Accrued expenses consisted of the following:


	June 30,		December 31,
(in thousands)	2025		2024
Accrued bonus	$	45	$	155
Accrued LTI		2,500		—
Accrued payroll		7		7
Accrued PTO		21		21
Accrued legal settlements		2,000		2,050
Accrued royalties		241		231
Accrued professional fees		315		454
Customer deposits		97		135
Vendor settlements		300		—
Loss restoration settlement		1,041		570
Other accrued expenses and current liabilities		414		352
Total accrued expenses and other current liabilities	$	6,981	$	3,975

Accrued legal settlement of $2.0 million represents the payments due following settlement of a lawsuit which was an assumed liability as part of the Acquisition and is further discussed in Note 15. Commitments and Contingencies.

Accrued LTI of $2.5 million represents the full redemption value of the Series LTI Preferred Stock issued to the Company’s executive officers and members of the Board of Directors of the Company. On June 14, 2025, the Company issued a total of 1,250,000 shares of the Company’s Series LTI Convertible Preferred Stock to the Company’s executive officers and members of the Board of Directors of the Company that vested 100% upon Grant Date. No holder of LTI Preferred Stock shall have the right to convert any shares of LTI Preferred Stock, without shareholder approval. If such shareholder approval is not obtained on or before June 6, 2026, the Company will redeem each share of the LTI Preferred Stock for cash at a redemption price equal to the Original Issue Price of $2.0. The Company classifies Series LTI Preferred Stock in accordance with ASC 718, as a liability award and is included in Accrued expenses and other current liabilities, measured at the full redemption value, as there are conversion features that are subject to shareholder approval which is outside of the control of the Company. If shareholder approval is obtained, the Company will make a cash payment to the executive officers and members of the Board of Directors of the Company to cover employee taxes of the LTI Preferred Stock grant, and the value shall be calculated as $3.2 million less the grant date fair value of the LTI Preferred Stock on the date shareholder approval is obtained.