Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 16, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,060 | ||
Entity Common Stock, Shares Outstanding (in shares) | 56,279,294 | ||
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 2023 Annual Meeting of Stockholders, which is expected to be filed not later than 120 days after the registrant’s fiscal year ended December 31, 2022. | ||
Entity Central Index Key | 0001421517 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | San Francisco, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 56,354 | $ 74,358 |
Short-term investments | 33,479 | 31,332 |
Accounts receivable, net | 34,062 | 20,615 |
Inventories, net | 28,366 | 20,383 |
Prepaid expenses and other assets | 5,606 | 5,075 |
Total current assets | 157,867 | 151,763 |
Long-term investments | 3,058 | 2,298 |
Deferred tax assets, net | 10,263 | 11,421 |
Property and equipment, net | 19,580 | 20,361 |
Operating lease, right of use asset | 13,115 | 14,653 |
Goodwill and other intangible assets | 12,790 | 12,827 |
Other assets, non-current | 366 | 367 |
Total assets | 217,039 | 213,690 |
Current liabilities: | ||
Accounts payable | 814 | 909 |
Accrued expenses and other liabilities | 14,693 | 13,994 |
Lease liabilities | 1,600 | 1,564 |
Contract liabilities | 1,195 | 3,318 |
Total current liabilities | 18,302 | 19,785 |
Lease liabilities, non-current | 13,278 | 14,879 |
Other liabilities, non-current | 121 | 247 |
Total liabilities | 31,701 | 34,911 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding at December 31, 2022 and 2021 | 0 | 0 |
Common stock, $0.001 par value; 200,000,000 shares authorized; 64,225,391 shares issued and 56,076,879 shares outstanding at December 31, 2022 and 63,544,419 shares issued and 56,823,266 shares outstanding at December 31, 2021 | 64 | 64 |
Additional paid-in capital | 204,957 | 195,593 |
Accumulated other comprehensive loss | (349) | (149) |
Treasury stock, at cost, 8,148,512 shares repurchased at December 31, 2022 and 6,721,153 shares repurchased at December 31, 2021 | (80,486) | (53,832) |
Retained earnings | 61,152 | 37,103 |
Total stockholders’ equity | 185,338 | 178,779 |
Total liabilities and stockholders’ equity | $ 217,039 | $ 213,690 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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) | 64,225,391 | 63,544,419 |
Common stock, shares outstanding (in shares) | 56,076,879 | 56,823,266 |
Treasury stock, at cost (in shares) | 8,148,512 | 6,721,153 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 125,591 | $ 103,904 | $ 118,986 |
Operating expenses: | |||
General and administrative | 28,341 | 25,174 | 25,535 |
Sales and marketing | 16,277 | 12,160 | 8,127 |
Research and development | 17,909 | 20,069 | 23,449 |
Impairment of long-lived assets | 0 | 0 | 2,332 |
Total operating expenses | 62,527 | 57,403 | 59,443 |
Income from operations | 24,829 | 13,831 | 31,294 |
Other income (expense): | |||
Interest income | 908 | 204 | 913 |
Other non-operating income (expense), net | 334 | (31) | (74) |
Total other income, net | 1,242 | 173 | 839 |
Income before income taxes | 26,071 | 14,004 | 32,133 |
Provision for (benefit from) income taxes | 2,022 | (265) | 5,746 |
Net income | $ 24,049 | $ 14,269 | $ 26,387 |
Net income per share: | |||
Basic (in dollars per share) | $ 0.43 | $ 0.25 | $ 0.47 |
Diluted (in dollars per share) | $ 0.42 | $ 0.24 | $ 0.47 |
Number of shares used in per share calculations: | |||
Basic (in shares) | 56,221 | 56,993 | 55,709 |
Diluted (in shares) | 57,641 | 58,723 | 56,637 |
Cost, product and service, extensible enumeration | Product | Product | Product |
Product | |||
Revenue | $ 125,591 | $ 103,904 | $ 92,091 |
Cost of product revenue | 38,235 | 32,670 | 28,249 |
Product gross profit | 87,356 | 71,234 | 63,842 |
License and development | |||
Revenue | $ 0 | $ 0 | $ 26,895 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 24,049 | $ 14,269 | $ 26,387 |
Other comprehensive (loss) income, net of tax | |||
Foreign currency translation adjustments | 15 | (68) | 26 |
Unrealized (loss) gain on investments | (215) | (134) | 64 |
Total other comprehensive (loss) income, net of tax | (200) | (202) | 90 |
Comprehensive income | $ 23,849 | $ 14,067 | $ 26,477 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive (loss) income | Treasury stock | Retained earnings |
Beginning balance at Dec. 31, 2019 | $ 61 | $ 170,028 | $ (37) | $ (30,486) | $ (3,553) | |
Beginning balance (in shares) at Dec. 31, 2019 | 60,717,702 | |||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2019 | 5,455,935 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | $ 1 | 4,373 | ||||
Issuance of common stock (in shares) | 1,080,302 | |||||
Stock-based compensation | 4,760 | |||||
Foreign currency translation adjustments | 26 | |||||
Unrealized (loss) gain on investments | 64 | |||||
Total other comprehensive (loss) income, net of tax | $ 90 | 90 | ||||
Common stock repurchased | $ 0 | |||||
Net income | 26,387 | 26,387 | ||||
Common stock repurchased (in shares) | 0 | |||||
Ending balance at Dec. 31, 2020 | $ 171,624 | $ 62 | 179,161 | 53 | $ (30,486) | 22,834 |
Ending balance (in shares) at Dec. 31, 2020 | 56,342,069 | 61,798,004 | ||||
Ending balance, treasury stock (in shares) at Dec. 31, 2020 | 5,455,935 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | $ 2 | 10,552 | ||||
Issuance of common stock (in shares) | 1,746,415 | |||||
Stock-based compensation | 5,880 | |||||
Foreign currency translation adjustments | (68) | |||||
Unrealized (loss) gain on investments | (134) | |||||
Total other comprehensive (loss) income, net of tax | $ (202) | (202) | ||||
Common stock repurchased | $ (23,346) | |||||
Net income | 14,269 | 14,269 | ||||
Common stock repurchased (in shares) | 1,265,218 | |||||
Ending balance at Dec. 31, 2021 | $ 178,779 | $ 64 | 195,593 | (149) | $ (53,832) | 37,103 |
Ending balance (in shares) at Dec. 31, 2021 | 56,823,266 | 63,544,419 | ||||
Ending balance, treasury stock (in shares) at Dec. 31, 2021 | 6,721,153 | 6,721,153 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | $ 0 | 2,986 | ||||
Issuance of common stock (in shares) | 680,972 | |||||
Stock-based compensation | 6,378 | |||||
Foreign currency translation adjustments | 15 | |||||
Unrealized (loss) gain on investments | (215) | |||||
Total other comprehensive (loss) income, net of tax | $ (200) | (200) | ||||
Common stock repurchased | $ (26,654) | |||||
Net income | 24,049 | 24,049 | ||||
Common stock repurchased (in shares) | 1,427,359 | |||||
Ending balance at Dec. 31, 2022 | $ 185,338 | $ 64 | $ 204,957 | $ (349) | $ (80,486) | $ 61,152 |
Ending balance (in shares) at Dec. 31, 2022 | 56,076,879 | 64,225,391 | ||||
Ending balance, treasury stock (in shares) at Dec. 31, 2022 | 8,148,512 | 8,148,512 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 24,049 | $ 14,269 | $ 26,387 |
Adjustments to reconcile net income to cash provided by operating activities | |||
Stock-based compensation | 6,508 | 6,053 | 4,787 |
Depreciation and amortization | 4,764 | 4,502 | 3,891 |
ROU asset depreciation | 1,538 | 1,437 | 1,408 |
Amortization of premiums and discounts on investments | 680 | 570 | 390 |
Deferred income taxes | 1,158 | (391) | 5,867 |
Impairment of long-lived assets | 0 | 0 | 2,332 |
Other non-cash adjustments | (201) | 955 | 395 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (13,480) | (8,823) | 1,098 |
Contract assets | (1,227) | 1,399 | (1,200) |
Inventories, net | (8,282) | (8,766) | (1,622) |
Prepaid and other assets | 138 | 314 | 415 |
Accounts payable | 138 | (155) | (205) |
Accrued expenses and other liabilities | (1,062) | 396 | 153 |
Contract liabilities | (2,090) | 1,766 | (27,226) |
Net cash provided by operating activities | 12,631 | 13,526 | 16,870 |
Cash flows from investing activities: | |||
Sales of marketable securities | 0 | 0 | 10,573 |
Maturities of marketable securities | 39,756 | 35,019 | 55,667 |
Purchases of marketable securities | (43,572) | (48,903) | (12,855) |
Capital expenditures | (4,232) | (6,684) | (6,785) |
Proceeds from sales of fixed assets | 1,102 | 5 | 0 |
Net cash (used in) provided by investing activities | (6,946) | (20,563) | 46,600 |
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 2,986 | 10,554 | 4,397 |
Tax payment for employee shares withheld | 0 | 0 | (23) |
Repurchase of common stock | (26,654) | (23,346) | 0 |
Net cash (used in) provided by financing activities | (23,668) | (12,792) | 4,374 |
Effect of exchange rate differences on cash and cash equivalents | (20) | (68) | 26 |
Net change in cash, cash equivalents and restricted cash | (18,003) | (19,897) | 67,870 |
Cash, cash equivalents and restricted cash, beginning of year | 74,461 | 94,358 | 26,488 |
Cash, cash equivalents and restricted cash, end of year | 56,458 | 74,461 | 94,358 |
Supplemental disclosure of cash flow information: | |||
Cash received for income tax refunds | 2 | 270 | 13 |
Cash paid for income taxes | 549 | 76 | 52 |
Supplemental disclosure on non-cash investing and financing transactions: | |||
Purchases of property and equipment in trade accounts payable, and accrued expenses and other liabilities | 740 | 421 | 322 |
Non-cash lease liabilities arising from obtaining right of use assets | $ 0 | $ 0 | $ 6,384 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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”) designs and manufactures solutions that make industrial processes more efficient and sustainable. Leveraging the Company’s pressure exchanger technology, which generates little to no emissions when operating, the Company’s solutions lower costs, save energy, reduce waste and minimize emissions for companies across a variety of industrial processes. As the world coalesces around the urgent need to address climate change and its impacts, the Company is helping companies reduce their energy consumption in their industrial processes, which in turn, reduces their carbon footprint. The Company believes that its customers do not have to sacrifice quality and cost savings for sustainability and is committed to developing solutions that drive long-term value – both financial and environmental. The Company’s solutions are marketed, sold in, or developed for, the fluid-flow and gas markets, such as seawater and industrial wastewater desalination, natural gas, chemical processing and refrigeration systems, under the trademarks ERI ® , PX ® , Pressure Exchanger ® , PX ® Pressure Exchanger ® (“PX”), Ultra PX ™ , PX G ™ , PX G1300 ™ ,PX PowerTrain ™ , AT ™ , and Aquabold ™ . The Company owns, manufactures and/or develops its solutions, in whole or in part, in the United States of America (the “U.S.”). Basis of Presentation The Consolidated Financial Statements include the accounts of Energy Recovery, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Reclassifications Certain prior period amounts have been reclassified in the Consolidated Statements of Operations, 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 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; useful life and valuation of equipment; valuation and impairment of goodwill; inventory; deferred taxes and valuation allowances on deferred tax assets; evaluation and measurement of contingencies, and warranty obligations. Those estimates could change, and as a result, actual results could differ materially from those estimates. Although there has been uncertainty and disruption in the global economy, supply chain 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 February 22, 2023, 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 Consolidated Balance Sheets. Cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents may include 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, such as U.S. treasury securities, corporate notes and bonds, and municipal and agency notes and bonds, 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 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. The following table presents the estimated useful life, or range of useful lives, of the Company’s property and equipment. Maintenance and repairs are charged directly to expense as incurred. Minimum Maximum Machinery and equipment (excluding equipment used for manufacturing of ceramic components) ) 3 years 7 years Machinery and equipment used for manufacturing of ceramic components 3 years 10 years Leasehold improvements (1) 1 year 6.4 years Software (2) 3 years 5 years Office equipment, furniture, and fixtures 3 years 5 years Automobiles 1 year 7 years (1) 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. See Note 7, Commitments and Contingencies, §Operating Lease Obligations, for further discussion of lease terms. (2) Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and implementation costs . 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 1 year. 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 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 lease ROU assets are recognized net of any lease prepayments and incentives. Based on materiality, the Company accounts 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. The Company applies lease modifications that change the contractual terms and conditions of a lease, that were 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 Our goodwill represents the excess of the purchase price of a business combination over the fair value of the net assets acquired. 