Note 4 - Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):

As of June 30, 2025, and December 31, 2024, our Managed Services segment had accrued expenses and other current liabilities of $43,000 and $18,000, respectively. These expenses consisted primarily of accrued compensation expense and taxes and regulatory fees. The increase was primarily related to higher accrued compensation expense due to the timing of payroll for the period.

As of June 30, 2025, and December 31, 2024, accrued expenses and other current liabilities for our Collaboration Products segment were $280,000 and $252,000, respectively. These amounts primarily consist of rent expenses and customer deposits. The increase is related to higher customer deposits. 

Unallocated accrued expenses were $1,336,000 and $861,000 as of June 30, 2025, and December 31, 2024, respectively. Unallocated accrued expenses consisted primarily of compensation expenses, professional service expenses, accrued dividends, and corporate franchise taxes. The increase was primarily related to higher accruals for compensation expense, corporate franchise tax, and financing costs.