Energy Recovery Inc

For the period ended Sep 30, 2024. Filed Oct 30, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2024 · Filed Oct 30, 2024

ERII$7.39+3.4%Stored close · as of Nov 9, 2026

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Note

Note 9 —Segment Reporting

The Company’s Chief Operating Decision-Maker (“CODM”) is its President and Chief Executive Officer. The Company continues to

monitor and review itssegment reporting structure in accordance with authoritative guidance to determine whether any changes have

occurred that would impact itsreportable segments.

The following tables present a summary of the Company’s financial information by segment and corporate operating expenses.

	Three Months Ended September 30, 2024				Nine Months Ended September 30, 2024
	Water	Emerging Technologies	Corporate	Total	Water	Emerging Technologies	Corporate	Total
(In thousands)
Revenue	$38,344	$240	$—	$38,584	$77,351	$522	$—	$77,873
Cost of revenue	13,334	138	—	13,472	27,633	427	—	28,060
Gross profit	25,010	102	—	25,112	49,718	95	—	49,813
Operating expenses
General and administrative	1,803	906	4,964	7,673	5,637	2,908	16,226	24,771
Sales and marketing	3,777	1,977	659	6,413	11,359	5,484	1,826	18,669
Research and development	1,145	2,824	—	3,969	3,318	8,946	—	12,264
Total operating expenses	6,725	5,707	5,623	18,055	20,314	17,338	18,052	55,704
Operating income (loss)	$18,285	$(5,605)	$(5,623)	$7,057	$29,404	$(17,243)	$(18,052)	$(5,891)

	Three Months Ended September 30, 2023				Nine Months Ended September 30, 2023
	Water	Emerging Technologies	Corporate	Total	Water	Emerging Technologies	Corporate	Total
(In thousands)
Revenue	$36,812	$224	$—	$37,036	$70,622	$538	$—	$71,160
Cost of revenue	11,114	40	—	11,154	23,136	444	—	23,580
Gross profit	25,698	184	—	25,882	47,486	94	—	47,580
Operating expenses
General and administrative	2,039	1,061	4,269	7,369	5,837	2,976	12,891	21,704
Sales and marketing	3,272	1,560	579	5,411	9,567	4,171	1,659	15,397
Research and development	1,098	2,871	—	3,969	3,121	8,922	—	12,043
Total operating expenses	6,409	5,492	4,848	16,749	18,525	16,069	14,550	49,144
Operating income (loss)	$19,289	$(5,308)	$(4,848)	$9,133	$28,961	$(15,975)	$(14,550)	$(1,564)

Note 10 —Concentrations

Customer Revenue Concentration

The following tables present the customers that account for 10% or more of the Company’srevenue and their related segment for

each of the periods presented. Although certain customers might account for greater than 10% of the Company’srevenue at any one point in

time, the concentration ofrevenue between a limited number of customers shifts regularly, depending on when revenue is recognized. The

percentages by customer reflect specific relationships or contracts that would concentrate revenue for the periods presented and do not

indicate a trend specific to any one customer.

Three Months Ended September 30, · Nine Months Ended September 30,
	Segment	2024	2023	2024	2023
Customer A	Water	14%	20%	14%	16%
Customer B	Water	17%	15%	**	**
Customer C	Water	**	15%	**	**
Customer D	Water	11%	**	11%	**
Customer E	Water	10%	**	**	**
Customer F	Water	**	10%	**	**

**Zero or less than 10%.

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.