Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,540 | ||
Entity Common Stock, Shares Outstanding (in shares) | 57,078,540 | ||
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 2024 Annual Meeting of Stockholders, which is expected to be filed not later than 120 days after the registrant’s fiscal year ended December 31, 2023 . | ||
Entity Central Index Key | 0001421517 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 68,098 | $ 56,354 |
Short-term investments | 40,445 | 33,479 |
Accounts receivable, net | 46,937 | 34,062 |
Inventories, net | 26,149 | 28,366 |
Prepaid expenses and other assets | 3,843 | 5,606 |
Total current assets | 185,472 | 157,867 |
Long-term investments | 13,832 | 3,058 |
Deferred tax assets, net | 10,324 | 10,263 |
Property and equipment, net | 18,699 | 19,580 |
Operating lease, right of use asset | 11,469 | 13,115 |
Goodwill | 12,790 | 12,790 |
Other assets, non-current | 388 | 366 |
Total assets | 252,974 | 217,039 |
Current liabilities: | ||
Accounts payable | 3,000 | 814 |
Accrued expenses and other liabilities | 15,583 | 14,693 |
Lease liabilities | 1,791 | 1,600 |
Contract liabilities | 1,097 | 1,195 |
Total current liabilities | 21,471 | 18,302 |
Lease liabilities, non-current | 11,488 | 13,278 |
Other liabilities, non-current | 207 | 121 |
Total liabilities | 33,166 | 31,701 |
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, 2023 and 2022 | 0 | 0 |
Common stock, $0.001 par value; 200,000,000 shares authorized; 65,029,459 shares issued and 56,880,947 shares outstanding at December 31, 2023 and 64,225,391 shares issued and 56,076,879 shares outstanding at December 31, 2022 | 65 | 64 |
Additional paid-in capital | 217,617 | 204,957 |
Accumulated other comprehensive loss | (44) | (349) |
Treasury stock, at cost, 8,148,512 shares repurchased at December 31, 2023 and 2022 | (80,486) | (80,486) |
Retained earnings | 82,656 | 61,152 |
Total stockholders’ equity | 219,808 | 185,338 |
Total liabilities and stockholders’ equity | $ 252,974 | $ 217,039 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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) | 65,029,459 | 64,225,391 |
Common stock, shares outstanding (in shares) | 56,880,947 | 56,076,879 |
Treasury stock, at cost (in shares) | 8,148,512 | 8,148,512 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 128,349 | $ 125,591 | $ 103,904 |
Cost of revenue | 41,270 | 38,235 | 32,670 |
Gross profit | 87,079 | 87,356 | 71,234 |
Operating expenses: | |||
General and administrative | 28,864 | 28,341 | 25,174 |
Sales and marketing | 22,164 | 16,277 | 12,160 |
Research and development | 17,001 | 17,909 | 20,069 |
Total operating expenses | 68,029 | 62,527 | 57,403 |
Income from operations | 19,050 | 24,829 | 13,831 |
Other income (expense): | |||
Interest income | 3,756 | 908 | 204 |
Other non-operating income (expense), net | (101) | 334 | (31) |
Total other income, net | 3,655 | 1,242 | 173 |
Income before income taxes | 22,705 | 26,071 | 14,004 |
Provision for (benefit from) income taxes | 1,201 | 2,022 | (265) |
Net income | $ 21,504 | $ 24,049 | $ 14,269 |
Net income per share: | |||
Basic (in dollars per share) | $ 0.38 | $ 0.43 | $ 0.25 |
Diluted (in dollars per share) | $ 0.37 | $ 0.42 | $ 0.24 |
Number of shares used in per share calculations: | |||
Basic (in shares) | 56,444 | 56,221 | 56,993 |
Diluted (in shares) | 57,740 | 57,641 | 58,723 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 21,504 | $ 24,049 | $ 14,269 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | 51 | 15 | (68) |
Unrealized gain (loss) on investments | 254 | (215) | (134) |
Total other comprehensive income (loss), net of tax | 305 | (200) | (202) |
Comprehensive income | $ 21,809 | $ 23,849 | $ 14,067 |
CONSOLIDATED STATEMENTS OF STOC
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, 2020 | $ 62 | $ 179,161 | $ 53 | $ (30,486) | $ 22,834 | |
Beginning balance (in shares) at Dec. 31, 2020 | 61,798,004 | |||||
Beginning 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, net (in shares) | 1,746,415 | |||||
Stock-based compensation | 5,880 | |||||
Foreign currency translation adjustments | (68) | |||||
Unrealized gain (loss) on investments | (134) | |||||
Total other comprehensive income (loss), 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, treasury stock (in shares) at Dec. 31, 2021 | 6,721,153 | |||||
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 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | 2,986 | |||||
Issuance of common stock, net (in shares) | 680,972 | |||||
Stock-based compensation | 6,378 | |||||
Foreign currency translation adjustments | 15 | |||||
Unrealized gain (loss) on investments | (215) | |||||
Total other comprehensive income (loss), 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, treasury stock (in shares) at Dec. 31, 2022 | 8,148,512 | 8,148,512 | ||||
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 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | $ 1 | 4,793 | ||||
Issuance of common stock, net (in shares) | 804,068 | |||||
Stock-based compensation | 7,867 | |||||
Foreign currency translation adjustments | 51 | |||||
Unrealized gain (loss) on investments | 254 | |||||
Total other comprehensive income (loss), net of tax | $ 305 | 305 | ||||
Net income | $ 21,504 | 21,504 | ||||
Ending balance, treasury stock (in shares) at Dec. 31, 2023 | 8,148,512 | 8,148,512 | ||||
Ending balance at Dec. 31, 2023 | $ 219,808 | $ 65 | $ 217,617 | $ (44) | $ (80,486) | $ 82,656 |
Ending balance (in shares) at Dec. 31, 2023 | 56,880,947 | 65,029,459 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 21,504 | $ 24,049 | $ 14,269 |
Adjustments to reconcile net income to cash provided by operating activities | |||
Stock-based compensation | 8,038 | 6,508 | 6,053 |
Depreciation and amortization | 4,102 | 4,764 | 4,502 |
Right of use asset amortization | 1,646 | 1,538 | 1,437 |
(Accretion) amortization of premiums and discounts on investments | (862) | 680 | 570 |
Deferred income taxes | (61) | 1,158 | (391) |
Other non-cash adjustments | 1,026 | (201) | 955 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (12,873) | (13,480) | (8,823) |
Contract assets | 1,128 | (1,227) | 1,399 |
Inventories, net | 1,354 | (8,282) | (8,766) |
Prepaid and other assets | (96) | 138 | 314 |
Accounts payable | 2,629 | 138 | (155) |
Accrued expenses and other liabilities | (1,352) | (1,062) | 396 |
Contract liabilities | (129) | (2,090) | 1,766 |
Net cash provided by operating activities | 26,054 | 12,631 | 13,526 |
Cash flows from investing activities: | |||
Sales of marketable securities | 2,966 | 0 | 0 |
Maturities of marketable securities | 64,955 | 39,756 | 35,019 |
Purchases of marketable securities | (84,555) | (43,572) | (48,903) |
Capital expenditures | (2,567) | (4,232) | (6,684) |
Proceeds from sales of fixed assets | 87 | 1,102 | 5 |
Net cash used in investing activities | (19,114) | (6,946) | (20,563) |
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 4,794 | 2,986 | 10,554 |
Repurchase of common stock | 0 | (26,654) | (23,346) |
Net cash provided by (used in) financing activities | 4,794 | (23,668) | (12,792) |
Effect of exchange rate differences on cash and cash equivalents | 33 | (20) | (68) |
Net change in cash, cash equivalents and restricted cash | 11,767 | (18,003) | (19,897) |
Cash, cash equivalents and restricted cash, beginning of year | 56,458 | 74,461 | 94,358 |
Cash, cash equivalents and restricted cash, end of year | 68,225 | 56,458 | 74,461 |
Supplemental disclosure of cash flow information: | |||
Cash received for income tax refunds | 3 | 2 | 270 |
Cash paid for income taxes | 505 | 549 | 76 |
Supplemental disclosure on non-cash investing and financing transactions: | |||
Purchases of property and equipment in trade accounts payable, and accrued expenses and other liabilities | $ 647 | $ 740 | $ 421 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 reliable, high-performance solutions that provide cost savings through improved energy efficiency in commercial and industrial processes, with applications across several industries . Leveraging the Company’s pressure exchanger technology, which generates little to no emissions when operating, the Company’s solutions lowers costs, saves energy, reduces waste, and minimizes 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 CO 2 -based 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 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; 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. 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 21, 2024 , 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. Significant Accounting Policies 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, corporate notes and bonds, and municipal and agency 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. 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 . 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. 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 5.5 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, 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. 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 . 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 stand-alone observable sales 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. Practical Expedients and Exemptions 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 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. Performance obligations consist of delivery of products, such as the Company’s PX s, 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 between 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. Contracts are sometimes modified for a change in scope or other requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Any subsequent contract modifications are analyzed to determine the treatment of the contract modification as a separate contract, prospectively or through a cumulative catch-up adjustment. 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 12 , “ Stock-based Compensation ,” for further discussion of stock-based compensation. 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. Recently Issued Accounting Pronouncement Not Yet Adopted In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-06 , Disclosure Agreements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). The amendments in ASU 2023-06 will impact various disclosure areas, including the statement of cash flows, accounting changes and error corrections, earnings per share, debt, equity, derivatives, and transfers of financial assets. The amendments in ASU 2023-06 will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the Securities and Exchange Commission (the “SEC”), and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. The Company does not believe the amendments in ASU 2023-06 will materially impact any of the Company’s current disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision-Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 (i.e., the Company’s 2024 Annual Report) and interim periods within fiscal years beginning after December 15, 2024 (i.e., the Company’s first quarter of fiscal 2025). Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2023-07 on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures (“ASU 2023-09”) . ASU 2023-09 was issued to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 (i.e., the Company’s 2025 Annual Report) on a prospective basis; however, retrospective application is permitted. In addition, early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2023-09 on its consolidated financial statements and disclosures. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The Company classifies its channel customers as follows: • Megaproject (“ MPD ”) . MPD customers are major firms that develop, design, build, own and/or operate large-scale desalination plants or projects. Revenues from projects generally exceed $1.0 million and the MPD project timeline between project tender and shipment generally ranges from 16 to 36 months ; however, from time-to-time, may exceed 36 months . • Original Equipment Manufacturer (“ OEM ”) . In addition to the type of customers listed below, revenues from projects generally are $1.0 million or less and the OEM project timeline from project tender to shipment generally ranges from one to 16 months ; however, from time-to-time, may exceed 16 months . ◦ Water : 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. ◦ Emerging Technologies : OEM customers include direct sales to commercial or industrial customers, such as supermarket chains, cold storage facilities, and other industrial users. Also, included are sales to intermediaries, such as refrigeration system installers or refrigeration original equipment manufacturers. • Aftermarket (“ AM ”) . AM customers are desalination plant owners and/or operators who can utilize our technology to upgrade or keep their plant running. AM revenue includes sales of spare parts, repair services, field services and various commissioning activities. Disaggregation of Revenue The following table present s 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. Years Ended December 31, 2023 2022 2021 Water Emerging Technologies Total Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Geographical market Middle East and Africa $ 76,437 $ 177 $ 76,614 $ 86,227 $ 94 $ 86,321 $ 78,348 $ 53 $ 78,401 Asia 30,500 — 30,500 24,777 — 24,777 18,639 — 18,639 Americas 15,048 153 15,201 8,544 34 8,578 3,264 — 3,264 Europe 5,740 294 6,034 5,880 35 5,915 3,600 — 3,600 Total revenue $ 127,725 $ 624 $ 128,349 $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 Channel Megaproject $ 83,665 $ — $ 83,665 $ 81,755 $ 133 $ 81,888 $ 75,338 $ 53 $ 75,391 Original equipment manufacturer 25,548 447 25,995 28,858 — 28,858 17,604 — 17,604 Aftermarket 18,512 177 18,689 14,815 30 14,845 10,909 — 10,909 Total revenue $ 127,725 $ 624 $ 128,349 $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 Contract Balances The following table presents contract balances by category. December 31, 2023 2022 (In thousands) Accounts receivable, net $ 46,937 $ 34,062 Contract assets, current (included in prepaid expenses and other assets) 592 1,720 Contract liabilities: Contract liabilities, current $ 1,097 $ 1,195 Contract liabilities, non-current (included in other liabilities, non-current) 90 121 Total contract liabilities $ 1,187 $ 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. Years Ended December 31, 2023 2022 2021 (In thousands) Contract liabilities, beginning of year $ 1,316 $ 3,406 $ 1,640 Revenue recognized (1,254) (3,123) (1,415) Cash received, excluding amounts recognized as revenue during the period 1,125 1,033 3,181 Contract liabilities, end of year $ 1,187 $ 1,316 $ 3,406 Future Performance Obligations As of December 31, 2023 , t he 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) 2025 6,861 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 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 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, 2023 2022 2021 (In thousands, except per share amounts) Numerator Net income $ 21,504 $ 24,049 $ 14,269 Denominator (weighted average shares) Basic common shares outstanding 56,444 56,221 56,993 Dilutive stock awards 1,296 1,420 1,730 Diluted common shares outstanding 57,740 57,641 58,723 Net income per share Basic $ 0.38 $ 0.43 $ 0.25 Diluted $ 0.37 $ 0.42 $ 0.24 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, 2023 2022 2021 (In thousands) Anti-dilutive stock award shares 399 374 17 |
Other Financial Information
Other Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
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, 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 Consolidated Balance Sheets that sum to the total of such amounts presented for each period presented on the Consolidated Statements of Cash Flows. December 31, 2023 2022 2021 (In thousands) Cash and cash equivalents $ 68,098 $ 56,354 $ 74,358 Restricted cash, non-current (included in other assets, non-current) 127 104 103 Total cash, cash equivalents and restricted cash $ 68,225 $ 56,458 $ 74,461 Accounts Receivable, net December 31, 2023 2022 (In thousands) Accounts receivable, gross $ 47,075 $ 34,210 Allowance for doubtful accounts (138) (148) Accounts receivable, net $ 46,937 $ 34,062 Allowance for Doubtful Accounts The following table presents the allowance for doubtful accounts activities. Years Ended December 31, 2023 2022 2021 (In thousands) Balance, beginning of year $ 148 $ 117 $ 397 Changes to reserves (1) 73 36 — Collection of specific reserves and uncollectible accounts written off, net of recoveries (83) (5) (280) Balance, end of year $ 138 $ 148 $ 117 (1) General and specific reserves charged to expense. Inventories, net December 31, 2023 2022 (In thousands) Raw materials $ 8,752 $ 11,178 Work in process 5,234 2,628 Finished goods 13,319 15,062 Inventories, gross 27,305 28,868 Valuation adjustments for excess and obsolete inventory (1,156) (502) Inventories, net $ 26,149 $ 28,366 Prepaid Expenses and Other Assets December 31, 2023 2022 (In thousands) Contract assets $ 592 $ 1,720 Cloud computing arrangement implementation costs 474 784 Supplier advances 487 1,308 Insurance 754 637 Interest receivable 581 319 Other prepaid expenses and other assets 955 838 Total prepaid expenses and other assets 3,843 5,606 Restricted cash, non-current 127 104 Security deposits, non-current 261 262 Total other assets, non-current 388 366 Total prepaid and other assets, and other assets, non-current $ 4,231 $ 5,972 Property and Equipment December 31, 2023 2022 (In thousands) Machinery and equipment $ 30,962 $ 28,545 Leasehold improvements 18,895 17,576 Software 1,766 1,799 Office equipment, furniture, and fixtures 2,974 2,950 Automobiles 346 246 Construction in progress 1,207 2,407 Total property and equipment 56,150 53,523 Less: Accumulated depreciation and amortization (37,451) (33,943) Total property and equipment, net $ 18,699 $ 19,580 Years Ended December 31, 2023 2022 2021 (In thousands) Depreciation and amortization expense $ 4,102 $ 4,727 $ 4,490 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 December 31, 2023 and December 31, 2022 was $12.8 million . On July 1, 2023 , the Compan y 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. T here was no impairment charge recorded for the year ended December 31, 2023 . Accrued Expenses and Other Liabilities December 31, 2023 2022 (In thousands) Current Payroll, incentives and commissions payable $ 11,037 $ 10,479 Warranty reserve 1,057 968 Income taxes payable 1,077 268 Other accrued expenses and other liabilities 2,412 2,978 Total accrued expenses and other liabilities 15,583 14,693 Other liabilities, non-current 207 121 Total accrued expenses, and current and non-current other liabilities $ 15,790 $ 14,814 Accumulated Other Comprehensive Loss For the year ended December 31, 2023 , there was $3.0 million of securities sold and the reclassification to other comprehensive income (loss) was immaterial. There were no reclassifications of amounts out of accumulated other comprehensive loss for the years ended December 31, 2022 and 2021 , as there have been no sales of securities or translation adjustments that impacted other comprehensive income (loss) during these periods. The tax impact of the changes in accumulated other comprehensive loss for the years ended December 31, 2023 , 2022 and 2021 , 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, 2023 , 2022 and 2021 . |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 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. Fair Value of Financial Instruments The Company follows the authoritative guidance for fair value measurements and disclosures that, among other things, defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. 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, 2023 December 31, 2022 Pricing Category Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Cash equivalents Money market securities Level 1 $ 18,767 $ — $ — $ 18,767 $ 33,268 $ — $ — $ 33,268 Short-term investments U.S. treasury securities Level 2 4,900 1 (1) 4,900 3,629 1 — 3,630 Corporate notes and bonds Level 2 25,674 11 (18) 25,667 26,060 — (208) 25,852 Municipal and agency notes and bonds Level 2 9,887 — (9) 9,878 3,992 5 — 3,997 Total short-term investments 40,461 12 (28) 40,445 33,681 6 (208) 33,479 Long-term investments Corporate notes and bonds Level 2 9,229 28 (3) 9,254 3,178 — (120) 3,058 Municipal and agency notes and bonds Level 2 4,585 — (7) 4,578 — — — — Total long-term investments 13,814 28 (10) 13,832 3,178 — (120) 3,058 Total short and long-term investments 54,275 40 (38) 54,277 36,859 6 (328) 36,537 Total $ 73,042 $ 40 $ (38) $ 73,044 $ 70,127 $ 6 $ (328) $ 69,805 The Company monitors its investments for impairment. It was determined that unrealized gains and losses included in accumulated other comprehensive loss at December 31, 2023 and 2022 , were temporary in nature, because the changes in market value for these securities resulted from fluctuating interest rates, rather than a deterioration of the credit worthiness of the issuers. 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, 2023 December 31, 2022 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) U.S. treasury securities $ 2,931 $ (1) $ — $ — Corporate notes and bonds 15,276 (21) 28,911 (328) Municipal and agency notes and bonds 12,956 (16) — — Total available-for-sale investments with unrealized loss positions $ 31,163 $ (38) $ 28,911 $ (328) Sales of Available-for-Sale Investments The following table presents the sales of available-for-sale investments. Years Ended December 31, 2023 2022 2021 (In thousands) Corporate notes and bonds $ 2,966 $ — $ — Realized losses on sales of securities were immaterial during the year ended December 31, 2023. |
Lines of Credit
Lines of Credit | 12 Months Ended |
