Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, $0.001 par value | |
Trading Symbol | ERII | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 56,517,933 | |
Entity Central Index Key | 0001421517 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 51,440 | $ 56,354 |
Short-term investments | 33,095 | 33,479 |
Accounts receivable, net | 23,337 | 34,062 |
Inventories, net | 33,888 | 28,366 |
Prepaid expenses and other assets | 4,508 | 5,606 |
Total current assets | 146,268 | 157,867 |
Long-term investments | 21,394 | 3,058 |
Deferred tax assets, net | 11,183 | 10,263 |
Property and equipment, net | 18,747 | 19,580 |
Operating lease, right of use asset | 11,892 | 13,115 |
Goodwill | 12,790 | 12,790 |
Other assets, non-current | 387 | 366 |
Total assets | 222,661 | 217,039 |
Current liabilities: | ||
Accounts payable | 1,809 | 814 |
Accrued expenses and other liabilities | 11,402 | 14,693 |
Lease liabilities | 1,740 | 1,600 |
Contract liabilities | 1,467 | 1,195 |
Total current liabilities | 16,418 | 18,302 |
Lease liabilities, non-current | 11,992 | 13,278 |
Other liabilities, non-current | 222 | 121 |
Total liabilities | 28,632 | 31,701 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Common stock | 65 | 64 |
Additional paid-in capital | 211,782 | 204,957 |
Accumulated other comprehensive loss | (183) | (349) |
Treasury stock | (80,486) | (80,486) |
Retained earnings | 62,851 | 61,152 |
Total stockholders’ equity | 194,029 | 185,338 |
Total liabilities and stockholders’ equity | $ 222,661 | $ 217,039 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 37,036 | $ 30,462 | $ 71,160 | $ 83,300 |
Cost of revenue | 11,154 | 9,417 | 23,580 | 25,835 |
Gross profit | 25,882 | 21,045 | 47,580 | 57,465 |
Operating expenses: | ||||
General and administrative | 7,369 | 7,608 | 21,704 | 21,155 |
Sales and marketing | 5,411 | 4,703 | 15,397 | 11,916 |
Research and development | 3,969 | 3,828 | 12,043 | 14,170 |
Total operating expenses | 16,749 | 16,139 | 49,144 | 47,241 |
Income (loss) from operations | 9,133 | 4,906 | (1,564) | 10,224 |
Other income (expense): | ||||
Interest income | 1,083 | 259 | 2,486 | 486 |
Other non-operating expense, net | (38) | (5) | (129) | (9) |
Total other income, net | 1,045 | 254 | 2,357 | 477 |
Income before income taxes | 10,178 | 5,160 | 793 | 10,701 |
Provision for (benefit from) income taxes | 518 | 371 | (906) | 377 |
Net income | $ 9,660 | $ 4,789 | $ 1,699 | $ 10,324 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.17 | $ 0.09 | $ 0.03 | $ 0.18 |
Diluted (in dollars per share) | $ 0.17 | $ 0.08 | $ 0.03 | $ 0.18 |
Number of shares used in per share calculations: | ||||
Basic (in shares) | 56,443 | 55,881 | 56,346 | 56,291 |
Diluted (in shares) | 57,969 | 57,372 | 57,761 | 57,708 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 9,660 | $ 4,789 | $ 1,699 | $ 10,324 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | (2) | 34 | 95 | 38 |
Unrealized gain (loss) on investments | (54) | (28) | 71 | (398) |
Total other comprehensive income (loss), net of tax | (56) | 6 | 166 | (360) |
Comprehensive income | $ 9,604 | $ 4,795 | $ 1,865 | $ 9,964 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Treasury stock | Retained earnings |
Beginning balance at Dec. 31, 2021 | $ 64 | $ 195,593 | $ (149) | $ (53,832) | $ 37,103 | |
Beginning balance (in shares) at Dec. 31, 2021 | 63,544,419 | |||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2021 | 6,721,153 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | 2,244 | |||||
Issuance of common stock, net (in shares) | 587,069 | |||||
Stock-based compensation | 4,970 | |||||
Foreign currency translation adjustments | 38 | |||||
Unrealized gain (loss) on investments | (398) | |||||
Total other comprehensive income (loss), net of tax | $ (360) | (360) | ||||
Common stock repurchased | $ (26,654) | |||||
Net income | 10,324 | 10,324 | ||||
Common stock repurchased (in shares) | 1,427,359 | |||||
Ending balance, treasury stock (in shares) at Sep. 30, 2022 | 8,148,512 | |||||
Ending balance at Sep. 30, 2022 | $ 169,303 | $ 64 | 202,807 | (509) | $ (80,486) | 47,427 |
Ending balance (in shares) at Sep. 30, 2022 | 55,982,976 | 64,131,488 | ||||
Beginning balance at Jun. 30, 2022 | $ 64 | 200,129 | (515) | $ (80,455) | 42,638 | |
Beginning balance (in shares) at Jun. 30, 2022 | 63,935,378 | |||||
Beginning balance, treasury stock (in shares) at Jun. 30, 2022 | 8,146,859 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | 1,259 | |||||
Issuance of common stock, net (in shares) | 196,110 | |||||
Stock-based compensation | 1,419 | |||||
Foreign currency translation adjustments | 34 | |||||
Unrealized gain (loss) on investments | (28) | |||||
Total other comprehensive income (loss), net of tax | $ 6 | 6 | ||||
Common stock repurchased | $ (31) | |||||
Net income | 4,789 | 4,789 | ||||
Common stock repurchased (in shares) | 1,653 | |||||
Ending balance, treasury stock (in shares) at Sep. 30, 2022 | 8,148,512 | |||||
Ending balance at Sep. 30, 2022 | $ 169,303 | $ 64 | 202,807 | (509) | $ (80,486) | 47,427 |
Ending balance (in shares) at Sep. 30, 2022 | 55,982,976 | 64,131,488 | ||||
Beginning balance at Dec. 31, 2022 | $ 185,338 | $ 64 | 204,957 | (349) | $ (80,486) | 61,152 |
Beginning balance (in shares) at Dec. 31, 2022 | 64,225,391 | |||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2022 | 8,148,512 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | $ 1 | 1,183 | ||||
Issuance of common stock, net (in shares) | 427,669 | |||||
Stock-based compensation | 5,642 | |||||
Foreign currency translation adjustments | 95 | |||||
Unrealized gain (loss) on investments | 71 | |||||
Total other comprehensive income (loss), net of tax | 166 | 166 | ||||
Net income | 1,699 | 1,699 | ||||
Ending balance, treasury stock (in shares) at Sep. 30, 2023 | 8,148,512 | |||||
Ending balance at Sep. 30, 2023 | $ 194,029 | $ 65 | 211,782 | (183) | $ (80,486) | 62,851 |
Ending balance (in shares) at Sep. 30, 2023 | 56,504,548 | 64,653,060 | ||||
Beginning balance at Jun. 30, 2023 | $ 65 | 209,139 | (127) | $ (80,486) | 53,191 | |
Beginning balance (in shares) at Jun. 30, 2023 | 64,553,969 | |||||
Beginning balance, treasury stock (in shares) at Jun. 30, 2023 | 8,148,512 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | 805 | |||||