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. Goodwill impairment testing requires significant judgment and management estimates, including, but not limited to, the determination of (i) the number of reporting units, (ii) the goodwill and other assets and liabilities to be allocated to the reporting units and (iii) the fair values of the reporting units. The estimates and assumptions described above, along with other factors such as discount rates, will significantly affect the outcome of the impairment tests and the amounts of any resulting impairment losses. We perform a quantitative assessment of goodwill for impairment on an annual basis during the third quarter of each year, and between annual tests, a qualitative assessment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If these interim qualitative factors were to indicate that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying value, we would then perform a quantitative assessment, which would consist primarily of a discounted cash flow (“DCF”) analysis to determine the fair value of the reporting unit’s goodwill. The forecast of future cash flows, which is based on the Company’s best estimate of future net sales and operating expenses, is 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. To the extent the carrying amount of the reporting unit’s allocated goodwill exceeds the unit’s fair value, we recognize an impairment of goodwill for the excess up to the amount of goodwill of that reporting unit. 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 related to 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. Performance obligations are identified and the total transaction price is allocated to the performance obligations at execution of the contract. 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 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 generally bundle performance obligations in the Water segment. Performance obligations consist of delivery of products, such as the Company’s PXs, hydraulic turbochargers, pumps and spare parts. Service obligations, 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 or delivery 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 or delivery 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 material. 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 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. License and Development Revenue Recognition - Emerging Technologies Segment 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 a license agreement by taking the transaction to market on a non-exclusive basis, and pricing in an exclusivity premium. Since the license agreement included an up-front non-refundable payment at the inception 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 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 license and development 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 license agreement. In June 2020, the license agreement was terminated and all unrecognized future revenue under the license agreement was recognized in the second quarter of fiscal year 2020. 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 a Black-Scholes (also referred to as the “Black-Scholes-Merton”) model, which requires a number of complex assumptions including the expected life to exercise a vested award based upon the Company’s exercise history, 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 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 8, “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 March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The FASB later issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, to clarify the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848 (“ASU 2021-01”). Entities may apply the provisions of the new standards 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. On July 15, 2022, the Company amended its existing credit agreement (as defined in Note 6, “Lines of Credit”) to change the reference rate for borrowings from LIBOR to the Secured Overnight Financing Rate (“SOFR”). The Company applied ASU 2020-04 and the optional expedients at the time of this modification. The Company’s adoption of ASU 2020-04 and ASU 2021-01 on July 15, 2022, did not have a material impact on the Company’s financial condition, results of operations, and cash flows. Refer to Note 6, “Lines of Credit,” for more information. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The Company classifies its product revenue by 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. Sales and usage-based taxes are excluded from revenues. See Note 9, “Segment Reporting,” for further discussion related to the Company’s segments. The following table presents the disaggregated revenues by segment, and within each segment, by product type and service line, by primary geographical market based on the customer “shipped to” address, and by product revenue by channel customers. Years Ended December 31, 2022 2021 2020 Water Emerging Technologies Total Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Product type and service line PXs, pumps and turbo devices, and other $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 $ 92,061 $ 30 $ 92,091 License and development — — — — — — — 26,895 26,895 Total revenue $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 $ 92,061 $ 26,925 $ 118,986 Primary geographical market Middle East and Africa $ 86,227 $ 94 $ 86,321 $ 78,348 $ 53 $ 78,401 $ 73,963 $ — $ 73,963 Asia 24,777 — 24,777 18,639 — 18,639 7,363 — 7,363 Americas 8,544 34 8,578 3,264 — 3,264 7,274 26,925 34,199 Europe 5,880 35 5,915 3,600 — 3,600 3,461 — 3,461 Total revenue $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 $ 92,061 $ 26,925 $ 118,986 Product revenue by channel Megaproject $ 81,755 $ 133 $ 81,888 $ 75,338 $ 53 $ 75,391 $ 66,763 $ — $ 66,763 Original equipment manufacturer 28,858 — 28,858 17,604 — 17,604 15,834 — 15,834 Aftermarket 14,815 30 14,845 10,909 — 10,909 9,464 30 9,494 Total product revenue $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 $ 92,061 $ 30 $ 92,091 Contract Balances The following table presents contract balances by category. December 31, 2022 2021 (In thousands) Accounts receivable, net $ 34,062 $ 20,615 Contract assets, current (included in prepaid expenses and other assets) 1,720 493 Contract liabilities: Contract liabilities, current $ 1,195 $ 3,318 Contract liabilities, non-current (included in other liabilities, non-current) 121 88 Total contract liabilities $ 1,316 $ 3,406 Contract Liabilities The Company records contract liabilities, which consist of customer deposits and deferred revenue, 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, 2022 2021 2020 (In thousands) Contract liabilities, beginning of year $ 3,406 $ 1,640 $ 28,866 Revenue recognized (3,123) (1,415) (28,414) Cash received, excluding amounts recognized as revenue during the period 1,033 3,181 1,188 Contract liabilities, end of year $ 1,316 $ 3,406 $ 1,640 Future Performance Obligations As of December 31, 2022, the following table presents the future estimated revenue by year expected to be recognized related to performance obligations that are unsatisfied or partially unsatisfied. Year Future Performance Obligations (In thousands) 2023 $ 5,456 2024 7,493 Total $ 12,949 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income 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 net income per common share. • Basic net income per common share excludes any dilutive effect of stock options and RSUs. • Diluted net income 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 if the shares of common stock underlying each unvested RSU were issued. Outstanding stock options to purchase common stock and unvested RSUs are collectively referred to as “stock awards.” The following table presents the computation of basic and diluted net income per common share. Years Ended December 31, 2022 2021 2020 (In thousands, except per share amounts) Numerator Net income $ 24,049 $ 14,269 $ 26,387 Denominator (weighted average shares) Basic common shares outstanding 56,221 56,993 55,709 Dilutive stock awards 1,420 1,730 928 Diluted common shares outstanding 57,641 58,723 56,637 Net income per share Basic $ 0.43 $ 0.25 $ 0.47 Diluted $ 0.42 $ 0.24 $ 0.47 Certain shares of common stock issuable under stock awards have been omitted from the diluted net income per common share calculations because their inclusion is considered anti-dilutive. The following table presents the weighted potential common shares issuable under stock awards that were excluded from the computation of diluted net income per common share. Years Ended December 31, 2022 2021 2020 (In thousands) Anti-dilutive stock award shares 374 17 2,185 |
Other Financial Information
Other Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
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, such as cash amounts deposited in restricted cash accounts in connection with the Company’s credit cards, reported within the Consolidated Balance Sheets that sum to the total of such amounts presented. December 31, 2022 2021 2020 (In thousands) Cash and cash equivalents $ 56,354 $ 74,358 $ 94,255 Restricted cash, non-current (included in other assets, non-current) 104 103 103 Total cash, cash equivalents and restricted cash $ 56,458 $ 74,461 $ 94,358 Accounts Receivable, net December 31, 2022 2021 (In thousands) Accounts receivable, gross $ 34,210 $ 20,732 Allowance for doubtful accounts (148) (117) Accounts receivable, net $ 34,062 $ 20,615 Allowance for Doubtful Accounts The following table presents the allowance for doubtful accounts activities. Years Ended December 31, 2022 2021 2020 (In thousands) Balance, beginning of year $ 117 $ 397 $ 308 Changes to reserves (1) 36 — 95 Collection of specific reserves and uncollectible accounts written off, net of recoveries (5) (280) (6) Balance, end of year $ 148 $ 117 $ 397 (1) General and specific reserves charged to expense. Inventories, net December 31, 2022 2021 (In thousands) Raw materials $ 11,178 $ 7,352 Work in process 2,628 3,406 Finished goods 15,062 10,274 Inventories, gross 28,868 21,032 Valuation adjustments for excess and obsolete inventory (502) (649) Inventories, net $ 28,366 $ 20,383 Prepaid Expenses and Other Assets December 31, 2022 2021 (In thousands) Contract assets $ 1,720 $ 493 Cloud computing arrangement implementation costs 784 1,041 Supplier advances 1,308 1,717 Other prepaid expenses and other assets 1,794 1,824 Total prepaid expenses and other assets $ 5,606 $ 5,075 December 31, 2022 2021 (In thousands) Machinery and equipment $ 28,545 $ 29,777 Leasehold improvements 17,576 15,224 Software 1,799 3,300 Office equipment, furniture, and fixtures 2,950 2,890 Automobiles 246 240 Construction in progress 2,407 3,296 Total property and equipment 53,523 54,727 Less: Accumulated depreciation and amortization (33,943) (34,366) Total property and equipment, net $ 19,580 $ 20,361 Years Ended December 31, 2022 2021 2020 (In thousands) Depreciation and amortization expense $ 4,727 $ 4,490 $ 3,875 Goodwill and Other Intangible Assets December 31, 2022 2021 (In thousands) Goodwill $ 12,790 $ 12,790 Other intangible assets Other intangible assets, gross 193 193 Accumulated amortization (193) (156) Other intangible assets, net — 37 Total goodwill and other intangible assets $ 12,790 $ 12,827 Goodwill Goodwill is tested for impairment annually in the third quarter 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, 2022, the Company estimated the fair value of its reporting units using both the discounted cash flow and market approaches, as well as considered the impact of the decision to cease the VorTeq commercialization efforts. The forecast of future cash flows, which is based on the Company’s best estimate of future net sales and operating expenses, is 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. The analysis performed indicated that the fair value of each reporting unit that is allocated goodwill significantly exceeds its carrying value. During the six months ended December 31, 2022 (the period subsequent to the annual impairment test), the Company continued to actively monitor the industries in which it operates and its business performance for indicators of potential impairment. During the six months ended December 31, 2022, no impairment charge was recorded. Other Intangible Assets Other intangible assets represents patents acquired. There was no impairment of intangible assets recorded during the years ended December 31, 2022, 2021 and 2020. As of December 31, 2022, the other intangible asset carrying value was fully amortized. Accrued Expenses and Other Liabilities December 31, 2022 2021 (In thousands) Current Payroll, incentives and commissions payable $ 10,479 $ 10,170 Warranty reserve 968 879 Other accrued expenses and other liabilities 3,246 2,945 Total accrued expenses and other liabilities 14,693 13,994 Other liabilities, non-current 121 247 Total accrued expenses, and current and non-current other liabilities $ 14,814 $ 14,241 Accumulated Other Comprehensive (Loss) Income There were no reclassifications of amounts out of accumulated other comprehensive loss for the years ended December 31, 2022, 2021, and 2020, as there have been no sales of securities or translation adjustments that impacted other comprehensive loss during these periods. The tax impact of the changes in accumulated other comprehensive loss for the years ended December 31, 2022, 2021 and 2020, 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, 2022, 2021 and 2020. |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Fair Value Disclosure [Abstract] | |
