an acquired company is allocated between intangible assets and the net tangible assets of the acquired business with the residual purchase price recorded as goodwill. The determination of the value of the intangible assets acquired involves certain judgments and estimates. These judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. Goodwill is not amortized but is evaluated annually (July 1) for impairment at the reporting unit level or when indicators of a potential impairment are present. The Company estimates the fair value of the reporting unit using the discounted cash flow and market approaches. The forecast of future cash flows, which are based on the Company’s best estimate of future net sales and operating expenses, are based primarily on expected category expansion, pricing, market segment, and general economic conditions. In addition, the Company incorporates other significant inputs to its fair value calculations, including discount rate and market multiples, to reflect current market conditions, and also considered the impact of the COVID-19 pandemic and the termination of the VorTeq License Agreement in its calculations. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe Company’s financial instruments include cash and cash equivalents, restricted cash, investments in marketable securities, accounts receivable and accounts payable. The carrying amounts for these financial instruments reported in the Consolidated Balance Sheets approximate their fair values. |
Revenue Recognition | Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. At the inception of each contract, performance obligations are identified and the total transaction price is allocated to the performance obligations. The Company’s payment terms vary based on the credit risk of its customer. For certain customer types, the Company requires payment before the products or services are delivered to the customer. The Company performs an evaluation of customer credit worthiness on an individual contract basis to assess whether collectability is reasonably assured at the inception of the contract. As part of this evaluation, the Company considers many factors about the individual customer, including the underlying financial strength of the customer and/or partnership consortium and the Company’s prior history or industry-specific knowledge about the customer and its supplier relationships. For smaller projects, the Company requires the customer to remit payment generally within 30 days to 60 days after product delivery. In some cases, if credit worthiness cannot be determined, prepayment or other security is required. Sales commissions are expensed as incurred when product revenue is earned. These costs are recorded within sales and marketing expenses. Arrangements with Multiple Performance Obligations and Termination for Convenience The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative stand-alone selling price. The Company generally determines stand-alone selling prices based on the prices charged to customers. With respect to termination, the Company does not have the ability to cancel the contract for convenience. In general, customers can cancel for convenience upon the payment of a termination fee that covers costs and profit. It is rare for customers to cancel contracts. Practical Expedients and Exemptions In the Water segment, the time period between when the Company transfers control of products to the customer and the payment for the products is, in general, less than one year and, therefore, the practical expedient with respect to a financing component has been adopted by the Company. With respect to taxes, the Company has made the policy election to exclude taxes from the measurement of the transaction price. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less; and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. Contract Costs The Company recognizes the incremental cost of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. The costs of obtaining contracts are included in sales and marketing expenses. Product and Service Revenue Recognition - Water Segment In the Company’s Water segment, a contract is established by a written agreement (executed sales order, executed purchase order or stand-alone contract) with the customer with fixed pricing, and a credit risk assessment is completed prior to the signing of the agreement to ensure that collectability is reasonably assured. The Company adheres to consistent pricing in the stand-alone sale of products and services. The Company does not bundle performance obligations in the Water segment. Performance obligations consist of delivery of products, such as the Company’s PXs, Turbochargers, pumps and spare parts, and services. Service obligation, such as commissioning, which are not material, are deferred as contract liabilities until the services are performed. The transfer of control for the Company’s products follows transfer of title which typically occurs upon shipment of the equipment in accordance with International Commercial Terms (commonly referred to as “incoterms”). The specified product performance criteria for the Company’s products pertain to the ability of the Company’s product to meet its published performance specifications and warranty provisions, which the Company’s products have demonstrated on a consistent basis. This factor, combined with historical performance metrics, provides the Company’s management with a reasonable basis to conclude that the products will perform satisfactorily upon commissioning of the plant. Installation is relatively simple, requires no customization, and is performed by the customer under the supervision of the Company’s personnel. Based on these factors, the Company concluded that performance has been completed upon shipment when title transfers based on the shipping terms, and that product revenue is recognized at a point in time. The Company does not provide its customers with a right of product return; however, the Company will accept returns of products that are deemed to be damaged or defective when delivered that are covered by the terms and conditions of the product warranty. Product warranty is provided consistent with the industry and is considered to be an assurance warranty, not a separate performance obligation. Product returns and warranty charges have not been significant. For large projects, stand-alone contracts are utilized. For these contracts, consistent with industry practice, the Company’s customers typically require their suppliers, including the Company, to accept contractual holdback provisions (also referred to as a retention payment) whereby the final amounts due under the sales contract are remitted over extended periods of time or alternatively, stand-by letters of credit are issued. These retention payments are generally 10% or less of the total contract amount and are due and payable based upon the contractual milestone billing, generally up to 24 months to 36 months from the date of product delivery. These retention payments with performance conditions are recorded as contract assets and align with the product warranty period. Given that they are not material in the context of the contract, they are not considered to be a financing component. Shipping and handling charges billed to customers are pass-through from the freight forwarder to the customer and are included in product revenue. The cost of shipping to customers is included in product cost of revenue. Cost-to-Total Cost (“CTC”) Revenue Recognition - Oil & Gas Segment The IsoBoost system is a highly engineered and customized solution that is designed and manufactured over an extended period of time, and is built specifically to meet a customer’s specifications. Given the facts and circumstances of these projects, the Company concluded that the CTC method of accounting is appropriate for the IsoBoost system. In the event that a purchase order for an IsoBoost system does not meet these facts and circumstances, then the CTC method of accounting does not apply. The Company had one CTC contract for IsoBoost turbochargers in fiscal years 2017 through 2018, which was completed in 2018, and last units were shipped in the first quarter of 2019. A standard assurance type warranty was provided. Revenue from fixed price contracts is recognized with progress measured in the ratio of costs incurred to estimated final costs. Contract costs include all direct material and labor costs related to contract performance. Pre-contract costs with no future benefit were expensed in the period in which they were incurred. Since the financial reporting of these contracts depends on estimates, which are assessed continually during the term of the contract, recognized revenues and profit are subject to revisions as the contract progresses to completion. Revisions in profit estimates are reflected in the period in which the facts that give rise to the revisions become known, using the cumulative catch-up method. If material, the effects of any changes in estimates are disclosed in the notes to the consolidated financial statements. When estimates indicate that a loss will be incurred on a contract, a provision for the expected loss is recorded in the period in which the loss becomes evident. No loss has been incurred to date. Revenue is recognized only to the extent costs have been recognized in the same period. Unbilled project costs, and cost and estimated earnings in excess of billings, are included in contract assets and contract liabilities, respectively, on the Company’s Consolidated Balance Sheets. License and Development Revenue Recognition - Oil & Gas Segment License and development revenue is comprised of revenue recognition over time of the upfront non-refundable $75.0 million exclusivity fee received in connection with a license agreement (“VorTeq License Agreement”) with Schlumberger Technology Corporation (“Schlumberger”). The VorTeq License Agreement comprised of a 15‑year exclusive license for the Company’s VorTeq technology (“VorTeq”). In performing the obligations under the license, the Company provided research and development services to commercialize the technology in accordance with the Key Performance Indicators (“KPIs”), defined in the VorTeq License Agreement. Revenue is recognized when control of the promised goods or services is transferred to customers. For example, stand-alone selling price was established at the inception of the VorTeq License Agreement by taking the transaction to market on a non-exclusive basis, and pricing in an exclusivity premium. Since the VorTeq License Agreement included an up-front non-refundable payment at the inception of the VorTeq License Agreement and future products and services are provided after initial commercialization, the Company completed an analysis and concluded that there was no material right included in the pricing of the VorTeq License Agreement. Performance obligations, such as the exclusive license to the Company’s missile technology and upgrades prior to and subsequent to the date of full commercial launch, have been identified. Value has been allocated to the performance obligations and revenue is recognized over time based on the input measure of progress of the cost of salaries, wages and travel costs related to the project prior to full commercialization, and ratably for the unspecified upgrades for the period subsequent to full commercialization until the expiration of the VorTeq License Agreement. |