Issuance of common stock, net (in shares) | 99,091 | |||||
Stock-based compensation | 1,838 | |||||
Foreign currency translation adjustments | (2) | |||||
Unrealized gain (loss) on investments | (54) | |||||
Total other comprehensive income (loss), net of tax | $ (56) | (56) | ||||
Net income | 9,660 | 9,660 | ||||
Ending balance, treasury stock (in shares) at Sep. 30, 2023 | 8,148,512 | |||||
Ending balance at Sep. 30, 2023 | $ 194,029 | $ 65 | $ 211,782 | $ (183) | $ (80,486) | $ 62,851 |
Ending balance (in shares) at Sep. 30, 2023 | 56,504,548 | 64,653,060 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 1,699 | $ 10,324 |
Adjustments to reconcile net income to cash provided by (used in) operating activities | ||
Stock-based compensation | 5,811 | 5,101 |
Depreciation and amortization | 3,075 | 3,803 |
Right of use asset depreciation | 1,223 | 1,143 |
(Accretion) amortization of premiums and discounts on investments | (613) | 647 |
Deferred income taxes | (920) | 207 |
Other non-cash adjustments | 241 | 235 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 10,756 | 2,208 |
Contract assets | 1,720 | (398) |
Inventories, net | (5,745) | (11,848) |
Prepaid and other assets | (1,292) | (461) |
Accounts payable | 1,043 | 1,121 |
Accrued expenses and other liabilities | (4,966) | (4,617) |
Contract liabilities | 240 | (1,197) |
Net cash provided by operating activities | 12,272 | 6,268 |
Cash flows from investing activities: | ||
Sales of marketable securities | 2,966 | 0 |
Maturities of marketable securities | 58,705 | 34,107 |
Purchases of marketable securities | (78,949) | (35,964) |
Capital expenditures | (1,179) | (2,999) |
Proceeds from sales of fixed assets | 82 | 734 |
Net cash used in investing activities | (18,375) | (4,122) |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock | 1,184 | 2,244 |
Repurchase of common stock | 0 | (26,654) |
Net cash provided by (used in) financing activities | 1,184 | (24,410) |
Effect of exchange rate differences on cash and cash equivalents | 27 | 38 |
Net change in cash, cash equivalents and restricted cash | (4,892) | (22,226) |
Cash, cash equivalents and restricted cash, beginning of year | 56,458 | 74,461 |
Cash, cash equivalents and restricted cash, end of period | $ 51,566 | $ 52,235 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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 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 Condensed 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. The accompanying Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The December 31, 2022 Condensed Consolidated Balance Sheet was derived from audited financial statements and may not include all disclosures required by GAAP; however, the Company believes that the disclosures are adequate to make the information presented not misleading. The September 30, 2023 unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto for the fiscal year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 23, 2023 (the “2022 Annual Report”). Reclassifications Certain prior period amounts have been reclassified in the Condensed Consolidated Statements of Cash Flows and certain notes to the Condensed Consolidated Financial Statements to conform to the current period presentation. Use of Estimates The preparation of Condensed Consolidated Financial Statements, in conformity with GAAP, requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in the Condensed 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; deferred taxes and valuation allowances on deferred tax assets; and evaluation and measurement of contingencies. Those estimates could change, and as a result, actual results could differ materially from those estimates. 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 November 1, 2023, the date of issuance of this Quarterly Report on Form 10-Q. 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 Quarterly Report on Form 10-Q, except as required by law. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following tables present the disaggregated revenues by segment, and within each segment, by geographical market based on the customer “shipped to” address, and by channel customers. Sales and usage-based taxes are excluded from revenues. See Note 9, “Segment Reporting,” for further discussion related to the Company’s segments. Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Geographical market Middle East and Africa $ 24,543 $ — $ 24,543 $ 38,272 $ 108 $ 38,380 Asia 5,688 — 5,688 19,180 — 19,180 Americas 5,091 123 5,214 9,628 153 9,781 Europe 1,490 101 1,591 3,542 277 3,819 Total revenue $ 36,812 $ 224 $ 37,036 $ 70,622 $ 538 $ 71,160 Channel Megaproject $ 26,829 $ — $ 26,829 $ 42,283 $ — $ 42,283 Original equipment manufacturer 5,083 224 5,307 16,415 430 16,845 Aftermarket 4,900 — 4,900 11,924 108 12,032 Total revenue $ 36,812 $ 224 $ 37,036 $ 70,622 $ 538 $ 71,160 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Geographical market Middle East and Africa $ 16,722 $ — $ 16,722 $ 53,629 $ 79 $ 53,708 Asia 8,168 — 8,168 17,771 — 17,771 Americas 3,156 — 3,156 6,951 30 6,981 Europe 2,416 — 2,416 4,840 — 4,840 Total revenue $ 30,462 $ — $ 30,462 $ 83,191 $ 109 $ 83,300 Channel Megaproject $ 17,347 $ — $ 17,347 $ 51,178 $ 79 $ 51,257 Original equipment manufacturer 9,032 — 9,032 21,392 — 21,392 Aftermarket 4,083 — 4,083 10,621 30 10,651 Total revenue $ 30,462 $ — $ 30,462 $ 83,191 $ 109 $ 83,300 Contract Balances The following table presents contract balances by category. September 30, December 31, (In thousands) Accounts receivable, net $ 23,337 $ 34,062 Contract assets, current (included in prepaid expenses and other assets) — 1,720 Contract liabilities: Contract liabilities, current $ 1,467 $ 1,195 Contract liabilities, non-current (included in other liabilities, non-current) 89 121 Total contract liabilities $ 1,556 $ 1,316 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. September 30, December 31, (In thousands) Contract liabilities, beginning of year $ 1,316 $ 3,406 Revenue recognized (1,117) (3,123) Cash received, excluding amounts recognized as revenue during the period 1,357 1,033 Contract liabilities, end of period $ 1,556 $ 1,316 Future Performance Obligations As of September 30, 2023, 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 (remaining three months) $ 5,924 2025 6,861 Total $ 12,785 |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2023 | |