Investments and Fair Value Measurements | Investments and Fair Value Measurements Available-for-Sale Investments The Company’s investments in investment-grade short-term and long-term marketable debt instruments, such as U.S. treasury securities, corporate notes and bonds, and municipal and agency notes and bonds, are classified as available-for-sale. Available-for-sale investments are classified on the Consolidated Balance Sheets as either short-term and/or long-term investments. The classification of available-for-sale investments on the Consolidated Balance Sheets and definition of each of these classifications are presented in Note 1, “Description of Business and Significant Accounting Policies - Significant Accounting Policies,” subsections “Cash and Cash Equivalents” and “Short-term and Long-term Investments.” Expected maturities can differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. The Company generally holds available-for-sale investments until maturity; however, from time-to-time, the Company may elect to sell certain available-for-sale investments prior to contractual maturity. 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, thereby 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 pricing category, amortized cost, gross unrealized gains and losses, and fair value. As of the dates reported in the table, the Company had no financial liabilities and no Level 3 financial assets. December 31, 2022 December 31, 2021 Pricing Category Amortized Gross Gross Fair Amortized Gross Gross Fair (In thousands) Cash equivalents Money market securities Level 1 $ 33,268 $ — $ — $ 33,268 $ 50,865 $ — $ — $ 50,865 Short-term investments U.S. treasury securities Level 2 3,629 1 — 3,630 — — — — Corporate notes and bonds Level 2 26,060 — (208) 25,852 31,371 — (39) 31,332 Municipal and agency notes and bonds Level 2 3,992 5 — 3,997 — — — — Total short-term investments 33,681 6 (208) 33,479 31,371 — (39) 31,332 Long-term investments Corporate notes and bonds Level 2 3,178 — (120) 3,058 2,307 — (9) 2,298 Total short and long-term investments 36,859 6 (328) 36,537 33,678 — (48) 33,630 Total $ 70,127 $ 6 $ (328) $ 69,805 $ 84,543 $ — $ (48) $ 84,495 December 31, 2022 December 31, 2021 Fair Gross Fair Gross (In thousands) Corporate notes and bonds $ 28,911 $ (328) $ 33,630 $ (48) |
Lines of Credit
Lines of Credit | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Lines of Credit | Lines of Credit Credit Agreement The Company entered into a credit agreement with JPMorgan Chase Bank, N.A. (“JPMC”) on December 22, 2021 (“Credit Agreement”). The Credit Agreement, which will expire on December 21, 2026, provides a committed revolving credit line of $50.0 million. The Credit Agreement requires the Company to comply with various covenants, including among other things, financial covenants to 1) maintain a leverage ratio of consolidated net debt to adjusted EBITDA, not to exceed 3.0 to 1; and 2) limit annual capital expenditures. The Credit Agreement allows the Company to, among other things, make distributions to shareholders, repurchase its stock, incur other debt or liens, or acquire or dispose of assets provided that the Company complies with certain requirements and limitations set forth in the Credit Agreement. The unused portion of the credit line is subject to a fee equal to 0.20% per annum multiplied by the amount of such unused portion. On July 15, 2022, the Company and JPMC agreed to a modification of the Credit Agreement to change the indicated reference rate from LIBOR to SOFR. Changes in the Credit Agreement reference rate to SOFR did not materially change the provisions defined in the original Credit Agreement nor did this change materially affect the Company’s financial statements. Revolving Loans Revolving loans under the Credit Agreement may be in the form of 1) a base rate loan that bears interest equal to (a) the greater of the Wall Street Journal prime rate and (b) the sum of (i) one-month reserve adjusted Secured Overnight Financing Rate (“SOFR”) and (ii) 2.50%, plus an applicable margin of 0.25% or 0.50%, subject to the Company’s total leverage ratio, or 2) a Eurodollar loan that bears interest equal to the sum of the reserved adjusted SOFR rate for an interest period elected by the Company, plus an applicable margin of 1.25% or 1.50%, based upon the Company’s total leverage ratio. The Company may request loans up to the lower of a maximum exposure of $50.0 million or the amounts of unused credit under the Credit Agreement. The unused portion of the credit facility is subject to a facility fee in an amount equal to 0.20% per annum of the average unused portion of the revolving line. At the election of the lender following an event of default, the loans shall bear the aforementioned interest rate plus an additional 2%. As of December 31, 2022, there were no revolving loans outstanding under the Credit Agreement. Letters of Credit Under the Credit Agreement, the Company is allowed to request LCs up to the lower of a maximum exposure of $25.0 million or the amounts of unused credit under the Credit Agreement. The Credit Agreement does not require any cash collateral when LCs are issued; however, at the election of the lender following a default, the lender may require the Company to deposit cash in an amount equal to 103% of the LCs exposure. LCs are subject to customary fees and expenses for issuance or renewal, and all disbursements are subject to the same interest rate provision as noted directly above under Revolving Loans. LCs are limited to a term of one year, unless extended. Under the LCs component, the Company utilized $16.7 million of the maximum allowable credit line of $25.0 million, which includes newly issued LCs, and previously issued and unexpired stand-by letters of credits (“SBLCs”) and certain non-expired commitments under the Company’s previous Loan and Pledge Agreement with Citibank, N.A. which are guaranteed under the Credit Agreement. The following table presents the total outstanding LCs and SBLCs issued by the Company to our customers related to product warranty and performance guarantees. December 31, 2022 2021 (In thousands) Outstanding letters of credit $ 15,487 $ 13,960 See Note 7, “Commitments and Contingencies – Guarantees,” for further discussion on product warranty and performance guarantees. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Obligations The Company leases office, warehouse and manufacturing facilities under operating leases in San Leandro, CA, Tracy, CA and Katy, TX that expire on various dates through fiscal year 2030. The following table presents a summary of operating lease, right of use assets and lease liabilities. December 31, 2022 2021 (In thousands) Operating lease, right of use asset $ 13,115 $ 14,653 Lease liabilities, current $ 1,600 $ 1,564 Lease liabilities, non-current 13,278 14,879 Total lease liability $ 14,878 $ 16,443 The following table presents operating lease activities related to all leased properties. Years Ended December 31, 2022 2021 2020 (In thousands) Operating lease expense $ 2,571 $ 2,571 $ 2,589 Cash payments 2,650 2,431 2,398 The following table presents other information related to outstanding operating leases as of December 31, 2022. Weighted average remaining lease term 6.4 years Weighted average discount rate 7.0% As of December 31, 2022, the following table presents the minimum lease payments by year under noncancelable operating leases, exclusive of execution costs. Year Lease Liabilities (In thousands) 2023 $ 2,580 2024 2,812 2025 2,736 2026 2,982 2027 3,072 2028 and thereafter 4,406 Total future minimum lease payments 18,588 Less imputed lease interest (3,710) Total lease liabilities $ 14,878 Warranty The following table presents the changes in the Company’s accrued product warranty reserve. Years Ended December 31, 2022 2021 2020 (In thousands) Warranty reserve balance, beginning of year $ 879 $ 760 $ 631 Warranty costs charged to cost of revenue 483 445 403 Utilization charges against reserve (64) (16) (36) Release of accrual related to expired warranties (330) (310) (238) Warranty reserve balance, end of year $ 968 $ 879 $ 760 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, 2022. 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, 2022, the Company had approximately $5.0 million of such open cancellable purchase order arrangements. Litigation From time-to-time, the Company has been named in and subject to various proceedings and claims in connection with its business. The Company may in the future become involved in litigation in the ordinary course of business, including litigation that could be material to its business. The Company considers all claims, if any, 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, 2022, the Company was not involved in any lawsuits, therefore there were no material losses which were probable or reasonably possible. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income 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, 2022 2021 2020 (In thousands) Income before income taxes: U.S. $ 25,918 $ 13,913 $ 32,046 Foreign 153 91 87 Total income before income taxes $ 26,071 $ 14,004 $ 32,133 Current tax provision (benefit): Federal $ 698 $ — $ (148) State 22 10 5 Foreign 84 80 40 Current tax provision (benefit) 804 90 (103) Deferred tax provision (benefit): Federal 1,104 (382) 5,547 State 114 27 302 Total deferred tax provision (benefit) 1,218 (355) 5,849 Total provision for (benefit from) income taxes $ 2,022 $ (265) $ 5,746 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, 2022 2021 2020 U.S. federal taxes at statutory rate 21 % 21 % 21 % State income tax, net of federal benefit 1 — 1 Foreign rate differential — 1 — Stock-based compensation (4) (18) (2) Non-deductible expenses 1 1 1 Federal research credits (4) (7) (3) Foreign derived intangible income (7) — — Effective tax rate 8 % (2 %) 18 % 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, 2022 2021 (In thousands) Deferred tax assets: Net operating loss carry forwards $ 702 $ 4,119 Amortization of research and experimental expenditures 3,605 — Accruals and reserves 4,320 4,054 Operating lease liabilities 3,199 3,581 Research and development, and foreign tax credit carry forwards 9,642 10,393 Acquired intangibles 321 483 Other 66 53 Total deferred tax assets 21,855 22,683 Valuation allowance (4,185) (3,644) Total deferred tax assets, net of valuation allowance 17,670 19,039 Deferred tax liabilities: Depreciation on property and equipment (2,646) (2,644) Right of use asset (2,809) (3,184) Other — (20) Goodwill (1,952) (1,770) Total deferred tax liabilities (7,407) (7,618) Net deferred tax asset $ 10,263 $ 11,421 In asserting the recoverability of deferred tax assets, the Company 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. In 2021, the Company dissolved its entity in Ireland. As a result of this dissolution, all Ireland net operating loss carryovers and related valuation allowance were eliminated. On the basis of this evaluation, as of December 31, 2022, 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 $4.2 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. The Company continues to assert that the accumulated foreign earnings of its subsidiaries in Spain and Canada are permanently reinvested. Due to the U.S. Tax Cuts and Jobs Act (“Tax Act”) enacted in 2017, 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 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 the Company’s net operating loss carryforwards by taxing authority. Expiration Year December 31, 2022 2021 (In thousands) Federal N/A $ — $ 15,864 California 2031 9,549 10,744 Total net operating loss carryforwards $ 9,549 $ 26,608 Utilization of the net operating loss carryforward may be subject to a substantial annual limitation due to the ownership change limitations provided by the California Revenue and Taxation Code. 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 following table presents the Company’s R&D credit by taxing authority, minimum tax credit and foreign tax credit carryforwards. Expiration Year December 31, 2022 2021 (In thousands) Federal 2035 $ 5,441 $ 6,737 California No Expiration Date 5,318 4,628 Total credit carryforwards $ 10,759 $ 11,365 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, 2022 2021 2020 (In thousands) Gross unrecognized tax benefits, beginning of year $ 1,321 $ 1,134 $ 963 Additions: Prior year tax position 157 — 9 Current year tax position 27 193 167 Reductions: Prior year tax position — (6) (5) Gross unrecognized tax benefits, end of year $ 1,505 $ 1,321 $ 1,134 As of December 31, 2022, the Company had unrecognized tax benefits of $1.5 million, of which $0.9 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, 2022, there was 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, 2022, 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. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingThe Company’s chief operating decision-maker (“CODM”) is its chief executive officer. 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. Income and type of expense activities that are included in the Water and Emerging Technologies segments and corporate operating expenses are as follows: Water segment: The continued development, sales and support of the PX, Turbochargers and pumps used in seawater desalination and industrial wastewater activities. Emerging Technologies segment: The continued development, sales and support of activities related to emerging technologies, such as the PX G1300 used in industrial and commercial refrigeration applications . Corporate operating expenses: Corporate activities outside of the operating segments, such as audit and accounting expenses, general legal costs, board of director fees and expenses, and other separately managed general expenses not related to the identified segments. Segment Financial Information For each of the periods presented, operating income (loss) for each segment excludes other income and expenses, and corporate operating expenses not included in how the CODM assesses the performance of the operating segments, such as income taxes and other separately managed expenses not attributed to the operating segments. Assets and liabilities are reviewed at the consolidated level by the CODM and are not attributed to the segments. The CODM allocates resources to, and assesses the performance of, each operating segment using information about its revenue and operating income. The following table presents a summary of the Company’s financial information by segment and corporate operating expenses. Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 (Recast) Water Emerging Technologies Total Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Product revenue $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 $ 92,061 $ 30 $ 92,091 Product cost of revenue 38,158 77 38,235 32,670 — 32,670 28,239 10 28,249 Product gross profit 87,270 86 87,356 71,181 53 71,234 63,822 20 63,842 License and development revenue (1) — — — — — — — 26,895 26,895 Operating expenses General and administrative 6,936 4,104 11,040 6,342 5,162 11,504 9,188 5,410 14,598 Sales and marketing 11,065 3,047 14,112 9,559 937 10,496 5,958 1,192 7,150 Research and development 4,151 13,758 17,909 2,589 17,480 20,069 2,973 20,476 23,449 Impairment of long-lived assets — — — — — — — 2,332 2,332 Total operating expenses 22,152 20,909 43,061 18,490 23,579 42,069 18,119 29,410 47,529 Operating income (loss) $ 65,118 $ (20,823) 44,295 $ 52,691 $ (23,526) 29,165 $ 45,703 $ (2,495) 43,208 Less: Corporate operating expenses 19,466 15,334 11,914 Income from operations $ 24,829 $ 13,831 $ 31,294 (1) In June 2020, the Company and Schlumberger entered into an agreement to terminate the VorTeq License Agreement. The termination of the VorTeq License Agreement was effective June 1, 2020. As there were no future performance obligations to be recognized under the VorTeq License Agreement after the effective date, the Company recognized in full the remaining deferred revenue balance of $24.4 million in the second quarter of fiscal year 2020. In addition, no future license and development revenue was recognized under the VorTeq License Agreement after the second quarter of fiscal year 2020. The following table presents a summary of the Company’s depreciation and amortization by segment and corporate operating expenses. Years Ended December 31, 2022 2021 2020 (In thousands) Water $ 2,141 $ 1,823 $ 1,354 Emerging Technologies 1,864 2,199 2,125 Corporate 759 480 412 Total depreciation and amortization $ 4,764 $ 4,502 $ 3,891 |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Product revenue by geographic location: United States 1% 1% 2% International 99% 99% 98% Total product revenue 100% 100% 100% Product revenue by country: (1) Saudi Arabia 47% 36% 34% United Arab Emirates ** 17% 18% Israel ** 14% ** Egypt ** ** 10% Others (2) 53% 33% 38% Total 100% 100% 100% ** Zero or less than 10%. (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. Water Segment Product Revenue The following table presents the Water segment customers that account for 10% or more of the Company’s Water segment product revenues. Although certain customers might account for greater than 10% of product revenues at any one point in time, the concentration of product revenue between a limited number of customers shifts regularly, depending on timing of shipments. The percentages by customer reflect specific relationships or contracts that would concentrate product revenue for the periods presented and do not indicate a trend specific to any one customer. Years Ended December 31, 2022 2021 2020 Customer A ** 21% 27% Customer B 15% 10% 23% Customer C 18% 11% ** Customer D ** 16% ** Customer E 11% ** ** ** Zero or less than 10%. Emerging Technology Segment Product, and License and Development Revenue The following table presents the Emerging Technologies segment customers that account for 10% or more of the Company’s Emerging Technologies segment revenues. Years Ended December 31, 2022 2021 2020 Customer A 57% 100% ** Customer B ** ** 100% Customer C 21% ** ** Customer D 19% ** ** ** Zero or less than 10%. Long-lived Assets All of the Company’s long-lived assets were located in the United States at December 31, 2022 and 2021. 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. Years Ended December 31, 2022 2021 2020 Vendor A 21% 24% 16% Vendor B 19% 16% 19% Vendor C 13% ** ** Vendor D ** 12% ** ** Zero or less than 10%. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ 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, 2022 and 2021, 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. On March 9, 2021, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase its outstanding common stock, at the discretion of management, up to $50.0 million in aggregate cost, which includes both the share value of the acquired common stock and the fees charged in connection with acquiring the common stock (the “March 2021 Authorization”). Under the March 2021 Authorization, purchases of shares of common stock may be made from time to time in the open market, or in privately negotiated transactions, in compliance with applicable state and federal securities laws. The March 2021 Authorization does not obligate the Company to acquire any specific number of shares in any period, and may be expanded, extended, modified or discontinued at any time without prior notice. On July 1, 2022, the Company concluded all share repurchases under the March 2021 Authorization. The following table presents the share repurchase activities under the March 2021 Authorization as of December 31, 2022. Period Number of Shares Purchased Average Price Paid per Share (1) Plan Activity (2) (In thousands) (In thousands) 2021 1,427 $ 18.65 $ 23,346 2022 1,265 18.43 26,654 Total (3) 2,693 18.55 (1) Excluding commissions (2) Including commissions (3) Amount may not total due to rounding |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based CompensationNote 12 — Stock-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, and the Amended and Restated 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, 2022 were 4,637,883 shares. There were no shares available for grant under the Predecessor Plans after July 15, 2020. Stock Options Stock options outstanding at December 31, 2022 and to be granted subsequently after December 31, 2022, generally vest over four years and expire no more than 10 years after the date of grant. Non-employee board of director grants generally vest one year after the date of grant or on the date of the annual stockholders’ meeting following the date of grant, whichever date occurs first, and expire no more than 10 years after the date of grant. Restricted Stock Awards There were no RSAs outstanding as of December 31, 2022. Restricted Stock Units RSUs outstanding at, and to be awarded subsequently after, December 31, 2022, generally vest 25% annually over the four years from date of grant and are dependent upon continued employment. Non-employee board of director grants generally vest one year after the date of grant or on the date of the annual stockholders’ meeting following the date of grant, whichever date occurs first. As RSUs vest, the units will be settled in shares of common stock based on a one-to-one ratio. The units are 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, 2022 2021 2020 Weighted average expected life (years) 4.1 4.0 5.1 Weighted average expected volatility 48.7% 49.3% 71.7% Risk-free interest rate 1.44% – 3.90% 0.30% – 1.51% 0.29% – 1.32% 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, 2022 2021 2020 (In thousands) Stock-based compensation expense charged to: Product cost of revenue $ 506 $ 414 $ 135 General and administrative 3,436 2,917 2,615 Sales and marketing 1,592 1,483 893 Research and development 977 1,242 1,151 Total stock-based compensation expense $ 6,511 $ 6,056 $ 4,794 Stock-based compensation expense by type of award: Stock options $ 2,837 $ 3,161 $ 3,004 RSUs 3,674 2,895 1,790 Total stock-based compensation expense $ 6,511 $ 6,056 $ 4,794 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 weighted average forfeiture rates used in determining the expense in the stock-based compensation expense table above. Years Ended December 31, 2022 2021 2020 Stock options and RSUs vested over 4-years 9.2% 8.1% 11.2% 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, 2022. Unamortized Compensation Costs Weighted Average Service Period (In thousands) (In years) Stock options $ 7,126 1.5 RSUs 8,159 2.4 Total unamortized compensation costs, net of adjusted forfeitures $ 15,285 Stock Option Activities The following table presents stock option activities under the Equity Incentive Plans. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) (In thousands) (Per share) (In years) (In thousands) 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 Granted 613 14.39 Exercised (1,518) 6.96 $ 16,952 Forfeited (171) 11.26 Balance, December 31, 2021 2,544 9.21 Granted 403 19.13 Exercised (429) 7.32 $ 6,387 Forfeited (97) 13.66 Balance, December 31, 2022 2,421 $ 11.02 6.6 $ 22,944 Vested and exercisable as of December 31, 2022 1,622 $ 8.85 5.7 $ 18,878 Vested and exercisable as of December 31, 2022 and expected to vest thereafter 2,360 $ 10.88 6.5 $ 22,682 (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, 2022 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, 2022 or the last trading day prior to December 31, 2022. Restricted Stock Unit Activities The following table presents RSU activities under the Equity Incentive Plans. Number of Shares Weighted Average Grant Date Fair Value (In thousands) (Per share) 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 Awarded 387 15.44 Vested (230) 8.98 Forfeited (150) 11.14 Balance, December 31, 2021 694 12.23 Awarded 322 19.61 Vested (268) 12.03 Forfeited (60) 15.16 Balance, December 31, 2022 688 15.51 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, 2022 2021 2020 (In thousands) Stock options $ 2,683 $ 3,298 $ 2,915 RSUs 3,226 2,060 1,310 Total grant date fair value of stock options and RSUs vested during the period $ 5,909 $ 5,358 $ 4,225 |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Consolidated Financial Statements include the accounts of Energy Recovery, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Reclassifications | Certain prior period amounts have been reclassified in the Consolidated Statements of Operations, 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 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; useful life and valuation of equipment; valuation and impairment of goodwill; inventory; deferred taxes and valuation allowances on deferred tax assets; evaluation and measurement of contingencies, and warranty obligations. Those estimates could change, and as a result, actual results could differ materially from those estimates. Although there has been uncertainty and disruption in the global economy, supply chain 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 February 22, 2023, 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 Consolidated Balance Sheets. Cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents may include 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, such as U.S. treasury securities, corporate notes and bonds, and municipal and agency notes and bonds, 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 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. The following table presents the estimated useful life, or range of useful lives, of the Company’s property and equipment. Maintenance and repairs are charged directly to expense as incurred. Minimum Maximum Machinery and equipment (excluding equipment used for manufacturing of ceramic components) ) 3 years 7 years Machinery and equipment used for manufacturing of ceramic components 3 years 10 years Leasehold improvements (1) 1 year 6.4 years Software (2) 3 years 5 years Office equipment, furniture, and fixtures 3 years 5 years Automobiles 1 year 7 years (1) 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. See Note 7, Commitments and Contingencies, §Operating Lease Obligations, for further discussion of lease terms. (2) Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and implementation costs . |
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 1 year. 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 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 lease ROU assets are recognized net of any lease prepayments and incentives. Based on materiality, the Company accounts 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. The Company applies lease modifications that change the contractual terms and conditions of a lease, that were 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 | Our goodwill represents the excess of the purchase price of a business combination over the fair value of the net assets acquired. 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. Goodwill impairment testing requires significant judgment and management estimates, including, but not limited to, the determination of (i) the number of reporting units, (ii) the goodwill and other assets and liabilities to be allocated to the reporting units and (iii) the fair values of the reporting units. The estimates and assumptions described above, along with other factors such as discount rates, will significantly affect the outcome of the impairment tests and the amounts of any resulting impairment losses. We perform a quantitative assessment of goodwill for impairment on an annual basis during the third quarter of each year, and between annual tests, a qualitative assessment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If these interim qualitative factors were to indicate that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying value, we would then perform a quantitative assessment, which would consist primarily of a discounted cash flow (“DCF”) analysis to determine the fair value of the reporting unit’s goodwill. The forecast of future cash flows, which is based on the Company’s best estimate of future net sales and operating expenses, is 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. To the extent the carrying amount of the reporting unit’s allocated goodwill exceeds the unit’s fair value, we recognize an impairment of goodwill for the excess up to the amount of goodwill of that reporting unit. |
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. |