Warranty Costs | Warranty Costs The Company sells products with a limited warranty for a period ranging from 18 months to five years. The Company accrues for warranty costs based on estimated product failure rates, historical activity, and expectations of future costs. Periodically, the Company evaluates and adjusts the warranty costs to the extent that actual warranty costs vary from the original estimates. |
Stock-based Compensation | Stock-based CompensationThe Company measures and recognizes stock-based compensation expense based on the fair value measurement for all stock-based awards made to its employees, non-employee consultants and directors, including restricted stock units (“RSUs”), and incentive stock options over the requisite service period (typically the vesting period of the awards). The fair value of RSUs is based on the Company’s common stock price on the date of grant. The fair value of stock options is calculated on the date of grant using the Black-Scholes option pricing model, which requires a number of complex assumptions including the expected life to exercise a vested award, expected volatility based upon the Company’s historical stock prices, risk-free interest rate based upon the U.S. Treasury rates, and the Company’s dividend yield. The estimation of awards that will ultimately vest requires judgment, and to the extent that actual results or updated estimates differ from the Company’s current estimates, such amounts are recorded as a cumulative adjustment in the period in which the estimates are revised. |
Foreign Currency | Foreign Currency The Company’s reporting currency is the U.S. dollar. The functional currency of the Company’s Irish subsidiary is the U.S. dollar, while the functional currency of the Company’s other foreign subsidiaries is their respective local currencies. The asset and liability accounts of the Company’s foreign subsidiaries are translated from their local currencies at the rates in effect on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the period. Gains and losses resulting from the translation of the Company’s subsidiary balance sheets are recorded as a component of accumulated other comprehensive income (loss). Gains and losses from foreign currency transactions are recorded in other income (expense) in the Consolidated Statements of Operations. |
Income Taxes | Income Taxes Current and non-current tax assets and liabilities are based upon an estimate of taxes refundable or payable for each of the jurisdictions in which the Company is subject to tax. In the ordinary course of business, there is inherent uncertainty in quantifying income tax positions. The Company assesses income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit is recognized in the financial statements. When applicable, associated interest and penalties are recognized as a component of income tax expense. Accrued interest and penalties are included within the related tax asset or liability on the Consolidated Balance Sheets. Deferred income taxes are provided for temporary differences arising from differences in bases of assets and liabilities for tax and financial reporting purposes. Deferred income taxes are recorded on temporary differences using enacted tax rates in effect for the year in which the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Significant judgment is required in determining whether and to what extent any valuation allowance is needed on the Company’s deferred tax assets. In making such a determination, the Company considers all available positive and negative evidence including recent results of operations, scheduled reversals of deferred tax liabilities, projected future income, and available tax planning strategies. See Note 9, “Income Taxes,” for further discussion of tax valuation allowances. The Company’s operations are subject to income and transaction taxes in the U.S. and in foreign jurisdictions. Significant estimates and judgments are required in determining the Company’s worldwide provision for income taxes. Some of these estimates are based on interpretations of existing tax laws or regulations. The ultimate amount of tax liability may be uncertain as a result. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which amends Accounting Standards Codification (“ASC”) No. 326, Financial Instruments-Credit Losses (“ASC 326”). Subsequent to the issuance of ASU 2016-13, ASC 326 was amended by various updates that amend and clarify the impact and implementation of the aforementioned update. The new guidance introduces the current expected credit loss (“CECL”) model, which requires an entity to record an allowance for credit losses for certain financial instruments and financial assets, including trade receivables, based on expected losses rather than incurred losses. Under this update, on initial recognition and at each reporting period, an entity is required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. In February 2020, the FASB issued ASU No. 2020-02, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2020-02”), which amended the language in Subtopic 326-20 and addressed questions primarily regarding documentation and company policies. ASU 2016-13 and its amendments are effective for the Company for interim and annual periods in fiscal years beginning after December 15, 2019, on a modified retrospective basis. The adoption of ASU 2016-13 and its amendments on January 1, 2020 did not have a material impact on the Consolidated Financial Statements and related disclosures. The Company will continue to actively monitor the impact of the COVID-19 pandemic, and the impact on the Company’s customers due to the reduced demand for oil & gas, as well as the oversupply of oil, on expected credit losses. In January 2017, the FASB issued ASU No. 2017-04 (“ASU 2017-04”), Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, to eliminate Step 2 from the goodwill impairment test. Entities should perform their goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The Company adopted ASU 2017-04 on January 1, 2020 on a prospective basis and the adoption of this standard did not have a material impact on the Consolidated Financial Statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). This ASU improves and clarifies various financial instruments topics, including the CECL standard issued in 2016. ASU 2020-03 included seven different issues that describe the areas of improvement and the related amendments to U.S. GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted ASU 2020-03 on January 1, 2020, and the adoption of this standard did not have a material impact on the Consolidated Financial Statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”), which provided optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. Entities may apply the provisions of the new standard as of the beginning of the reporting period when the election is made (i.e., as early as the first quarter of 2020). Unlike other topics, the provisions of this update are only available until December 31, 2022, when the reference rate replacement activity is expected to have been completed. An entity may elect to apply amendments prospectively through December 31, 2022. The optional expedients were available to be used upon issuance of this guidance but the Company has not yet applied the guidance because the Company has not yet modified its existing contract for reference rate reform. The Company does not expect the provisions of ASU 2020-04 to have a material impact on its financial condition, results of operation, and cash flows. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard is effective for interim and annual periods beginning after December 15, 2020. The Company will adopt ASU 2019-12 beginning on January 1, 2021 for fiscal year 2021. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial condition, results of operations, and cash flows. |
Litigation | The Company considers all claims on a quarterly basis and, based on known facts, assesses whether potential losses are considered reasonably possible, probable and estimable. Based upon this assessment, the Company then evaluates disclosure requirements and whether to accrue for such claims in its consolidated financial statements. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and are adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present the Company’s disaggregated revenues by product and service line, revenues by geography based on the “shipped to” addresses of the Company’s customers and product revenue by channel. Sales and usage-based taxes are excluded from revenues. The Company classifies its channel customers as follows: • Megaproject (“MPD”). MPD customers are major firms that develop, design, build, own and/or operate large-scale desalination plants. • Original Equipment Manufacturer (“OEM”). OEM customers are companies that supply equipment, packaged systems, and various operating and maintenance solutions for small to medium-sized desalination plants, utilized by commercial and industrial entities, as well as national, state and local municipalities worldwide. • Aftermarket (“AM”). AM customers are desalination plant owners and/or operators who can utilize our technology to upgrade or keep their plant running. Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Water Oil & Gas Total Water Oil & Gas Total Water Oil & Gas Total (In thousands) Revenue by product and service line PX Pressure Exchangers, pumps and turbo devices, and other $ 92,061 $ 30 $ 92,091 $ 72,730 $ 104 $ 72,834 $ 60,511 $ 514 $ 61,025 License and development — 26,895 26,895 — 14,108 14,108 — 13,490 13,490 Total revenue $ 92,061 $ 26,925 $ 118,986 $ 72,730 $ 14,212 $ 86,942 $ 60,511 $ 14,004 $ 74,515 Revenue by primary geographical markets Middle East and Africa $ 73,963 $ — $ 73,963 $ 46,574 $ 104 $ 46,678 $ 35,593 $ 514 $ 36,107 Americas 7,274 26,925 34,199 9,018 14,108 23,126 6,388 13,490 19,878 Asia 7,363 — 7,363 11,952 — 11,952 11,955 — 11,955 Europe 3,461 — 3,461 5,186 — 5,186 6,575 — 6,575 Total revenue $ 92,061 $ 26,925 $ 118,986 $ 72,730 $ 14,212 $ 86,942 $ 60,511 $ 14,004 $ 74,515 Product revenue by channel Megaproject $ 66,763 $ — $ 66,763 $ 38,164 $ — $ 38,164 $ 27,172 $ — $ 27,172 Original equipment manufacturer 15,834 — 15,834 23,014 — 23,014 21,956 — 21,956 Aftermarket 9,464 30 9,494 11,552 104 11,656 11,383 514 11,897 Total product revenue $ 92,061 $ 30 $ 92,091 $ 72,730 $ 104 $ 72,834 $ 60,511 $ 514 $ 61,025 |