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 restricted stock units (“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. The following table presents the computation of basic and diluted net income per common share. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands, except per share amounts) Numerator Net income $ 9,660 $ 4,789 $ 1,699 $ 10,324 Denominator (weighted average shares) Basic common shares outstanding 56,443 55,881 56,346 56,291 Dilutive stock awards 1,526 1,491 1,415 1,417 Diluted common shares outstanding 57,969 57,372 57,761 57,708 Net income per share Basic $ 0.17 $ 0.09 $ 0.03 $ 0.18 Diluted $ 0.17 $ 0.08 $ 0.03 $ 0.18 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. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Anti-dilutive stock award shares 125 387 126 522 |
Other Financial Information
Other Financial Information | 9 Months Ended |
Sep. 30, 2023 | |
Other Financial Information [Abstract] | |
Other Financial Information | Other Financial Information Cash, Cash Equivalents and Restricted Cash The Condensed Consolidated Statements of Cash Flows explain the changes in the total of cash, cash equivalents and restricted cash, such as cash amounts deposited in restricted cash accounts in connection with the Company’s credit cards. The following table presents a reconciliation of cash, cash equivalents and restricted cash, reported within the Condensed Consolidated Balance Sheets that sum to the total of such amounts presented for each period presented on the Condensed Consolidated Statements of Cash Flows. September 30, December 31, September 30, (In thousands) Cash and cash equivalents $ 51,440 $ 56,354 $ 52,131 Restricted cash, non-current (included in other assets, non-current) 126 104 104 Total cash, cash equivalents and restricted cash $ 51,566 $ 56,458 $ 52,235 Accounts Receivable, net September 30, December 31, (In thousands) Accounts receivable, gross $ 23,446 $ 34,210 Allowance for doubtful accounts (109) (148) Accounts receivable, net $ 23,337 $ 34,062 Inventories, net September 30, December 31, (In thousands) Raw materials $ 9,050 $ 11,178 Work in process 4,905 2,628 Finished goods 20,560 15,062 Inventories, gross 34,515 28,868 Valuation adjustments for excess and obsolete inventory (627) (502) Inventories, net $ 33,888 $ 28,366 Inventory amounts are stated at the lower of cost or net realizable value, using the first-in, first-out method. 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 Company monitors the industries in which it operates, and reviews its business performance for indicators of potential impairment. The recoverability of goodwill is measured at the reporting unit level, which represents the operating segment. The carrying amount of goodwill as of September 30, 2023 and December 31, 2022 was $12.8 million. On July 1, 2023, the Company estimated the fair value of its reporting units using both the discounted cash flow and market approaches. The forecast of future cash flows, which 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. As a result of the Company’s annual impairment test, there was no impairment charge recorded during the three months ended September 30, 2023. Accrued Expenses and Other Liabilities September 30, December 31, (In thousands) Current Payroll, incentives and commissions payable $ 8,261 $ 10,479 Warranty reserve 944 968 Other accrued expenses and other liabilities 2,197 3,246 Total accrued expenses and other liabilities 11,402 14,693 Other liabilities, non-current 222 121 Total accrued expenses, and current and non-current other liabilities $ 11,624 $ 14,814 |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
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 Condensed Consolidated Balance Sheets as either short-term and/or long-term investments. The classification of available-for-sale investments on the Condensed Consolidated Balance Sheets and definition of each of these classifications are provided 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,” of the Notes to Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data,” in the 2022 Annual Report. 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. September 30, 2023 December 31, 2022 Pricing Category Amortized Gross Gross Fair Amortized Gross Gross Fair (In thousands) Cash equivalents Money market securities Level 1 $ 17,408 $ — $ — $ 17,408 $ 33,268 $ — $ — $ 33,268 Short-term investments U.S. treasury securities Level 2 2,894 — (5) 2,889 3,629 1 — 3,630 Corporate notes and bonds Level 2 19,939 — (95) 19,844 26,060 — (208) 25,852 Municipal and agency notes and bonds Level 2 10,387 — (25) 10,362 3,992 5 — 3,997 Total short-term investments 33,220 — (125) 33,095 33,681 6 (208) 33,479 Long-term investments Corporate notes and bonds Level 2 13,417 — (74) 13,343 3,178 — (120) 3,058 Municipal and agency notes and bonds Level 2 8,084 — (33) 8,051 — — — — Total long-term investments 21,501 — (107) 21,394 3,178 — (120) 3,058 Total short and long-term investments 54,721 — (232) 54,489 36,859 6 (328) 36,537 Total $ 72,129 $ — $ (232) $ 71,897 $ 70,127 $ 6 $ (328) $ 69,805 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. September 30, 2023 December 31, 2022 Fair Gross Fair Gross (In thousands) U.S. treasury securities $ 2,889 $ (5) $ — $ — Corporate notes and bonds 31,687 (169) 28,911 (328) Municipal and agency notes and bonds 18,413 (58) — — Total available-for-sale investments with unrealized loss positions $ 52,989 $ (232) $ 28,911 $ (328) Sales of Available-for-Sale Investments The following table presents the sales of available-for-sale investments. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Corporate notes and bonds $ — $ — $ 2,966 $ — Realized losses on sales of securities were immaterial during the nine months ended September 30, 2023. |
Lines of Credit
Lines of Credit | 9 Months Ended |
Sep. 30, 2023 | |
