Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-34112 | |
Entity Registrant Name | Energy Recovery, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 01-0616867 | |
Entity Address, Address Line One | 1717 Doolittle Drive | |
Entity Address, City or Town | San Leandro | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94577 | |
City Area Code | 510 | |
Local Phone Number | 483-7370 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | ERII | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 57,330,153 | |
Entity Central Index Key | 0001421517 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 70,781 | $ 68,098 |
Short-term investments | 46,577 | 40,445 |
Accounts receivable, net | 25,055 | 46,937 |
Inventories, net | 31,671 | 26,149 |
Prepaid expenses and other assets | 4,288 | 3,843 |
Total current assets | 178,372 | 185,472 |
Long-term investments | 12,137 | 13,832 |
Deferred tax assets, net | 11,652 | 10,324 |
Property and equipment, net | 17,889 | 18,699 |
Operating lease, right of use asset | 11,038 | 11,469 |
Goodwill | 12,790 | 12,790 |
Other assets, non-current | 387 | 388 |
Total assets | 244,265 | 252,974 |
Current liabilities: | ||
Accounts payable | 3,492 | 3,000 |
Accrued expenses and other liabilities | 8,342 | 15,583 |
Lease liabilities | 1,854 | 1,791 |
Contract liabilities | 3,449 | 1,097 |
Total current liabilities | 17,137 | 21,471 |
Lease liabilities, non-current | 10,959 | 11,488 |
Other liabilities, non-current | 132 | 207 |
Total liabilities | 28,228 | 33,166 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Common stock | 65 | 65 |
Additional paid-in capital | 222,122 | 217,617 |
Accumulated other comprehensive loss | (60) | (44) |
Treasury stock | (80,486) | (80,486) |
Retained earnings | 74,396 | 82,656 |
Total stockholders’ equity | 216,037 | 219,808 |
Total liabilities and stockholders’ equity | $ 244,265 | $ 252,974 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 12,090 | $ 13,401 |
Cost of revenue | 4,955 | 5,246 |
Gross profit | 7,135 | 8,155 |
Operating expenses: | ||
General and administrative | 7,566 | 7,066 |
Sales and marketing | 6,152 | 4,894 |
Research and development | 4,351 | 4,306 |
Total operating expenses | 18,069 | 16,266 |
Loss from operations | (10,934) | (8,111) |
Other income (expense): | ||
Interest income | 1,442 | 621 |
Other non-operating income (expense), net | (53) | 35 |
Total other income, net | 1,389 | 656 |
Loss before income taxes | (9,545) | (7,455) |
Benefit from income taxes | (1,285) | (1,159) |
Net loss | $ (8,260) | $ (6,296) |
Net loss per share: | ||
Basic (in dollars per share) | $ (0.14) | $ (0.11) |
Diluted (in dollars per share) | $ (0.14) | $ (0.11) |
Number of shares used in per share calculations: | ||
Basic (in shares) | 57,102 | 56,228 |
Diluted (in shares) | 57,102 | 56,228 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (8,260) | $ (6,296) |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustments | 28 | (17) |
Unrealized gain (loss) on investments | (44) | 95 |
Total other comprehensive income (loss), net of tax | (16) | 78 |
Comprehensive loss | $ (8,276) | $ (6,218) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Treasury stock | Retained earnings |
Beginning balance at Dec. 31, 2022 | $ 64 | $ 204,957 | $ (349) | $ (80,486) | $ 61,152 | |
Beginning balance (in shares) at Dec. 31, 2022 | 64,225,391 | |||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2022 | 8,148,512 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | 165 | |||||
Issuance of common stock, net (in shares) | 265,993 | |||||
Stock-based compensation | 2,218 | |||||
Foreign currency translation adjustments | (17) | |||||
Unrealized (loss) gain on investments | 95 | |||||
Total other comprehensive income (loss), net of tax | $ 78 | 78 | ||||
Net loss | (6,296) | (6,296) | ||||
Ending balance, treasury stock (in shares) at Mar. 31, 2023 | 8,148,512 | |||||
Ending balance at Mar. 31, 2023 | $ 181,503 | $ 64 | 207,340 | (271) | $ (80,486) | 54,856 |
Ending balance (in shares) at Mar. 31, 2023 | 56,342,872 | 64,491,384 | ||||
Beginning balance at Dec. 31, 2023 | $ 219,808 | $ 65 | 217,617 | (44) | $ (80,486) | 82,656 |
Beginning balance (in shares) at Dec. 31, 2023 | 65,029,459 | |||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2023 | 8,148,512 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock, net | 1,190 | |||||
Issuance of common stock, net (in shares) | 448,455 | |||||
Stock-based compensation | 3,315 | |||||
Foreign currency translation adjustments | 28 | |||||
Unrealized (loss) gain on investments | (44) | |||||
Total other comprehensive income (loss), net of tax | (16) | (16) | ||||
Net loss | (8,260) | (8,260) | ||||
Ending balance, treasury stock (in shares) at Mar. 31, 2024 | 8,148,512 | |||||
Ending balance at Mar. 31, 2024 | $ 216,037 | $ 65 | $ 222,122 | $ (60) | $ (80,486) | $ 74,396 |
Ending balance (in shares) at Mar. 31, 2024 | 57,329,402 | 65,477,914 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (8,260) | $ (6,296) |
Adjustments to reconcile net loss to cash provided by operating activities | ||
Stock-based compensation | 3,283 | 2,302 |
Depreciation and amortization | 1,029 | 983 |
Right of use asset amortization | 431 | 402 |
Accretion (amortization) of discounts (premiums) on investments | (231) | (89) |
Deferred income taxes | (1,328) | (1,152) |
Other non-cash adjustments | 116 | 93 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 21,882 | 22,509 |
Contract assets | 0 | 593 |