Contract with Customer, Asset and Liability | The following table presents contract balances by category. December 31, 2020 2019 (In thousands) Accounts receivable, net $ 11,792 $ 12,979 Contract assets: Contract assets, current (included in prepaid expenses and other current assets) $ 1,309 $ 501 Contract assets, non-current (included in other assets, non-current) 583 191 Total contract assets $ 1,892 $ 692 Current contract liabilities: Customer deposits $ 1,157 $ 1,506 Deferred revenue: License and development — 13,846 Product 79 78 Service 316 316 Total deferred revenue 395 14,240 Total current contract liabilities 1,552 15,746 Non-current contract liabilities License and development — 13,048 Service 88 72 Total non-current contract liabilities 88 13,120 Total contract liabilities $ 1,640 $ 28,866 |
Contract With Customer, Contract Liability, Activity | The Company records contract liabilities when cash payments are received in advance of the Company’s performance. The following table presents significant changes in contract liabilities during the period. Years Ended December 31, 2020 2019 2018 (In thousands) Contract liabilities balance, beginning of year $ 28,866 $ 42,809 $ 56,426 Revenue recognized (28,414) (15,247) (13,493) Cash received, excluding amounts recognized as revenue during the period 1,188 1,304 (124) Contract liabilities balance, end of year $ 1,640 $ 28,866 $ 42,809 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table presents the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied. December 31, (In thousands) Year: 2021 $ 26,510 2022 2,996 Total performance obligation $ 29,506 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted earnings per share. Years Ended December 31, 2020 2019 2018 (In thousands, except per share amounts) Numerator: Net income $ 26,387 $ 10,913 $ 22,093 Denominator (weighted average shares): Basic common shares outstanding 55,709 54,740 53,764 Dilutive stock awards 928 1,327 1,574 Diluted common shares outstanding 56,637 56,067 55,338 Earnings per share: Basic $ 0.47 $ 0.20 $ 0.41 Diluted $ 0.47 $ 0.19 $ 0.40 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the potential common shares issuable under stock awards that were excluded from the computation of diluted earnings per share, as their effect would have been anti-dilutive. Years Ended December 31, 2020 2019 2018 (In thousands) Anti-dilutive stock awards 2,185 1,898 2,176 |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Financial Information [Abstract] | |
Restrictions on Cash and Cash Equivalents | The Consolidated Statements of Cash Flows explain the changes in the total of cash, cash equivalents and restricted cash. The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of such amounts presented. December 31, 2020 2019 2018 (In thousands) Cash and cash equivalents $ 94,255 $ 26,387 $ 21,955 Restricted cash, current (included in cash, cash equivalents and restricted cash) — — 97 Restricted cash, non-current (included in other assets, non-current) 103 101 86 Total cash, cash equivalents and restricted cash $ 94,358 $ 26,488 $ 22,138 |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts Receivable, net The following table presents the components of accounts receivable, net. December 31, 2020 2019 (In thousands) Accounts receivable, gross $ 12,189 $ 13,287 Allowance for doubtful accounts (397) (308) Accounts receivable, net $ 11,792 $ 12,979 |
Schedule Of Allowance For Doubtful Accounts | The following table presents the allowance for doubtful accounts activities. Years Ended December 31, 2020 2019 2018 (In thousands) Balance, beginning of year $ 308 $ 396 $ 103 Changes to reserves (1) 95 17 336 Collection of specific reserves (6) (105) (43) Balance, end of year $ 397 $ 308 $ 396 (1) Includes general and specific reserves charged to expense. |
Schedule of Inventory, Current | Inventories The following table presents inventory by category. December 31, 2020 2019 (In thousands) Raw materials $ 4,260 $ 3,742 Work in process 2,360 2,141 Finished goods 5,128 4,434 Inventories, net $ 11,748 $ 10,317 |
Schedule of Property and Equipment | December 31, 2020 2019 (In thousands) Machinery and equipment $ 30,283 $ 27,664 Leasehold improvements 14,520 10,485 Software 3,422 3,210 Office equipment, furniture, and fixtures 3,493 3,011 Automobiles 199 199 Construction in progress 670 3,910 Total property and equipment 52,587 48,479 Less: Accumulated depreciation and amortization (32,411) (29,636) Property and equipment, net $ 20,176 $ 18,843 |
Schedule Of Depreciation Expense | Depreciation and Amortization Expense Years Ended December 31, 2020 2019 2018 (In thousands) Depreciation and amortization expense $ 3,875 $ 3,820 $ 3,228 |
Schedule of Accrued Liabilities | Accrued Expenses and Other Current Liabilities December 31, 2020 2019 (In thousands) Payroll, incentives and commissions payable $ 8,400 $ 6,040 Warranty reserve 760 631 Other accrued expenses and current liabilities 2,656 3,198 Total accrued expenses and other current liabilities $ 11,816 $ 9,869 |
Schedule Of Implementation Costs For Cloud Computing Arrangements | The following table presents the net carrying value of the implementation costs for hosted cloud computing arrangements included in prepaid and other current assets. December 31, 2020 2019 (In thousands) Cloud computing arrangements $ 1,087 $ 981 |
Schedule Of Cloud Computing Amortization Expense | The following table presents the cloud computing arrangement amortization expense. The Company placed its cloud computing arrangements in service in fiscal year 2020, therefore, during the years ended December 31, 2019 and 2018, there were no cloud computing amortization expense. Year Ended December 31, 2020 (In thousands) Amortization expense $ 190 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Fair Value Disclosure [Abstract] | |
Schedule Of Amortized Cost And Fair Value Of Available For Sale Securities | The following table presents the Company’s financial assets measured on a recurring basis by contractual maturity, including their pricing category, amortized cost, gross unrealized holding gains and losses, and fair value. December 31, 2020 December 31, 2019 Pricing Category Amortized Gross Gross Fair Amortized Gross Gross Fair (In thousands) Cash equivalents Money market securities Level 1 $ 59,132 $ — $ — $ 59,132 $ 86 $ — $ — $ 86 U.S. treasury securities Level 2 — — — — 11,582 — — 11,582 Total cash equivalents 59,132 — — 59,132 11,668 — — 11,668 Short-term investments U.S. treasury securities Level 2 1,614 7 — 1,621 2,746 1 — 2,747 Corporate notes and bonds Level 2 18,708 117 — 18,825 55,951 49 (11) 55,989 Total short-term investments 20,322 124 — 20,446 58,697 50 (11) 58,736 Long-term investments Corporate notes and bonds Level 2 — — — — 15,415 9 (5) 15,419 Total long-term investments — — — — 15,415 9 (5) 15,419 Total short and long-term investments 20,322 124 — 20,446 74,112 59 (16) 74,155 Total $ 79,454 $ 124 $ — $ 79,578 $ 85,780 $ 59 $ (16) $ 85,823 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table presents a summary of the fair value and gross unrealized holding losses on the available-for-sale securities that have been in a continuous unrealized loss position, aggregated by type of investment instrument. As of December 31, 2020, there were no available-for-sale securities that were in a continuous unrealized loss position. The available-for-sale securities that were in an unrealized gain position have been excluded from the table. December 31, 2019 Fair Gross (In thousands) Corporate notes and bonds $ 18,754 $ (16) |
Debt Securities, Available-For-Sale, Proceeds From Sale | The following table presents the sales of available-for-sale investments. Years Ended December 31, 2020 2019 (In thousands) U.S. treasury securities $ — $ 2,043 Corporate notes and bonds 10,573 5,565 Total sales of securities $ 10,573 $ 7,608 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Goodwill and Other Intangible Assets December 31, 2020 2019 (In thousands) Goodwill $ 12,790 $ 12,790 Other intangible assets Gross other intangible assets 286 6,386 Accumulated amortization (237) (6,321) Net other intangible assets 49 65 Total goodwill and other intangible assets $ 12,839 $ 12,855 |
Schedule of Finite-Lived Intangible Assets | The following table presents the components of active identifiable intangible assets, all of which are finite-lived, at the beginning of each respective year and their related accumulated amortization and carrying value at the end of each respective year. All intangible assets are amortized on a straight-line basis over their useful life. Weighted Average Useful Life December 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands, except for weighted average useful life) Developed technology 10 years $ — $ — $ — $ 6,100 $ (6,100) $ — Patents 18 years 286 (237) 49 286 (221) 65 Total $ 286 $ (237) $ 49 $ 6,386 $ (6,321) $ 65 |
Finite-lived Intangible Assets Amortization Expense | The following table presents the intangible asset amortization expense recognized. Years Ended December 31, 2020 2019 2018 (In thousands) Amortization of intangible assets $ 16 $ 575 $ 630 |
Schedule of Future Estimated Amortization Expense | The following table presents the future estimated amortization expense on intangible assets as of December 31, 2020. Estimated Future Amortization (In thousands) Year: 2021 $ 12 2022 11 2023 11 2024 11 2025 4 Total $ 49 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Summary Of Operating Lease, Right Of Use Assets And Lease Liabilities | The following table presents a summary of operating lease, right of use assets and lease liabilities. December 31, 2020 2019 (In thousands) Operating lease, right of use asset $ 16,090 $ 11,195 Lease liabilities $ 1,243 $ 1,023 Lease liabilities, non-current 16,443 11,533 Total lease liability $ 17,686 $ 12,556 |