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 (the “Credit Agreement”). The Credit Agreement, which will expire on December 21, 2026, provides a committed revolving credit line of $50.0 million and includes both a revolving loan and a letters of credit (“LCs”) component. During September 2023, the Company and JPMC amended the Credit Agreement (the “Second Amendment”) to increase the LC maximum allowable credit line component from $25.0 million to $30.0 million. No other components or features under the Credit Agreement (including the First Amendment Under the Credit Agreement, as of September 30, 2023, there were no revolving loans outstanding. In addition, under the LCs component, the Company utilized $20.4 million of the maximum allowable credit line of $30.0 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. Letters of Credit The following table presents the total outstanding LCs and SBLCs issued by the Company to our customers related to product warranty and performance guarantees. September 30, December 31, (In thousands) Outstanding letters of credit $ 19,501 $ 15,487 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 September 30, 2023, the Company was not involved in any lawsuits, legal proceedings or claims that would have a material effect on the Company’s financial position, results of operations, or cash flows. Therefore, there were no material losses which were probable or reasonably possible. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands, except percentages) Provision for (benefit from) income taxes $ 518 $ 371 $ (906) $ 377 Discrete items 357 331 986 1,134 Provision for income taxes, excluding discrete items $ 875 $ 702 $ 80 $ 1,511 Effective tax rate 5.1 % 7.2 % (114.2 %) 3.5 % Effective tax rate, excluding discrete items 8.6 % 13.6 % 10.0 % 14.1 % The Company’s interim period tax provision for and (benefit from) income taxes, respectively, is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company’s quarterly tax provision and estimate of its annual effective tax rate are subject to variation due to several factors, including variability in accurately predicting its pre-tax income or loss and the mix of jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, and changes in how the Company does business. For the three and nine months ended September 30, 2023, the recognized provision for and (benefit from) income taxes, respectively, included benefits related to the U.S. federal foreign-derived intangible income (“FDII”) and federal research and development (“R&D”) tax credit, along with a discrete tax benefit due primarily to stock-based compensation windfalls and prior years’ discrete tax benefit largely related to increased tax credits. For the three and nine months ended September 30, 2022, the recognized provision for income taxes included a benefit primarily related to the FDII and federal R&D tax credit, along with a discrete tax benefit due primarily to stock-based compensation windfalls. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
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. The following tables present a summary of the Company’s financial information by segment and corporate operating expenses. Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Revenue $ 36,812 $ 224 $ 37,036 $ 70,622 $ 538 $ 71,160 Cost of revenue 11,114 40 11,154 23,136 444 23,580 Gross profit 25,698 184 25,882 47,486 94 47,580 Operating expenses General and administrative 2,039 1,061 3,100 5,837 2,976 8,813 Sales and marketing 3,272 1,560 4,832 9,567 4,171 13,738 Research and development 1,098 2,871 3,969 3,121 8,922 12,043 Total operating expenses 6,409 5,492 11,901 18,525 16,069 34,594 Operating income (loss) $ 19,289 $ (5,308) 13,981 $ 28,961 $ (15,975) 12,986 Less: Corporate operating expenses 4,848 14,550 Income (loss) from operations $ 9,133 $ (1,564) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Revenue $ 30,462 $ — $ 30,462 $ 83,191 $ 109 $ 83,300 Cost of revenue 9,417 — 9,417 25,817 18 25,835 Gross profit 21,045 — 21,045 57,374 91 57,465 Operating expenses General and administrative 1,911 878 2,789 4,909 3,140 8,049 Sales and marketing 3,242 960 4,202 8,197 2,120 10,317 Research and development 1,216 2,612 3,828 3,159 11,011 14,170 Total operating expenses 6,369 4,450 10,819 16,265 16,271 32,536 Operating income (loss) $ 14,676 $ (4,450) 10,226 $ 41,109 $ (16,180) 24,929 Less: Corporate operating expenses 5,320 14,705 Income from operations $ 4,906 $ 10,224 |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations Customer Revenue Concentration The following table presents the customers that account for 10% or more of the Company’s revenue and their related segment for each of the periods presented. Although certain customers might account for greater than 10% of the Company’s revenue at any one point in time, the concentration of revenue between a limited number of customers shifts regularly, depending on when revenue is recognized. The percentages by customer reflect specific relationships or contracts that would concentrate revenue for the periods presented and do not indicate a trend specific to any one customer. Three Months Ended September 30, Nine Months Ended September 30, Segment 2023 2022 2023 2022 Customer A Water ** 29% ** 15% Customer B Water 20% ** 16% ** Customer C Water ** ** ** 17% Customer D Water 15% ** ** ** Customer E Water 15% ** ** ** Customer F Water 10% ** ** ** ** Zero or less than 10%. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 9,660 | $ 4,789 | $ 1,699 | $ 10,324 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Name Title Date of Adoption or Termination (1) Status (2) Plan Type Joshua Ballard Chief Financial Officer 9/13/2023 Adoption Rule 10b5-1 trading arrangement (3) (1) Effective (1) date of adoption; or (2) date of termination, of registrant’s Rule 10b5-1 trading arrangement. (2) Activity related to registrant’s Rule 10b5-1 trading arrangement. | |
Joshua Ballard [Member] | ||
Trading Arrangements, by Individual | ||
Name | Joshua Ballard | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 9/13/2023 | |
Arrangement Duration | 255 days | |
Aggregate Available | 12,500 | 12,500 |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Condensed 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.The accompanying Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations.All adjustments consisting of normal recurring adjustments that are necessary to present fairly the financial position, results of operations and cash flows for the interim periods have been made. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Reclassifications | Certain prior period amounts have been reclassified in the Condensed Consolidated Statements of Cash Flows and certain notes to the Condensed Consolidated Financial Statements to conform to the current period presentation. |
