Accrued Liabilities

3 Months Ended

Jan. 31, 2023

Note 9. Accrued Liabilities

Accrued liabilities as of January 31, 2023 and October 31, 2022 consisted of the following (in thousands):


	January 31,		October 31,
	2023		2022
Accrued payroll and employee benefits ⁽¹⁾	$	4,784	$	8,534
Accrued product warranty cost ⁽²⁾		426		537
Accrued service agreement and PPA costs⁽³⁾		12,087		11,340
Accrued legal, taxes, professional and other		3,016		7,004
Accrued liabilities	$	20,313	$	27,415

(1)	The balance in this account represents accrued payroll, payroll taxes and accrued bonus for both periods. The decrease in the account relates to a decrease in accrued bonus as of January 31, 2023 due to the payout in January 2023 of bonuses earned under the 2022 Management Incentive Plan.

(2)	The decrease in accrued product warranty cost reflects an adjustment for the removal of 3 months of warranty costs associated with the KFC module purchases. Product warranty expense for the three months ended January 31, 2023 and 2022 was $0 and $0.2 million, respectively.

(3)

Accrued service agreement costs include loss accruals on service agreements of $7.1 million and $7.3 million as of January 31, 2023 and October 31, 2022, respectively. The accruals for performance guarantees on service agreements and PPAs were $4.9 million and $4.1 million as of January 31, 2023 and October 31, 2022.