Dec. 31, 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 (“ 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 (“First Amendment”) 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. During September 2023 , the Company and JPMC amended the Credit Agreement (the “Second Amendment”) to only increase the maximum allowable letters of credit (“LCs”) credit line component from $25.0 million to $30.0 million . No other components or features under the Credit Agreement (including the First Amendment dated July 15, 2022 ) were amended. 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, 2023 , 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 $30.0 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 $21.8 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 . 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, 2023 2022 (In thousands) Outstanding letters of credit $ 19,945 $ 15,487 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, 2023 | |
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, 2023 2022 (In thousands) Operating lease, right of use asset $ 11,469 $ 13,115 Lease liabilities, current $ 1,791 $ 1,600 Lease liabilities, non-current 11,488 13,278 Total lease liability $ 13,279 $ 14,878 The following table presents certain facts regarding the Company’s material property leases. Location Purpose Square Footage Expiration (1) Option to Extend (2) San Leandro, California Headquarters, R&D and manufacturing 171,000 December-2028 1 / 5 years Tracy, California Manufacturing and warehouse 54,429 April-2030 1 / 5 years Katy, Texas Office, R&D, warehouse, and yard 221,220 June-2029 2 / 5 years (1) Month-Year of original lease expiration (2) Number of renewal option(s) / Number of year(s) per renewal option The following table presents operating lease activities related to all leased properties. Years Ended December 31, 2023 2022 2021 (In thousands) Operating lease expense $ 2,571 $ 2,571 $ 2,571 Cash payments 2,580 2,650 2,431 The following table presents other information related to outstanding operating leases as of December 31, 2023 . Weighted average remaining lease term 5.5 years Weighted average discount rate 7.0% As of December 31, 2023 , t he following table presents the minimum lease payments by year under noncancelable operating leases, exclusive of execution costs. Year Lease Liabilities (In thousands) 2024 $ 2,812 2025 2,736 2026 2,982 2027 3,072 2028 3,165 2029 and thereafter 1,243 Total future minimum lease payments 16,010 Less imputed lease interest (2,731) Total lease liabilities $ 13,279 Warranty The following table presents the c hanges in the Company’s accrued product warranty reserve. Years Ended December 31, 2023 2022 2021 (In thousands) Warranty reserve balance, beginning of year $ 968 $ 879 $ 760 Warranty costs charged to cost of revenue 515 483 445 Utilization charges against reserve (92) (64) (16) Release of accrual related to expired warranties (334) (330) (310) Warranty reserve balance, end of year $ 1,057 $ 968 $ 879 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, 2023 . 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, 2023 , the Company had approximately $1.5 million of such open cancellable purchase order arrangements. Guarantees The Company enters into indemnification provisions under its agreements with other companies in the ordinary course of business, typically with its customers. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities, generally limited to personal injury and property damage caused by the Company’s employees at a customer’s plant, and in proportion to the employee’s percentage of fault for the accident. Damages incurred for these indemnifications would be covered by the Company’s general liability insurance to the extent provided by the policy limitations. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the estimated valuation of the potential liability arising from these agreements is not material. Accordingly, the Company recorded no liabilities for these agreements as of December 31, 2023 and 2022 . In certain cases, the Company issues product warranty and performance guarantees to its customers for amounts generally equal to 10% or less of the total sales agreement to endorse the execution of product delivery and to the warranty of design work, fabrication and operating performance of our devices. These guarantees are generally LCs that have a weighted average life at inception of 33 months . See Note 6 , “ Lines of Credit – Letters of Credit ,” for information related to LCs . 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, 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 | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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, 2023 2022 2021 (In thousands) Income before income taxes: U.S. $ 22,592 $ 25,918 $ 13,913 Foreign 113 153 91 Total income before income taxes $ 22,705 $ 26,071 $ 14,004 Current tax provision: Federal $ 1,268 $ 698 $ — State 13 22 10 Foreign 51 84 80 Current tax provision 1,332 804 90 Deferred tax provision (benefit): Federal (262) 1,104 (382) State 131 114 27 Total deferred tax provision (benefit) (131) 1,218 (355) Total provision for (benefit from) income taxes $ 1,201 $ 2,022 $ (265) 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, 2023 2022 2021 U.S. federal taxes at statutory rate 21% 21% 21% State income tax, net of federal benefit — 1 — Foreign rate differential — — 1 Stock-based compensation (1) (4) (18) Non-deductible expenses 1 1 1 Federal research credits (6) (4) (7) Foreign derived intangible income (10) (7) — Effective tax rate 5% 8% (2%) 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, 2023 2022 (In thousands) Deferred tax assets: Net operating loss carry forwards $ 547 $ 702 Amortization of research and experimental expenditures 6,079 3,605 Accruals and reserves 4,857 4,320 Operating lease liabilities 2,870 3,199 Research and development, and foreign tax credit carry forwards 7,609 9,642 Acquired intangibles 157 321 Other — 66 Total deferred tax assets 22,119 21,855 Valuation allowance (4,600) (4,185) Total deferred tax assets, net of valuation allowance 17,519 17,670 Deferred tax liabilities: Depreciation on property and equipment (2,545) (2,646) Right of use asset (2,473) (2,809) Other (10) — Goodwill (2,167) (1,952) Total deferred tax liabilities (7,195) (7,407) Net deferred tax asset $ 10,324 $ 10,263 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. On the basis of this evaluation, as of December 31, 2023 , 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 $4.6 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 California net operating loss carryforward. Expiration Year December 31, 2023 2022 (In thousands) California 2031 7,391 9,549 Utilization of the California 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 which could result in the expiration of the net operating loss carryforward before utilization. As of December 31, 2023 , there are no ownership change limits on the utilization of the California net operating loss carryforward . 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, 2023 2022 (In thousands) Federal 2040 $ 2,983 $ 5,441 California No Expiration Date 5,855 5,318 Total credit carryforwards $ 8,838 $ 10,759 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, 2023 2022 2021 (In thousands) Gross unrecognized tax benefits, beginning of year $ 1,505 $ 1,321 $ 1,134 Additions of current and prior year tax positions 200 184 193 Reductions of prior year tax positions — — (6) Gross unrecognized tax benefits, end of year $ 1,705 $ 1,505 $ 1,321 As of December 31, 2023 , the Company had unrecognized tax benefits of $1.7 million , of which $1.0 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, 2023 , there was no accrued interest or penaltie s associated with any unrecognized tax benefits. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s Chief Operating Decision-Maker (“CODM”) is its c hief executive officer. The Company continue s 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, hydraulic turbochargers and pumps used in seawater desalination and wastewater treatment 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, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Water Emerging Technologies Total Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Revenue $ 127,725 $ 624 $ 128,349 $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 Cost of revenue 40,290 980 41,270 38,158 77 38,235 32,670 — 32,670 Gross profit (loss) 87,435 (356) 87,079 87,270 86 87,356 71,181 53 71,234 Operating expenses General and administrative 7,751 3,927 11,678 6,936 4,104 11,040 6,342 5,162 11,504 Sales and marketing 13,691 6,053 19,744 11,065 3,047 14,112 9,559 937 10,496 Research and development 4,251 12,750 17,001 4,151 13,758 17,909 2,589 17,480 20,069 Total operating expenses 25,693 22,730 48,423 22,152 20,909 43,061 18,490 23,579 42,069 Operating income (loss) $ 61,742 $ (23,086) 38,656 $ 65,118 $ (20,823) 44,295 $ 52,691 $ (23,526) 29,165 Less: Corporate operating expenses 19,606 19,466 15,334 Income from operations $ 19,050 $ 24,829 $ 13,831 The following table presents a summary of the Company’s depreciation and amortization by segment and corporate operating expenses. Years Ended December 31, 2023 2022 2021 (In thousands) Water $ 2,779 $ 2,141 $ 1,823 Emerging Technologies 521 1,864 2,199 Corporate 802 759 480 Total depreciation and amortization $ 4,102 $ 4,764 $ 4,502 |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations Revenue by Geographic Location and Country 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, 2023 2022 2021 Revenue by geographic location: United States 2 % 1 % 1 % International 98 % 99 % 99 % Total revenue 100 % 100 % 100 % Product revenue by country: (1) Saudi Arabia 15 % 47 % 36 % Algeria 18 % ** ** United Arab Emirates 10 % ** 17 % China 15 % ** ** Israel ** ** 14 % Others (2) 42 % 53 % 33 % 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. 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. Years Ended December 31, Segment 2023 2022 2021 Customer A Water ** ** 21% Customer B Water ** 18% 11% Customer C Water ** ** 16% Customer D Water ** 15% 10% Customer E Water 13% ** ** Customer F Water ** 11% ** ** 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, 2023 and 2022 . 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, 2023 2022 2021 Vendor A 21% 21% 24 % Vendor B 19% 19% 16 % Vendor C 13% 13% ** Vendor D ** ** 12 % ** Zero or less than 10%. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 , 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. Share Repurchase Program On March 9, 2021 , the Board 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 ”). On July 1, 2022, the Company concluded all share repurchases under the March 2021 Authorization . As of December 31, 2023 , the Company has repurchased 8.1 million shares of its common stock at an aggregate cost of $80.5 million under the March 2021 Authorization and all previous share repurchase programs. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation 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, restricted stock units (“RSU”), stock appreciation rights, restricted stock, restricted stock awards (“RSA”), 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, 2023 were 4,098,928 shares . There were no shares available for grant under the Predecessor Plans after July 15, 2020 . Stock Options and Stock Appreciation Rights Employee stock options and stock appreciation rights outstanding at December 31, 2023 and to be granted subsequently after December 31, 2023 , 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 Units RSUs outstanding at, and to be awarded subsequently after, December 31, 2023 , 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. Restricted Stock Awards There were no RSAs outstanding as of December 31, 2023 . Fair Value Assumptions Stock Options and Stock Appreciation Rights 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 inputs as follows: • Expected Term: ◦ Employees : Based on historical exercise data. ◦ Board of Directors : Based on the simplified method. ◦ Stock Appreciation Rights : Based upon the remaining grant life at each remeasurement date. • Expected Volatility: Based on the Company’s historical data and the corresponding expected term. • Risk-Free Interest Rate: Based on U.S. Treasury issues with terms similar to the expected term. • Dividend Yield: Based on an expected dividend yield of zero. The following table presents assumptions used in the Black-Scholes option pricing model to determine the estimated grant date fair values of stock options and stock appreciation rights granted to employees. Years Ended December 31, 2023 2022 2021 Weighted average expected life (years) 9.1 4.1 4.0 Weighted average expected volatility 60.4% 48.7% 49.3% Risk-free interest rate 3.87% – 3.87% 1.44% – 3.90% 0.30% – 1.51% 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. 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 for all employees used in determining the expense in the stock-based compensation expense table above. Years Ended December 31, 2023 2022 2021 Stock options, stock appreciation rights and RSUs 6.4% 9.2% 8.1% Stock -base d Compensation Expense The following table presents the s tock-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, 2023 2022 2021 (In thousands) Stock-based compensation expense charged to: Cost of revenue $ 719 $ 506 $ 414 General and administrative 3,661 3,436 2,917 Sales and marketing 2,333 1,592 1,483 Research and development 1,325 977 1,242 Total stock-based compensation expense $ 8,038 $ 6,511 $ 6,056 Stock-based compensation expense by type of award: Stock options and stock appreciation rights $ 1,985 $ 2,837 $ 3,161 RSUs 6,053 3,674 2,895 Total stock-based compensation expense $ 8,038 $ 6,511 $ 6,056 Stock Option and Stock Appreciation Rights 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, 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 Granted 14 22.13 Exercised (511) 9.38 5,619 Forfeited — — Balance, December 31, 2023 1,924 $ 11.54 5.5 $ 14,264 Vested and exercisable as of December 31, 2023 1,537 $ 10.28 5.0 $ 13,246 Vested and exercisable as of December 31, 2023 and expected to vest thereafter 1,902 $ 11.47 5.5 $ 14,232 (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, 2023 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, 2023 or the last trading day prior to December 31, 2023 . 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, 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 Awarded 546 23.97 Vested (294) 14.02 Forfeited (21) 19.91 Balance, December 31, 2023 919 20.91 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, 2023 2022 2021 (In thousands) Stock options $ 2,724 $ 2,683 $ 3,298 RSUs 4,112 3,226 2,060 Total grant date fair value of stock options and RSUs vested during the period $ 6,836 $ 5,909 $ 5,358 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, 2023 . Unamortized Compensation Costs Weighted Average Service Period (In thousands) (In years) Stock options $ 5,267 0.8 RSUs 14,769 2.3 Total unamortized compensation costs, net of adjusted forfeitures $ 20,036 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 21,504 | $ 24,049 | $ 14,269 |
Insider Trading Arrangements
Insider Trading Arrangements - Rodney Clemente [Member] | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Name Title Date of Adoption or Termination (1) Status (2) Plan Type Rodney Clemente SVP, Water November 27, 2023 Adoption Rule 10b5-1 trading arrangement (3) (1) Effective (a) date of adoption; or (b) date of termination, of registrant’s Rule 10b5-1 trading arrangement. (2) Activity related to registrant’s Rule 10b5-1 trading arrangement. (3) This Rule 10b5-1 trading arrangement had a term beginning on February 27, 2024 and ending on November 27, 2024 . Under the trading arrangement, 28,985 shares of Energy Recovery's common stock may be sold when the market value of the vested shares equals or exceeds $ 20.00 . | |
Name | Rodney Clemente | |
Title | SVP, Water | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 27, 2023 | |
Arrangement Duration | 274 days | |
Aggregate Available | 28,985 | 28,985 |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 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; 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. 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 21, 2024 , 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, corporate notes and bonds, and municipal and agency 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. |
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 . |
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. |
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 5.5 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, 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. 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 . 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. On July 1, 2023 , the Compan y 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. |
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 stand-alone observable sales 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. Practical Expedients and Exemptions 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 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. Performance obligations consist of delivery of products, such as the Company’s PX s, 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 between 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. Contracts are sometimes modified for a change in scope or other requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Any subsequent contract modifications are analyzed to determine the treatment of the contract modification as a separate contract, prospectively or through a cumulative catch-up adjustment. The Company classifies its channel customers as follows: • Megaproject (“ MPD ”) . MPD customers are major firms that develop, design, build, own and/or operate large-scale desalination plants or projects. Revenues from projects generally exceed $1.0 million and the MPD project timeline between project tender and shipment generally ranges from 16 to 36 months ; however, from time-to-time, may exceed 36 months . • Original Equipment Manufacturer (“ OEM ”) . In addition to the type of customers listed below, revenues from projects generally are $1.0 million or less and the OEM project timeline from project tender to shipment generally ranges from one to 16 months ; however, from time-to-time, may exceed 16 months . ◦ Water : 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. ◦ Emerging Technologies : OEM customers include direct sales to commercial or industrial customers, such as supermarket chains, cold storage facilities, and other industrial users. Also, included are sales to intermediaries, such as refrigeration system installers or refrigeration original equipment manufacturers. • Aftermarket (“ AM ”) . AM customers are desalination plant owners and/or operators who can utilize our technology to upgrade or keep their plant running. AM revenue includes sales of spare parts, repair services, field services and various commissioning activities. |
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. |
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. |
Recently Adopted Accounting Pronouncement | Recently Issued Accounting Pronouncement Not Yet Adopted In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-06 , Disclosure Agreements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). The amendments in ASU 2023-06 will impact various disclosure areas, including the statement of cash flows, accounting changes and error corrections, earnings per share, debt, equity, derivatives, and transfers of financial assets. The amendments in ASU 2023-06 will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the Securities and Exchange Commission (the “SEC”), and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. The Company does not believe the amendments in ASU 2023-06 will materially impact any of the Company’s current disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision-Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 (i.e., the Company’s 2024 Annual Report) and interim periods within fiscal years beginning after December 15, 2024 (i.e., the Company’s first quarter of fiscal 2025). Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2023-07 on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures (“ASU 2023-09”) . ASU 2023-09 was issued to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 (i.e., the Company’s 2025 Annual Report) on a prospective basis; however, retrospective application is permitted. In addition, early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2023-09 on its consolidated financial statements and disclosures. |
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. |
Advertising Expenses | Advertising Expense Advertising expense is charged to operations during the year in which it is incurred. |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 5.5 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, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table present s 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. Years Ended December 31, 2023 2022 2021 Water Emerging Technologies Total Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Geographical market Middle East and Africa $ 76,437 $ 177 $ 76,614 $ 86,227 $ 94 $ 86,321 $ 78,348 $ 53 $ 78,401 Asia 30,500 — 30,500 24,777 — 24,777 18,639 — 18,639 Americas 15,048 153 15,201 8,544 34 8,578 3,264 — 3,264 Europe 5,740 294 6,034 5,880 35 5,915 3,600 — 3,600 Total revenue $ 127,725 $ 624 $ 128,349 $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 Channel Megaproject $ 83,665 $ — $ 83,665 $ 81,755 $ 133 $ 81,888 $ 75,338 $ 53 $ 75,391 Original equipment manufacturer 25,548 447 25,995 28,858 — 28,858 17,604 — 17,604 Aftermarket 18,512 177 18,689 14,815 30 14,845 10,909 — 10,909 Total revenue $ 127,725 $ 624 $ 128,349 $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 |
Schedule of Contract with Customer, Asset and Liability | The following table presents contract balances by category. December 31, 2023 2022 (In thousands) Accounts receivable, net $ 46,937 $ 34,062 Contract assets, current (included in prepaid expenses and other assets) 592 1,720 Contract liabilities: Contract liabilities, current $ 1,097 $ 1,195 Contract liabilities, non-current (included in other liabilities, non-current) 90 121 Total contract liabilities $ 1,187 $ 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. Years Ended December 31, 2023 2022 2021 (In thousands) Contract liabilities, beginning of year $ 1,316 $ 3,406 $ 1,640 Revenue recognized (1,254) (3,123) (1,415) Cash received, excluding amounts recognized as revenue during the period 1,125 1,033 3,181 Contract liabilities, end of year $ 1,187 $ 1,316 $ 3,406 |