Inventories, net | (5,723) | (4,855) |
Prepaid and other assets | (545) | 187 |
Accounts payable | 1,140 | 920 |
Accrued expenses and other liabilities | (7,589) | (7,156) |
Contract liabilities | 2,292 | 216 |
Net cash provided by operating activities | 6,497 | 8,657 |
Cash flows from investing activities: | ||
Maturities of marketable securities | 16,534 | 15,250 |
Purchases of marketable securities | (20,783) | (13,886) |
Capital expenditures | (824) | (279) |
Proceeds from sales of fixed assets | 87 | 82 |
Net cash (used in) provided by investing activities | (4,986) | 1,167 |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock | 1,190 | 165 |
Net cash provided by financing activities | 1,190 | 165 |
Effect of exchange rate differences on cash and cash equivalents | (19) | 8 |
Net change in cash, cash equivalents and restricted cash | 2,682 | 9,997 |
Cash, cash equivalents and restricted cash, beginning of year | 68,225 | 56,458 |
Cash, cash equivalents and restricted cash, end of period | $ 70,907 | $ 66,455 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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 believes its solutions lower costs, save energy, reduce waste, and minimize emissions f or companies across a variety of commercial and 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 the Company is committed to developing solutions that drive long-term value – both financial and environmental . The Company’s solutions are marketed, sold in, and 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 Condensed Consolidated Financial Statements include the accounts of Energy Recovery, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “ SEC ”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. generally accepted accounting principles (“ GAAP ”) have been condensed or omitted pursuant to such rules and regulations. The December 31, 2023 Condensed Consolidated Balance Sheet was derived from audited financial statements and may not include all disclosures required by GAAP; however, the Company believes that the disclosures are adequate to make the information presented not misleading. The March 31, 2024 unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 21, 2024 (the “ 2023 Annual Report ”). All adjustments consisting of normal recurring adjustments that are necessary to present fairly the financial position, results of operations and cash flows for the interim periods have been made. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods Use of Estimates The preparation of Condensed Consolidated Financial Statements, in conformity with GAAP , requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. The accounting policies that reflect the Company’s significant estimates and judgments and that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results are revenue recognition; granted equity award valuations; equipment useful life and valuation; goodwill valuation and impairment; 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 May 1, 2024 , the date of issuance of this Quarterly Report on Form 10-Q . These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. The Company undertakes no obligation to publicly update these estimates for any reason after the date of this Quarterly Report on Form 10-Q , except as required by law. Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies in Note 1, “ Description of Business and Significant Accounting Policies - Significant Accounting Policies ,” of the 2023 Annual Report . Recently Issued Accounting Pronouncement Not Yet Adopted There have been no issued accounting pronouncements that have not yet been adopted during the three months ended March 31, 2024 that apply to the Company other than the pronouncements disclosed in Note 1, “ Description of Business and Significant Accounting Policies - Recently Issued Accounting Pronouncement Not Yet Adopted ,” of the 2023 Annual Report . |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue 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. Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Geographical market Middle East and Africa $ 4,785 $ 1 $ 4,786 $ 2,739 $ — $ 2,739 Americas 3,939 — 3,939 3,208 30 3,238 Asia 1,979 — 1,979 6,114 — 6,114 Europe 1,386 — 1,386 1,235 75 1,310 Total revenue $ 12,089 $ 1 $ 12,090 $ 13,296 $ 105 $ 13,401 Channel Aftermarket $ 4,643 $ 1 $ 4,644 $ 3,322 $ — $ 3,322 Megaproject 4,100 — 4,100 3,243 — 3,243 Original equipment manufacturer 3,346 — 3,346 6,731 105 6,836 Total revenue $ 12,089 $ 1 $ 12,090 $ 13,296 $ 105 $ 13,401 Contract Balances The following table presents contract balances by category. March 31, 2024 December 31, 2023 (In thousands) Accounts receivable, net $ 25,055 $ 46,937 Contract assets, current (included in prepaid expenses and other assets) 592 592 Contract liabilities: Contract liabilities, current $ 3,449 $ 1,097 Contract liabilities, non-current (included in other liabilities, non-current) 30 90 Total contract liabilities $ 3,479 $ 1,187 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. March 31, 2024 December 31, 2023 (In thousands) Contract liabilities, beginning of year $ 1,187 $ 1,316 Revenue recognized (1,038) (1,254) Cash received, excluding amounts recognized as revenue during the period 3,330 1,125 Contract liabilities, end of period $ 3,479 $ 1,187 Remaining Performance Obligations As of March 31, 2024 , t he following table presents the revenue that is expected to be recognized related to performance obligations that are unsatisfied or