Accrued Liabilities

12 Months Ended

Oct. 31, 2022

Note 8. Accrued Liabilities

Accrued liabilities as of October 31, 2022 and 2021 consisted of the following (in thousands):


	October 31,		October 31,
	2022		2021
Accrued payroll and employee benefits ⁽¹⁾	$	8,534	$	2,544
Accrued product warranty cost ⁽²⁾		537		72
Accrued service agreement and PPA costs⁽³⁾		11,340		9,112
Accrued legal, taxes, professional and other		7,004		4,371
Accrued liabilities	$	27,415	$	16,099

(1)	The balance in this account represents accrued payroll, payroll taxes and accrued bonus for both periods. The increase in the account relates to an increase in accrued bonus as of October 31, 2022.

(2)	The increase in accrued product warranty cost reflects the costs associated with the warranties provided under the Settlement Agreement with POSCO Energy and KFC. Product warranty expense for the year ended October 31, 2022 and 2021 was $0.5 million and $0.03 million, respectively.

(3)

Accrued service agreement costs include loss accruals on service contracts of $7.3 million as of October 31, 2022, which increased from $6.5 million as of October 31, 2021. The increase is the result of a change in estimates regarding timing of future module exchanges and future module replacement costs. The accruals for performance guarantees on service agreements and PPAs increased from $2.5 million as of October 31, 2021 to $4.1 million as of October 31, 2022.