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


	March 31, 2026		December 31, 2025
Accrued compensation and benefits	$	4,449	$	8,767
Accrued professional services		9,399		9,195
Excise and franchise taxes payable		10,108		10,054
Collateralized borrowings		2,304		2,264
Software license fee payable		9,552		9,547
Accrued Monarch legal settlement		1,314		1,314
Accrued major maintenance		1,140		3,669
Interest and commitment fee payable		146		140
Other accrued liabilities		2,878		2,752
Total accrued expenses and other current liabilities	$	41,290	$	47,702

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 $5.0 million. The agreement is secured by a first security interest in all assets of Southern Airways Express. 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 three months ended March 31, 2026, the Company borrowed a total of $6.5 million under this financing facility, of which $4.2 million was settled through the transfer of pledged receivables. Interest expense incurred on these borrowings for the three months ended March 31, 2026 amounted to $76 thousand, and is included in interest expense in the accompanying Condensed Consolidated Statements of Operations.

The Company maintains incentive compensation programs under which payouts are based on a combination of performance metrics and are subject to discretionary adjustments by the Company’s board of directors (the “Board”).

As of December 31, 2025, the Company recorded an accrual of $4.8 million representing its estimate of expected payouts under the programs. During the three months ended March 31, 2026, final payouts under the plans were approved at $1.8 million. The resulting $3.0 million reduction in accrued compensation has been recognized as a $0.3 million reduction to sales and marketing expense and a $2.7 million reduction to general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations for the three months ended March 31, 2026.

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 Condensed Consolidated Balance Sheets. During the year ended December 31, 2025, the Company has continued to make contractual payments against certain of these liabilities, with $6.7 million remaining as a current liability within the Company’s Condensed Consolidated Balance Sheets as of March 31, 2026.