Lease, Cost | The following table presents operating lease activities related to all leased properties. Years Ended December 31, 2020 2019 2018 (In thousands) Operating lease expense $ 2,589 $ 1,894 $ 1,888 Cash payments 2,398 1,824 964 Non-cash lease liabilities arising from obtaining right-of-use assets 6,384 — 10,411 |
Lease, Term And Discount Rate | The following table presents other information related to outstanding operating leases as of December 31, 2020. Weighted average remaining lease term 8.4 years Weighted average discount rate 7.0 % |
Lessee, Operating Lease, Liability, Maturity | The following table presents the minimum lease payments under noncancelable operating leases, exclusive of executory costs as of December 31, 2020. Lease Amounts (In thousands) Year: 2021 $ 2,431 2022 2,650 2023 2,580 2024 2,812 2025 2,736 2026 and thereafter 10,462 Total 23,671 Less imputed lease interest (5,985) Total lease liabilities $ 17,686 |
Schedule of Product Warranty Liability | The following table presents the changes in the Company’s accrued product warranty reserve. Years Ended December 31, 2020 2019 2018 (In thousands) Warranty reserve balance, beginning of year $ 631 $ 478 $ 366 Warranty costs charged to cost of revenue 403 402 340 Utilization charges against reserve (36) (56) (48) Release of accrual related to expired warranties (238) (193) (180) Warranty reserve balance, end of year $ 760 $ 631 $ 478 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the Company’s U.S. and foreign components of consolidated income before income taxes and the provision for (benefit from) income taxes. Years Ended December 31, 2020 2019 2018 (In thousands) Income before income taxes: U.S. $ 32,046 $ 12,180 $ 12,139 Foreign 87 76 (699) Total income before income taxes $ 32,133 $ 12,256 $ 11,440 Current tax benefit: Federal $ (148) $ (120) $ (297) State 5 3 (2) Foreign 40 66 25 Current tax benefit (103) (51) (274) Deferred tax provision (benefit): Federal 5,547 949 (9,773) State 302 445 (606) Total deferred tax provision (benefit) 5,849 1,394 (10,379) Total provision for (benefit from) income taxes $ 5,746 $ 1,343 $ (10,653) |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of income taxes computed at the statutory federal income tax rate to the effective tax rate implied by the accompanying Consolidated Statements of Operations. Years Ended December 31, 2020 2019 2018 U.S. federal taxes at statutory rate 21 % 21 % 21 % State income tax, net of federal benefit 1 4 (6) Deferred tax re-measurement - Change in tax rates — — 1 Foreign rate differential — — (1) Change in tax status of foreign operations — — (102) Stock-based compensation (2) (1) (3) Non-deductible expenses 1 2 1 Federal research credits (3) (16) (6) Valuation allowance — — 3 Other — 1 (1) Effective tax rate 18 % 11 % (93 %) |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the components of the Company’s net deferred tax asset, which is presented in other assets, non-current on the Consolidated Balance Sheets. December 31, 2020 2019 (In thousands) Deferred tax assets: Net operating loss carry forwards $ 6,285 $ 6,488 Accruals and reserves 3,852 8,922 Operating lease liabilities 3,848 2,750 Research and development, and foreign tax credit carry forwards 8,851 7,533 Acquired intangibles 641 804 Charitable contributions 45 26 Total deferred tax assets 23,522 26,523 Valuation allowance (4,403) (3,933) Net deferred tax assets 19,119 22,590 Deferred tax liabilities: Depreciation on property and equipment (2,985) (1,854) Right of use asset (3,489) (2,443) Unrecognized gain on translation of foreign currency (54) (33) Goodwill (1,561) (1,363) Total deferred tax liabilities (8,089) (5,693) Net deferred tax asset $ 11,030 $ 16,897 |
Summary of Operating Loss Carryforwards | The following table presents the Company’s net operating loss carryforwards by taxing authority. December 31, 2020 2019 (In thousands) Federal $ 19,913 $ 21,153 California 11,043 11,840 Ireland 10,376 9,363 Total net operating loss carryforwards $ 41,332 $ 42,356 |
Summary of Tax Credit Carryforwards | The following table presents the Company’s R&D credit by taxing authority, minimum tax credit and foreign tax credit carryforwards. December 31, 2020 2019 (In thousands) Federal $ 5,733 $ 4,761 California 3,947 3,509 Total credit carryforwards $ 9,680 $ 8,270 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table presents the aggregate changes in the balance of the gross unrecognized tax benefits. Years Ended December 31, 2020 2019 2018 (In thousands) Gross unrecognized tax benefits, beginning of year $ 963 $ 1,162 $ 911 Additions: Prior year tax position 9 27 — Current year tax position 167 163 251 Reductions: Prior year tax position (5) (389) — Gross unrecognized tax benefits, end of year $ 1,134 $ 963 $ 1,162 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class | The follow table presents the Company’s common shares issued and outstanding. December 31, 2020 2019 Issued 61,798,004 60,717,702 Outstanding 56,342,069 55,261,767 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table presents assumptions used in the Black-Scholes option pricing model to determine the estimated grant date fair values of stock options granted to employees. Years Ended December 31, 2020 2019 2018 Weighted average expected life (years) 5.1 4.6 4.2 Weighted average expected volatility 71.7% 75.9% 67.4% Risk-free interest rate 0.29% – 1.32% 1.55% – 2.57% 2.48% – 3.01% Weighted average dividend yield —% —% —% |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents the stock-based compensation expense related to the fair value measurement of awards granted to employees by expense category and by type of award. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, generally the vesting periods. Years Ended December 31, 2020 2019 2018 (In thousands) Stock-based compensation expense charged to: Product cost of revenue $ 135 $ 130 $ 87 General and administrative 2,615 3,090 3,266 Sales and marketing 893 836 694 Research and development 1,151 1,625 1,193 Total stock-based compensation expense $ 4,794 $ 5,681 $ 5,240 Stock-based compensation expense by type of award: Options $ 3,004 $ 3,940 $ 3,873 RSUs 1,790 1,741 1,367 Total stock-based compensation expense $ 4,794 $ 5,681 $ 5,240 |
Schedule Of Forfeiture Rates | The following table presents the estimated forfeiture rates used in determining the expense in the stock-based compensation expense table above. Years Ended December 31, 2020 2019 2018 Stock options and RSUs vested over 4-years 11.2% 11.6% 14.9% |
Schedule of Unamortized Compensation Cost and Weighted Average Service Period | The following table presents the unamortized compensation costs and weighted average service period of all unvested outstanding awards as of December 31, 2020. Unamortized Compensation Costs Weighted Average Service Period (In thousands) (In years) Stock options $ 5,189 2.5 RSUs 4,938 2.7 Total unamortized compensation costs, net of adjusted forfeitures $ 10,127 |
Share-based Compensation, Stock Options, Activity | The following table presents stock option activities under the Equity Incentive Plans. Number Weighted Weighted Aggregate Intrinsic Value (1) (In thousands) (Per share) (In years) (In thousands) Balance, December 31, 2017 5,092 $ 5.43 Granted 1,232 7.96 Exercised (1,160) 3.73 $ 4,735 Forfeited (182) 3.98 Balance, December 31, 2018 4,982 6.36 Granted 568 8.31 Exercised (1,133) 5.36 4,781 Forfeited (490) 8.49 Balance, December 31, 2019 3,927 6.66 Granted 806 8.78 Exercised (926) 4.79 4,637 Forfeited (187) 9.15 Balance, December 31, 2020 3,620 $ 7.48 6.6 $ 22,293 Vested and exercisable as of December 31, 2020 2,427 $ 6.99 5.6 $ 16,153 Vested and exercisable as of December 31, 2020 and expected to vest thereafter 3,484 $ 7.44 6.5 $ 21,602 (1) The aggregate intrinsic value of an exercised option is calculated as the difference between the exercise price of the underlying option and the fair value of the Company’s common stock at the time of exercise. The aggregate intrinsic value at December 31, 2020 is calculated as the difference between the exercise price of the underlying outstanding options and the fair value of the Company’s common stock as of December 31, 2020 or the last trading day prior to December 31, 2020. |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table presents RSU activities under the Equity Incentive Plans. Number Weighted (In thousands) (Per share) Balance, December 31, 2017 274 $ 9.54 Awarded 279 7.74 Vested (90) 9.33 Balance, December 31, 2018 463 8.49 Awarded 415 7.80 Vested (201) 8.62 Forfeited (133) 8.37 Balance, December 31, 2019 544 7.95 Awarded 368 10.33 Vested (161) 8.12 Forfeited (64) 8.86 Balance, December 31, 2020 687 9.10 |
Schedule of Grant Date Fair Value of Equity Instruments Vested | The following table presents the total grant date fair value of stock options and RSUs vested during the period. Years Ended December 31, 2020 2019 2018 (In thousands) Stock options $ 2,915 $ 4,025 $ 3,607 RSUs 1,310 1,733 841 Total grant date fair value of stock options and RSUs vested during the period $ 4,225 $ 5,758 $ 4,448 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents a summary of the Company’s financial information by segment and corporate operating expenses. Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Water Oil & Gas Total Water Oil & Gas Total Water Oil & Gas Total (In thousands) Product revenue $ 92,061 $ 30 $ 92,091 $ 72,730 $ 104 $ 72,834 $ 60,512 $ 513 $ 61,025 Product cost of revenue 28,239 10 28,249 20,148 187 20,335 17,211 662 17,873 Product gross profit (loss) 63,822 20 63,842 52,582 (83) 52,499 43,301 (149) 43,152 License and development revenue — 26,895 26,895 — 14,108 14,108 — 13,490 13,490 Operating expenses General and administrative 2,196 2,058 4,254 1,501 1,576 3,077 2,078 1,771 3,849 Sales and marketing 5,958 112 6,070 7,072 741 7,813 5,783 1,264 7,047 Research and development 2,973 15,859 18,832 3,825 19,085 22,910 1,711 15,276 16,987 Amortization of intangible assets 16 — 16 575 — 575 629 — 629 Impairment of long-lived assets — 2,332 2,332 — — — — — — Total operating expenses 11,143 20,361 31,504 12,973 21,402 34,375 10,201 18,311 28,512 Operating income (loss) $ 52,679 $ 6,554 59,233 $ 39,609 $ (7,377) 32,232 $ 33,100 $ (4,970) 28,130 Less: Corporate operating expenses 27,939 21,868 18,152 Income from operations 31,294 10,364 9,978 Other income, net 839 1,892 1,462 Income before income taxes $ 32,133 $ 12,256 $ 11,440 |
