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Accounts Payable and Accrued Expenses
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Accounts Payable and Accrued Expenses
7.
Accounts Payable and Accrued Expenses

Accounts payable and accrued expense consisted of the following:

 

 

December 31,

 

(table only in thousands)

 

2022

 

 

2021

 

Trade accounts payable, including amounts due to subcontractors

 

$

73,407

 

 

$

56,242

 

Compensation and related benefits

 

 

9,577

 

 

 

6,065

 

Accrued warranty

 

 

3,691

 

 

 

3,074

 

Contract liability

 

 

4,516

 

 

 

4,405

 

Short-term operating lease liability

 

 

3,228

 

 

 

2,414

 

Other

 

 

12,779

 

 

 

11,881

 

Total accounts payable and accrued expenses

 

$

107,198

 

 

$

84,081

 

The activity in the Company’s current portion of earnout liability is recorded in Accounts payable and accrued expenses on its Consolidated Balance Sheets, consisted of the following:

 

 

December 31,

 

(table only in thousands)

 

2022

 

 

2021

 

Earnout accrued at beginning of year

 

$

1,037

 

 

$

1,743

 

Fair value of earnout at acquisition date

 

 

1,429

 

 

 

—

 

Fair value adjustment

 

 

(229

)

 

 

704

 

Payments and other

 

 

(1,037

)

 

 

(1,410

)

Earnout accrued at end of year

 

$

1,200

 

 

$

1,037

 

 

As additional consideration in the acquisition of Compass Water Solutions, Inc. ("Compass"), the former owners of Compass are entitled to earn-out payments based upon specified financial results through April 30, 2023. Based on projections at the acquisition date of May 3, 2022, the Company estimated the fair value of the earnout to be $1.4 million. During the year ended December 31, 2022 the Company decreased the earnout by $0.2 million based on the estimated fair value at December 31, 2022. The fair value adjustment is recorded in "Amortization and earnout expenses" on the Consolidated Statement of Income.

As additional consideration in the acquisition of Environmental Integrated Solution (“EIS”), the former owners were entitled to earnout payments based upon a multiple of specified financial results through December 31, 2021. During 2021, the Company increased the earnout by $0.7 million based on the estimated fair value at December 31, 2021. The fair value adjustment is recorded in “Amortization and earnout expenses” on the Consolidated Statements of Income. The change in fair value was a result of EIS performing above initial acquisition operational expectations. Earnout payments of $1.0 million and $1.4 million were paid during the years ended December 31, 2022 and 2021, respectively.