partially unsatisfied. Period Remaining Performance Obligations (In thousands) 2024 (remaining nine months) $ 6,021 2025 840 |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Net loss for the reported period is divided by the weighted average number of basic and diluted common shares outstanding during the reported period to calculate the basic and diluted net loss per common share , respectively. The following table presents the computation of basic and diluted net loss per common share . Three Months Ended March 31, 2024 2023 (In thousands, except per share amounts) Numerator Net loss $ (8,260) $ (6,296) Denominator (weighted average shares) Basic and dilutive common shares outstanding 57,102 56,228 Net loss per share Basic $ (0.14) $ (0.11) Diluted $ (0.14) $ (0.11) The following table presents the equity awards that are excluded from diluted net loss per share because their effect would have been anti-dilutive. Three Months Ended March 31, 2024 2023 (In thousands) Anti-dilutive equity award shares 3,286 2,652 |
Other Financial Information
Other Financial Information | 3 Months Ended |
Mar. 31, 2024 | |
Other Financial Information [Abstract] | |
Other Financial Information | Other Financial Information Cash, Cash Equivalents and Restricted Cash The Condensed Consolidated Statements of Cash Flows explain the changes in the total of cash, cash equivalents and restricted cash, such as cash amounts deposited in restricted cash accounts in connection with the Company’s credit cards. The following table presents a reconciliation of cash, cash equivalents and restricted cash, reported for each period within the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Cash Flows that sum to the total of such amounts. March 31, 2024 December 31, 2023 March 31, 2023 (In thousands) Cash and cash equivalents $ 70,781 $ 68,098 $ 66,332 Restricted cash, non-current (included in other assets, non-current) 126 127 123 Total cash, cash equivalents and restricted cash $ 70,907 $ 68,225 $ 66,455 Accounts Receivable, net March 31, 2024 December 31, 2023 (In thousands) Accounts receivable, gross $ 25,193 $ 47,075 Allowance for doubtful accounts (138) (138) Accounts receivable, net $ 25,055 $ 46,937 Inventories, net Inventory amounts are stated at the lower of cost or net realizable value, using the first-in, first-out method. March 31, 2024 December 31, 2023 (In thousands) Raw materials $ 8,883 $ 8,752 Work in process 7,507 5,234 Finished goods 16,579 13,319 Inventories, gross 32,969 27,305 Valuation adjustments for excess and obsolete inventory (1,298) (1,156) Inventories, net $ 31,671 $ 26,149 Accrued Expenses and Other Liabilities March 31, 2024 December 31, 2023 (In thousands) Current Payroll, incentives and commissions payable $ 4,577 $ 11,037 Warranty reserve 989 1,057 Income taxes payable 1,083 1,077 Other accrued expenses and other liabilities 1,693 2,412 Total accrued expenses and other liabilities 8,342 15,583 Other liabilities, non-current 132 207 Total accrued expenses, and current and non-current other liabilities $ 8,474 $ 15,790 |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Fair Value Disclosure [Abstract] | |
Investments and Fair Value Measurements | Investments and Fair Value Measurements Fair Value of Financial Instruments 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. March 31, 2024 December 31, 2023 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 $ 25,233 $ — $ — $ 25,233 $ 18,767 $ — $ — $ 18,767 Short-term investments U.S. treasury securities Level 2 6,406 — (3) 6,403 4,900 1 (1) 4,900 Corporate notes and bonds Level 2 33,246 1 (40) 33,207 25,674 11 (18) 25,667 Municipal and agency notes and bonds Level 2 6,971 — (4) 6,967 9,887 — (9) 9,878 Total short-term investments 46,623 1 (47) 46,577 40,461 12 (28) 40,445 Long-term investments Corporate notes and bonds Level 2 8,048 2 (5) 8,045 9,229 28 (3) 9,254 Municipal and agency notes and bonds Level 2 4,098 — (6) 4,092 4,585 — (7) 4,578 Total long-term investments 12,146 2 (11) 12,137 13,814 28 (10) 13,832 Total short and long-term investments 58,769 3 (58) 58,714 54,275 40 (38) 54,277 Total $ 84,002 $ 3 $ (58) $ 83,947 $ 73,042 $ 40 $ (38) $ 73,044 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. March 31, 2024 December 31, 2023 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) U.S. treasury securities $ 5,406 $ (3) $ 2,931 $ (1) Corporate notes and bonds 37,568 (45) 15,276 (21) Municipal and agency notes and bonds 9,060 (10) 12,956 (16) Total available-for-sale investments with unrealized loss positions $ 52,034 $ (58) $ 31,163 $ (38) |
Lines of Credit
Lines of Credit | 3 Months Ended |
Mar. 31, 2024 | |
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 (as amended, the “ Credit Agreement ”). The Credit Agreement , which will expire on December 21, 2026 , provides a committed revolving credit line of $50.0 million and includes both a revolving loan and a letters of credit (“ LCs ”) component. Under the Credit Agreement , as of March 31, 2024 , there were no revolving loans outstanding. In addition, under the LCs component, the Company utilized $20.3 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 credit (“SBLCs”) and certain non-expired commitments under the Company’s previous Loan and Pledge Agreement with Citibank, N.A. which are guaranteed under the Credit Agreement . Letters of Credit The following table presents the total outstanding LCs and SBLCs issued by the Company to its customers related to product warranty and performance guarantees . March 31, 2024 December 31, 2023 (In thousands) Outstanding letters of credit $ 18,293 $ 19,945 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time-to-time, the Company has been named in and subject to various proceedings and claims in connection with its business. The Company may in the future become involved in litigation in the ordinary course of business, including litigation that could be material to its business. The Company considers all claims, if any, on a quarterly basis and, based on known facts, assesses whether potential losses are considered reasonably possible, probable and estimable. Based upon this assessment, the Company then evaluates disclosure requirements and whether to accrue for such claims in its consolidated financial statements. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and are adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. As of March 31, 2024 , 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 | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Three Months Ended March 31, 2024 2023 (In thousands, except percentages) Benefit from income taxes $ (1,285) $ (1,159) Discrete items 76 488 Benefit from income taxes, excluding discrete items $ (1,209) $ (671) Effective tax rate 13.5% 15.5% Effective tax rate, excluding discrete items 12.7% 9.0% The Company’s interim period tax benefit from income taxes is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period . Each quarter, the Company update s its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period . The Company’s quarterly tax provision and estimate of its annual effective tax rate are subject to variation due to several factors, including variability in accurately predicting its pre-tax income or loss and the mix of jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, and changes in how the Company does business . For the three months ended March 31, 2024 , the recognized benefit from income taxes resulted from the loss for the quarter and i ncluded benefits related to the U.S. federal foreign-derived intangible income (“FDII”) and federal research and development (“ R&D ”) tax credit , partially offset by certain permanent differences, such as share-based compensation . For the three months ended March 31, 2023, the recognized benefit from income tax resulted from the loss for the quarter and included benefits related to the U.S. FDII and federal R&D tax credit, along with a discrete tax benefit due primarily to share-based compensation windfalls. The effective tax rate excluding discrete items for the three months ended March 31, 2024 , as compared to the prior year, differed primarily due to lower projected U.S. FDII and federal R&D tax credits and higher book income, as well as non-deductible officer share-based compensation and certain foreign-based employee share-based compensation . |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s Chief Operating Decision-Maker (“CODM”) is its chief 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 . The following table presents a summary of the Company’s financial information by segment and corporate operating expenses. Three Months Ended March 31, 2024 2023 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Revenue $ 12,089 $ 1 $ 12,090 $ 13,296 $ 105 $ 13,401 Cost of revenue 4,954 1 4,955 5,101 145 5,246 Gross profit (loss) 7,135 — 7,135 8,195 (40) 8,155 Operating expenses General and administrative 1,922 1,018 2,940 1,938 968 2,906 Sales and marketing 3,745 1,807 5,552 3,175 1,170 4,345 Research and development 1,100 3,251 4,351 1,180 3,126 4,306 Total operating expenses 6,767 6,076 12,843 6,293 5,264 11,557 Operating income (loss) $ 368 $ (6,076) (5,708) $ 1,902 $ (5,304) (3,402) Less: Corporate operating expenses 5,226 4,709 Loss from operations $ (10,934) $ (8,111) |
Concentrations
Concentrations | 3 Months Ended |
Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations Customer Revenue Concentration The following table presents the customers that account for 10% or more of the Company’s revenue and their related segment for each of the periods presented. Although certain customers might account for greater than 10% of the Company’s revenue at any one point in time, the concentration of revenue between a limited number of customers shifts regularly, depending on when revenue is recognized. The percentages by customer reflect specific relationships or contracts that would concentrate revenue for the periods presented and do not indicate a trend specific to any one customer. Three Months Ended March 31, Segment 2024 2023 Customer A Water ** 27% Customer B Water 18% ** Customer C Water 13% ** Customer D Water ** 11% ** Zero or less than 10%. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (8,260) | $ (6,296) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Name Title Date of Adoption or Termination (1) Status (2) Plan Type Joshua Ballard Chief Financial Officer January 3, 2024 Termination Rule 10b5-1 trading arrangement (3) Arve Hanstveit Director March 15, 2024 Termination Rule 10b5-1 trading arrangement (4) (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) The trading arrangement covered the sale of up to 12,500 shares of our common stock and was scheduled to expire on September 13, 2024 or upon the completion of all sales thereunder. (4) The trading arrangement covered the sale of up to 76,000 shares of our common stock and was scheduled to expire on March 15, 2024 or upon the completion of all sales thereunder. |