Use of Estimates | The preparation of Condensed Consolidated Financial Statements, in conformity with GAAP, requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in the Condensed 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; deferred taxes and valuation allowances on deferred tax assets; and evaluation and measurement of contingencies. Those estimates could change, and as a result, actual results could differ materially from those estimates. 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 November 1, 2023, the date of issuance of this Quarterly Report on Form 10-Q. 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 Quarterly Report on Form 10-Q, except as required by law. |
Goodwill | On July 1, 2023, the Company estimated the fair value of its reporting units using both the discounted cash flow and market approaches. The forecast of future cash flows, which 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. |
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. |
Income Taxes | The Company’s interim period tax provision for and (benefit from) income taxes, respectively, is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company’s quarterly tax provision and estimate of its annual effective tax rate are subject to variation due to several factors, including variability in accurately predicting its pre-tax income or loss and the mix of jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, and changes in how the Company does business. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present the disaggregated revenues by segment, and within each segment, by geographical market based on the customer “shipped to” address, and by channel customers. Sales and usage-based taxes are excluded from revenues. See Note 9, “Segment Reporting,” for further discussion related to the Company’s segments. Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Geographical market Middle East and Africa $ 24,543 $ — $ 24,543 $ 38,272 $ 108 $ 38,380 Asia 5,688 — 5,688 19,180 — 19,180 Americas 5,091 123 5,214 9,628 153 9,781 Europe 1,490 101 1,591 3,542 277 3,819 Total revenue $ 36,812 $ 224 $ 37,036 $ 70,622 $ 538 $ 71,160 Channel Megaproject $ 26,829 $ — $ 26,829 $ 42,283 $ — $ 42,283 Original equipment manufacturer 5,083 224 5,307 16,415 430 16,845 Aftermarket 4,900 — 4,900 11,924 108 12,032 Total revenue $ 36,812 $ 224 $ 37,036 $ 70,622 $ 538 $ 71,160 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Geographical market Middle East and Africa $ 16,722 $ — $ 16,722 $ 53,629 $ 79 $ 53,708 Asia 8,168 — 8,168 17,771 — 17,771 Americas 3,156 — 3,156 6,951 30 6,981 Europe 2,416 — 2,416 4,840 — 4,840 Total revenue $ 30,462 $ — $ 30,462 $ 83,191 $ 109 $ 83,300 Channel Megaproject $ 17,347 $ — $ 17,347 $ 51,178 $ 79 $ 51,257 Original equipment manufacturer 9,032 — 9,032 21,392 — 21,392 Aftermarket 4,083 — 4,083 10,621 30 10,651 Total revenue $ 30,462 $ — $ 30,462 $ 83,191 $ 109 $ 83,300 |
Schedule of Contract with Customer, Asset and Liability | The following table presents contract balances by category. September 30, December 31, (In thousands) Accounts receivable, net $ 23,337 $ 34,062 Contract assets, current (included in prepaid expenses and other assets) — 1,720 Contract liabilities: Contract liabilities, current $ 1,467 $ 1,195 Contract liabilities, non-current (included in other liabilities, non-current) 89 121 Total contract liabilities $ 1,556 $ 1,316 |
Schedule of 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. September 30, December 31, (In thousands) Contract liabilities, beginning of year $ 1,316 $ 3,406 Revenue recognized (1,117) (3,123) Cash received, excluding amounts recognized as revenue during the period 1,357 1,033 Contract liabilities, end of period $ 1,556 $ 1,316 |
Schedule of Revenue, Remaining Performance Obligation | As of September 30, 2023, 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 (remaining three months) $ 5,924 2025 6,861 Total $ 12,785 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands, except per share amounts) Numerator Net income $ 9,660 $ 4,789 $ 1,699 $ 10,324 Denominator (weighted average shares) Basic common shares outstanding 56,443 55,881 56,346 56,291 Dilutive stock awards 1,526 1,491 1,415 1,417 Diluted common shares outstanding 57,969 57,372 57,761 57,708 Net income per share Basic $ 0.17 $ 0.09 $ 0.03 $ 0.18 Diluted $ 0.17 $ 0.08 $ 0.03 $ 0.18 |
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. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Anti-dilutive stock award shares 125 387 126 522 |
Other Financial Information (Ta
Other Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Financial Information [Abstract] | |
Schedule of Restrictions on Cash and Cash Equivalents | The following table presents a reconciliation of cash, cash equivalents and restricted cash, reported within the Condensed Consolidated Balance Sheets that sum to the total of such amounts presented for each period presented on the Condensed Consolidated Statements of Cash Flows. September 30, December 31, September 30, (In thousands) Cash and cash equivalents $ 51,440 $ 56,354 $ 52,131 Restricted cash, non-current (included in other assets, non-current) 126 104 104 Total cash, cash equivalents and restricted cash $ 51,566 $ 56,458 $ 52,235 |
Schedule of Accounts Receivable, net | September 30, December 31, (In thousands) Accounts receivable, gross $ 23,446 $ 34,210 Allowance for doubtful accounts (109) (148) Accounts receivable, net $ 23,337 $ 34,062 |
Schedule of Inventories, Net | September 30, December 31, (In thousands) Raw materials $ 9,050 $ 11,178 Work in process 4,905 2,628 Finished goods 20,560 15,062 Inventories, gross 34,515 28,868 Valuation adjustments for excess and obsolete inventory (627) (502) Inventories, net $ 33,888 $ 28,366 |
