Accrued Liabilities

9 Months Ended

Jul. 31, 2022

Note 11. Accrued Liabilities

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


	July 31,		October 31,
	2022		2021
Accrued payroll and employee benefits ⁽¹⁾	$	6,737	$	2,544
Accrued product warranty cost ⁽²⁾		378		72
Accrued service agreement and PPA costs⁽³⁾		10,009		9,112
Accrued legal, taxes, professional and other		5,411		4,371
Accrued liabilities	$	22,535	$	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 July 31, 2022.

(2)

The increase in accrued product warranty cost reflects the costs associated with the warranties provided under the POSCO Energy Settlement Agreement. Product warranty expense for the three months ended July 31, 2022 and 2021 was $0.2 million and $7 thousand, respectively, and for the nine months ended July 31, 2022 and 2021 was $0.4 million and $19 thousand, respectively.

(3)

Accrued service agreement costs include loss accruals on service agreements of $6.4 million and $6.5 million as of July 31, 2022 and October 31, 2021, respectively. The accruals for performance guarantees on service agreements and PPAs were $2.5 million and $3.6 million as of October 31, 2021 and July 31, 2022, respectively.