XML 165 R16.htm IDEA: XBRL DOCUMENT v3.22.0.1
Accrued Expenses and Other Liabilities
12 Months Ended
Dec. 31, 2021
Accrued Expenses and Other Liabilities  
Accrued Expenses and Other Liabilities

9. Accrued Expenses and Other Liabilities

At December 31, 2021 and 2020, accrued expenses and other current and non-current liabilities consisted of the following:

As of

As of

December 31, 

December 31, 

2021

2020

(in thousands)

Accrued royalty payments

1,743

1,796

Dividends payable

-

247

Zinc derivatives

1,844

-

Employee profit sharing obligation

1,888

-

Other payables

1,100

232

Total accrued expenses and other current liabilities

$

6,575

$

2,275

Accrued non-current labor obligation

920

-

Deferred stock unit compensation liability

206

-

Other long-term liabilities

826

13

Total other non-current liabilities

$

1,952

$

13

In 2021, the Company entered into zinc zero cost collars consisting of call and put options on the same volume to manage its near-term exposure to cash flow variability from zinc price risks. As of December 31, 2021, the Company had $1.8 million liability related to the program.

On April 23, 2021, a decree that reforms labor outsourcing in Mexico was published in the Federation’s Official Gazette. This new decree amends the outsourcing provisions, whereby operating companies will no longer be able to 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.