Joshua Ballard [Member] | |
Trading Arrangements, by Individual | |
Name | Joshua Ballard |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | January 3, 2024 |
Aggregate Available | 12,500 |
Arve Hanstveit [Member] | |
Trading Arrangements, by Individual | |
Name | Arve Hanstveit |
Title | Director |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | March 15, 2024 |
Aggregate Available | 76,000 |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Condensed Consolidated Financial Statements include the accounts of Energy Recovery, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “ SEC ”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. generally accepted accounting principles (“ GAAP ”) have been condensed or omitted pursuant to such rules and regulations. All adjustments consisting of normal recurring adjustments that are necessary to present fairly the financial position, results of operations and cash flows for the interim periods have been made. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods . |
Use of Estimates | The preparation of Condensed Consolidated Financial Statements, in conformity with GAAP , requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. The accounting policies that reflect the Company’s significant estimates and judgments and that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results are revenue recognition; granted equity award valuations; equipment useful life and valuation; goodwill valuation and impairment; 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 May 1, 2024 , the date of issuance of this Quarterly Report on Form 10-Q . These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. The Company undertakes no obligation to publicly update these estimates for any reason after the date of this Quarterly Report on Form 10-Q , except as required by law. |
Litigation | The Company considers all claims, if any, on a quarterly basis and, based on known facts, assesses whether potential losses are considered reasonably possible, probable and estimable. Based upon this assessment, the Company then evaluates disclosure requirements and whether to accrue for such claims in its consolidated financial statements. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and are adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. |
Income Taxes | The Company’s interim period tax benefit from income taxes is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period . Each quarter, the Company update s its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period . The Company’s quarterly tax provision and estimate of its annual effective tax rate are subject to variation due to several factors, including variability in accurately predicting its pre-tax income or loss and the mix of jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, and changes in how the Company does business . |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Geographical market Middle East and Africa $ 4,785 $ 1 $ 4,786 $ 2,739 $ — $ 2,739 Americas 3,939 — 3,939 3,208 30 3,238 Asia 1,979 — 1,979 6,114 — 6,114 Europe 1,386 — 1,386 1,235 75 1,310 Total revenue $ 12,089 $ 1 $ 12,090 $ 13,296 $ 105 $ 13,401 Channel Aftermarket $ 4,643 $ 1 $ 4,644 $ 3,322 $ — $ 3,322 Megaproject 4,100 — 4,100 3,243 — 3,243 Original equipment manufacturer 3,346 — 3,346 6,731 105 6,836 Total revenue $ 12,089 $ 1 $ 12,090 $ 13,296 $ 105 $ 13,401 |
Schedule of Contract with Customer, Asset and Liability | The following table presents contract balances by category. March 31, 2024 December 31, 2023 (In thousands) Accounts receivable, net $ 25,055 $ 46,937 Contract assets, current (included in prepaid expenses and other assets) 592 592 Contract liabilities: Contract liabilities, current $ 3,449 $ 1,097 Contract liabilities, non-current (included in other liabilities, non-current) 30 90 Total contract liabilities $ 3,479 $ 1,187 |
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. March 31, 2024 December 31, 2023 (In thousands) Contract liabilities, beginning of year $ 1,187 $ 1,316 Revenue recognized (1,038) (1,254) Cash received, excluding amounts recognized as revenue during the period 3,330 1,125 Contract liabilities, end of period $ 3,479 $ 1,187 |
Schedule of Revenue, Remaining Performance Obligation | As of March 31, 2024 , t he following table presents the revenue that is expected to be recognized related to performance obligations that are unsatisfied or partially unsatisfied. Period Remaining Performance Obligations (In thousands) 2024 (remaining nine months) $ 6,021 2025 840 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted net loss per common share . Three Months Ended March 31, 2024 2023 (In thousands, except per share amounts) Numerator Net loss $ (8,260) $ (6,296) Denominator (weighted average shares) Basic and dilutive common shares outstanding 57,102 56,228 Net loss per share Basic $ (0.14) $ (0.11) Diluted $ (0.14) $ (0.11) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the equity awards that are excluded from diluted net loss per share because their effect would have been anti-dilutive. Three Months Ended March 31, 2024 2023 (In thousands) Anti-dilutive equity award shares 3,286 2,652 |
Other Financial Information (Ta
Other Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 for each period within the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Cash Flows that sum to the total of such amounts. March 31, 2024 December 31, 2023 March 31, 2023 (In thousands) Cash and cash equivalents $ 70,781 $ 68,098 $ 66,332 Restricted cash, non-current (included in other assets, non-current) 126 127 123 Total cash, cash equivalents and restricted cash $ 70,907 $ 68,225 $ 66,455 |