Schedule of Segment Reporting Information, by Segment | The following table presents a summary of the Company’s depreciation and amortization by segment and corporate operating expenses. Years Ended December 31, 2020 2019 2018 (In thousands) Water $ 1,354 $ 1,824 $ 2,060 Oil & Gas 2,125 2,251 1,377 Corporate 412 320 432 Total depreciation and amortization $ 3,891 $ 4,395 $ 3,869 |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | The following table presents the Company’s product revenue by geographic locations. The geographic information includes product revenue from our domestic and international customers based on the customers’ requested delivery locations, except for certain cases in which the customer directed the Company to deliver its products to a location that differs from the known ultimate location of use. In such cases, the ultimate location of use rather than the delivery location is reflected in the table. Years Ended December 31, 2020 2019 2018 Product revenue by geographic location: United States 2% 2% 3% International 98% 98% 97% Total product revenue 100% 100% 100% Product revenue by country: (1) Saudi Arabia 34% 29% 31% United Arab Emirates 18% 10% ** Egypt 10% ** 17% Others (2) 38% 61% 52% Total 100% 100% 100% (1) Countries representing more than 10% of product revenues for the periods presented. (2) Countries in the aggregate, individually representing less than 10% of product revenues for the periods presented. ** Zero or less than 10%. The following table presents customers accounting for 10% or more of the Company’s product revenue by segment. Although certain customers might account for greater than 10% of the Company’s product revenue at any one point in time, the concentration of product revenue between a limited number of MPD customers shifts regularly, depending on contract negotiations. The percentages by customer reflect specific relationships or contracts that would concentrate the Company’s product revenue for the periods presented and does not indicate a trend specific to any one customer. Years Ended December 31, Segment 2020 2019 2018 Customer A Water 27% ** ** Customer B Water 23% 19% ** Customer C Water ** ** 15% Customer D Water ** ** 11% ** Zero or less than 10%. The following table presents the major supply vendors accounting for 10% or more of the Company’s consolidated supply and manufacturing costs purchases during the years ended December 31, 2020 and 2019. Years Ended December 31, 2020 2019 Vendor A 19% 22% Vendor B 16% 13% |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Details) - USD ($) $ in Millions | Oct. 14, 2015 | Dec. 31, 2020 |
Accounting Policies [Line Items] | ||
Retention payments, percentage | 10.00% | |
VorTeq License Agreement | ||
Accounting Policies [Line Items] | ||
Up front non-refundable payment | $ 75 | |
License agreement term | 15 years | |
VorTeq License Agreement | Schlumberger Technology Corporation | License and development | Affiliated Entity | ||
Accounting Policies [Line Items] | ||
Up front non-refundable payment | $ 75 | |
Minimum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Finite-lived intangible asset, weighted average useful life | 1 year | |
Customer payment period after product delivery | 30 days | |
Retention payments, payment period after product delivery | 24 months | |
Product warranty term | 18 months | |
Maximum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Finite-lived intangible asset, weighted average useful life | 20 years | |
Customer payment period after product delivery | 60 days | |
Retention payments, payment period after product delivery | 36 months | |
Product warranty term | 5 years | |
Maximum | Customer Relationships and Other Non-contractual Intangible Assets | ||
Accounting Policies [Line Items] | ||
Finite-lived intangible asset, weighted average useful life | 20 years | |
Equipment Used in Manufacture of Ceramic Components | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Software | Minimum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Software | Maximum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 5 years |
Revenue - Schlumberger Technolo
Revenue - Schlumberger Technology Corporation (Details) - USD ($) $ in Thousands | Oct. 14, 2015 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from External Customer [Line Items] | |||||
Revenue | $ 118,986 | $ 86,942 | $ 74,515 | ||
License and development | |||||
Revenue from External Customer [Line Items] | |||||
Revenue | $ 26,895 | $ 14,108 | $ 13,490 | ||
VorTeq License Agreement | |||||
Revenue from External Customer [Line Items] | |||||
Up front non-refundable payment | $ 75,000 | ||||
VorTeq License Agreement | Affiliated Entity | License and development | Schlumberger Technology Corporation | |||||
Revenue from External Customer [Line Items] | |||||
Up front non-refundable payment | $ 75,000 | ||||
Revenue | $ 24,400 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 118,986 | $ 86,942 | $ 74,515 |
Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 92,061 | 72,730 | 60,511 |
Oil & Gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 26,925 | 14,212 | 14,004 |
PX Pressure Exchangers, pumps and turbo devices, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 92,091 | 72,834 | 61,025 |
PX Pressure Exchangers, pumps and turbo devices, and other | Megaproject | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 66,763 | 38,164 | 27,172 |
PX Pressure Exchangers, pumps and turbo devices, and other | Original equipment manufacturer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 15,834 | 23,014 | 21,956 |
PX Pressure Exchangers, pumps and turbo devices, and other | Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 9,494 | 11,656 | 11,897 |
PX Pressure Exchangers, pumps and turbo devices, and other | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 92,061 | 72,730 | 60,511 |
PX Pressure Exchangers, pumps and turbo devices, and other | Water | Megaproject | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 66,763 | 38,164 | 27,172 |
PX Pressure Exchangers, pumps and turbo devices, and other | Water | Original equipment manufacturer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 15,834 | 23,014 | 21,956 |
PX Pressure Exchangers, pumps and turbo devices, and other | Water | Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 9,464 | 11,552 | 11,383 |
PX Pressure Exchangers, pumps and turbo devices, and other | Oil & Gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 30 | 104 | 514 |
PX Pressure Exchangers, pumps and turbo devices, and other | Oil & Gas | Megaproject | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
PX Pressure Exchangers, pumps and turbo devices, and other | Oil & Gas | Original equipment manufacturer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
PX Pressure Exchangers, pumps and turbo devices, and other | Oil & Gas | Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 30 | 104 | 514 |
License and development | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 26,895 | 14,108 | 13,490 |
License and development | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
License and development | Oil & Gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 26,895 | 14,108 | 13,490 |
Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 73,963 | 46,678 | 36,107 |
Middle East and Africa | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 73,963 | 46,574 | 35,593 |
Middle East and Africa | Oil & Gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 104 | 514 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 34,199 | 23,126 | 19,878 |
Americas | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 7,274 | 9,018 | 6,388 |
Americas | Oil & Gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 26,925 | 14,108 | 13,490 |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 7,363 | 11,952 | 11,955 |
Asia | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 7,363 | 11,952 | 11,955 |
Asia | Oil & Gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,461 | 5,186 | 6,575 |
Europe | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,461 | 5,186 | 6,575 |
Europe | Oil & Gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 0 | $ 0 | $ 0 |
Revenue - Contract Assets and L
Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||||
Accounts receivable, net | $ 11,792 | $ 12,979 | ||
Contract assets, current (included in prepaid expenses and other current assets) | 1,309 | 501 | ||
Contract assets, non-current (included in other assets, non-current) | 583 | 191 | ||
Total contract assets | 1,892 | 692 | ||
Current contract liabilities: | ||||
Customer deposits | 1,157 | 1,506 | ||
Deferred revenue: | ||||
License and development | 0 | 13,846 | ||
Product | 79 | 78 | ||
Service | 316 | 316 | ||
Total deferred revenue | 395 | 14,240 | ||
Total current contract liabilities | 1,552 | 15,746 | ||
Non-current contract liabilities | ||||
License and development | 0 | 13,048 | ||
Service | 88 | 72 | ||
Total non-current contract liabilities | 88 | 13,120 | ||
Total contract liabilities | $ 1,640 | $ 28,866 | $ 42,809 | $ 56,426 |
Revenue - Significant Changes i
Revenue - Significant Changes in Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change In Contract With Customer, Liability [Roll Forward] | |||
Contract liabilities balance, beginning of year | $ 28,866 | $ 42,809 | $ 56,426 |
Revenue recognized | (28,414) | (15,247) | (13,493) |
Increase due to cash received, excluding amounts recognized as revenue during the period | 1,188 | 1,304 | (124) |
Contract liabilities balance, end of year | $ 1,640 | $ 28,866 | $ 42,809 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 29,506 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 26,510 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 2,996 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net income | $ 26,387 | $ 10,913 | $ 22,093 |
Denominator (weighted average shares): | |||
Basic common shares outstanding (in shares) | 55,709 | 54,740 | 53,764 |
Dilutive stock awards (in shares) | 928 | 1,327 | 1,574 |
Diluted common shares outstanding (in shares) | 56,637 | 56,067 | 55,338 |
Earnings per share - Basic (in dollars per share) | $ 0.47 | $ 0.20 | $ 0.41 |