Schedule of Revenue, Remaining Performance Obligation | As of December 31, 2023 , t he 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) 2025 6,861 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 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 . Years Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) Numerator Net income $ 21,504 $ 24,049 $ 14,269 Denominator (weighted average shares) Basic common shares outstanding 56,444 56,221 56,993 Dilutive stock awards 1,296 1,420 1,730 Diluted common shares outstanding 57,740 57,641 58,723 Net income per share Basic $ 0.38 $ 0.43 $ 0.25 Diluted $ 0.37 $ 0.42 $ 0.24 |
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, 2023 2022 2021 (In thousands) Anti-dilutive stock award shares 399 374 17 |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 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 Consolidated Balance Sheets that sum to the total of such amounts presented for each period presented on the Consolidated Statements of Cash Flows. December 31, 2023 2022 2021 (In thousands) Cash and cash equivalents $ 68,098 $ 56,354 $ 74,358 Restricted cash, non-current (included in other assets, non-current) 127 104 103 Total cash, cash equivalents and restricted cash $ 68,225 $ 56,458 $ 74,461 |
Schedule of Accounts Receivable, net | December 31, 2023 2022 (In thousands) Accounts receivable, gross $ 47,075 $ 34,210 Allowance for doubtful accounts (138) (148) Accounts receivable, net $ 46,937 $ 34,062 |
Schedule of Allowance for Doubtful Accounts | The following table presents the allowance for doubtful accounts activities. Years Ended December 31, 2023 2022 2021 (In thousands) Balance, beginning of year $ 148 $ 117 $ 397 Changes to reserves (1) 73 36 — Collection of specific reserves and uncollectible accounts written off, net of recoveries (83) (5) (280) Balance, end of year $ 138 $ 148 $ 117 (1) General and specific reserves charged to expense. |
Schedule of Inventories, Net | December 31, 2023 2022 (In thousands) Raw materials $ 8,752 $ 11,178 Work in process 5,234 2,628 Finished goods 13,319 15,062 Inventories, gross 27,305 28,868 Valuation adjustments for excess and obsolete inventory (1,156) (502) Inventories, net $ 26,149 $ 28,366 |
Schedule of Prepaid Expenses and Other Assets | December 31, 2023 2022 (In thousands) Contract assets $ 592 $ 1,720 Cloud computing arrangement implementation costs 474 784 Supplier advances 487 1,308 Insurance 754 637 Interest receivable 581 319 Other prepaid expenses and other assets 955 838 Total prepaid expenses and other assets 3,843 5,606 Restricted cash, non-current 127 104 Security deposits, non-current 261 262 Total other assets, non-current 388 366 Total prepaid and other assets, and other assets, non-current $ 4,231 $ 5,972 |
Schedule of Property and Equipment | December 31, 2023 2022 (In thousands) Machinery and equipment $ 30,962 $ 28,545 Leasehold improvements 18,895 17,576 Software 1,766 1,799 Office equipment, furniture, and fixtures 2,974 2,950 Automobiles 346 246 Construction in progress 1,207 2,407 Total property and equipment 56,150 53,523 Less: Accumulated depreciation and amortization (37,451) (33,943) Total property and equipment, net $ 18,699 $ 19,580 |
Schedule of Depreciation and Amortization Expense | Years Ended December 31, 2023 2022 2021 (In thousands) Depreciation and amortization expense $ 4,102 $ 4,727 $ 4,490 |
Schedule of Accrued Expenses and Other Liabilities | December 31, 2023 2022 (In thousands) Current Payroll, incentives and commissions payable $ 11,037 $ 10,479 Warranty reserve 1,057 968 Income taxes payable 1,077 268 Other accrued expenses and other liabilities 2,412 2,978 Total accrued expenses and other liabilities 15,583 14,693 Other liabilities, non-current 207 121 Total accrued expenses, and current and non-current other liabilities $ 15,790 $ 14,814 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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. December 31, 2023 December 31, 2022 Pricing Category Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Cash equivalents Money market securities Level 1 $ 18,767 $ — $ — $ 18,767 $ 33,268 $ — $ — $ 33,268 Short-term investments U.S. treasury securities Level 2 4,900 1 (1) 4,900 3,629 1 — 3,630 Corporate notes and bonds Level 2 25,674 11 (18) 25,667 26,060 — (208) 25,852 Municipal and agency notes and bonds Level 2 9,887 — (9) 9,878 3,992 5 — 3,997 Total short-term investments 40,461 12 (28) 40,445 33,681 6 (208) 33,479 Long-term investments Corporate notes and bonds Level 2 9,229 28 (3) 9,254 3,178 — (120) 3,058 Municipal and agency notes and bonds Level 2 4,585 — (7) 4,578 — — — — Total long-term investments 13,814 28 (10) 13,832 3,178 — (120) 3,058 Total short and long-term investments 54,275 40 (38) 54,277 36,859 6 (328) 36,537 Total $ 73,042 $ 40 $ (38) $ 73,044 $ 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. December 31, 2023 December 31, 2022 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) U.S. treasury securities $ 2,931 $ (1) $ — $ — Corporate notes and bonds 15,276 (21) 28,911 (328) Municipal and agency notes and bonds 12,956 (16) — — Total available-for-sale investments with unrealized loss positions $ 31,163 $ (38) $ 28,911 $ (328) |
Schedule of Sales of Available-for-Sale Investments | The following table presents the sales of available-for-sale investments. Years Ended December 31, 2023 2022 2021 (In thousands) Corporate notes and bonds $ 2,966 $ — $ — |
Lines of Credit (Tables)
Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 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 . December 31, 2023 2022 (In thousands) Outstanding letters of credit $ 19,945 $ 15,487 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 (In thousands) Operating lease, right of use asset $ 11,469 $ 13,115 Lease liabilities, current $ 1,791 $ 1,600 Lease liabilities, non-current 11,488 13,278 Total lease liability $ 13,279 $ 14,878 |
Schedule of Company’s Material Property Leases | The following table presents certain facts regarding the Company’s material property leases. Location Purpose Square Footage Expiration (1) Option to Extend (2) San Leandro, California Headquarters, R&D and manufacturing 171,000 December-2028 1 / 5 years Tracy, California Manufacturing and warehouse 54,429 April-2030 1 / 5 years Katy, Texas Office, R&D, warehouse, and yard 221,220 June-2029 2 / 5 years (1) Month-Year of original lease expiration (2) Number of renewal option(s) / Number of year(s) per renewal option |
Schedule of Lease Cost | The following table presents operating lease activities related to all leased properties. Years Ended December 31, 2023 2022 2021 (In thousands) Operating lease expense $ 2,571 $ 2,571 $ 2,571 Cash payments 2,580 2,650 2,431 |
Schedule of Weighted Average Lease Term and Discount Rate | The following table presents other information related to outstanding operating leases as of December 31, 2023 . Weighted average remaining lease term 5.5 years Weighted average discount rate 7.0% |
Schedule of Maturities of Lease Liabilities | As of December 31, 2023 , t he following table presents the minimum lease payments by year under noncancelable operating leases, exclusive of execution costs. Year Lease Liabilities (In thousands) 2024 $ 2,812 2025 2,736 2026 2,982 2027 3,072 2028 3,165 2029 and thereafter 1,243 Total future minimum lease payments 16,010 Less imputed lease interest (2,731) Total lease liabilities $ 13,279 |
Schedule of Product Warranty Liability | The following table presents the c hanges in the Company’s accrued product warranty reserve. Years Ended December 31, 2023 2022 2021 (In thousands) Warranty reserve balance, beginning of year $ 968 $ 879 $ 760 Warranty costs charged to cost of revenue 515 483 445 Utilization charges against reserve (92) (64) (16) Release of accrual related to expired warranties (334) (330) (310) Warranty reserve balance, end of year $ 1,057 $ 968 $ 879 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 (In thousands) Income before income taxes: U.S. $ 22,592 $ 25,918 $ 13,913 Foreign 113 153 91 Total income before income taxes $ 22,705 $ 26,071 $ 14,004 Current tax provision: Federal $ 1,268 $ 698 $ — State 13 22 10 Foreign 51 84 80 Current tax provision 1,332 804 90 Deferred tax provision (benefit): Federal (262) 1,104 (382) State 131 114 27 Total deferred tax provision (benefit) (131) 1,218 (355) Total provision for (benefit from) income taxes $ 1,201 $ 2,022 $ (265) |
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, 2023 2022 2021 U.S. federal taxes at statutory rate 21% 21% 21% State income tax, net of federal benefit — 1 — Foreign rate differential — — 1 Stock-based compensation (1) (4) (18) Non-deductible expenses 1 1 1 Federal research credits (6) (4) (7) Foreign derived intangible income (10) (7) — Effective tax rate 5% 8% (2%) |
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, 2023 2022 (In thousands) Deferred tax assets: Net operating loss carry forwards $ 547 $ 702 Amortization of research and experimental expenditures 6,079 3,605 Accruals and reserves 4,857 4,320 Operating lease liabilities 2,870 3,199 Research and development, and foreign tax credit carry forwards 7,609 9,642 Acquired intangibles 157 321 Other — 66 Total deferred tax assets 22,119 21,855 Valuation allowance (4,600) (4,185) Total deferred tax assets, net of valuation allowance 17,519 17,670 Deferred tax liabilities: Depreciation on property and equipment (2,545) (2,646) Right of use asset (2,473) (2,809) Other (10) — Goodwill (2,167) (1,952) Total deferred tax liabilities (7,195) (7,407) Net deferred tax asset $ 10,324 $ 10,263 |
Summary of Operating Loss Carryforwards | The following table presents the Company’s California net operating loss carryforward. Expiration Year December 31, 2023 2022 (In thousands) California 2031 7,391 9,549 |
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, 2023 2022 (In thousands) Federal 2040 $ 2,983 $ 5,441 California No Expiration Date 5,855 5,318 Total credit carryforwards $ 8,838 $ 10,759 |
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, 2023 2022 2021 (In thousands) Gross unrecognized tax benefits, beginning of year $ 1,505 $ 1,321 $ 1,134 Additions of current and prior year tax positions 200 184 193 Reductions of prior year tax positions — — (6) Gross unrecognized tax benefits, end of year $ 1,705 $ 1,505 $ 1,321 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Segment | The following table presents a summary of the Company’s financial information by segment and corporate operating expenses. Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Water Emerging Technologies Total Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Revenue $ 127,725 $ 624 $ 128,349 $ 125,428 $ 163 $ 125,591 $ 103,851 $ 53 $ 103,904 Cost of revenue 40,290 980 41,270 38,158 77 38,235 32,670 — 32,670 Gross profit (loss) 87,435 (356) 87,079 87,270 86 87,356 71,181 53 71,234 Operating expenses General and administrative 7,751 3,927 11,678 6,936 4,104 11,040 6,342 5,162 11,504 Sales and marketing 13,691 6,053 19,744 11,065 3,047 14,112 9,559 937 10,496 Research and development 4,251 12,750 17,001 4,151 13,758 17,909 2,589 17,480 20,069 Total operating expenses 25,693 22,730 48,423 22,152 20,909 43,061 18,490 23,579 42,069 Operating income (loss) $ 61,742 $ (23,086) 38,656 $ 65,118 $ (20,823) 44,295 $ 52,691 $ (23,526) 29,165 Less: Corporate operating expenses 19,606 19,466 15,334 Income from operations $ 19,050 $ 24,829 $ 13,831 |
