Accrued expenses consisted of the following:


	December 31,
(table only in thousands)	2023		2022
Compensation and related benefits	$	11,278	$	9,577
Accrued warranty		5,105		3,691
Contract liability		7,875		4,516
Short-term operating lease liability		4,278		3,228
Other		15,765		12,779
Total accrued expenses	$	44,301	$	33,791

The activity in the Company’s earnout liability consisted of the following:


	December 31,
(table only in thousands)	2023			2022
Earnout accrued at beginning of year	$	1,200		$	1,037
Fair value of earnout at acquisition date		2,800			1,429
Fair value adjustment		296			(229	)
Payments and other		(2,096	)		(1,037	)
Earnout accrued at end of year	$	2,200		$	1,200

Current portion, recorded within Accrued expenses		1,115			1,200
Non-current portion, recorded within Other liabilities		1,085			—

As additional consideration in the acquisition of Kemco Systems Co., LLC ("Kemco"), the former owners of Kemco are entitled to earn-out payments up to $4.0 million based upon specified financial results through August 31, 2026. Based on projections at the acquisition date, the Company estimated the fair value of the earn-out to be $2.2 million. Of this $2.2 million, $1.1 million represents the current portion of earnout liability recorded in Accrued expenses on its Consolidated Balance Sheets, and $1.1 million represents the non-current portion of earnout liability recorded in Other liabilities on its Consolidated Balance Sheets

As additional consideration in the acquisition of Malvar Engineering Limited, including its subsidiaries Arkanum Management Limited and Wakefield Acoustics Limited (collectively, "Wakefield"), the former owners of Wakefield were entitled to earn-out payments based upon specified financial results through July 31, 2023. Based on projections at the acquisition date, the Company estimated the fair value of the earn-out to be $0.6 million. An earnout payment of $0.6 million was made in the year ended December 31, 2023.

As additional consideration in the acquisition of Compass Water Solutions, Inc. ("Compass"), the former owners of Compass were entitled to earn-out payments based upon specified financial results through April 30, 2023. Based on projections at the acquisition date of May 3, 2022, the Company estimated the fair value of the earnout to be $1.4 million. During the year ended December 31, 2022, the Company decreased the earnout by $0.2 million based on the estimated fair value at December 31, 2022. The fair value adjustment was recorded in "Amortization and earnout expenses" on the Consolidated Statement of Income. An earnout payment of $1.5 million was made in the year ended December 31, 2023.