8.      Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following (in thousands):

In December 2021, Nxu entered into an agreement (the “Agreement”) with QAD, Inc. (“QAD”), a cloud-based enterprise resource software provider. Under the Agreement, QAD would facilitate implementation services and access to the cloud-based software platform for a non-cancellable, 5-year term. Subsequent to executing the Agreement, Nxu determined that the software did not fit Nxu’s needs and Nxu and QAD (collectively, the “Parties”) were unable to successfully implement the software platform. The Parties attempted to mutually terminate the Agreement but were unsuccessful, and in May 2023, the dispute moved to arbitration to determine whether Nxu owed QAD a payment for cancellation of the contract. On October 27, 2023, the Parties agreed to a settlement whereby Nxu has agreed to pay a termination fee of $0.70 million to QAD over a 21-month period, upon which Nxu will be released from the contract. Nxu accrued the remaining unpaid fee, entirely due within the next twelve months, of $0.33 million in accounts payable and accrued liabilities in Nxu’s unaudited condensed consolidated balance sheets as of September 30, 2024.

7.      Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following (in thousands):