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, 2023 2022 2021 (In thousands) Water $ 2,779 $ 2,141 $ 1,823 Emerging Technologies 521 1,864 2,199 Corporate 802 759 480 Total depreciation and amortization $ 4,102 $ 4,764 $ 4,502 |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Revenue by geographic location: United States 2 % 1 % 1 % International 98 % 99 % 99 % Total revenue 100 % 100 % 100 % Product revenue by country: (1) Saudi Arabia 15 % 47 % 36 % Algeria 18 % ** ** United Arab Emirates 10 % ** 17 % China 15 % ** ** Israel ** ** 14 % Others (2) 42 % 53 % 33 % 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 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. Years Ended December 31, Segment 2023 2022 2021 Customer A Water ** ** 21% Customer B Water ** 18% 11% Customer C Water ** ** 16% Customer D Water ** 15% 10% Customer E Water 13% ** ** Customer F Water ** 11% ** ** Zero or less than 10%. The following table presents the major supply vendors accounting for 10% or more of the Company’s consolidated supply and manufacturing costs purchases. Years Ended December 31, 2023 2022 2021 Vendor A 21% 21% 24 % Vendor B 19% 19% 16 % Vendor C 13% 13% ** Vendor D ** ** 12 % ** Zero or less than 10%. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Black-Scholes Option Pricing Model 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 and stock appreciation rights granted to employees. Years Ended December 31, 2023 2022 2021 Weighted average expected life (years) 9.1 4.1 4.0 Weighted average expected volatility 60.4% 48.7% 49.3% Risk-free interest rate 3.87% – 3.87% 1.44% – 3.90% 0.30% – 1.51% Weighted average dividend yield —% —% —% |
Schedule of Forfeiture Rates | The following table presents the estimated weighted average forfeiture rates for all employees used in determining the expense in the stock-based compensation expense table above. Years Ended December 31, 2023 2022 2021 Stock options, stock appreciation rights and RSUs 6.4% 9.2% 8.1% |
Schedule of Share-based Compensation Expense | The following table presents the s tock-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, 2023 2022 2021 (In thousands) Stock-based compensation expense charged to: Cost of revenue $ 719 $ 506 $ 414 General and administrative 3,661 3,436 2,917 Sales and marketing 2,333 1,592 1,483 Research and development 1,325 977 1,242 Total stock-based compensation expense $ 8,038 $ 6,511 $ 6,056 Stock-based compensation expense by type of award: Stock options and stock appreciation rights $ 1,985 $ 2,837 $ 3,161 RSUs 6,053 3,674 2,895 Total stock-based compensation expense $ 8,038 $ 6,511 $ 6,056 |
Schedule of Stock Option 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, 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 Granted 14 22.13 Exercised (511) 9.38 5,619 Forfeited — — Balance, December 31, 2023 1,924 $ 11.54 5.5 $ 14,264 Vested and exercisable as of December 31, 2023 1,537 $ 10.28 5.0 $ 13,246 Vested and exercisable as of December 31, 2023 and expected to vest thereafter 1,902 $ 11.47 5.5 $ 14,232 (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, 2023 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, 2023 or the last trading day prior to December 31, 2023 . |
Schedule of 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, 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 Awarded 546 23.97 Vested (294) 14.02 Forfeited (21) 19.91 Balance, December 31, 2023 919 20.91 |
Schedule of 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, 2023 2022 2021 (In thousands) Stock options $ 2,724 $ 2,683 $ 3,298 RSUs 4,112 3,226 2,060 Total grant date fair value of stock options and RSUs vested during the period $ 6,836 $ 5,909 $ 5,358 |
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, 2023 . Unamortized Compensation Costs Weighted Average Service Period (In thousands) (In years) Stock options $ 5,267 0.8 RSUs 14,769 2.3 Total unamortized compensation costs, net of adjusted forfeitures $ 20,036 |
Description of Business and S_4
Description of Business and Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2023 | |
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 | 5 years 6 months |
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 - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Megaproject | |
Disaggregation of Revenue [Line Items] | |
Revenue benchmark | $ 1 |
Megaproject | Minimum | |
Disaggregation of Revenue [Line Items] | |
Project tender to shipment timeline | 16 months |
Megaproject | Maximum | |
Disaggregation of Revenue [Line Items] | |
Project tender to shipment timeline | 36 months |
Original equipment manufacturer | |
Disaggregation of Revenue [Line Items] | |
Revenue benchmark | $ 1 |
Original equipment manufacturer | Minimum | |
Disaggregation of Revenue [Line Items] | |
Project tender to shipment timeline | 1 month |
Original equipment manufacturer | Maximum | |
Disaggregation of Revenue [Line Items] | |
Project tender to shipment timeline | 16 months |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 128,349 | $ 125,591 | $ 103,904 |
Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 127,725 | 125,428 | 103,851 |
Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 624 | 163 | 53 |
Megaproject | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 83,665 | 81,888 | 75,391 |
Megaproject | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 83,665 | 81,755 | 75,338 |
Megaproject | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 133 | 53 |
Original equipment manufacturer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 25,995 | 28,858 | 17,604 |
Original equipment manufacturer | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 25,548 | 28,858 | 17,604 |
Original equipment manufacturer | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 447 | 0 | 0 |
Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 18,689 | 14,845 | 10,909 |
Aftermarket | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 18,512 | 14,815 | 10,909 |
Aftermarket | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 177 | 30 | 0 |
Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 76,614 | 86,321 | 78,401 |
Middle East and Africa | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 76,437 | 86,227 | 78,348 |
Middle East and Africa | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 177 | 94 | 53 |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 30,500 | 24,777 | 18,639 |
Asia | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 30,500 | 24,777 | 18,639 |
Asia | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 15,201 | 8,578 | 3,264 |
Americas | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 15,048 | 8,544 | 3,264 |
Americas | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 153 | 34 | 0 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 6,034 | 5,915 | 3,600 |
Europe | Water | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,740 | 5,880 | 3,600 |
Europe | Emerging Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 294 | $ 35 | $ 0 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||||
Accounts receivable, net | $ 46,937 | $ 34,062 | ||
Contract assets, current (included in prepaid expenses and other assets) | 592 | 1,720 | ||
Contract liabilities: | ||||
Contract liabilities, current | 1,097 | 1,195 | ||
Contract liabilities, non-current (included in other liabilities, non-current) | 90 | 121 | ||
Total contract liabilities | $ 1,187 | $ 1,316 | $ 3,406 | $ 1,640 |
Revenue - Schedule of Contrac_2
Revenue - Schedule of Contract With Customer, Contract Liability, Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contract With Customer, Liability [Roll Forward] | |||
Contract liabilities, beginning of year | $ 1,316 | $ 3,406 | $ 1,640 |
Revenue recognized | (1,254) | (3,123) | (1,415) |
Cash received, excluding amounts recognized as revenue during the period | 1,125 | 1,033 | 3,181 |
Contract liabilities, end of year | $ 1,187 | $ 1,316 | $ 3,406 |
Revenue - Schedule of Remaining
Revenue - Schedule of Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 $ in Thousands | Dec. 31, 2023 USD ($) |
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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator | |||
Net income | $ 21,504 | $ 24,049 | $ 14,269 |
Denominator (weighted average shares) | |||
Basic common shares outstanding (in shares) | 56,444 | 56,221 | 56,993 |
Dilutive stock awards (in shares) | 1,296 | 1,420 | 1,730 |
Diluted common shares outstanding (in shares) | 57,740 | 57,641 | 58,723 |
Net income per share | |||
Basic (in dollars per share) | $ 0.38 | $ 0.43 | $ 0.25 |
Diluted (in dollars per share) | $ 0.37 | $ 0.42 | $ 0.24 |
Net Income Per Share - Schedu_2
Net Income Per Share - Schedule of Antidilutive Securities Excluded From Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive stock awards (in shares) | 399 | 374 | 17 |
Other Financial Information - S
Other Financial Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Other Financial Information [Abstract] | ||||
Cash and cash equivalents | $ 68,098 | $ 56,354 | $ 74,358 | |
Restricted cash, non-current (included in other assets, non-current) | 127 | 104 | 103 | |
Total cash, cash equivalents and restricted cash | $ 68,225 | $ 56,458 | $ 74,461 | $ 94,358 |
Other Financial Information -_2
Other Financial Information - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Financial Information [Abstract] | ||
Accounts receivable, gross | $ 47,075 | $ 34,210 |
Allowance for doubtful accounts | (138) | (148) |
Accounts receivable, net | $ 46,937 | $ 34,062 |
Other Financial Information -_3
Other Financial Information - Schedule of Allowance for Doubtful Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, beginning of year | $ 148 | $ 117 | $ 397 |
Changes to reserves | 73 | 36 | 0 |
Collection of specific reserves and uncollectible accounts written off, net of recoveries | (83) | (5) | (280) |
Balance, end of year | $ 138 | $ 148 | $ 117 |
Other Financial Information -_4
Other Financial Information - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Financial Information [Abstract] | ||
Raw materials | $ 8,752 | $ 11,178 |
Work in process | 5,234 | 2,628 |
Finished goods | 13,319 | 15,062 |
Inventories, gross | 27,305 | 28,868 |
Valuation adjustments for excess and obsolete inventory | (1,156) | (502) |
Inventories, net | $ 26,149 | $ 28,366 |
Other Financial Information -_5
Other Financial Information - Schedule of Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Other Financial Information [Abstract] | |||
