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Accrued Expenses and Other Liabilities

12 Months Ended

Dec. 31, 2022

Accrued Expenses and Other Liabilities

9. Accrued Expenses and Other Liabilities

At December 31, 2022 and 2021, accrued expenses and other current and non-current liabilities consisted of the following:


	As of		As of
	December 31,		December 31,
	2022		2021

	(in thousands)
Accrued royalty payments	$	1,787	$	1,743
Employee profit sharing obligation		2,206		1,888
Other payables		1,204		1,100
Total accrued expenses and other current liabilities	$	5,197	$	4,731

Accrued non-current labor obligation	$	1,050	$	920
Share-based compensation liability		884		206
Other long-term liabilities		556		826
Total other non-current liabilities	$	2,490	$	1,952

On April 23, 2021, the Mexican Federation's Official Gazette published a decree that reforms labor outsourcing in Mexico. This new decree amends the outsourcing provisions, whereby operating companies can no longer source their labor resources used to carry out the core business functions from service entities or third-party providers. Under Mexican law, employees are entitled to receive statutory profit sharing (Participacion a los Trabajadores de las Utilidades or “PTU”) payments. The required cash payment to employees in the aggregate is equal to 10% of their employer’s profit subject to PTU, which differs from profit determined under U.S. GAAP. In the past, the Company was not subject to PTU payments, as it had been sourcing its labor resources through a third-party service provider.

As a result of adopting the new legislation in 2021, $1.9 million for PTU was recorded in current liabilities and production cost, as well as $0.9 million for statutory employee severance benefits recorded in other long-term liabilities and other expenses. In 2022, $2.2 million for PTU was recorded in current liabilities and production costs, as well as $1.1 million for statutory employee severance benefits recorded in other long-term liabilities and other expenses.

PSU and DSU awards contain a cash settlement feature and are therefore classified as liability instruments and are marked to fair value each reporting period. Please see Note 16— Stock-Based Compensation in Item 8—Financial Statements and Supplementary Data for additional information.

As of December 31, 2022, and 2021, the Company has recorded in other non-current liabilities $0.4 million and $0.6 million, respectively, in liabilities to remediate exploration drill holes at the Back Forty Project in Michigan, USA. Upon completion of the optimized feasibility study and the related mine closure plan, an asset for asset retirement obligation and corresponding liability for reclamation and remediation will be recorded.