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. Performance obligations are identified and the total transaction price is allocated to the performance obligations at execution of the contract. 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 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 generally bundle performance obligations in the Water segment. Performance obligations consist of delivery of products, such as the Company’s PXs, hydraulic turbochargers, pumps and spare parts. Service obligations, 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 or delivery 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 or delivery 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 material. 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 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. License and Development Revenue Recognition - Emerging Technologies Segment 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 a license agreement by taking the transaction to market on a non-exclusive basis, and pricing in an exclusivity premium. Since the license agreement included an up-front non-refundable payment at the inception 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 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 license and development 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 license agreement. In June 2020, the license agreement was terminated and all unrecognized future revenue under the license agreement was recognized in the second quarter of fiscal year 2020. The Company classifies its product revenue by 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. Sales and usage-based taxes are excluded from revenues. See Note 9, “Segment Reporting,” for further discussion related to the Company’s segments. |
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. |
Litigation | The Company considers all claims, if any, 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. |
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 a Black-Scholes (also referred to as the “Black-Scholes-Merton”) model, which requires a number of complex assumptions including the expected life to exercise a vested award based upon the Company’s exercise history, 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 | The Company’s reporting currency is the U.S. dollar. The functional currency of the Company’s 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 8, “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. |
Advertising Expenses | Advertising ExpenseAdvertising expense is charged to operations during the year in which it is incurred. |
Recently Adopted Accounting Pronouncement | In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The FASB later issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, to clarify the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848 (“ASU 2021-01”). Entities may apply the provisions of the new standards 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. On July 15, 2022, the Company amended its existing credit agreement (as defined in Note 6, “Lines of Credit”) to change the reference rate for borrowings from LIBOR to the Secured Overnight Financing Rate (“SOFR”). The Company applied ASU 2020-04 and the optional expedients at the time of this modification. The Company’s adoption of ASU 2020-04 and ASU 2021-01 on July 15, 2022, did not have a material impact on the Company’s financial condition, results of operations, and cash flows. Refer to Note 6, “Lines of Credit,” for more information. |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Useful Lives for Property and Equipment | The following table presents the estimated useful life, or range of useful lives, of the Company’s property and equipment. Maintenance and repairs are charged directly to expense as incurred. Minimum Maximum Machinery and equipment (excluding equipment used for manufacturing of ceramic components) ) 3 years 7 years Machinery and equipment used for manufacturing of ceramic components 3 years 10 years Leasehold improvements (1) 1 year 6.4 years Software (2) 3 years 5 years Office equipment, furniture, and fixtures 3 years 5 years Automobiles 1 year 7 years (1) 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. See Note 7, Commitments and Contingencies, §Operating Lease Obligations, for further discussion of lease terms. (2) Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and implementation costs . |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the disaggregated revenues by segment, and within each segment, by product type and service line, by primary geographical market based on the customer “shipped to” address, and by product revenue by channel customers. Years Ended December 31, 2022 2021 2020 Water Emerging Technologies Total Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Product type and service line PXs, pumps and turbo devices, and other $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 $ 92,061 $ 30 $ 92,091 License and development — — — — — — — 26,895 26,895 Total revenue $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 $ 92,061 $ 26,925 $ 118,986 Primary geographical market Middle East and Africa $ 86,227 $ 94 $ 86,321 $ 78,348 $ 53 $ 78,401 $ 73,963 $ — $ 73,963 Asia 24,777 — 24,777 18,639 — 18,639 7,363 — 7,363 Americas 8,544 34 8,578 3,264 — 3,264 7,274 26,925 34,199 Europe 5,880 35 5,915 3,600 — 3,600 3,461 — 3,461 Total revenue $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 $ 92,061 $ 26,925 $ 118,986 Product revenue by channel Megaproject $ 81,755 $ 133 $ 81,888 $ 75,338 $ 53 $ 75,391 $ 66,763 $ — $ 66,763 Original equipment manufacturer 28,858 — 28,858 17,604 — 17,604 15,834 — 15,834 Aftermarket 14,815 30 14,845 10,909 — 10,909 9,464 30 9,494 Total product revenue $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 $ 92,061 $ 30 $ 92,091 |
Contract with Customer, Asset and Liability | The following table presents contract balances by category. December 31, 2022 2021 (In thousands) Accounts receivable, net $ 34,062 $ 20,615 Contract assets, current (included in prepaid expenses and other assets) 1,720 493 Contract liabilities: Contract liabilities, current $ 1,195 $ 3,318 Contract liabilities, non-current (included in other liabilities, non-current) 121 88 Total contract liabilities $ 1,316 $ 3,406 |
Contract With Customer, Contract Liability, Activity | The Company records contract liabilities, which consist of customer deposits and deferred revenue, 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, 2022 2021 2020 (In thousands) Contract liabilities, beginning of year $ 3,406 $ 1,640 $ 28,866 Revenue recognized (3,123) (1,415) (28,414) Cash received, excluding amounts recognized as revenue during the period 1,033 3,181 1,188 Contract liabilities, end of year $ 1,316 $ 3,406 $ 1,640 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | As of December 31, 2022, the following table presents the future estimated revenue by year expected to be recognized related to performance obligations that are unsatisfied or partially unsatisfied. Year Future Performance Obligations (In thousands) 2023 $ 5,456 2024 7,493 Total $ 12,949 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted net income per common share. Years Ended December 31, 2022 2021 2020 (In thousands, except per share amounts) Numerator Net income $ 24,049 $ 14,269 $ 26,387 Denominator (weighted average shares) Basic common shares outstanding 56,221 56,993 55,709 Dilutive stock awards 1,420 1,730 928 Diluted common shares outstanding 57,641 58,723 56,637 Net income per share Basic $ 0.43 $ 0.25 $ 0.47 Diluted $ 0.42 $ 0.24 $ 0.47 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the weighted potential common shares issuable under stock awards that were excluded from the computation of diluted net income per common share. Years Ended December 31, 2022 2021 2020 (In thousands) Anti-dilutive stock award shares 374 17 2,185 |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Financial Information [Abstract] | |
Restrictions on Cash and Cash Equivalents | The following table presents a reconciliation of cash, cash equivalents and restricted cash, such as cash amounts deposited in restricted cash accounts in connection with the Company’s credit cards, reported within the Consolidated Balance Sheets that sum to the total of such amounts presented. December 31, 2022 2021 2020 (In thousands) Cash and cash equivalents $ 56,354 $ 74,358 $ 94,255 Restricted cash, non-current (included in other assets, non-current) 104 103 103 Total cash, cash equivalents and restricted cash $ 56,458 $ 74,461 $ 94,358 |
Schedule of Accounts Receivable, net | December 31, 2022 2021 (In thousands) Accounts receivable, gross $ 34,210 $ 20,732 Allowance for doubtful accounts (148) (117) Accounts receivable, net $ 34,062 $ 20,615 |
Schedule of Allowance for Doubtful Accounts | The following table presents the allowance for doubtful accounts activities. Years Ended December 31, 2022 2021 2020 (In thousands) Balance, beginning of year $ 117 $ 397 $ 308 Changes to reserves (1) 36 — 95 Collection of specific reserves and uncollectible accounts written off, net of recoveries (5) (280) (6) Balance, end of year $ 148 $ 117 $ 397 (1) General and specific reserves charged to expense. |
Schedule of Inventories, Net | December 31, 2022 2021 (In thousands) Raw materials $ 11,178 $ 7,352 Work in process 2,628 3,406 Finished goods 15,062 10,274 Inventories, gross 28,868 21,032 Valuation adjustments for excess and obsolete inventory (502) (649) Inventories, net $ 28,366 $ 20,383 |
Schedule of Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets December 31, 2022 2021 (In thousands) Contract assets $ 1,720 $ 493 Cloud computing arrangement implementation costs 784 1,041 Supplier advances 1,308 1,717 Other prepaid expenses and other assets 1,794 1,824 Total prepaid expenses and other assets $ 5,606 $ 5,075 |
Schedule of Property and Equipment | December 31, 2022 2021 (In thousands) Machinery and equipment $ 28,545 $ 29,777 Leasehold improvements 17,576 15,224 Software 1,799 3,300 Office equipment, furniture, and fixtures 2,950 2,890 Automobiles 246 240 Construction in progress 2,407 3,296 Total property and equipment 53,523 54,727 Less: Accumulated depreciation and amortization (33,943) (34,366) Total property and equipment, net $ 19,580 $ 20,361 |
Schedule of Depreciation Expense | Years Ended December 31, 2022 2021 2020 (In thousands) Depreciation and amortization expense $ 4,727 $ 4,490 $ 3,875 |
Schedule of Intangible Assets and Goodwill | December 31, 2022 2021 (In thousands) Goodwill $ 12,790 $ 12,790 Other intangible assets Other intangible assets, gross 193 193 Accumulated amortization (193) (156) Other intangible assets, net — 37 Total goodwill and other intangible assets $ 12,790 $ 12,827 |
Schedule of Accrued Expenses and Other Liabilities | December 31, 2022 2021 (In thousands) Current Payroll, incentives and commissions payable $ 10,479 $ 10,170 Warranty reserve 968 879 Other accrued expenses and other liabilities 3,246 2,945 Total accrued expenses and other liabilities 14,693 13,994 Other liabilities, non-current 121 247 Total accrued expenses, and current and non-current other liabilities $ 14,814 $ 14,241 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 pricing category, amortized cost, gross unrealized gains and losses, and fair value. As of the dates reported in the table, the Company had no financial liabilities and no Level 3 financial assets. December 31, 2022 December 31, 2021 Pricing Category Amortized Gross Gross Fair Amortized Gross Gross Fair (In thousands) Cash equivalents Money market securities Level 1 $ 33,268 $ — $ — $ 33,268 $ 50,865 $ — $ — $ 50,865 Short-term investments U.S. treasury securities Level 2 3,629 1 — 3,630 — — — — Corporate notes and bonds Level 2 26,060 — (208) 25,852 31,371 — (39) 31,332 Municipal and agency notes and bonds Level 2 3,992 5 — 3,997 — — — — Total short-term investments 33,681 6 (208) 33,479 31,371 — (39) 31,332 Long-term investments Corporate notes and bonds Level 2 3,178 — (120) 3,058 2,307 — (9) 2,298 Total short and long-term investments 36,859 6 (328) 36,537 33,678 — (48) 33,630 Total $ 70,127 $ 6 $ (328) $ 69,805 $ 84,543 $ — $ (48) $ 84,495 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table presents a summary of the fair value and gross unrealized losses on the available-for-sale securities that have been in a continuous unrealized loss position, aggregated by type of investment instrument. The available-for-sale securities that were in an unrealized gain position have been excluded from the table. December 31, 2022 December 31, 2021 Fair Gross Fair Gross (In thousands) Corporate notes and bonds $ 28,911 $ (328) $ 33,630 $ (48) |
Lines of Credit (Tables)
Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents the total outstanding LCs and SBLCs issued by the Company to our customers related to product warranty and performance guarantees. December 31, 2022 2021 (In thousands) Outstanding letters of credit $ 15,487 $ 13,960 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 (In thousands) Operating lease, right of use asset $ 13,115 $ 14,653 Lease liabilities, current $ 1,600 $ 1,564 Lease liabilities, non-current 13,278 14,879 Total lease liability $ 14,878 $ 16,443 |
Lease, Cost | The following table presents operating lease activities related to all leased properties. Years Ended December 31, 2022 2021 2020 (In thousands) Operating lease expense $ 2,571 $ 2,571 $ 2,589 Cash payments 2,650 2,431 2,398 |
Lease, Term and Discount Rate | The following table presents other information related to outstanding operating leases as of December 31, 2022. Weighted average remaining lease term 6.4 years Weighted average discount rate 7.0% |
Lessee, Operating Lease, Liability, Maturity | As of December 31, 2022, the following table presents the minimum lease payments by year under noncancelable operating leases, exclusive of execution costs. Year Lease Liabilities (In thousands) 2023 $ 2,580 2024 2,812 2025 2,736 2026 2,982 2027 3,072 2028 and thereafter 4,406 Total future minimum lease payments 18,588 Less imputed lease interest (3,710) Total lease liabilities $ 14,878 |