Contract assets | $ 592 | $ 1,720 | |
Cloud computing arrangement implementation costs | 474 | 784 | |
Supplier advances | 487 | 1,308 | |
Insurance | 754 | 637 | |
Interest receivable | 581 | 319 | |
Other prepaid expenses and other assets | 955 | 838 | |
Total prepaid expenses and other assets | 3,843 | 5,606 | |
Restricted cash, non-current (included in other assets, non-current) | 127 | 104 | $ 103 |
Security deposits | 261 | 262 | |
Other assets, non-current | 388 | 366 | |
Total prepaid and other assets, and other assets, non-current | $ 4,231 | $ 5,972 |
Other Financial Information -_6
Other Financial Information - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 56,150 | $ 53,523 |
Less: Accumulated depreciation and amortization | (37,451) | (33,943) |
Property and equipment, net | 18,699 | 19,580 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 30,962 | 28,545 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 18,895 | 17,576 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,766 | 1,799 |
Office equipment, furniture, and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,974 | 2,950 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 346 | 246 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,207 | $ 2,407 |
Other Financial Information -_7
Other Financial Information - Schedule of Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Financial Information [Abstract] | |||
Depreciation and amortization expense | $ 4,102 | $ 4,727 | $ 4,490 |
Other Financial Information - G
Other Financial Information - Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Financial Information [Abstract] | ||
Goodwill | $ 12,790,000 | $ 12,790,000 |
Goodwill impairment charge | $ 0 |
Other Financial Information -_8
Other Financial Information - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current | ||||
Payroll, incentives and commissions payable | $ 11,037 | $ 10,479 | ||
Warranty reserve | 1,057 | 968 | $ 879 | $ 760 |
Income taxes payable | 1,077 | 268 | ||
Other accrued expenses and other liabilities | 2,412 | 2,978 | ||
Total accrued expenses and other liabilities | 15,583 | 14,693 | ||
Other liabilities, non-current | 207 | 121 | ||
Total accrued expenses, and current and non-current other liabilities | $ 15,790 | $ 14,814 |
Other Financial Information - A
Other Financial Information - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Financial Information [Abstract] | |||
Sales of marketable securities | $ 2,966 | $ 0 | $ 0 |
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 ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | $ 73,042,000 | $ 70,127,000 |
Gross unrealized gain | 40,000 | 6,000 |
Gross unrealized losses | (38,000) | (328,000) |
Fair value | 73,044,000 | 69,805,000 |
Total short and long-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 54,275,000 | 36,859,000 |
Gross unrealized gain | 40,000 | 6,000 |
Gross unrealized losses | (38,000) | (328,000) |
Fair value | 54,277,000 | 36,537,000 |
Short-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 40,461,000 | 33,681,000 |
Gross unrealized gain | 12,000 | 6,000 |
Gross unrealized losses | (28,000) | (208,000) |
Fair value | 40,445,000 | 33,479,000 |
Long-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 13,814,000 | 3,178,000 |
Gross unrealized gain | 28,000 | 0 |
Gross unrealized losses | (10,000) | (120,000) |
Fair value | 13,832,000 | 3,058,000 |
Level 1 | Cash equivalents | Money market securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 18,767,000 | 33,268,000 |
Gross unrealized gain | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 18,767,000 | 33,268,000 |
Level 2 | Short-term investments | U.S. treasury securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 4,900,000 | 3,629,000 |
Gross unrealized gain | 1,000 | 1,000 |
Gross unrealized losses | (1,000) | 0 |
Fair value | 4,900,000 | 3,630,000 |
Level 2 | Short-term investments | Corporate notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 25,674,000 | 26,060,000 |
Gross unrealized gain | 11,000 | 0 |
Gross unrealized losses | (18,000) | (208,000) |
Fair value | 25,667,000 | 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 | 9,887,000 | 3,992,000 |
Gross unrealized gain | 0 | 5,000 |
Gross unrealized losses | (9,000) | 0 |
Fair value | 9,878,000 | 3,997,000 |
Level 2 | Long-term investments | Corporate notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 9,229,000 | 3,178,000 |
Gross unrealized gain | 28,000 | 0 |
Gross unrealized losses | (3,000) | (120,000) |
Fair value | 9,254,000 | 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 | 4,585,000 | 0 |
Gross unrealized gain | 0 | 0 |
Gross unrealized losses | (7,000) | 0 |
Fair value | 4,578,000 | 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 | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 31,163 | $ 28,911 |
Gross unrealized losses | (38) | (328) |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 2,931 | 0 |
Gross unrealized losses | (1) | 0 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 15,276 | 28,911 |
Gross unrealized losses | (21) | (328) |
Municipal and agency notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 12,956 | 0 |
Gross unrealized losses | $ (16) | $ 0 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements - Schedule of Sales of Available-for-Sale Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||
Sales of marketable securities | $ 2,966 | $ 0 | $ 0 |
Corporate notes and bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sales of marketable securities | $ 2,966 | $ 0 | $ 0 |
Lines of Credit - Narrative (De
Lines of Credit - Narrative (Details) | 12 Months Ended | |||
Dec. 22, 2021 USD ($) | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Aug. 31, 2023 USD ($) | |
Standby Letters of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Cash collateral, percent of exposure | 103% | |||
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 | Secured Overnight Financing Rate | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 2.50% | |||
Line of Credit | Secured Overnight Financing Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Line of Credit | Secured Overnight Financing Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Line of Credit | Eurodollar | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Line of Credit | Eurodollar | Maximum | ||||
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 | $ 30,000,000 | $ 30,000,000 | $ 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 | $ 21,800,000 |
Lines of Credit - Schedule of D
Lines of Credit - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 19,945 | $ 15,487 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Summary of Operating Lease, Right of Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease, right of use asset | $ 11,469 | $ 13,115 |
Lease liabilities, current | 1,791 | 1,600 |
Lease liabilities, non-current | 11,488 | 13,278 |
Total lease liability | $ 13,279 | $ 14,878 |
Commitment and Contingencies -
Commitment and Contingencies - Schedule of Company’s Material Property Leases (Details) | Dec. 31, 2023 ft² renewalOption |
Headquarters, R&D and manufacturing | San Leandro, California | |
Loss Contingencies [Line Items] | |
Area of leased space | ft² | 171,000 |
Operating lease, number of renewal options | renewalOption | 1 |
Operating lease, renewal term | 5 years |
Manufacturing and warehouse | Tracy, California | |
Loss Contingencies [Line Items] | |
Area of leased space | ft² | 54,429 |
Operating lease, number of renewal options | renewalOption | 1 |
Operating lease, renewal term | 5 years |
Office, R&D, warehouse, and yard | Katy, Texas | |
Loss Contingencies [Line Items] | |
Area of leased space | ft² | 221,220 |
Operating lease, number of renewal options | renewalOption | 2 |
Operating lease, renewal term | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease expense | $ 2,571 | $ 2,571 | $ 2,571 |
Cash payments | $ 2,580 | $ 2,650 | $ 2,431 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Weighted Average Lease Term and Discount Rate (Details) | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted average remaining lease term | 5 years 6 months |
Weighted average discount rate | 7% |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2024 | $ 2,812 | |
2025 | 2,736 | |
2026 | 2,982 | |
2027 | 3,072 | |
2028 | 3,165 | |
2029 and thereafter | 1,243 | |
Total future minimum lease payments | 16,010 | |
Less imputed lease interest | (2,731) | |
Total lease liabilities | $ 13,279 | $ 14,878 |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty reserve balance, beginning of year | $ 968 | $ 879 | $ 760 |
Warranty costs charged to cost of revenue | 515 | 483 | 445 |
Utilization charges against reserve | (92) | (64) | (16) |
Release of accrual related to expired warranties | (334) | (330) | (310) |
Warranty reserve balance, end of year | $ 1,057 | $ 968 | $ 879 |
Commitments and Contingencies_6
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Long-term purchase commitment | $ 1,500,000 | |
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 | 33 months |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 22,592 | $ 25,918 | $ 13,913 |
Foreign | 113 | 153 | 91 |
Income before income taxes | 22,705 | 26,071 | 14,004 |
Federal | 1,268 | 698 | 0 |
State | 13 | 22 | 10 |
Foreign | 51 | 84 | 80 |
Current tax provision | 1,332 | 804 | 90 |
Federal | (262) | 1,104 | (382) |
State | 131 | 114 | 27 |
Total deferred tax provision (benefit) | (131) | 1,218 | (355) |
Total provision for (benefit from) income taxes | $ 1,201 | $ 2,022 | $ (265) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal taxes at statutory rate | 21% | 21% | 21% |
State income tax, net of federal benefit | 0% | 1% | 0% |
Foreign rate differential | 0% | 0% | 1% |
Stock-based compensation | (1.00%) | (4.00%) | (18.00%) |
Non-deductible expenses | 1% | 1% | 1% |
Federal research credits | (6.00%) | (4.00%) | (7.00%) |
Foreign derived intangible income | (10.00%) | (7.00%) | 0% |
Effective tax rate | 5% | 8% | (2.00%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 547 | $ 702 |
Amortization of research and experimental expenditures | 6,079 | 3,605 |
Accruals and reserves | 4,857 | 4,320 |
Operating lease liabilities | 2,870 | 3,199 |
Research and development, and foreign tax credit carry forwards | 7,609 | 9,642 |
Acquired intangibles | 157 | 321 |
Other | 0 | 66 |
Total deferred tax assets | 22,119 | 21,855 |
Valuation allowance | (4,600) | (4,185) |
Total deferred tax assets, net of valuation allowance | 17,519 | 17,670 |
Deferred tax liabilities: | ||
Depreciation on property and equipment | (2,545) | (2,646) |
Right of use asset | (2,473) | (2,809) |
Other | (10) | 0 |
Goodwill | (2,167) | (1,952) |
Total deferred tax liabilities | (7,195) | (7,407) |
Net deferred tax asset | $ 10,324 | $ 10,263 |
Income Taxes - Summary of Opera
Income Taxes - Summary of Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
California | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 7,391 | $ 9,549 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Examination [Line Items] | ||||