Earnings per share - Diluted (in dollars per share) | $ 0.47 | $ 0.19 | $ 0.40 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities Excluded From Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive stock awards (in shares) | 2,185 | 1,898 | 2,176 |
Other Financial Information - C
Other Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Financial Information [Abstract] | ||||
Cash and cash equivalents | $ 94,255 | $ 26,387 | $ 21,955 | |
Restricted cash, current (included in cash, cash equivalents and restricted cash) | 0 | 0 | 97 | |
Restricted cash, non-current (included in other assets, non-current) | 103 | 101 | 86 | |
Total cash, cash equivalents and restricted cash | $ 94,358 | $ 26,488 | $ 22,138 | $ 30,626 |
Other Financial Information - A
Other Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Financial Information [Abstract] | ||
Accounts receivable, gross | $ 12,189 | $ 13,287 |
Allowance for doubtful accounts | (397) | (308) |
Accounts receivable, net | $ 11,792 | $ 12,979 |
Other Financial Information -_2
Other Financial Information - Allowance for Doubtful Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning of year | $ 308 | $ 396 | $ 103 |
Changes to reserves | 95 | 17 | 336 |
Collection of specific reserves | (6) | (105) | (43) |
Balance, end of year | $ 397 | $ 308 | $ 396 |
Other Financial Information - I
Other Financial Information - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Financial Information [Abstract] | ||
Raw materials | $ 4,260 | $ 3,742 |
Work in process | 2,360 | 2,141 |
Finished goods | 5,128 | 4,434 |
Inventories, net | $ 11,748 | $ 10,317 |
Other Financial Information -_3
Other Financial Information - Inventory Valuation Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Inventory valuation reserves | $ 0.5 | $ 0.4 |
COVID-19 | ||
Loss Contingencies [Line Items] | ||
Expense to product cost of revenue | $ 1.5 |
Other Financial Information - P
Other Financial Information - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Impairment of long-lived assets | $ 2,332 | $ 0 | $ 0 |
Total property and equipment | 52,587 | 48,479 | |
Less: Accumulated depreciation and amortization | (32,411) | (29,636) | |
Property and equipment, net | 20,176 | 18,843 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 30,283 | 27,664 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 14,520 | 10,485 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 3,422 | 3,210 | |
Office equipment, furniture, and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 3,493 | 3,011 | |
Automobiles | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 199 | 199 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 670 | $ 3,910 | |
Schlumberger Technology Corporation | VorTeq License Agreement | Affiliated Entity | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of long-lived assets | $ 2,300 |
Other Financial Information - D
Other Financial Information - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Financial Information [Abstract] | |||
Depreciation and amortization expense | $ 3,875 | $ 3,820 | $ 3,228 |
Other Financial Information -_4
Other Financial Information - Cloud Computing Arrangements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | |||
Cloud computing arrangements | $ 1,087,000 | $ 981,000 | |
Cloud computing arrangements, amortization expense | $ 190,000 | $ 0 | $ 0 |
Other Financial Information -_5
Other Financial Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Financial Information [Abstract] | ||||
Payroll, incentives and commissions payable | $ 8,400 | $ 6,040 | ||
Warranty reserve | 760 | 631 | $ 478 | $ 366 |
Other accrued expenses and current liabilities | 2,656 | 3,198 | ||
Total accrued expenses and other current liabilities | $ 11,816 | $ 9,869 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements - Financial Assets Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Transfer between Level 1 and Level 2 | $ 0 | $ 0 |
Transfers between Level 2 and Level 1 | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 79,454,000 | 85,780,000 |
Gross Unrealized Gains | 124,000 | 59,000 |
Gross Unrealized Losses | 0 | (16,000) |
Fair Value | 79,578,000 | 85,823,000 |
Cash equivalents | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 59,132,000 | 11,668,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 59,132,000 | 11,668,000 |
Short-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 20,322,000 | 58,697,000 |
Gross Unrealized Gains | 124,000 | 50,000 |
Gross Unrealized Losses | 0 | (11,000) |
Fair Value | 20,446,000 | 58,736,000 |
Long-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 0 | 15,415,000 |
Gross Unrealized Gains | 0 | 9,000 |
Gross Unrealized Losses | 0 | (5,000) |
Fair Value | 0 | 15,419,000 |
Total short and long-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 20,322,000 | 74,112,000 |
Gross Unrealized Gains | 124,000 | 59,000 |
Gross Unrealized Losses | 0 | (16,000) |
Fair Value | 20,446,000 | 74,155,000 |
Level 1 | Cash equivalents | Money Market Funds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 59,132,000 | 86,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 59,132,000 | 86,000 |
Level 2 | Cash equivalents | U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 0 | 11,582,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 11,582,000 |
Level 2 | Short-term investments | U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 1,614,000 | 2,746,000 |
Gross Unrealized Gains | 7,000 | 1,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,621,000 | 2,747,000 |
Level 2 | Short-term investments | Corporate notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 18,708,000 | 55,951,000 |
Gross Unrealized Gains | 117,000 | 49,000 |
Gross Unrealized Losses | 0 | (11,000) |
Fair Value | 18,825,000 | 55,989,000 |
Level 2 | Long-term investments | Corporate notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 0 | 15,415,000 |
Gross Unrealized Gains | 0 | 9,000 |
Gross Unrealized Losses | 0 | (5,000) |
Fair Value | 0 | 15,419,000 |
Measured On Recurring Basis | Level 3 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fair value of financial liabilities | 0 | 0 |
Total fair value of financial assets | $ 0 | $ 0 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Gross Unrealized Losses and Fair Values of Investments (Details) - Corporate notes and bonds - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 0 | $ 18,754 |
Gross Unrealized Losses | $ (16) |
Investments and Fair Value Me_5
Investments and Fair Value Measurements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sale of available-for sale securities | $ 10,573,000 | $ 7,608,000 | $ 0 |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sale of available-for sale securities | 0 | 2,043,000 | |
Corporate notes and bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sale of available-for sale securities | $ 10,573,000 | $ 5,565,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 12,790 | $ 12,790 |
Gross other intangible assets | 286 | 6,386 |
Accumulated amortization | (237) | (6,321) |
Intangible assets, net | 49 | 65 |
Goodwill and other intangible assets | $ 12,839 | $ 12,855 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Goodwill (Details) | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill impairment charge | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 286 | $ 6,386 |
Accumulated amortization | (237) | (6,321) |
Intangible assets, net | $ 49 | 65 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 10 years | |
Gross Carrying Amount | $ 0 | 6,100 |
Accumulated amortization | 0 | (6,100) |
Intangible assets, net | $ 0 | 0 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 18 years | |
Gross Carrying Amount | $ 286 | 286 |
Accumulated amortization | (237) | (221) |
Intangible assets, net | $ 49 | $ 65 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 16 | $ 575 | $ 630 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Intangible Asset Future Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 12 | |
2022 | 11 | |
2023 | 11 | |
2024 | 11 | |
2025 | 4 | |
Intangible assets, net | $ 49 | $ 65 |
Lines of Credit - Loan Agreemen
Lines of Credit - Loan Agreements and Stand-by Letters of Credit (Details) - USD ($) | Jan. 27, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Standby Letters of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of credit outstanding, amount | $ 13,300,000 | $ 11,800,000 | |
Loan and Pledge Agreement | |||
Line of Credit Facility [Line Items] | |||
Long-term debt | 0 | 0 | |
Letters of credit outstanding, amount | $ 0 | $ 0 | |
Loan and Pledge Agreement | Standby Letters of Credit | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, term | 3 years | ||
Term past expiration of agreement | 1 year | ||
Line of Credit | Loan and Pledge Agreement | Committed Revolving Credit Line | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 16,000,000 | ||
Line of Credit | Loan and Pledge Agreement | Uncommitted Revolving Credit Line | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 4,000,000 | ||
Line of Credit | Loan and Pledge Agreement | Standby Letters of Credit | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Basis spread on variable rate, event of default | 2.00% | ||
Unused capacity, commitment fee percentage | 0.20% | ||
Commitment fee percentage | 0.70% | ||
Line of Credit | Foreign Subsidiary | Loan and Pledge Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 66,000,000 | ||
Other Financial Institution | Line of Credit | Loan and Pledge Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 5,100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Right Of Use Asset and Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease, right of use asset | $ 16,090 | $ 11,195 |
Lease liabilities | 1,243 | 1,023 |
Lease liabilities, non-current | 16,443 | 11,533 |
Operating Lease, Liability | $ 17,686 | $ 12,556 |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Lease Obligations (Details) $ in Millions | Mar. 01, 2020USD ($)ft²term | Jan. 01, 2020USD ($)aft²term |
Office And Warehouse, Katy, TX | ||
Loss Contingencies [Line Items] | ||
Area of leased space | ft² | 25,200 | |
Area of land | a | 4.5 | |
Operating leases, rent expense (per month) | $ 0.3 | |
Operating leases, rent expense, annual increase, percent | 3.00% | |
Operating leases, rent expense, term of contract | $ 3.6 | |
Lease initial term | 120 months | |
Operating lease, number of renewal terms | term | 2 | |
Operating lease, renewal term | 5 years | |
Operating lease, renewal to extend lease, written notice period | 6 months | |
