Margin-call sale slightly trims Energy Recovery (ERII) director’s stake

Filing Impact

(Neutral)

Filing Sentiment

(Negative)

Form Type

Rhea-AI Filing Summary

Energy Recovery, Inc. director Arve Hanstveit sold 2,419 shares of common stock at $10.29 per share in an open-market transaction on April 6, 2026. The sale was executed by a broker to satisfy a margin call after these shares had been pledged as collateral. Following the sale, Hanstveit directly holds 382,509 shares. He also has indirect ownership of 60,000 shares in the Sophie Hanstveit Irrevocable Trust and 60,000 shares in the Natasha Hanstveit Irrevocable Trust, where he serves as sole trustee with sole voting and investment power.

Insider Trade Summary

Net Seller: 2,419 shares ($24,892)

Net Sell 3 txns

Insider Hanstveit Arve

Role Director

Sold 2,419 shs ($25K)

Type	Security	Shares	Price	Value
Sale	Common Stock	2,419	$10.29	$25K
holding	Common Stock	--	--	--
holding	Common Stock	--	--	--

Holdings After Transaction: Common Stock — 382,509 shares (Direct); Common Stock — 60,000 shares (Indirect, Sophie Hanstveit Irrevocable Trust)

Footnotes (1)

The sales reported in this Form 4 were made by a broker, without instruction by the reporting person, to satisfy a margin call by the broker, to whom these shares were pledged as collateral for a margin account. Mr. Hanstveit is sole trustee and exercises sole voting and investment power.

Key Figures

Shares sold: 2,419 shares Sale price: $10.29 per share Direct holdings after sale: 382,509 shares +2 more

5 metrics

Shares sold 2,419 shares Open-market sale on April 6, 2026

Sale price $10.29 per share Price for 2,419 shares sold

Direct holdings after sale 382,509 shares Common stock held directly by Arve Hanstveit

Sophie Trust holdings 60,000 shares Indirect via Sophie Hanstveit Irrevocable Trust

Natasha Trust holdings 60,000 shares Indirect via Natasha Hanstveit Irrevocable Trust

Key Terms

margin call, open-market sale, irrevocable trust, voting and investment power

4 terms

margin call financial

"Sales were made by a broker to satisfy a margin call on pledged shares."

A margin call is a broker's demand that an investor add cash or sell assets when the value of securities bought with borrowed money falls enough that the account no longer has sufficient collateral. Think of it like a lender asking you to put up more collateral or pay down a loan when the value of what you pledged drops. It matters because unmet margin calls can force quick sales, magnifying losses and creating unexpected liquidity risk for investors.

open-market sale financial

"2,419 shares were disposed of in an open-market sale at $10.29 per share."

An open-market sale is when a shareholder sells existing shares directly on a public exchange to any willing buyer, rather than through a private deal. Think of it like putting goods on a busy market stall where price is set by supply and demand; for investors it matters because such sales increase available supply, can put short-term downward pressure on the stock price, and signal changes in liquidity or investor confidence.

irrevocable trust financial

"60,000 shares are held in each of the Sophie and Natasha Hanstveit Irrevocable Trusts."

voting and investment power financial

"Mr. Hanstveit is sole trustee and exercises sole voting and investment power."

Form 4 Insider Transactions: What Each Field Means →

04/08/2026 - 07:04 PM

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Hanstveit Arve

(Last)

(First)

(Middle)

C/O ENERGY RECOVERY, INC.

1717 DOOLITTLE DRIVE

(Street)

SAN LEANDRO

CALIFORNIA

94577

(City)

(State)

(Zip)

UNITED STATES

(Country)

2. Issuer Name and Ticker or Trading Symbol
Energy Recovery, Inc. [ ERII ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
	Officer (give title below)	Other (specify below)

2a. Foreign Trading Symbol

3. Date of Earliest Transaction (Month/Day/Year)
04/06/2026

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

4. If Amendment, Date of Original Filed (Month/Day/Year)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	04/06/2026		S		2,419⁽¹⁾	D	$10.29	382,509	D
Common Stock								60,000	I	Sophie Hanstveit Irrevocable Trust⁽²⁾
Common Stock								60,000	I	Natasha Hanstveit Irrevocable Trust⁽²⁾

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)

Explanation of Responses:

1. The sales reported in this Form 4 were made by a broker, without instruction by the reporting person, to satisfy a margin call by the broker, to whom these shares were pledged as collateral for a margin account.

2. Mr. Hanstveit is sole trustee and exercises sole voting and investment power.

Remarks:

Exhibit 24

	/s/ William Yeung Attorney-in-fact for Arve Hanstveit	04/08/2026
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
* Form 4: SEC 1474 (03-26)

Source: View Original Filing on SEC EDGAR

FAQ

What insider transaction did Energy Recovery (ERII) disclose for Arve Hanstveit?

Energy Recovery reported that director Arve Hanstveit sold 2,419 shares of common stock. The sale occurred on April 6, 2026, as an open-market transaction at $10.29 per share, executed by a broker to meet a margin call on pledged shares.

Why were Arve Hanstveit’s Energy Recovery (ERII) shares sold?

The shares were sold by a broker to satisfy a margin call on a margin account. Hanstveit had previously pledged these shares as collateral, and the broker executed the sale without his instruction to cover the account’s margin requirements.

How many Energy Recovery (ERII) shares does Arve Hanstveit hold after the sale?

After the sale, Arve Hanstveit directly owns 382,509 shares of Energy Recovery common stock. In addition, he has indirect ownership of 60,000 shares in the Sophie Hanstveit Irrevocable Trust and 60,000 shares in the Natasha Hanstveit Irrevocable Trust.

At what price were Arve Hanstveit’s Energy Recovery (ERII) shares sold?

The 2,419 Energy Recovery shares sold on April 6, 2026, were transacted at $10.29 per share. This price reflects the execution level in the open market as the broker liquidated pledged shares to satisfy the margin call obligations.

What is the nature of Arve Hanstveit’s indirect holdings in Energy Recovery (ERII)?

Hanstveit has indirect holdings through the Sophie Hanstveit Irrevocable Trust and the Natasha Hanstveit Irrevocable Trust, each holding 60,000 shares. He is the sole trustee of these trusts and exercises sole voting and investment power over their Energy Recovery shares.