Schedule of Accrued Expenses and Other Liabilities | September 30, December 31, (In thousands) Current Payroll, incentives and commissions payable $ 8,261 $ 10,479 Warranty reserve 944 968 Other accrued expenses and other liabilities 2,197 3,246 Total accrued expenses and other liabilities 11,402 14,693 Other liabilities, non-current 222 121 Total accrued expenses, and current and non-current other liabilities $ 11,624 $ 14,814 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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. September 30, 2023 December 31, 2022 Pricing Category Amortized Gross Gross Fair Amortized Gross Gross Fair (In thousands) Cash equivalents Money market securities Level 1 $ 17,408 $ — $ — $ 17,408 $ 33,268 $ — $ — $ 33,268 Short-term investments U.S. treasury securities Level 2 2,894 — (5) 2,889 3,629 1 — 3,630 Corporate notes and bonds Level 2 19,939 — (95) 19,844 26,060 — (208) 25,852 Municipal and agency notes and bonds Level 2 10,387 — (25) 10,362 3,992 5 — 3,997 Total short-term investments 33,220 — (125) 33,095 33,681 6 (208) 33,479 Long-term investments Corporate notes and bonds Level 2 13,417 — (74) 13,343 3,178 — (120) 3,058 Municipal and agency notes and bonds Level 2 8,084 — (33) 8,051 — — — — Total long-term investments 21,501 — (107) 21,394 3,178 — (120) 3,058 Total short and long-term investments 54,721 — (232) 54,489 36,859 6 (328) 36,537 Total $ 72,129 $ — $ (232) $ 71,897 $ 70,127 $ 6 $ (328) $ 69,805 |
Schedule of Gross Unrealized Losses and Fair Values of Investments | 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. September 30, 2023 December 31, 2022 Fair Gross Fair Gross (In thousands) U.S. treasury securities $ 2,889 $ (5) $ — $ — Corporate notes and bonds 31,687 (169) 28,911 (328) Municipal and agency notes and bonds 18,413 (58) — — Total available-for-sale investments with unrealized loss positions $ 52,989 $ (232) $ 28,911 $ (328) |
Schedule of Sales of Available-for-Sale Investments | The following table presents the sales of available-for-sale investments. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Corporate notes and bonds $ — $ — $ 2,966 $ — |
Lines of Credit (Tables)
Lines of Credit (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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. September 30, December 31, (In thousands) Outstanding letters of credit $ 19,501 $ 15,487 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands, except percentages) Provision for (benefit from) income taxes $ 518 $ 371 $ (906) $ 377 Discrete items 357 331 986 1,134 Provision for income taxes, excluding discrete items $ 875 $ 702 $ 80 $ 1,511 Effective tax rate 5.1 % 7.2 % (114.2 %) 3.5 % Effective tax rate, excluding discrete items 8.6 % 13.6 % 10.0 % 14.1 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Segment | The following tables present a summary of the Company’s financial information by segment and corporate operating expenses. Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Revenue $ 36,812 $ 224 $ 37,036 $ 70,622 $ 538 $ 71,160 Cost of revenue 11,114 40 11,154 23,136 444 23,580 Gross profit 25,698 184 25,882 47,486 94 47,580 Operating expenses General and administrative 2,039 1,061 3,100 5,837 2,976 8,813 Sales and marketing 3,272 1,560 4,832 9,567 4,171 13,738 Research and development 1,098 2,871 3,969 3,121 8,922 12,043 Total operating expenses 6,409 5,492 11,901 18,525 16,069 34,594 Operating income (loss) $ 19,289 $ (5,308) 13,981 $ 28,961 $ (15,975) 12,986 Less: Corporate operating expenses 4,848 14,550 Income (loss) from operations $ 9,133 $ (1,564) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Revenue $ 30,462 $ — $ 30,462 $ 83,191 $ 109 $ 83,300 Cost of revenue 9,417 — 9,417 25,817 18 25,835 Gross profit 21,045 — 21,045 57,374 91 57,465 Operating expenses General and administrative 1,911 878 2,789 4,909 3,140 8,049 Sales and marketing 3,242 960 4,202 8,197 2,120 10,317 Research and development 1,216 2,612 3,828 3,159 11,011 14,170 Total operating expenses 6,369 4,450 10,819 16,265 16,271 32,536 Operating income (loss) $ 14,676 $ (4,450) 10,226 $ 41,109 $ (16,180) 24,929 Less: Corporate operating expenses 5,320 14,705 Income from operations $ 4,906 $ 10,224 |
Concentrations (Tables)
Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | The following table presents the customers that account for 10% or more of the Company’s revenue and their related segment for each of the periods presented. Although certain customers might account for greater than 10% of the Company’s revenue at any one point in time, the concentration of revenue between a limited number of customers shifts regularly, depending on when revenue is recognized. The percentages by customer reflect specific relationships or contracts that would concentrate revenue for the periods presented and do not indicate a trend specific to any one customer. Three Months Ended September 30, Nine Months Ended September 30, Segment 2023 2022 2023 2022 Customer A Water ** 29% ** 15% Customer B Water 20% ** 16% ** Customer C Water ** ** ** 17% Customer D Water 15% ** ** ** Customer E Water 15% ** ** ** Customer F Water 10% ** ** ** ** Zero or less than 10%. |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 37,036 | $ 30,462 | $ 71,160 | $ 83,300 |
Water | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 36,812 | 30,462 | 70,622 | 83,191 |
Emerging Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 224 | 0 | 538 | 109 |
Megaproject | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26,829 | 17,347 | 42,283 | 51,257 |
Megaproject | Water | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26,829 | 17,347 | 42,283 | 51,178 |
Megaproject | Emerging Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 79 |
Original equipment manufacturer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,307 | 9,032 | 16,845 | 21,392 |
Original equipment manufacturer | Water | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,083 | 9,032 | 16,415 | 21,392 |
Original equipment manufacturer | Emerging Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 224 | 0 | 430 | 0 |
Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,900 | 4,083 | 12,032 | 10,651 |
Aftermarket | Water | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,900 | 4,083 | 11,924 | 10,621 |
Aftermarket | Emerging Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 108 | 30 |
Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,543 | 16,722 | 38,380 | 53,708 |