Tracy, California | Office And Warehouse Space, Tracy Lease | ||
Loss Contingencies [Line Items] | ||
Area of leased space | ft² | 54,429 | |
Operating leases, rent expense (per month) | $ 0.4 | |
Operating leases, rent expense, annual increase, percent | 3.00% | |
Operating leases, rent expense, term of contract | $ 5 | |
Lease initial term | 122 months | |
Operating lease, number of renewal terms | term | 1 | |
Operating lease, renewal term | 5 years | |
Operating lease, renewal to extend lease, written notice period | 9 months |
Commitments and Contingencies_3
Commitments and Contingencies - Lease Cost and Terms (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease expense | $ 2,589 | $ 1,894 | $ 1,888 |
Cash payments | 2,398 | 1,824 | 964 |
Non-cash lease liabilities arising from obtaining right-of-use assets | $ 6,384 | $ 0 | $ 10,411 |
Commitments and Contingencies_4
Commitments and Contingencies - Weighted Average Lease Term and Discount Rate (Details) | Dec. 31, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term | 8 years 4 months 24 days |
Weighted average discount rate | 7.00% |
Commitments and Contingencies_5
Commitments and Contingencies - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2021 | $ 2,431 | |
2022 | 2,650 | |
2023 | 2,580 | |
2024 | 2,812 | |
2025 | 2,736 | |
2026 and thereafter | 10,462 | |
Total | 23,671 | |
Less imputed lease interest | (5,985) | |
Total lease liabilities | $ 17,686 | $ 12,556 |
Commitments and Contingencies_6
Commitments and Contingencies - Product Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Provision for warranty claims | $ 403 | $ 402 | $ 326 |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty reserve balance, beginning of year | 631 | 478 | 366 |
Warranty costs charged to cost of revenue | 403 | 402 | 340 |
Utilization charges against reserve | (36) | (56) | (48) |
Release of accrual related to expired warranties | (238) | (193) | (180) |
Warranty reserve balance, end of year | $ 760 | $ 631 | $ 478 |
Commitments and Contingencies_7
Commitments and Contingencies - Purchase Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term purchase commitment | $ 6.3 |
Commitments and Contingencies_8
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Retention payments, percentage | 10.00% | |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, current carrying value | $ 0 | $ 0 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Retention payments, payment period after product delivery | 24 months | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Retention payments, payment period after product delivery | 36 months |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 32,046 | $ 12,180 | $ 12,139 |
Foreign | 87 | 76 | (699) |
Total income before income taxes | 32,133 | 12,256 | 11,440 |
Federal | (148) | (120) | (297) |
State | 5 | 3 | (2) |
Foreign | 40 | 66 | 25 |
Current tax benefit | (103) | (51) | (274) |
Federal | 5,547 | 949 | (9,773) |
State | 302 | 445 | (606) |
Total deferred tax provision (benefit) | 5,849 | 1,394 | (10,379) |
Total provision for (benefit from) income taxes | $ 5,746 | $ 1,343 | $ (10,653) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | ||||
Provision for (benefit from) income taxes | $ 5,746,000 | $ 1,343,000 | $ (10,653,000) | |
U.S. federal research credits | (1,000,000) | |||
Tax deductions from stock-based compensation | (700,000) | (500,000) | (800,000) | |
Deferred tax expense | 300,000 | |||
Tax Cuts And Jobs Act of 2017, transition tax for accumulated foreign earnings, provisional income tax expense (benefit) | (12,300,000) | |||
Deferred tax assets, gross | 23,522,000 | 26,523,000 | ||
Valuation allowance | 4,403,000 | 3,933,000 | ||
Unrecognized tax benefits | 1,134,000 | $ 963,000 | $ 1,162,000 | $ 911,000 |
Unrecognized tax benefits that would impact effective tax rate | 700,000 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 0 | |||
California | ||||
Income Tax Examination [Line Items] | ||||
Tax credit carryforward, valuation allowance | 3,100,000 | |||
Ireland | ||||
Income Tax Examination [Line Items] | ||||
Valuation allowance | $ 1,300,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal taxes at statutory rate | 21.00% | 21.00% | 21.00% |
State income tax, net of federal benefit | 1.00% | 4.00% | (6.00%) |
Deferred tax re-measurement - Change in tax rates | 0.00% | 0.00% | 1.00% |
Foreign rate differential | 0.00% | 0.00% | (1.00%) |
Change in tax status of foreign operations | 0.00% | 0.00% | (102.00%) |
Stock-based compensation | (2.00%) | (1.00%) | (3.00%) |
Non-deductible expenses | 1.00% | 2.00% | 1.00% |
Federal research credits | (3.00%) | (16.00%) | (6.00%) |
Valuation allowance | 0.00% | 0.00% | 3.00% |
Other | 0.00% | 1.00% | (1.00%) |
Effective tax rate | 18.00% | 11.00% | (93.00%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 6,285 | $ 6,488 |
Accruals and reserves | 3,852 | 8,922 |
Operating lease liabilities | 3,848 | 2,750 |
Research and development, and foreign tax credit carry forwards | 8,851 | 7,533 |
Acquired intangibles | 641 | 804 |
Charitable contributions | 45 | 26 |
Total deferred tax assets | 23,522 | 26,523 |
Valuation allowance | (4,403) | (3,933) |
Net deferred tax assets | 19,119 | 22,590 |
Deferred tax liabilities: | ||
Depreciation on property and equipment | (2,985) | (1,854) |
Right of use asset | (3,489) | (2,443) |
Unrecognized gain on translation of foreign currency | (54) | (33) |
Goodwill | (1,561) | (1,363) |
Total deferred tax liabilities | (8,089) | (5,693) |
Net deferred tax asset | $ 11,030 | $ 16,897 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 41,332 | $ 42,356 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 19,913 | 21,153 |
California | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 11,043 | 11,840 |
Ireland | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 10,376 | $ 9,363 |
Income Taxes - Tax Credit Carry
Income Taxes - Tax Credit Carryforwards (Details) - Research And Development, Minimum Tax and Foreign Tax Credit Carryforward - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 9,680 | $ 8,270 |
Federal | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 5,733 | 4,761 |
California | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 3,947 | $ 3,509 |
Income Taxes - Changes in Gross
Income Taxes - Changes in Gross Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits, beginning of year | $ 963 | $ 1,162 | $ 911 |
Prior year tax position | 9 | 27 | 0 |
Current year tax position | 167 | 163 | 251 |
Prior year tax position | (5) | (389) | 0 |
Gross unrecognized tax benefits, end of year | $ 1,134 | $ 963 | $ 1,162 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred and Common Stock (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity Note [Abstract] | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares issued (in shares) | 61,798,004 | 60,717,702 |
Common stock, shares outstanding (in shares) | 56,342,069 | 55,261,767 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Program (Details) | Mar. 09, 2021USD ($) |
March 2021 Authorization | Subsequent Event | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock repurchase program, authorized amount | $ 50,000,000 |
Stock-based Compensation - Plan
Stock-based Compensation - Plan Information (Details) | 12 Months Ended |
Dec. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Expiration period | 10 years |
2020 Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 5,894,727 |
Common stock, capital shares reserved for future issuance (in shares) | 4,500,000 |
Number of shares available for grant (in shares) | 5,885,313 |
2020 Incentive Plan | Employee Stock Options Created under New Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock, capital shares reserved for future issuance (in shares) | 1,394,727 |
2020 Incentive Plan | Employee Stock Options Unissued under Prior Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock, capital shares reserved for future issuance (in shares) | 4,850,630 |
Predecessor Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant (in shares) | 0 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Options, Restricted Stock Awards and Restricted Stock Units (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Expiration period | 10 years | |||
Shares outstanding (in shares) | 687,000 | 544,000 | 463,000 | 274,000 |
Former President and Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional stock-based compensation | $ 0.9 | |||
Former Chairman Of Board Of Directors And President And CEO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional stock-based compensation | $ 0.6 | |||
Restricted Stock Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding (in shares) | 0 | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Award vesting rights percentage | 25.00% | |||
Conversion ratio | 1 |
Stock-based Compensation - Blac
Stock-based Compensation - Black-Scholes Option Pricing Model Assumptions (Details) - Employee Stock Option | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected life (years) | 5 years 1 month 6 days | 4 years 7 months 6 days | 4 years 2 months 12 days |
Weighted average expected volatility | 71.70% | 75.90% | 67.40% |
Weighted average dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.29% | 1.55% | 2.48% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.32% | 2.57% | 3.01% |
Stock-based Compensation - Shar
Stock-based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 4,794 | $ 5,681 | $ 5,240 |
Former Chairman Of Board Of Directors And President And CEO | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Accelerated Cost | 600 | ||
Former President and Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Accelerated Cost | 900 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 3,004 | 3,940 | 3,873 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 1,790 | 1,741 | 1,367 |
Product cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 135 | 130 | 87 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 2,615 | 3,090 | 3,266 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 893 | 836 | 694 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 1,151 | $ 1,625 | $ 1,193 |
Stock-based Compensation - Forf
Stock-based Compensation - Forfeiture Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock options and RSUs vested over 4-years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Forfeiture rate | 11.20% | 11.60% | 14.90% |
Stock-based Compensation - Unam