Unrecognized tax benefits | $ 1,705,000 | $ 1,505,000 | $ 1,321,000 | $ 1,134,000 |
Unrecognized tax benefits that would impact effective tax rate | 1,000,000 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 0 | |||
California | ||||
Income Tax Examination [Line Items] | ||||
Tax credit carryforward, valuation allowance | $ 4,600,000 |
Income Taxes - Summary of Tax C
Income Taxes - Summary of Tax Credit Carryforwards (Details) - Research And Development, Minimum Tax and Foreign Tax Credit Carryforward - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 8,838 | $ 10,759 |
Federal | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 2,983 | 5,441 |
California | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 5,855 | $ 5,318 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits, beginning of year | $ 1,505 | $ 1,321 | $ 1,134 |
Additions of current and prior year tax positions | 200 | 184 | 193 |
Reductions of prior year tax positions | 0 | 0 | (6) |
Gross unrecognized tax benefits, end of year | $ 1,705 | $ 1,505 | $ 1,321 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Financial Information by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 128,349 | $ 125,591 | $ 103,904 |
Cost of revenue | 41,270 | 38,235 | 32,670 |
Gross profit | 87,079 | 87,356 | 71,234 |
Operating expenses: | |||
General and administrative | 28,864 | 28,341 | 25,174 |
Sales and marketing | 22,164 | 16,277 | 12,160 |
Research and development | 17,001 | 17,909 | 20,069 |
Total operating expenses | 68,029 | 62,527 | 57,403 |
Income from operations | 19,050 | 24,829 | 13,831 |
Water | |||
Segment Reporting Information [Line Items] | |||
Revenue | 127,725 | 125,428 | 103,851 |
Emerging Technologies | |||
Segment Reporting Information [Line Items] | |||
Revenue | 624 | 163 | 53 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 128,349 | 125,591 | 103,904 |
Cost of revenue | 41,270 | 38,235 | 32,670 |
Gross profit | 87,079 | 87,356 | 71,234 |
Operating expenses: | |||
General and administrative | 11,678 | 11,040 | 11,504 |
Sales and marketing | 19,744 | 14,112 | 10,496 |
Research and development | 17,001 | 17,909 | 20,069 |
Total operating expenses | 48,423 | 43,061 | 42,069 |
Income from operations | 38,656 | 44,295 | 29,165 |
Operating Segments | Water | |||
Segment Reporting Information [Line Items] | |||
Revenue | 127,725 | 125,428 | 103,851 |
Cost of revenue | 40,290 | 38,158 | 32,670 |
Gross profit | 87,435 | 87,270 | 71,181 |
Operating expenses: | |||
General and administrative | 7,751 | 6,936 | 6,342 |
Sales and marketing | 13,691 | 11,065 | 9,559 |
Research and development | 4,251 | 4,151 | 2,589 |
Total operating expenses | 25,693 | 22,152 | 18,490 |
Income from operations | 61,742 | 65,118 | 52,691 |
Operating Segments | Emerging Technologies | |||
Segment Reporting Information [Line Items] | |||
Revenue | 624 | 163 | 53 |
Cost of revenue | 980 | 77 | 0 |
Gross profit | (356) | 86 | 53 |
Operating expenses: | |||
General and administrative | 3,927 | 4,104 | 5,162 |
Sales and marketing | 6,053 | 3,047 | 937 |
Research and development | 12,750 | 13,758 | 17,480 |
Total operating expenses | 22,730 | 20,909 | 23,579 |
Income from operations | (23,086) | (20,823) | (23,526) |
Corporate | |||
Operating expenses: | |||
Total operating expenses | $ 19,606 | $ 19,466 | $ 15,334 |
Segment Reporting - Schedule _2
Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | $ 4,102 | $ 4,764 | $ 4,502 |
Operating Segments | Water | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 2,779 | 2,141 | 1,823 |
Operating Segments | Emerging Technologies | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 521 | 1,864 | 2,199 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | $ 802 | $ 759 | $ 480 |
Concentrations - Schedule of Re
Concentrations - Schedule of Revenue by Geographic Location and Country (Details) - Revenue Benchmark - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 100% | 100% | 100% |
United States | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 2% | 1% | 1% |
International | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 98% | 99% | 99% |
Saudi Arabia | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 15% | 47% | 36% |
Algeria | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 18% | ||
United Arab Emirates | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10% | 17% | |
China | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 15% | ||
Israel | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 14% | ||
Others | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 42% | 53% | 33% |
Concentrations - Schedules of C
Concentrations - Schedules of Concentration of Risk, by Risk Factor (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk - Water | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 21% | ||
Customer B | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 18% | 11% | |
Customer C | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 16% | ||
Customer D | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 15% | 10% | |
Customer E | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 13% | ||
Customer F | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 11% |
Concentrations - Major Supply V
Concentrations - Major Supply Vendors (Details) - Major Supply Vendors - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Vendor A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21% | 21% | 24% |
Vendor B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19% | 19% | 16% |
Vendor C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13% | 13% | |
Vendor D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred and Common Stock (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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, 2023 | Dec. 31, 2022 | Mar. 09, 2021 |
Schedule of Capitalization, Equity [Line Items] | |||
Shares repurchased | 8,148,512 | 8,148,512 | |
Shares repurchased amount | $ 80,486,000 | $ 80,486,000 | |
March 2021 Authorization | |||
Schedule of Capitalization, Equity [Line Items] | |||
Stock repurchase program, authorized amount | $ 50,000,000 |
Stock-based Compensation - Plan
Stock-based Compensation - Plan Information (Details) - shares | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Expiration period | 10 years | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Award vesting rights percentage | 25% | |||
Conversion ratio | 1 | |||
Shares outstanding (in shares) | 919,000 | 688,000 | 694,000 | 687,000 |
Restricted Stock Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding (in shares) | 0 | |||
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) | 4,098,928 | |||
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 - Sche
Stock-based Compensation - Schedule of Black-Scholes Option Pricing Model Assumptions (Details) - Stock options and stock appreciation rights | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected life (years) | 9 years 1 month 6 days | 4 years 1 month 6 days | 4 years |
Weighted average expected volatility | 60.40% | 48.70% | 49.30% |
Weighted average dividend yield | 0% | 0% | 0% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 3.87% | 1.44% | 0.30% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 3.87% | 3.90% | 1.51% |
Stock-based Compensation - Sc_2
Stock-based Compensation - Schedule of Forfeiture Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Forfeiture rate | 6.40% | 9.20% | 8.10% |
Stock-based Compensation - Sc_3
Stock-based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 8,038 | $ 6,511 | $ 6,056 |
Stock options and stock appreciation rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 1,985 | 2,837 | 3,161 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 6,053 | 3,674 | 2,895 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 719 | 506 | 414 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 3,661 | 3,436 | 2,917 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 2,333 | 1,592 | 1,483 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 1,325 | $ 977 | $ 1,242 |
Stock-based Compensation - Sc_4
Stock-based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | |||
Beginning balance (in shares) | 2,421 | 2,544 | 3,620 |
Granted (in shares) | 14 | 403 | 613 |
Exercised (in shares) | (511) | (429) | (1,518) |
Forfeited (in shares) | 0 | (97) | (171) |
Ending balance (in shares) | 1,924 | 2,421 | 2,544 |
Vested and exercisable options (in shares) | 1,537 | ||
Vested and exercisable, and expected to vest options (in shares) | 1,902 | ||
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 11.02 | $ 9.21 | $ 7.48 |
Granted (in dollars per share) | 22.13 | 19.13 | 14.39 |
Exercised (in dollars per share) | 9.38 | 7.32 | 6.96 |
Forfeited (in dollars per share) | 0 | 13.66 | 11.26 |
Ending balance (in dollars per share) | 11.54 | $ 11.02 | $ 9.21 |
Vested and exercisable options (in dollars per share) | 10.28 | ||
Vested and exercisable, and expected to vest options (in dollars per share) | $ 11.47 | ||
Weighted Average Remaining Contractual Life | 5 years 6 months | ||
Vested and exercisable options, weighted average remaining contractual term | 5 years | ||
Vested and exercisable, and expected to vest options, weighted average remaining contractual life | 5 years 6 months | ||
Aggregate intrinsic value, exercised | $ 5,619 | $ 6,387 | $ 16,952 |
Aggregate intrinsic value | 14,264 | ||
Vested and exercisable options, aggregate intrinsic value | 13,246 | ||
Vested and exercisable, and expected to vest options, aggregate intrinsic value | $ 14,232 |
Stock-based Compensation - Sc_5
Stock-based Compensation - Schedule of Restricted Stock Units Activity (Details) - RSUs - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | |||
Beginning balance (in shares) | 688 | 694 | 687 |
Awarded (in shares) | 546 | 322 | 387 |
Vested (in shares) | (294) | (268) | (230) |
Forfeited (in shares) | (21) | (60) | (150) |
Ending balance (in shares) | 919 | 688 | 694 |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 15.51 | $ 12.23 | $ 9.10 |
Awarded (in dollars per share) | 23.97 | 19.61 | 15.44 |
Vested (in dollars per share) | 14.02 | 12.03 | 8.98 |
Forfeited (in dollars per share) | 19.91 | 15.16 | 11.14 |
Ending balance (in dollars per share) | $ 20.91 | $ 15.51 | $ 12.23 |
Stock-based Compensation - Sc_6
Stock-based Compensation - Schedule of Vested Stock Options and RSUs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
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 | $ 6,836 | $ 5,909 | $ 5,358 |
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 | 2,724 | 2,683 | 3,298 |
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 | $ 4,112 | $ 3,226 | $ 2,060 |
Stock-based Compensation - Sc_7
Stock-based Compensation - Schedule of Unamortized Compensation Cost and Grant Date Fair Value (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized Compensation Costs | $ 20,036 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized Compensation Costs | $ 5,267 |
Weighted Average Service Period | 9 months 18 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized Compensation Costs | $ 14,769 |
Weighted Average Service Period | 2 years 3 months 18 days |