Note 4 - Accrued Expenses and Other Current Liabilities

Consolidated accrued expenses and other current liabilities were $1,061,000 and $1,131,000 as of December 31, 2025, and 2024, respectively, consisting primarily of compensation, taxes and fees, and rent expenses. The 6% year-over-year decrease was primarily due to a decrease in accrued compensation, partially offset by an increase in taxes and fees.

Our consolidated balances for the years ended December 31, 2025, and 2024 consisted of the following (in thousands):

As of December 31, 2025, and 2024, our Managed Services segment had accrued expenses and other current liabilities of $5,000 and $18,000, respectively. These expenses consisted primarily of taxes and regulatory fees. The 72% year-over-year decrease was primarily related to a reduction in these taxes and regulatory fees.

As of December 31, 2025, and 2024, accrued expenses and other current liabilities for our Collaboration Products segment were $269,000 and $252,000, respectively. These amounts primarily consist of rent expenses and customer deposits. The 7% year-over-year increase was driven by higher customer deposits.

Unallocated accrued expenses were $787,000 and $861,000 as of December 31, 2025, and 2024, respectively. For both 2024 and 2025, unallocated accrued expenses consisted primarily of compensation expenses, professional service expenses, and corporate franchise taxes. The 9% year-over-year decrease is primarily related to a decrease in compensation expenses, partially offset by an increase in corporate franchise tax.