Basically PESI agreed to pay for the Washington Facility with an initial deal (stock, cash, and debt) AND an Earn-out, which is what the PR addresses. In short, PESI paid $734,000 for 2009 and has a small off-set against it of $97,660.

Also any future payments can be in the form of a Note as opposed to cash, (formerly up to $1,000,000 annually).

All of this has no impact on earnings since it was or should have been accounted for in the transaction and reconciled against Goodwill.

In the end they may have an additional $2,000,000 of cash or debt to pay the former shareholders.....impacts cash but not earnings.

If PESI is paying an earn-out then Washington must be performing positively, from July 1 thru June 30th of the year.