Stock-based Compensation - Unamortized Compensation Cost and Grant Date Fair Value (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized Compensation Costs | $ 10,127 |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized Compensation Costs | $ 5,189 |
Weighted Average Service Period | 2 years 6 months |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized Compensation Costs | $ 4,938 |
Weighted Average Service Period | 2 years 8 months 12 days |
Stock-based Compensation - St_2
Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 3,927 | 4,982 | 5,092 |
Granted (in shares) | 806 | 568 | 1,232 |
Exercised (in shares) | (926) | (1,133) | (1,160) |
Forfeited (in shares) | (187) | (490) | (182) |
Ending balance (in shares) | 3,620 | 3,927 | 4,982 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning balance, Weighted Average Exercise Price (in dollars per share) | $ 6.66 | $ 6.36 | $ 5.43 |
Granted, weighted average exercise price (in dollars per share) | 8.78 | 8.31 | 7.96 |
Exercised, weighted average exercise price (in dollars per share) | 4.79 | 5.36 | 3.73 |
Forfeited, weighted average exercise price (in dollars per share) | 9.15 | 8.49 | 3.98 |
Ending balance, Weighted average exercise price (in dollars per share) | $ 7.48 | $ 6.66 | $ 6.36 |
Weighted Average Remaining Contractual Life | 6 years 7 months 6 days | ||
Aggregate Intrinsic Value | $ 22,293 | ||
Aggregate intrinsic value, exercised | $ 4,637 | $ 4,781 | $ 4,735 |
Vested and exercisable options (in shares) | 2,427 | ||
Vested and exercisable options, weighted average exercise price (in dollars per share) | $ 6.99 | ||
Vested and exercisable options, weighted average remaining contractual term | 5 years 7 months 6 days | ||
Vested and exercisable options, Aggregate Intrinsic Value | $ 16,153 | ||
Vested and exercisable, and expected to vest options (in shares) | 3,484 | ||
Vested and exercisable, and expected to vest options, weighted average exercise price (in dollars per share) | $ 7.44 | ||
Vested and exercisable, and expected to vest options, weighted average remaining contractual life | 6 years 6 months | ||
Vested and exercisable, and expected to vest options, aggregate intrinsic value | $ 21,602 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Units Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 544 | 463 | 274 |
Awarded (in shares) | 368 | 415 | 279 |
Vested (in shares) | (161) | (201) | (90) |
Forfeited (in shares) | (64) | (133) | |
Ending balance (in shares) | 687 | 544 | 463 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance, Weighted average grant-date fair value (in dollars per share) | $ 7.95 | $ 8.49 | $ 9.54 |
Awarded, Weighted average grant-date fair value (in dollars per share) | 10.33 | 7.80 | 7.74 |
Vested, Weighted average grant-date fair value, (in dollars per share) | 8.12 | 8.62 | 9.33 |
Forfeited, Weighted average grant-date fair value (in dollars per share) | 8.86 | 8.37 | |
Ending balance, Weighted average grant-date fair value (in dollars per share) | $ 9.10 | $ 7.95 | $ 8.49 |
Stock-based Compensation - Vest
Stock-based Compensation - Vested Stock Options and RSUs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total grant date fair value of stock options and RSUs vested during the period | $ 4,225 | $ 5,758 | $ 4,448 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total grant date fair value of stock options and RSUs vested during the period | 2,915 | 4,025 | 3,607 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total grant date fair value of stock options and RSUs vested during the period | $ 1,310 | $ 1,733 | $ 841 |
Segment Reporting - Summary of
Segment Reporting - Summary of Financial Information by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 118,986 | $ 86,942 | $ 74,515 |
General and administrative | 25,519 | 22,832 | 21,476 |
Sales and marketing | 8,127 | 9,434 | 7,546 |
Research and development | 23,449 | 23,402 | 17,012 |
Amortization of intangible assets | 16 | 575 | 630 |
Impairment of long-lived assets | 2,332 | 0 | 0 |
Total operating expenses | 59,443 | 56,243 | 46,664 |
Income from operations | 31,294 | 10,364 | 9,978 |
Other income, net | 839 | 1,892 | 1,462 |
Income before income taxes | 32,133 | 12,256 | 11,440 |
Water | |||
Segment Reporting Information [Line Items] | |||
Revenue | 92,061 | 72,730 | 60,511 |
Oil & Gas | |||
Segment Reporting Information [Line Items] | |||
Revenue | 26,925 | 14,212 | 14,004 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
General and administrative | 4,254 | 3,077 | 3,849 |
Sales and marketing | 6,070 | 7,813 | 7,047 |
Research and development | 18,832 | 22,910 | 16,987 |
Amortization of intangible assets | 16 | 575 | 629 |
Impairment of long-lived assets | 2,332 | 0 | 0 |
Total operating expenses | 31,504 | 34,375 | 28,512 |
Income from operations | 59,233 | 32,232 | 28,130 |
Operating Segments | Water | |||
Segment Reporting Information [Line Items] | |||
General and administrative | 2,196 | 1,501 | 2,078 |
Sales and marketing | 5,958 | 7,072 | 5,783 |
Research and development | 2,973 | 3,825 | 1,711 |
Amortization of intangible assets | 16 | 575 | 629 |
Impairment of long-lived assets | 0 | 0 | 0 |
Total operating expenses | 11,143 | 12,973 | 10,201 |
Income from operations | 52,679 | 39,609 | 33,100 |
Operating Segments | Oil & Gas | |||
Segment Reporting Information [Line Items] | |||
General and administrative | 2,058 | 1,576 | 1,771 |
Sales and marketing | 112 | 741 | 1,264 |
Research and development | 15,859 | 19,085 | 15,276 |
Amortization of intangible assets | 0 | 0 | 0 |
Impairment of long-lived assets | 2,332 | 0 | 0 |
Total operating expenses | 20,361 | 21,402 | 18,311 |
Income from operations | 6,554 | (7,377) | (4,970) |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Total operating expenses | 27,939 | 21,868 | 18,152 |
Product | |||
Segment Reporting Information [Line Items] | |||
Revenue | 92,091 | 72,834 | 61,025 |
Product cost of revenue | 28,249 | 20,335 | 17,873 |
Product gross profit | 63,842 | 52,499 | 43,152 |
Product | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 92,091 | 72,834 | 61,025 |
Product cost of revenue | 28,249 | 20,335 | 17,873 |
Product gross profit | 63,842 | 52,499 | 43,152 |
Product | Operating Segments | Water | |||
Segment Reporting Information [Line Items] | |||
Revenue | 92,061 | 72,730 | 60,512 |
Product cost of revenue | 28,239 | 20,148 | 17,211 |
Product gross profit | 63,822 | 52,582 | 43,301 |
Product | Operating Segments | Oil & Gas | |||
Segment Reporting Information [Line Items] | |||
Revenue | 30 | 104 | 513 |
Product cost of revenue | 10 | 187 | 662 |
Product gross profit | 20 | (83) | (149) |
License and development | |||
Segment Reporting Information [Line Items] | |||
Revenue | 26,895 | 14,108 | 13,490 |
License and development | Water | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
License and development | Oil & Gas | |||
Segment Reporting Information [Line Items] | |||
Revenue | 26,895 | 14,108 | 13,490 |
License and development | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 26,895 | 14,108 | 13,490 |
License and development | Operating Segments | Water | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
License and development | Operating Segments | Oil & Gas | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 26,895 | $ 14,108 | $ 13,490 |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation and Amortization Expense by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | $ 3,891 | $ 4,395 | $ 3,869 |
Operating Segments | Water | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 1,354 | 1,824 | 2,060 |
Operating Segments | Oil & Gas | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 2,125 | 2,251 | 1,377 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | $ 412 | $ 320 | $ 432 |
Concentrations - Product Revenu
Concentrations - Product Revenue by Geographic Locations (Details) - Product Revenue | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
United States | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 2.00% | 2.00% | 3.00% |
International | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 98.00% | 98.00% | 97.00% |
Saudi Arabia | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 34.00% | 29.00% | 31.00% |
United Arab Emirates | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 18.00% | 10.00% | |
Egypt | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10.00% | 17.00% | |
Others | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 38.00% | 61.00% | 52.00% |
Concentrations - Product Reve_2
Concentrations - Product Revenue Concentrations (Details) - Product Revenue | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Percentage of product revenue | 100.00% | 100.00% | 100.00% |
Water | Customer A | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of product revenue | 27.00% | ||
Water | Customer B | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of product revenue | 23.00% | 19.00% | |
Water | Customer C | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of product revenue | 15.00% | ||
Water | Customer D | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of product revenue | 11.00% |
Concentrations - License and De
Concentrations - License and Development (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Product Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Concentrations - Major Supply V
Concentrations - Major Supply Vendors (Details) - Major Supply Vendors - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Vendor A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 19.00% | 22.00% |
Vendor B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16.00% | 13.00% |
VorTeq Partnership and Licens_2
VorTeq Partnership and License Agreement (Details) $ in Thousands | Oct. 14, 2015USD ($)payment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Revenue | $ 118,986 | $ 86,942 | $ 74,515 | ||
VorTeq License Agreement | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
VorTeq license agreement payments | $ 125,000 | ||||
Up front non-refundable payment | $ 75,000 | ||||
Number of milestone payments | payment | 2 | ||||
VorTeq milestone payment to be received | $ 25,000 | ||||
License and development | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Revenue | $ 26,895 | $ 14,108 | $ 13,490 | ||
License and development | Affiliated Entity | Schlumberger Technology Corporation | VorTeq License Agreement | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Up front non-refundable payment | $ 75,000 | ||||
Revenue | $ 24,400 |