Middle East and Africa | Water | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,543 | 16,722 | 38,272 | 53,629 |
Middle East and Africa | Emerging Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 108 | 79 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,688 | 8,168 | 19,180 | 17,771 |
Asia | Water | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,688 | 8,168 | 19,180 | 17,771 |
Asia | Emerging Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,214 | 3,156 | 9,781 | 6,981 |
Americas | Water | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,091 | 3,156 | 9,628 | 6,951 |
Americas | Emerging Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 123 | 0 | 153 | 30 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,591 | 2,416 | 3,819 | 4,840 |
Europe | Water | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,490 | 2,416 | 3,542 | 4,840 |
Europe | Emerging Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 101 | $ 0 | $ 277 | $ 0 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 23,337 | $ 34,062 | |
Contract assets, current (included in prepaid expenses and other assets) | 0 | 1,720 | |
Contract liabilities: | |||
Contract liabilities, current | 1,467 | 1,195 | |
Contract liabilities, non-current (included in other liabilities, non-current) | 89 | 121 | |
Total contract liabilities | $ 1,556 | $ 1,316 | $ 3,406 |
Revenue - Schedule of Contrac_2
Revenue - Schedule of Contract With Customer, Contract Liability, Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Contract With Customer, Liability [Roll Forward] | ||
Contract liabilities, beginning of year | $ 1,316 | $ 3,406 |
Revenue recognized | (1,117) | (3,123) |
Cash received, excluding amounts recognized as revenue during the period | 1,357 | 1,033 |
Contract liabilities, end of period | $ 1,556 | $ 1,316 |
Revenue - Schedule of Remaining
Revenue - Schedule of Remaining Performance Obligation (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 12,785 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 12,785 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | 5,924 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 5,924 |
Performance obligations expected to be satisfied, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 6,861 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 6,861 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator | ||||
Net income | $ 9,660 | $ 4,789 | $ 1,699 | $ 10,324 |
Denominator (weighted average shares) | ||||
Basic common shares outstanding (in shares) | 56,443 | 55,881 | 56,346 | 56,291 |
Dilutive stock awards (in shares) | 1,526 | 1,491 | 1,415 | 1,417 |
Diluted common shares outstanding (in shares) | 57,969 | 57,372 | 57,761 | 57,708 |
Net income per share | ||||
Basic (in dollars per share) | $ 0.17 | $ 0.09 | $ 0.03 | $ 0.18 |
Diluted (in dollars per share) | $ 0.17 | $ 0.08 | $ 0.03 | $ 0.18 |
Net Income Per Share - Antidilu
Net Income Per Share - Antidilutive Securities Excluded From Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive stock awards (in shares) | 125 | 387 | 126 | 522 |
Other Financial Information - S
Other Financial Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Other Financial Information [Abstract] | ||||
Cash and cash equivalents | $ 51,440 | $ 56,354 | $ 52,131 | |
Restricted cash, non-current (included in other assets, non-current) | 126 | 104 | 104 | |
Total cash, cash equivalents and restricted cash | $ 51,566 | $ 56,458 | $ 52,235 | $ 74,461 |
Other Financial Information -_2
Other Financial Information - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Financial Information [Abstract] | ||
Accounts receivable, gross | $ 23,446 | $ 34,210 |
Allowance for doubtful accounts | (109) | (148) |
Accounts receivable, net | $ 23,337 | $ 34,062 |
Other Financial Information -_3
Other Financial Information - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Financial Information [Abstract] | ||
Raw materials | $ 9,050 | $ 11,178 |
Work in process | 4,905 | 2,628 |
Finished goods | 20,560 | 15,062 |
Inventories, gross | 34,515 | 28,868 |
Valuation adjustments for excess and obsolete inventory | (627) | (502) |
Inventories, net | $ 33,888 | $ 28,366 |
Other Financial Information - N
Other Financial Information - Narrative (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Other Financial Information [Abstract] | ||
Goodwill | $ 12,790,000 | $ 12,790,000 |
Goodwill impairment charge | $ 0 |
Other Financial Information -_4
Other Financial Information - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current | ||
Payroll, incentives and commissions payable | $ 8,261 | $ 10,479 |
Warranty reserve | 944 | 968 |
Other accrued expenses and other liabilities | 2,197 | 3,246 |
Total accrued expenses and other liabilities | 11,402 | 14,693 |
Other liabilities, non-current | 222 | 121 |
Total accrued expenses, and current and non-current other liabilities | $ 11,624 | $ 14,814 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements - Schedule of Amortized Cost and Fair Value of Available for Sale Securities (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | $ 72,129,000 | $ 70,127,000 |
Gross unrealized gain | 0 | 6,000 |
Gross unrealized losses | (232,000) | (328,000) |
Fair value | 71,897,000 | 69,805,000 |
Total short and long-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 54,721,000 | 36,859,000 |
Gross unrealized gain | 0 | 6,000 |
Gross unrealized losses | (232,000) | (328,000) |
Fair value | 54,489,000 | 36,537,000 |
Short-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 33,220,000 | 33,681,000 |
Gross unrealized gain | 0 | 6,000 |
Gross unrealized losses | (125,000) | (208,000) |
Fair value | 33,095,000 | 33,479,000 |
Long-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 21,501,000 | 3,178,000 |
Gross unrealized gain | 0 | 0 |
Gross unrealized losses | (107,000) | (120,000) |
Fair value | 21,394,000 | 3,058,000 |
Level 1 | Cash equivalents | Money market securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 17,408,000 | 33,268,000 |
Gross unrealized gain | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 17,408,000 | 33,268,000 |
Level 2 | Short-term investments | U.S. treasury securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 2,894,000 | 3,629,000 |