Schedule of Accounts Receivable, net | March 31, 2024 December 31, 2023 (In thousands) Accounts receivable, gross $ 25,193 $ 47,075 Allowance for doubtful accounts (138) (138) Accounts receivable, net $ 25,055 $ 46,937 |
Schedule of Inventories, Net | March 31, 2024 December 31, 2023 (In thousands) Raw materials $ 8,883 $ 8,752 Work in process 7,507 5,234 Finished goods 16,579 13,319 Inventories, gross 32,969 27,305 Valuation adjustments for excess and obsolete inventory (1,298) (1,156) Inventories, net $ 31,671 $ 26,149 |
Schedule of Accrued Expenses and Other Liabilities | March 31, 2024 December 31, 2023 (In thousands) Current Payroll, incentives and commissions payable $ 4,577 $ 11,037 Warranty reserve 989 1,057 Income taxes payable 1,083 1,077 Other accrued expenses and other liabilities 1,693 2,412 Total accrued expenses and other liabilities 8,342 15,583 Other liabilities, non-current 132 207 Total accrued expenses, and current and non-current other liabilities $ 8,474 $ 15,790 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. March 31, 2024 December 31, 2023 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 $ 25,233 $ — $ — $ 25,233 $ 18,767 $ — $ — $ 18,767 Short-term investments U.S. treasury securities Level 2 6,406 — (3) 6,403 4,900 1 (1) 4,900 Corporate notes and bonds Level 2 33,246 1 (40) 33,207 25,674 11 (18) 25,667 Municipal and agency notes and bonds Level 2 6,971 — (4) 6,967 9,887 — (9) 9,878 Total short-term investments 46,623 1 (47) 46,577 40,461 12 (28) 40,445 Long-term investments Corporate notes and bonds Level 2 8,048 2 (5) 8,045 9,229 28 (3) 9,254 Municipal and agency notes and bonds Level 2 4,098 — (6) 4,092 4,585 — (7) 4,578 Total long-term investments 12,146 2 (11) 12,137 13,814 28 (10) 13,832 Total short and long-term investments 58,769 3 (58) 58,714 54,275 40 (38) 54,277 Total $ 84,002 $ 3 $ (58) $ 83,947 $ 73,042 $ 40 $ (38) $ 73,044 |
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. March 31, 2024 December 31, 2023 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) U.S. treasury securities $ 5,406 $ (3) $ 2,931 $ (1) Corporate notes and bonds 37,568 (45) 15,276 (21) Municipal and agency notes and bonds 9,060 (10) 12,956 (16) Total available-for-sale investments with unrealized loss positions $ 52,034 $ (58) $ 31,163 $ (38) |
Lines of Credit (Tables)
Lines of Credit (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents the total outstanding LCs and SBLCs issued by the Company to its customers related to product warranty and performance guarantees . March 31, 2024 December 31, 2023 (In thousands) Outstanding letters of credit $ 18,293 $ 19,945 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Three Months Ended March 31, 2024 2023 (In thousands, except percentages) Benefit from income taxes $ (1,285) $ (1,159) Discrete items 76 488 Benefit from income taxes, excluding discrete items $ (1,209) $ (671) Effective tax rate 13.5% 15.5% Effective tax rate, excluding discrete items 12.7% 9.0% |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. Three Months Ended March 31, 2024 2023 Water Emerging Technologies Total Water Emerging Technologies Total (In thousands) Revenue $ 12,089 $ 1 $ 12,090 $ 13,296 $ 105 $ 13,401 Cost of revenue 4,954 1 4,955 5,101 145 5,246 Gross profit (loss) 7,135 — 7,135 8,195 (40) 8,155 Operating expenses General and administrative 1,922 1,018 2,940 1,938 968 2,906 Sales and marketing 3,745 1,807 5,552 3,175 1,170 4,345 Research and development 1,100 3,251 4,351 1,180 3,126 4,306 Total operating expenses 6,767 6,076 12,843 6,293 5,264 11,557 Operating income (loss) $ 368 $ (6,076) (5,708) $ 1,902 $ (5,304) (3,402) Less: Corporate operating expenses 5,226 4,709 Loss from operations $ (10,934) $ (8,111) |
Concentrations (Tables)
Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | The following table presents the customers that account for 10% or more of the Company’s revenue and their related segment for each of the periods presented. Although certain customers might account for greater than 10% of the Company’s revenue at any one point in time, the concentration of revenue between a limited number of customers shifts regularly, depending on when revenue is recognized. The percentages by customer reflect specific relationships or contracts that would concentrate revenue for the periods presented and do not indicate a trend specific to any one customer. Three Months Ended March 31, Segment 2024 2023 Customer A Water ** 27% Customer B Water 18% ** Customer C Water 13% ** Customer D Water ** 11% ** Zero or less than 10%. |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 12,090 | $ 13,401 |
Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,089 | 13,296 |
Emerging Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1 | 105 |
Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,644 | 3,322 |
Aftermarket | Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,643 | 3,322 |
Aftermarket | Emerging Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1 | 0 |
Megaproject | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,100 | 3,243 |
Megaproject | Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,100 | 3,243 |
Megaproject | Emerging Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Original equipment manufacturer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,346 | 6,836 |