Schedule of Product Warranty Liability | The following table presents the changes in the Company’s accrued product warranty reserve. Years Ended December 31, 2022 2021 2020 (In thousands) Warranty reserve balance, beginning of year $ 879 $ 760 $ 631 Warranty costs charged to cost of revenue 483 445 403 Utilization charges against reserve (64) (16) (36) Release of accrual related to expired warranties (330) (310) (238) Warranty reserve balance, end of year $ 968 $ 879 $ 760 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 (In thousands) Income before income taxes: U.S. $ 25,918 $ 13,913 $ 32,046 Foreign 153 91 87 Total income before income taxes $ 26,071 $ 14,004 $ 32,133 Current tax provision (benefit): Federal $ 698 $ — $ (148) State 22 10 5 Foreign 84 80 40 Current tax provision (benefit) 804 90 (103) Deferred tax provision (benefit): Federal 1,104 (382) 5,547 State 114 27 302 Total deferred tax provision (benefit) 1,218 (355) 5,849 Total provision for (benefit from) income taxes $ 2,022 $ (265) $ 5,746 |
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, 2022 2021 2020 U.S. federal taxes at statutory rate 21 % 21 % 21 % State income tax, net of federal benefit 1 — 1 Foreign rate differential — 1 — Stock-based compensation (4) (18) (2) Non-deductible expenses 1 1 1 Federal research credits (4) (7) (3) Foreign derived intangible income (7) — — Effective tax rate 8 % (2 %) 18 % |
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, 2022 2021 (In thousands) Deferred tax assets: Net operating loss carry forwards $ 702 $ 4,119 Amortization of research and experimental expenditures 3,605 — Accruals and reserves 4,320 4,054 Operating lease liabilities 3,199 3,581 Research and development, and foreign tax credit carry forwards 9,642 10,393 Acquired intangibles 321 483 Other 66 53 Total deferred tax assets 21,855 22,683 Valuation allowance (4,185) (3,644) Total deferred tax assets, net of valuation allowance 17,670 19,039 Deferred tax liabilities: Depreciation on property and equipment (2,646) (2,644) Right of use asset (2,809) (3,184) Other — (20) Goodwill (1,952) (1,770) Total deferred tax liabilities (7,407) (7,618) Net deferred tax asset $ 10,263 $ 11,421 |
Summary of Operating Loss Carryforwards | The following table presents the Company’s net operating loss carryforwards by taxing authority. Expiration Year December 31, 2022 2021 (In thousands) Federal N/A $ — $ 15,864 California 2031 9,549 10,744 Total net operating loss carryforwards $ 9,549 $ 26,608 |
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. Expiration Year December 31, 2022 2021 (In thousands) Federal 2035 $ 5,441 $ 6,737 California No Expiration Date 5,318 4,628 Total credit carryforwards $ 10,759 $ 11,365 |
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, 2022 2021 2020 (In thousands) Gross unrecognized tax benefits, beginning of year $ 1,321 $ 1,134 $ 963 Additions: Prior year tax position 157 — 9 Current year tax position 27 193 167 Reductions: Prior year tax position — (6) (5) Gross unrecognized tax benefits, end of year $ 1,505 $ 1,321 $ 1,134 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 (Recast) Water Emerging Technologies Total Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Product revenue $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 $ 92,061 $ 30 $ 92,091 Product cost of revenue 38,158 77 38,235 32,670 — 32,670 28,239 10 28,249 Product gross profit 87,270 86 87,356 71,181 53 71,234 63,822 20 63,842 License and development revenue (1) — — — — — — — 26,895 26,895 Operating expenses General and administrative 6,936 4,104 11,040 6,342 5,162 11,504 9,188 5,410 14,598 Sales and marketing 11,065 3,047 14,112 9,559 937 10,496 5,958 1,192 7,150 Research and development 4,151 13,758 17,909 2,589 17,480 20,069 2,973 20,476 23,449 Impairment of long-lived assets — — — — — — — 2,332 2,332 Total operating expenses 22,152 20,909 43,061 18,490 23,579 42,069 18,119 29,410 47,529 Operating income (loss) $ 65,118 $ (20,823) 44,295 $ 52,691 $ (23,526) 29,165 $ 45,703 $ (2,495) 43,208 Less: Corporate operating expenses 19,466 15,334 11,914 Income from operations $ 24,829 $ 13,831 $ 31,294 (1) In June 2020, the Company and Schlumberger entered into an agreement to terminate the VorTeq License Agreement. The termination of the VorTeq License Agreement was effective June 1, 2020. As there were no future performance obligations to be recognized under the VorTeq License Agreement after the effective date, the Company recognized in full the remaining deferred revenue balance of $24.4 million in the second quarter of fiscal year 2020. In addition, no future license and development revenue was recognized under the VorTeq License Agreement after the second quarter of fiscal year 2020. |
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, 2022 2021 2020 (In thousands) Water $ 2,141 $ 1,823 $ 1,354 Emerging Technologies 1,864 2,199 2,125 Corporate 759 480 412 Total depreciation and amortization $ 4,764 $ 4,502 $ 3,891 |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Product revenue by geographic location: United States 1% 1% 2% International 99% 99% 98% Total product revenue 100% 100% 100% Product revenue by country: (1) Saudi Arabia 47% 36% 34% United Arab Emirates ** 17% 18% Israel ** 14% ** Egypt ** ** 10% Others (2) 53% 33% 38% Total 100% 100% 100% ** Zero or less than 10%. (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. The following table presents the Water segment customers that account for 10% or more of the Company’s Water segment product revenues. Although certain customers might account for greater than 10% of product revenues at any one point in time, the concentration of product revenue between a limited number of customers shifts regularly, depending on timing of shipments. The percentages by customer reflect specific relationships or contracts that would concentrate product revenue for the periods presented and do not indicate a trend specific to any one customer. Years Ended December 31, 2022 2021 2020 Customer A ** 21% 27% Customer B 15% 10% 23% Customer C 18% 11% ** Customer D ** 16% ** Customer E 11% ** ** ** Zero or less than 10%. Emerging Technology Segment Product, and License and Development Revenue The following table presents the Emerging Technologies segment customers that account for 10% or more of the Company’s Emerging Technologies segment revenues. Years Ended December 31, 2022 2021 2020 Customer A 57% 100% ** Customer B ** ** 100% Customer C 21% ** ** Customer D 19% ** ** ** 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. Years Ended December 31, 2022 2021 2020 Vendor A 21% 24% 16% Vendor B 19% 16% 19% Vendor C 13% ** ** Vendor D ** 12% ** ** Zero or less than 10%. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Class of Treasury Stock | The following table presents the share repurchase activities under the March 2021 Authorization as of December 31, 2022. Period Number of Shares Purchased Average Price Paid per Share (1) Plan Activity (2) (In thousands) (In thousands) 2021 1,427 $ 18.65 $ 23,346 2022 1,265 18.43 26,654 Total (3) 2,693 18.55 (1) Excluding commissions (2) Including commissions (3) Amount may not total due to rounding |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Weighted average expected life (years) 4.1 4.0 5.1 Weighted average expected volatility 48.7% 49.3% 71.7% Risk-free interest rate 1.44% – 3.90% 0.30% – 1.51% 0.29% – 1.32% 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, 2022 2021 2020 (In thousands) Stock-based compensation expense charged to: Product cost of revenue $ 506 $ 414 $ 135 General and administrative 3,436 2,917 2,615 Sales and marketing 1,592 1,483 893 Research and development 977 1,242 1,151 Total stock-based compensation expense $ 6,511 $ 6,056 $ 4,794 Stock-based compensation expense by type of award: Stock options $ 2,837 $ 3,161 $ 3,004 RSUs 3,674 2,895 1,790 Total stock-based compensation expense $ 6,511 $ 6,056 $ 4,794 |
Schedule Of Forfeiture Rates | The following table presents the estimated weighted average forfeiture rates used in determining the expense in the stock-based compensation expense table above. Years Ended December 31, 2022 2021 2020 Stock options and RSUs vested over 4-years 9.2% 8.1% 11.2% |
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, 2022. Unamortized Compensation Costs Weighted Average Service Period (In thousands) (In years) Stock options $ 7,126 1.5 RSUs 8,159 2.4 Total unamortized compensation costs, net of adjusted forfeitures $ 15,285 |
Share-based Compensation, Stock Options, Activity | The following table presents stock option activities under the Equity Incentive Plans. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) (In thousands) (Per share) (In years) (In thousands) 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 Granted 613 14.39 Exercised (1,518) 6.96 $ 16,952 Forfeited (171) 11.26 Balance, December 31, 2021 2,544 9.21 Granted 403 19.13 Exercised (429) 7.32 $ 6,387 Forfeited (97) 13.66 Balance, December 31, 2022 2,421 $ 11.02 6.6 $ 22,944 Vested and exercisable as of December 31, 2022 1,622 $ 8.85 5.7 $ 18,878 Vested and exercisable as of December 31, 2022 and expected to vest thereafter 2,360 $ 10.88 6.5 $ 22,682 (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, 2022 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, 2022 or the last trading day prior to December 31, 2022. |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table presents RSU activities under the Equity Incentive Plans. Number of Shares Weighted Average Grant Date Fair Value (In thousands) (Per share) 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 Awarded 387 15.44 Vested (230) 8.98 Forfeited (150) 11.14 Balance, December 31, 2021 694 12.23 Awarded 322 19.61 Vested (268) 12.03 Forfeited (60) 15.16 Balance, December 31, 2022 688 15.51 |
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, 2022 2021 2020 (In thousands) Stock options $ 2,683 $ 3,298 $ 2,915 RSUs 3,226 2,060 1,310 Total grant date fair value of stock options and RSUs vested during the period $ 5,909 $ 5,358 $ 4,225 |
Description of Business and S_4
Description of Business and Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Line Items] | |
Retention payments, percentage | 10% |
Minimum | |
Accounting Policies [Line Items] | |
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] | |
Customer payment period after product delivery | 60 days |
Retention payments, payment period after product delivery | 36 months |
Product warranty term | 5 years |
Machinery and equipment (excluding equipment used for manufacturing of ceramic components)) | Minimum | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery and equipment (excluding equipment used for manufacturing of ceramic components)) | Maximum | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Machinery and equipment used for manufacturing of ceramic components | Minimum | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery and equipment used for manufacturing of ceramic components | Maximum | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Leasehold improvements | Minimum | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 1 year |
Leasehold improvements | Maximum | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 6 years 4 months 24 days |
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 |
Office equipment, furniture, and fixtures | Minimum | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Office equipment, furniture, and fixtures | Maximum | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Automobiles | Minimum | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 1 year |
Automobiles | Maximum | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 125,591 | $ 103,904 | $ 118,986 |
Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 125,428 | 103,851 | 92,061 |
Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 163 | 53 | 26,925 |
Megaproject | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 81,888 | 75,391 | 66,763 |
Megaproject | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 81,755 | 75,338 | 66,763 |
Megaproject | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 133 | 53 | 0 |
Original equipment manufacturer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 28,858 | 17,604 | 15,834 |
Original equipment manufacturer | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 28,858 | 17,604 | 15,834 |
Original equipment manufacturer | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 14,845 | 10,909 | 9,494 |
Aftermarket | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 14,815 | 10,909 | 9,464 |
Aftermarket | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 30 | 0 | 30 |
Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 86,321 | 78,401 | 73,963 |
Middle East and Africa | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 86,227 | 78,348 | 73,963 |
Middle East and Africa | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 94 | 53 | 0 |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 24,777 | 18,639 | 7,363 |
Asia | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 24,777 | 18,639 | 7,363 |
Asia | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 8,578 | 3,264 | 34,199 |
Americas | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 8,544 | 3,264 | 7,274 |
Americas | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 34 | 0 | 26,925 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,915 | 3,600 | 3,461 |
Europe | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,880 | 3,600 | 3,461 |
Europe | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 35 | 0 | 0 |
Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 125,591 | 103,904 | 92,091 |
Product | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 125,428 | 103,851 | 92,061 |
Product | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 163 | 53 | 30 |
License and development | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 26,895 |
License and development | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
License and development | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 0 | $ 0 | $ 26,895 |
Revenue - Schlumberger Technolo
Revenue - Schlumberger Technology Corporation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 14, 2015 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 125,591 | $ 103,904 | $ 118,986 | |