Gross unrealized gain | 0 | 1,000 |
Gross unrealized losses | (5,000) | 0 |
Fair value | 2,889,000 | 3,630,000 |
Level 2 | Short-term investments | Corporate notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 19,939,000 | 26,060,000 |
Gross unrealized gain | 0 | 0 |
Gross unrealized losses | (95,000) | (208,000) |
Fair value | 19,844,000 | 25,852,000 |
Level 2 | Short-term investments | Municipal and agency notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 10,387,000 | 3,992,000 |
Gross unrealized gain | 0 | 5,000 |
Gross unrealized losses | (25,000) | 0 |
Fair value | 10,362,000 | 3,997,000 |
Level 2 | Long-term investments | Corporate notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 13,417,000 | 3,178,000 |
Gross unrealized gain | 0 | 0 |
Gross unrealized losses | (74,000) | (120,000) |
Fair value | 13,343,000 | 3,058,000 |
Level 2 | Long-term investments | Municipal and agency notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 8,084,000 | 0 |
Gross unrealized gain | 0 | 0 |
Gross unrealized losses | (33,000) | 0 |
Fair value | 8,051,000 | 0 |
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 - Schedule of Gross Unrealized Losses and Fair Values of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 52,989 | $ 28,911 |
Gross unrealized losses | (232) | (328) |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 2,889 | 0 |
Gross unrealized losses | (5) | 0 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 31,687 | 28,911 |
Gross unrealized losses | (169) | (328) |
Municipal and agency notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 18,413 | 0 |
Gross unrealized losses | $ (58) | $ 0 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements - Schedule of Sales of Available-for-Sale Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Sales of marketable securities | $ 2,966 | $ 0 | ||
Corporate notes and bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Sales of marketable securities | $ 0 | $ 0 | $ 2,966 | $ 0 |
Lines of Credit - Narrative (De
Lines of Credit - Narrative (Details) - Committed Revolving Credit Line - USD ($) | Sep. 30, 2023 | Aug. 31, 2023 | Dec. 22, 2021 |
Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Long-term debt | $ 0 | ||
JP Morgan Chase Bank, N.A. | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 30,000,000 | $ 25,000,000 | |
JP Morgan Chase Bank, N.A. | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 50,000,000 | ||
JP Morgan Chase Bank, N.A. | Line of Credit | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Utilized amount of the maximum allowable credit line | $ 20,400,000 |
Lines of Credit - Schedule of D
Lines of Credit - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 19,501 | $ 15,487 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 518 | $ 371 | $ (906) | $ 377 |
Discrete items | 357 | 331 | 986 | 1,134 |
Provision for income taxes, excluding discrete items | $ 875 | $ 702 | $ 80 | $ 1,511 |
Effective tax rate | 5.10% | 7.20% | (114.20%) | 3.50% |
Effective tax rate, excluding discrete items | 8.60% | 13.60% | 10% | 14.10% |
Segment Reporting - Financial I
Segment Reporting - Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 37,036 | $ 30,462 | $ 71,160 | $ 83,300 |
Cost of revenue | 11,154 | 9,417 | 23,580 | 25,835 |
Gross profit | 25,882 | 21,045 | 47,580 | 57,465 |
Operating expenses: | ||||
General and administrative | 7,369 | 7,608 | 21,704 | 21,155 |
Sales and marketing | 5,411 | 4,703 | 15,397 | 11,916 |
Research and development | 3,969 | 3,828 | 12,043 | 14,170 |
Total operating expenses | 16,749 | 16,139 | 49,144 | 47,241 |
Income (loss) from operations | 9,133 | 4,906 | (1,564) | 10,224 |
Water | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 36,812 | 30,462 | 70,622 | 83,191 |
Emerging Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 224 | 0 | 538 | 109 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 37,036 | 30,462 | 71,160 | 83,300 |
Cost of revenue | 11,154 | 9,417 | 23,580 | 25,835 |
Gross profit | 25,882 | 21,045 | 47,580 | 57,465 |
Operating expenses: | ||||
General and administrative | 3,100 | 2,789 | 8,813 | 8,049 |
Sales and marketing | 4,832 | 4,202 | 13,738 | 10,317 |
Research and development | 3,969 | 3,828 | 12,043 | 14,170 |
Total operating expenses | 11,901 | 10,819 | 34,594 | 32,536 |
Income (loss) from operations | 13,981 | 10,226 | 12,986 | 24,929 |
Operating Segments | Water | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 36,812 | 30,462 | 70,622 | 83,191 |
Cost of revenue | 11,114 | 9,417 | 23,136 | 25,817 |
Gross profit | 25,698 | 21,045 | 47,486 | 57,374 |
Operating expenses: | ||||
General and administrative | 2,039 | 1,911 | 5,837 | 4,909 |
Sales and marketing | 3,272 | 3,242 | 9,567 | 8,197 |
Research and development | 1,098 | 1,216 | 3,121 | 3,159 |
Total operating expenses | 6,409 | 6,369 | 18,525 | 16,265 |
Income (loss) from operations | 19,289 | 14,676 | 28,961 | 41,109 |
Operating Segments | Emerging Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 224 | 0 | 538 | 109 |
Cost of revenue | 40 | 0 | 444 | 18 |
Gross profit | 184 | 0 | 94 | 91 |
Operating expenses: | ||||
General and administrative | 1,061 | 878 | 2,976 | 3,140 |
Sales and marketing | 1,560 | 960 | 4,171 | 2,120 |
Research and development | 2,871 | 2,612 | 8,922 | 11,011 |
Total operating expenses | 5,492 | 4,450 | 16,069 | 16,271 |
Income (loss) from operations | (5,308) | (4,450) | (15,975) | (16,180) |
Corporate | ||||
Operating expenses: | ||||
Total operating expenses | $ 4,848 | $ 5,320 | $ 14,550 | $ 14,705 |
Concentrations - Schedules of C
Concentrations - Schedules of Concentration of Risk, by Risk Factor (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk - Water | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Customer A | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenue | 29% | 15% | ||
Customer B | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenue | 20% | 16% | ||
Customer C | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenue | 17% | |||
Customer D | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenue | 15% | |||
Customer E | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenue | 15% | |||
Customer F | ||||
Concentration Risk [Line Items] | ||||
Percentage of revenue | 10% |