Original equipment manufacturer | Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,346 | 6,731 |
Original equipment manufacturer | Emerging Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 105 |
Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,786 | 2,739 |
Middle East and Africa | Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,785 | 2,739 |
Middle East and Africa | Emerging Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1 | 0 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,939 | 3,238 |
Americas | Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,939 | 3,208 |
Americas | Emerging Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 30 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,979 | 6,114 |
Asia | Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,979 | 6,114 |
Asia | Emerging Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,386 | 1,310 |
Europe | Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,386 | 1,235 |
Europe | Emerging Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 0 | $ 75 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 25,055 | $ 46,937 | |
Contract assets, current (included in prepaid expenses and other assets) | 592 | 592 | |
Contract liabilities: | |||
Contract liabilities, current | 3,449 | 1,097 | |
Contract liabilities, non-current (included in other liabilities, non-current) | 30 | 90 | |
Total contract liabilities | $ 3,479 | $ 1,187 | $ 1,316 |
Revenue - Schedule of Contrac_2
Revenue - Schedule of Contract With Customer, Contract Liability, Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Contract With Customer, Liability [Roll Forward] | ||
Contract liabilities, beginning of year | $ 1,187 | $ 1,316 |
Revenue recognized | (1,038) | (1,254) |
Cash received, excluding amounts recognized as revenue during the period | 3,330 | 1,125 |
Contract liabilities, end of period | $ 3,479 | $ 1,187 |
Revenue - Schedule of Remaining
Revenue - Schedule of Remaining Performance Obligation (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 6,021 |
Performance obligations expected to be satisfied, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 840 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator | ||
Net loss | $ (8,260) | $ (6,296) |
Denominator (weighted average shares) | ||
Basic common shares outstanding (in shares) | 57,102 | 56,228 |
Diluted common shares outstanding (in shares) | 57,102 | 56,228 |
Net loss per share | ||
Basic (in dollars per share) | $ (0.14) | $ (0.11) |
Diluted (in dollars per share) | $ (0.14) | $ (0.11) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded From Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive equity award shares (in shares) | 3,286 | 2,652 |
Other Financial Information - S
Other Financial Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Other Financial Information [Abstract] | ||||
Cash and cash equivalents | $ 70,781 | $ 68,098 | $ 66,332 | |
Restricted cash, non-current (included in other assets, non-current) | 126 | 127 | 123 | |
Total cash, cash equivalents and restricted cash | $ 70,907 | $ 68,225 | $ 66,455 | $ 56,458 |
Other Financial Information -_2
Other Financial Information - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Financial Information [Abstract] | ||
Accounts receivable, gross | $ 25,193 | $ 47,075 |
Allowance for doubtful accounts | (138) | (138) |
Accounts receivable, net | $ 25,055 | $ 46,937 |
Other Financial Information -_3
Other Financial Information - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Financial Information [Abstract] | ||
Raw materials | $ 8,883 | $ 8,752 |
Work in process | 7,507 | 5,234 |
Finished goods | 16,579 | 13,319 |
Inventories, gross | 32,969 | 27,305 |
Valuation adjustments for excess and obsolete inventory | (1,298) | (1,156) |
Inventories, net | $ 31,671 | $ 26,149 |
Other Financial Information -_4
Other Financial Information - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current | ||
Payroll, incentives and commissions payable | $ 4,577 | $ 11,037 |
Warranty reserve | 989 | 1,057 |
Income taxes payable | 1,083 | 1,077 |
Other accrued expenses and other liabilities | 1,693 | 2,412 |
Total accrued expenses and other liabilities | 8,342 | 15,583 |
Non-current | ||
Other liabilities, non-current | 132 | 207 |
Total accrued expenses, and current and non-current other liabilities | $ 8,474 | $ 15,790 |
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 ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | $ 84,002,000 | $ 73,042,000 |
Gross unrealized gain | 3,000 | 40,000 |
Gross unrealized losses | (58,000) | (38,000) |
Fair value | 83,947,000 | 73,044,000 |
Total short and long-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 58,769,000 | 54,275,000 |
Gross unrealized gain | 3,000 | 40,000 |
Gross unrealized losses | (58,000) | (38,000) |
Fair value | 58,714,000 | 54,277,000 |
Short-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 46,623,000 | 40,461,000 |
Gross unrealized gain | 1,000 | 12,000 |
Gross unrealized losses | (47,000) | (28,000) |
Fair value | 46,577,000 | 40,445,000 |
Long-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 12,146,000 | 13,814,000 |
Gross unrealized gain | 2,000 | 28,000 |
Gross unrealized losses | (11,000) | (10,000) |
Fair value | 12,137,000 | 13,832,000 |
Level 1 | Cash equivalents | Money market securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 25,233,000 | 18,767,000 |
