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


	December 31, 2025		December 31, 2024
Accrued compensation and benefits	$	8,767	$	5,940
Accrued professional services		9,195		10,431
Excise and franchise taxes payable		10,054		7,729
Collateralized borrowings		2,264		5,842
Software license fee payable		9,547		9,953
Accrued Monarch legal settlement		1,314		1,314
Accrued major maintenance		3,669		427
Interest and commitment fee payable		140		114
Other accrued liabilities		2,752		3,746
Total accrued expenses and other current liabilities	$	47,702	$	45,496

The Company has a revolving accounts receivable financing arrangement that allows the Company to borrow a designated percentage of eligible accounts receivable, as defined in the agreement, up to a maximum unsettled amount of $5 million. The agreement is secured by a first security interest in all assets of Southern Airways Express, LLC, a subsidiary of Southern. The related interest rate is the prime rate plus 1% per annum. Additionally, the Company pays certain ancillary fees associated with each borrowing that vary depending on the borrowed amount and duration, which is generally no more than 45 days.

For the year ended December 31, 2025, the Company borrowed a total of $36.1 million under this financing facility, of which $33.9 million was settled through the transfer of pledged receivables. Interest expense incurred on these borrowings for the year ended December 31, 2025, amounted to $0.5 million, and is included in interest expense in the accompanying Consolidated Statements of Operations.

As of December 31, 2025 the Company was in compliance with all covenants under this financing facility.

In addition, during the year ended December 31, 2024, the Company received an advance payment of $3.0 million from a financing institution related to an expected future payment under the IRS’ Employee Retention Credit Program. Such amounts were collateralized against the value of the credits to be received, as well as other assets of Southern Airways Express, a subsidiary of Southern. During the year ended December 31, 2025, the Company received payments under the IRS’ Employee Retention Credit Program totalling $3.6 million, which were fully off-set against the collateralized borrowing, with the associated benefit recorded against associated payroll costs within the Company’s Consolidated Statement of Operations. As of December 31, 2025 and December 31, 2024, the Company has recorded $0 and $3.0 million within collateralized borrowings.

During the fourth quarter of 2024, the Company entered into agreements with several professional service firms engaged in support of the Company’s July 27, 2023 direct listing on the NYSE. These agreements modify the payment terms of prior service agreements to be contingent on future equity or debt financing by the Company. The Company originally estimated that a total of $7.1 million would be due under these agreements over a five year period. Given the uncertainty regarding the timing and amount of payment, all amounts have been classified as current liabilities within the Company’s consolidated balance sheet. During the year ended December 31, 2025, the Company has continued to make contractual payments against certain of these liabilities, with $6.8 million remaining as a current liability within the Company’s consolidated balance sheet as of December 31, 2025.