License and development | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 26,895 | |
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 - Contract Assets and L
Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||||
Accounts receivable, net | $ 34,062 | $ 20,615 | ||
Contract assets, current (included in prepaid expenses and other assets) | 1,720 | 493 | ||
Contract liabilities: | ||||
Contract liabilities, current | 1,195 | 3,318 | ||
Contract liabilities, non-current (included in other liabilities, non-current) | 121 | 88 | ||
Total contract liabilities | $ 1,316 | $ 3,406 | $ 1,640 | $ 28,866 |
Revenue - Significant Changes i
Revenue - Significant Changes in Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contract With Customer, Liability [Roll Forward] | |||
Contract liabilities, beginning of year | $ 3,406 | $ 1,640 | $ 28,866 |
Revenue recognized | (3,123) | (1,415) | (28,414) |
Cash received, excluding amounts recognized as revenue during the period | 1,033 | 3,181 | 1,188 |
Contract liabilities, end of year | $ 1,316 | $ 3,406 | $ 1,640 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 12,949 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 5,456 |
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]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 7,493 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Net Income Per Share - Computat
Net Income 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | |||
Net income | $ 24,049 | $ 14,269 | $ 26,387 |
Denominator (weighted average shares) | |||
Basic common shares outstanding (in shares) | 56,221 | 56,993 | 55,709 |
Dilutive stock awards (in shares) | 1,420 | 1,730 | 928 |
Diluted common shares outstanding (in shares) | 57,641 | 58,723 | 56,637 |
Net income per share | |||
Basic (in dollars per share) | $ 0.43 | $ 0.25 | $ 0.47 |
Diluted (in dollars per share) | $ 0.42 | $ 0.24 | $ 0.47 |
Net Income Per Share - Antidilu
Net Income Per Share - Antidilutive Securities Excluded From Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive stock awards (in shares) | 374 | 17 | 2,185 |
Other Financial Information - C
Other Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Financial Information [Abstract] | ||||
Cash and cash equivalents | $ 56,354 | $ 74,358 | $ 94,255 | |
Restricted cash, non-current (included in other assets, non-current) | 104 | 103 | 103 | |
Total cash, cash equivalents and restricted cash | $ 56,458 | $ 74,461 | $ 94,358 | $ 26,488 |
Other Financial Information - A
Other Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Financial Information [Abstract] | ||
Accounts receivable, gross | $ 34,210 | $ 20,732 |
Allowance for doubtful accounts | (148) | (117) |
Accounts receivable, net | $ 34,062 | $ 20,615 |
Other Financial Information -_2
Other Financial Information - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Collection of specific reserves and uncollectible accounts written off, net of recoveries | $ (5) | $ (280) | $ (6) |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, beginning of year | 117 | 397 | 308 |
Changes to reserves | 36 | 0 | 95 |
Balance, end of year | $ 148 | $ 117 | $ 397 |
Other Financial Information - I
Other Financial Information - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Financial Information [Abstract] | ||
Raw materials | $ 11,178 | $ 7,352 |
Work in process | 2,628 | 3,406 |
Finished goods | 15,062 | 10,274 |
Inventories, gross | 28,868 | 21,032 |
Valuation adjustments for excess and obsolete inventory | (502) | (649) |
Inventories, net | $ 28,366 | $ 20,383 |
Other Financial Information - P
Other Financial Information - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Financial Information [Abstract] | ||
Contract assets | $ 1,720 | $ 493 |
Cloud computing arrangement implementation costs | 784 | 1,041 |
Supplier advances | 1,308 | 1,717 |
Other prepaid expenses and other assets | 1,794 | 1,824 |
Total prepaid expenses and other assets | $ 5,606 | $ 5,075 |
Other Financial Information -_3
Other Financial Information - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 53,523 | $ 54,727 |
Less: Accumulated depreciation and amortization | (33,943) | (34,366) |
Property and equipment, net | 19,580 | 20,361 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 28,545 | 29,777 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 17,576 | 15,224 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,799 | 3,300 |
Office equipment, furniture, and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,950 | 2,890 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 246 | 240 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,407 | $ 3,296 |
Other Financial Information -_4
Other Financial Information - Amortization and Depreciation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Financial Information [Abstract] | ||||
Depreciation and amortization expense | $ 900 | $ 4,727 | $ 4,490 | $ 3,875 |
Other Financial Information - G
Other Financial Information - Goodwill and Other Intangible Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Financial Information [Abstract] | ||||
Goodwill | $ 12,790,000 | $ 12,790,000 | $ 12,790,000 | |
Other intangible assets, gross | 193,000 | 193,000 | 193,000 | |
Accumulated amortization | (193,000) | (193,000) | (156,000) | |
Other intangible assets, net | 0 | 0 | 37,000 | |
Total goodwill and other intangible assets | 12,790,000 | 12,790,000 | 12,827,000 | |
Goodwill impairment charge | $ 0 | |||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 |
Other Financial Information -_5
Other Financial Information - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current | ||||
Payroll, incentives and commissions payable | $ 10,479 | $ 10,170 | ||
Warranty reserve | 968 | 879 | $ 760 | $ 631 |
Other accrued expenses and other liabilities | 3,246 | 2,945 | ||
Total accrued expenses and other liabilities | 14,693 | 13,994 | ||
Other liabilities, non-current | 121 | 247 | ||
Total accrued expenses, and current and non-current other liabilities | $ 14,814 | $ 14,241 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements - Financial Assets Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | $ 70,127,000 | $ 84,543,000 |
Gross Unrealized Gains | 6,000 | 0 |
Gross Unrealized Losses | (328,000) | (48,000) |
Fair Value | 69,805,000 | 84,495,000 |
Total short and long-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 36,859,000 | 33,678,000 |
Gross Unrealized Gains | 6,000 | 0 |
Gross Unrealized Losses | (328,000) | (48,000) |
Fair Value | 36,537,000 | 33,630,000 |
Short-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 33,681,000 | 31,371,000 |
Gross Unrealized Gains | 6,000 | 0 |
Gross Unrealized Losses | (208,000) | (39,000) |
Fair Value | 33,479,000 | 31,332,000 |
Level 1 | Cash equivalents | Money market securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 33,268,000 | 50,865,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 33,268,000 | 50,865,000 |
Level 2 | Short-term investments | U.S. treasury securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 3,629,000 | 0 |
Gross Unrealized Gains | 1,000 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 3,630,000 | 0 |
Level 2 | Short-term investments | Corporate notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 26,060,000 | 31,371,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (208,000) | (39,000) |
Fair Value | 25,852,000 | 31,332,000 |
Level 2 | Short-term investments | Municipal and agency notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 3,992,000 | 0 |
Gross Unrealized Gains | 5,000 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 3,997,000 | 0 |
Level 2 | Long-term investments | Corporate notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized Cost | 3,178,000 | 2,307,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (120,000) | (9,000) |
Fair Value | 3,058,000 | 2,298,000 |
Measured On Recurring Basis | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fair value of financial liabilities | 0 | 0 |
Measured On Recurring Basis | Level 3 | ||
Debt Securities, Available-for-sale [Line Items] | ||
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, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 28,911 | $ 33,630 |
Gross Unrealized Losses | $ (328) | $ (48) |
Lines of Credit (Details)
Lines of Credit (Details) | 12 Months Ended | ||
Dec. 22, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Standby Letters of Credit | |||
Line of Credit Facility [Line Items] | |||
Cash collateral, percent of exposure | 103% | ||
Outstanding letters of credit | $ 15,487,000 | $ 13,960,000 | |
Standby Letters of Credit | Maximum | |||
Line of Credit Facility [Line Items] | |||
Weighted average remaining life of outstanding letters of credit | 1 year | ||
Line of Credit | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Interest rate | 2.50% | ||
Line of Credit | Minimum | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Line of Credit | Minimum | Eurodollar | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Line of Credit | Maximum | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Line of Credit | Maximum | Eurodollar | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Line of Credit | Committed Revolving Credit Line | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Long-term debt | $ 0 | ||
Line of Credit | Event Of Default | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2% | ||
JP Morgan Chase Bank, N.A. | Committed Revolving Credit Line | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 25,000,000 | ||
JP Morgan Chase Bank, N.A. | Line of Credit | Committed Revolving Credit Line | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 50,000,000 | ||
Leverage ratio net debt to adjusted EBITDA | 3 | ||
Commitment fee percentage | 0.20% | ||
JP Morgan Chase Bank, N.A. | Line of Credit | Committed Revolving Credit Line | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Utilized amount of the maximum allowable credit line | $ 16,700,000 |
Commitments and Contingencies -
Commitments and Contingencies - Right Of Use Asset and Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease, right of use asset | $ 13,115 | $ 14,653 |
Lease liabilities | 1,600 | 1,564 |
Lease liabilities, non-current | 13,278 | 14,879 |
Total lease liability | $ 14,878 | $ 16,443 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease expense | $ 2,571 | $ 2,571 | $ 2,589 |
Cash payments | $ 2,650 | $ 2,431 | $ 2,398 |
Commitments and Contingencies_3
Commitments and Contingencies - Weighted Average Lease Term and Discount Rate (Details) | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted average remaining lease term | 6 years 4 months 24 days |
Weighted average discount rate | 7% |
Commitments and Contingencies_4
Commitments and Contingencies - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2023 | $ 2,580 | |
2024 | 2,812 | |
2025 | 2,736 | |
2026 | 2,982 | |
2027 | 3,072 | |
2028 and thereafter | 4,406 | |
Total future minimum lease payments | 18,588 | |
Less imputed lease interest | (3,710) | |
Total lease liabilities | $ 14,878 | $ 16,443 |
Commitments and Contingencies_5
Commitments and Contingencies - Product Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty reserve balance, beginning of year | $ 879 | $ 760 | $ 631 |
Warranty costs charged to cost of revenue | 483 | 445 | 403 |
Utilization charges against reserve | (64) | (16) | (36) |
Release of accrual related to expired warranties | (330) | (310) | (238) |
Warranty reserve balance, end of year | $ 968 | $ 879 | $ 760 |
Commitments and Contingencies_6
Commitments and Contingencies - Purchase Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term purchase commitment | $ 5 |
Commitments and Contingencies_7
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Retention payments, percentage | 10% | |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, current carrying value | $ 0 | $ 0 |
Weighted Average | ||
Loss Contingencies [Line Items] | ||
Retention payments, payment period after product delivery | 37 months |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 25,918 | $ 13,913 | $ 32,046 |
Foreign | 153 | 91 | 87 |
Income before income taxes | 26,071 | 14,004 | 32,133 |
Federal | 698 | 0 | (148) |
State | 22 | 10 | 5 |
Foreign | 84 | 80 | 40 |
Current tax provision (benefit) | 804 | 90 | (103) |
Federal | 1,104 | (382) | 5,547 |
State | 114 | 27 | 302 |
Total deferred tax provision (benefit) | 1,218 | (355) | 5,849 |
Total provision for (benefit from) income taxes | $ 2,022 | $ (265) | $ 5,746 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal taxes at statutory rate | 21% | 21% | 21% |
State income tax, net of federal benefit | 1% | 0% | 1% |
Foreign rate differential | 0% | 1% | 0% |
Stock-based compensation | (4.00%) | (18.00%) | (2.00%) |
Non-deductible expenses | 1% | 1% | 1% |
Federal research credits | (4.00%) | (7.00%) | (3.00%) |
Foreign derived intangible income | (7.00%) | 0% | 0% |
Effective tax rate | 8% | (2.00%) | 18% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 702 | $ 4,119 |
Amortization of research and experimental expenditures | 3,605 | 0 |
Accruals and reserves | 4,320 | 4,054 |
Operating lease liabilities | 3,199 | 3,581 |
Research and development, and foreign tax credit carry forwards | 9,642 | 10,393 |
Acquired intangibles | 321 | 483 |
Other | 66 | 53 |
Total deferred tax assets | 21,855 | 22,683 |
Valuation allowance | (4,185) | (3,644) |
Total deferred tax assets, net of valuation allowance | 17,670 | 19,039 |
Deferred tax liabilities: | ||
Depreciation on property and equipment | (2,646) | (2,644) |
Right of use asset | (2,809) | (3,184) |
Other | 0 | (20) |
Goodwill | (1,952) | (1,770) |
Total deferred tax liabilities | (7,407) | (7,618) |
Net deferred tax asset | $ 10,263 | $ 11,421 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 9,549 | $ 26,608 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 0 | 15,864 |
California | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 9,549 | $ 10,744 |
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, 2022 | Dec. 31, 2021 |
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 10,759 | $ 11,365 |
Federal | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 5,441 | 6,737 |
California | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 5,318 | $ 4,628 |
Income Taxes - Changes in Gross
Income Taxes - Changes in Gross Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits, beginning of year | $ 1,321 | $ 1,134 | $ 963 |
Prior year tax position | 157 | 0 | 9 |
Current year tax position | 27 | 193 | 167 |
Prior year tax position | 0 | (6) | (5) |
Gross unrecognized tax benefits, end of year | $ 1,505 | $ 1,321 | $ 1,134 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Examination [Line Items] | ||||
Unrecognized tax benefits | $ 1,505,000 | $ 1,321,000 | $ 1,134,000 | $ 963,000 |
Unrecognized tax benefits that would impact effective tax rate | 900,000 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 0 | |||
California | ||||
Income Tax Examination [Line Items] | ||||
Tax credit carryforward, valuation allowance | $ 4,200,000 |
Segment Reporting - Financial I
Segment Reporting - Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 125,591 | $ 103,904 | $ 118,986 | |
Operating expenses: | ||||
General and administrative | 28,341 | 25,174 | 25,535 | |
Sales and marketing | 16,277 | 12,160 | 8,127 | |
Research and development | 17,909 | 20,069 | 23,449 | |
Impairment of long-lived assets | 0 | 0 | 2,332 | |
Total operating expenses | 62,527 | 57,403 | 59,443 | |
Income (loss) from operations | 24,829 | 13,831 | 31,294 | |
Product | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 125,591 | 103,904 | 92,091 | |
Cost of product revenue | 38,235 | 32,670 | 28,249 | |
Product gross profit | 87,356 | 71,234 | 63,842 | |
License and development | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 26,895 | |
Water | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 125,428 | 103,851 | 92,061 | |
Water | License and development | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Water | Schlumberger Technology Corporation | License and development | Affiliated Entity | VorTeq License Agreement | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 24,400 | |||
Emerging Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 163 | 53 | 26,925 | |
Emerging Technologies | License and development | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 26,895 | |
Operating Segments | ||||
Operating expenses: | ||||
General and administrative | 11,040 | 11,504 | 14,598 | |
Sales and marketing | 14,112 | 10,496 | 7,150 | |
Research and development | 17,909 | 20,069 | 23,449 | |
Impairment of long-lived assets | 0 | 0 | 2,332 | |
Total operating expenses | 43,061 | 42,069 | 47,529 | |
Income (loss) from operations | 44,295 | 29,165 | 43,208 | |
Operating Segments | Product | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 125,591 | 103,904 | 92,091 | |
Cost of product revenue | 38,235 | 32,670 | 28,249 | |
Product gross profit | 87,356 | 71,234 | 63,842 | |
Operating Segments | License and development | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 26,895 | |
Operating Segments | Water | ||||
Operating expenses: | ||||
General and administrative | 6,936 | 6,342 | 9,188 | |
Sales and marketing | 11,065 | 9,559 | 5,958 | |
Research and development | 4,151 | 2,589 | 2,973 | |
Impairment of long-lived assets | 0 | 0 | 0 | |
Total operating expenses | 22,152 | 18,490 | 18,119 | |
Income (loss) from operations | 65,118 | 52,691 | 45,703 | |
Operating Segments | Water | Product | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 125,428 | 103,851 | 92,061 | |
Cost of product revenue | 38,158 | 32,670 | 28,239 | |
Product gross profit | 87,270 | 71,181 | 63,822 | |
Operating Segments | Water | License and development | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Operating Segments | Emerging Technologies | ||||
Operating expenses: | ||||
General and administrative | 4,104 | 5,162 | 5,410 | |
Sales and marketing | 3,047 | 937 | 1,192 | |
Research and development | 13,758 | 17,480 | 20,476 | |
Impairment of long-lived assets | 0 | 0 | 2,332 | |
Total operating expenses | 20,909 | 23,579 | 29,410 | |
Income (loss) from operations | (20,823) | (23,526) | (2,495) | |
Operating Segments | Emerging Technologies | Product | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 163 | 53 | 30 | |
Cost of product revenue | 77 | 0 | 10 | |
Product gross profit | 86 | 53 | 20 | |
Operating Segments | Emerging Technologies | License and development | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 26,895 | |
Corporate | ||||
Operating expenses: | ||||
Total operating expenses | $ 19,466 | $ 15,334 | $ 11,914 |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation and Amortization Expense by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | $ 4,764 | $ 4,502 | $ 3,891 |
Operating Segments | Water | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 2,141 | 1,823 | 1,354 |
Operating Segments | Emerging Technologies | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 1,864 | 2,199 | 2,125 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | $ 759 | $ 480 | $ 412 |
Concentrations - Product Revenu
Concentrations - Product Revenue by Geographic Locations (Details) - Revenue Benchmark - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 100% | 100% | 100% |
United States | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 1% | 1% | 2% |
International | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 99% | 99% | 98% |
Saudi Arabia | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 47% | 36% | 34% |
United Arab Emirates | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 17% | 18% | |
Israel | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 14% | ||
Egypt | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10% | ||
Others | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 53% | 33% | 38% |
Concentrations - Water Segment
Concentrations - Water Segment Information (Details) - Water - Revenue from Contract with Customer Benchmark - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Percentage of product revenue | 21% | 27% | |
Customer B | |||
Concentration Risk [Line Items] | |||
Percentage of product revenue | 15% | 10% | 23% |
Customer C | |||
Concentration Risk [Line Items] | |||
Percentage of product revenue | 18% | 11% | |
Customer D | |||
Concentration Risk [Line Items] | |||
Percentage of product revenue | 16% | ||
Customer E | |||
Concentration Risk [Line Items] | |||
Percentage of product revenue | 11% |
Concentrations - Emerging Techn
Concentrations - Emerging Technologies Segment Information (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk - Emerging Technologies | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 57% | 100% | |
Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 100% | ||
Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21% | ||
Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19% |
Concentrations - Major Supply V
Concentrations - Major Supply Vendors (Details) - Major Supply Vendors - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Vendor A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21% | 24% | 16% |
Vendor B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19% | 16% | 19% |
Vendor C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13% | ||
Vendor D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred and Common Stock (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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 issued (in shares) | 0 | 0 |
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 - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | Dec. 31, 2022 | Jul. 01, 2022 | Dec. 31, 2021 | Mar. 09, 2021 |
Schedule of Capitalization, Equity [Line Items] | ||||
Shares repurchased | 8,148,512 | 6,721,153 | ||
Shares repurchased amount | $ 80,486,000 | $ 53,832,000 | ||
March 2021 Authorization | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Stock repurchase program, authorized amount | $ 26,654,000 | $ 23,346,000 | $ 50,000,000 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Program (Details) - March 2021 Authorization - USD ($) $ / shares in Units, shares in Thousands | 6 Months Ended | 10 Months Ended | 16 Months Ended | |
Jul. 01, 2022 | Dec. 31, 2021 | Jul. 01, 2022 | Mar. 09, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Purchased (in shares) | 1,265 | 1,427 | 2,693 | |
Average Price Paid per Share (in dollars per share) | $ 18.43 | $ 18.65 | $ 18.55 | |
Plan Activity | $ 26,654,000 | $ 23,346,000 | $ 26,654,000 | $ 50,000,000 |
Stock-based Compensation - Plan
Stock-based Compensation - Plan Information (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Expiration period | 10 years |
Non-Employee Board Of Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 1 year |
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) | 4,637,883 |
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 - Rest
Stock-based Compensation - Restricted Stock Awards and Restricted Stock Units (Details) - shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Non-Employee Board Of Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
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] | ||||
Shares outstanding (in shares) | 688,000 | 694,000 | 687,000 | 544,000 |
Award vesting rights percentage | 25% | |||
Award vesting period | 4 years | |||
Conversion ratio | 1 |
Stock-based Compensation - Blac
Stock-based Compensation - Black-Scholes Option Pricing Model Assumptions (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected life (years) | 4 years 1 month 6 days | 4 years | 5 years 1 month 6 days |
Weighted average expected volatility | 48.70% | 49.30% | 71.70% |
Weighted average dividend yield | 0% | 0% | 0% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.44% | 0.30% | 0.29% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 3.90% | 1.51% | 1.32% |
Stock-based Compensation - Shar
Stock-based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 6,511 | $ 6,056 | $ 4,794 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 2,837 | 3,161 | 3,004 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 3,674 | 2,895 | 1,790 |
Product cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 506 | 414 | 135 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 3,436 | 2,917 | 2,615 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 1,592 | 1,483 | 893 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 977 | $ 1,242 | $ 1,151 |
Stock-based Compensation - Forf
Stock-based Compensation - Forfeiture Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock options and RSUs vested over 4-years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Forfeiture rate | 9.20% | 8.10% | 11.20% |
Stock-based Compensation - Unam
Stock-based Compensation - Unamortized Compensation Cost and Grant Date Fair Value (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized Compensation Costs | $ 15,285 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized Compensation Costs | $ 7,126 |
Weighted Average Service Period | 1 year 6 months |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized Compensation Costs | $ 8,159 |
Weighted Average Service Period | 2 years 4 months 24 days |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | |||
Beginning balance (in shares) | 2,544 | 3,620 | 3,927 |
Granted (in shares) | 403 | 613 | 806 |
Exercised (in shares) | (429) | (1,518) | (926) |
Forfeited (in shares) | (97) | (171) | (187) |
Ending balance (in shares) | 2,421 | 2,544 | 3,620 |
Vested and exercisable options (in shares) | 1,622 | ||
Vested and exercisable, and expected to vest options (in shares) | 2,360 | ||
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 9.21 | $ 7.48 | $ 6.66 |
Granted (in dollars per share) | 19.13 | 14.39 | 8.78 |
Exercised (in dollars per share) | 7.32 | 6.96 | 4.79 |
Forfeited (in dollars per share) | 13.66 | 11.26 | 9.15 |
Ending balance (in dollars per share) | 11.02 | $ 9.21 | $ 7.48 |
Vested and exercisable options (in dollars per share) | 8.85 | ||
Vested and exercisable, and expected to vest options (in dollars per share) | $ 10.88 | ||
Weighted Average Remaining Contractual Life | 6 years 7 months 6 days | ||
Vested and exercisable options, weighted average remaining contractual term | 5 years 8 months 12 days | ||
Vested and exercisable, and expected to vest options, weighted average remaining contractual life | 6 years 6 months | ||
Aggregate intrinsic value, exercised | $ 6,387 | $ 16,952 | $ 4,637 |
Aggregate Intrinsic Value | 22,944 | ||
Vested and exercisable options, Aggregate Intrinsic Value | 18,878 | ||
Vested and exercisable, and expected to vest options, aggregate intrinsic value | $ 22,682 |
Stock-based Compensation - Re_2
Stock-based Compensation - Restricted Stock Units Activity (Details) - RSUs - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | |||
Beginning balance (in shares) | 694 | 687 | 544 |
Awarded (in shares) | 322 | 387 | 368 |
Vested (in shares) | (268) | (230) | (161) |
Forfeited (in shares) | (60) | (150) | (64) |
Ending balance (in shares) | 688 | 694 | 687 |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 12.23 | $ 9.10 | $ 7.95 |
Awarded (in dollars per share) | 19.61 | 15.44 | 10.33 |
Vested (in dollars per share) | 12.03 | 8.98 | 8.12 |
Forfeited (in dollars per share) | 15.16 | 11.14 | 8.86 |
Ending balance (in dollars per share) | $ 15.51 | $ 12.23 | $ 9.10 |
Stock-based Compensation - Vest
Stock-based Compensation - Vested Stock Options and RSUs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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 | $ 5,909 | $ 5,358 | $ 4,225 |
Stock Options | |||
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 | 2,683 | 3,298 | 2,915 |
RSUs | |||
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 | $ 3,226 | $ 2,060 | $ 1,310 |