Stock-based payment transactions are recognized as compensation expense based on the fair value of the instrument on the date of grant. The Company uses the graded-vesting method to recognize compensation expense. Compensation cost is reduced for forfeitures as they occur in accordance with ASU 2016-09, Simplifying the Accounting for Share-Based Payment. No income tax benefit was recognized in the Consolidated Statements of Operations for stock-based payment arrangements for the three-months ended March 31, 2025 and 2024.

In June 2023, the stockholders approved the Company’s Employee Stock Purchase Plan (the “ESPP”), which became effective on July 1, 2023. On June 30, 2023, the Company filed a Registration Statement on Form S-8 to register 1,000,000 shares of Common stock under the ESPP, as a result of the Company’s stockholders approving the ESPP at the 2023 Annual Meeting. The ESPP features two six-month offering periods per year, running from June 1 to November 30 and December 1 to May 31.

The Company has included stock-based compensation expense for all equity awards and the ESPP as part of operating expenses in the accompanying Consolidated Statements of Operations as follows:


	Three-Months Ended
	March 31, 2025		March 31, 2024
Sales and marketing expenses	$	504	$	527
General and administrative expenses		1,579		1,661
Research and development expenses		611		403
Total	$	2,694	$	2,591

A summary of share option activity as of March 31, 2025, and changes during the period ended, is presented below:


	Service Only Share Options			Performance-Based Share Options			Total Share Options
Outstanding shares at December 31, 2024		3,349,037			191,171			3,540,208
Granted		1,207,000			-			1,207,000
Exercised		(52,550	)		(13,458	)		(66,008	)
Expired		(98,250	)		(4,062	)		(102,312	)
Forfeited		(59,678	)		(588	)		(60,266	)
Outstanding shares at March 31, 2025		4,345,559			173,063			4,518,622
Exercisable at March 31, 2025		1,404,308			157,661			1,561,969
Vested and expected to vest - March 31, 2025		4,345,559			173,063			4,518,622

A summary of the status of the Company’s unvested RSUs as of March 31, 2025, and changes that occurred during the period, is presented below:


Unvested Shares	Tenure-Based RSUs			Performance Condition RSUs			Total RSUs
Unvested RSUs outstanding at December 31, 2024		109,315			7,881			117,196
Granted		-			-			-
Vested		(11,983	)		(2,625	)		(14,608	)
Forfeited		(600	)		-			(600	)
Unvested RSUs outstanding at March 31, 2025		96,732			5,256			101,988