Gross unrealized gain | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 25,233,000 | 18,767,000 |
Level 2 | Short-term investments | U.S. treasury securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 6,406,000 | 4,900,000 |
Gross unrealized gain | 0 | 1,000 |
Gross unrealized losses | (3,000) | (1,000) |
Fair value | 6,403,000 | 4,900,000 |
Level 2 | Short-term investments | Corporate notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 33,246,000 | 25,674,000 |
Gross unrealized gain | 1,000 | 11,000 |
Gross unrealized losses | (40,000) | (18,000) |
Fair value | 33,207,000 | 25,667,000 |
Level 2 | Short-term investments | Municipal and agency notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 6,971,000 | 9,887,000 |
Gross unrealized gain | 0 | 0 |
Gross unrealized losses | (4,000) | (9,000) |
Fair value | 6,967,000 | 9,878,000 |
Level 2 | Long-term investments | Corporate notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 8,048,000 | 9,229,000 |
Gross unrealized gain | 2,000 | 28,000 |
Gross unrealized losses | (5,000) | (3,000) |
Fair value | 8,045,000 | 9,254,000 |
Level 2 | Long-term investments | Municipal and agency notes and bonds | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Amortized cost | 4,098,000 | 4,585,000 |
Gross unrealized gain | 0 | 0 |
Gross unrealized losses | (6,000) | (7,000) |
Fair value | 4,092,000 | 4,578,000 |
Measured On Recurring Basis | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fair value of financial liabilities | 0 | 0 |
Measured On Recurring Basis | Level 3 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fair value of financial assets | $ 0 | $ 0 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Schedule of Gross Unrealized Losses and Fair Values of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 52,034 | $ 31,163 |
Gross unrealized losses | (58) | (38) |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 5,406 | 2,931 |
Gross unrealized losses | (3) | (1) |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 37,568 | 15,276 |
Gross unrealized losses | (45) | (21) |
Municipal and agency notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | 9,060 | 12,956 |
Gross unrealized losses | $ (10) | $ (16) |
Lines of Credit - Narrative (De
Lines of Credit - Narrative (Details) - Committed Revolving Credit Line - USD ($) | Mar. 31, 2024 | Dec. 22, 2021 |
Line of Credit | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 0 | |
JP Morgan Chase Bank, N.A. | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 30,000,000 | |
JP Morgan Chase Bank, N.A. | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 50,000,000 | |
JP Morgan Chase Bank, N.A. | Line of Credit | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Utilized amount of the maximum allowable credit line | $ 20,300,000 |
Lines of Credit - Schedule of D
Lines of Credit - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 18,293 | $ 19,945 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Benefit from income taxes | $ (1,285) | $ (1,159) |
Discrete items | 76 | 488 |
Benefit from income taxes, excluding discrete items | $ (1,209) | $ (671) |
Effective tax rate | 13.50% | 15.50% |
Effective tax rate, excluding discrete items | 12.70% | 9% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 12,090 | $ 13,401 |
Cost of revenue | 4,955 | 5,246 |
Gross profit | 7,135 | 8,155 |
Operating expenses: | ||
General and administrative | 7,566 | 7,066 |
Sales and marketing | 6,152 | 4,894 |
Research and development | 4,351 | 4,306 |
Total operating expenses | 18,069 | 16,266 |
Loss from operations | (10,934) | (8,111) |
Water | ||
Segment Reporting Information [Line Items] | ||
Revenue | 12,089 | 13,296 |
Emerging Technologies | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1 | 105 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 12,090 | 13,401 |
Cost of revenue | 4,955 | 5,246 |
Gross profit | 7,135 | 8,155 |
Operating expenses: | ||
General and administrative | 2,940 | 2,906 |
Sales and marketing | 5,552 | 4,345 |
Research and development | 4,351 | 4,306 |
Total operating expenses | 12,843 | 11,557 |
Loss from operations | (5,708) | (3,402) |
Operating Segments | Water | ||
Segment Reporting Information [Line Items] | ||
Revenue | 12,089 | 13,296 |
Cost of revenue | 4,954 | 5,101 |
Gross profit | 7,135 | 8,195 |
Operating expenses: | ||
General and administrative | 1,922 | 1,938 |
Sales and marketing | 3,745 | 3,175 |
Research and development | 1,100 | 1,180 |
Total operating expenses | 6,767 | 6,293 |
Loss from operations | 368 | 1,902 |
Operating Segments | Emerging Technologies | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1 | 105 |
Cost of revenue | 1 | 145 |
Gross profit | 0 | (40) |
Operating expenses: | ||
General and administrative | 1,018 | 968 |
Sales and marketing | 1,807 | 1,170 |
Research and development | 3,251 | 3,126 |
Total operating expenses | 6,076 | 5,264 |
Loss from operations | (6,076) | (5,304) |
Corporate | ||
Operating expenses: | ||
Total operating expenses | $ 5,226 | $ 4,709 |
Concentrations - Schedules of C
Concentrations - Schedules of Concentration of Risk, by Risk Factor (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk - Water | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Percentage of revenue | 27% | |
Customer B | ||
Concentration Risk [Line Items] | ||
Percentage of revenue | 18% | |
Customer C | ||
Concentration Risk [Line Items] | ||
Percentage of revenue | 13% | |
Customer D | ||
Concentration Risk [Line Items] | ||
Percentage of revenue | 11% |