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Energy Recovery(ERII) - 2024 Q4 - Annual Report

Market Demand and Growth Opportunities - The company anticipates greater demand for its products in the wastewater market due to expanding environmental regulations[20] - The company anticipates greater demand for its products in emerging wastewater markets due to expanding environmental regulations[20] - The company expects that sales outside the U.S. will remain a significant portion of its revenue[24] - The company expects that sales outside the U.S. will remain a significant portion of its revenue, contributing to overall growth[24] - The company anticipates that markets not traditionally associated with desalination, such as the U.S. and China, will develop and provide further revenue growth opportunities[20] Financial Projections and Efficiency - The company projects increased sales and lower marketing expenditures for 2025[24] - The company projects increased sales and lower marketing expenditures for 2025, indicating a focus on operational efficiency[24] - The company expects to continue receiving a tax benefit related to U.S. federal foreign-derived intangible income research and development tax credit[24] - The company expects to continue receiving tax benefits related to U.S. federal foreign-derived intangible income and research and development tax credits[24] Technology and Innovation - The company believes that the pressure exchanger is the industry standard for energy recovery in the seawater reverse osmosis (SWRO) industry[20] - The company believes that the Pressure Exchanger (PX) is the industry standard for energy recovery in seawater reverse osmosis (SWRO) desalination[20] - The company believes that its PX G1300 can contribute to making CO2-based refrigeration more economically viable in a broader range of climates[24] - The company believes that its PX G1300 can make CO2-based refrigeration more economically viable across a broader range of climates[24] - The company believes that leveraging its pressure exchanger technology will unlock new commercial opportunities in the future[20] - The company believes that leveraging its pressure exchanger technology will unlock new commercial opportunities in the future[20] Sustainability Integration - The company expects that the integration of sustainability principles into its corporate strategies can strengthen existing business and develop new applications[24] - The company anticipates that the integration of sustainability principles into its corporate strategies will strengthen existing business and new applications[24] Customer Considerations - The company believes that ongoing operating costs and life cycle costs are key factors in the selection of energy recovery solutions for customers[20] - The company emphasizes that ongoing operating costs and life cycle costs are key factors in the selection of energy recovery solutions for project customers[20] - The company expects to initially sell the PX G1300 to a variety of customers, including OEMs and contractors, with a shift towards primarily selling through OEMs as the product establishes itself[24]