The expense recognized for employee and other services received during the year ended December 31, 2025 and arising from equity-settled share-based payment transactions was $3,011,000 (2023: $7,104,000; 2024: $4,090,000). Of this total, $55,000 in 2025 (2023: $111,000; 2024: $66,000), related to warrants plans for consultants considered equivalent to employees.


	Year ended December 31,
	2023		2024		2025
	(in thousands)
Cost of revenue	$	131	$	84	$	20
Research and development	$	2,019	$	718	$	761
Sales and marketing	$	1,397	$	946	$	494
General and administrative	$	3,557	$	2,342	$	1,736
Total	$	7,104	$	4,090	$	3,011

Restricted share awards and warrants give the right to acquire ordinary shares. The exercise price for warrants is based on the closing market price on the effective date of grant. There is no exercise price for restricted share awards; the beneficiary receives title to the underlying ordinary shares with no cash payment at the end of the vesting period. In general, the contractual life of the warrants is ten years. There are no cash settlement alternatives, and the Company has not developed a practice of cash settlement.

Restricted share awards (RSA) granted beginning in July 2024 vest over three years, with either 33% vesting after 1-year anniversary of the grant and the remaining 67% of the grant vesting semi-annually over the remaining 2 years or with 66% vesting after the 2-year anniversary of the grant and the remaining 34% vesting semi-annually over the remaining year. Prior to July 2024 grants, RSA vested over four years, with either 25% vesting after the 1-year anniversary of the grant and the remaining 75% of the grant vesting quarterly over the remaining 3 years, or with 50% vesting after the 2-year anniversary of the grant and the remaining 50% vesting quarterly over the remaining 2 years. Vested restricted shares may be sold only beginning two years after the effective date of grant.

In general, vesting of the stock options occurs over four years, with 25% vesting after the first anniversary of grant and the remaining 75% vesting monthly over the remaining 36 months.

All expenses related to these plans have been recorded in the Consolidated Statement of Operations in the same line items as the related employees’ cash-based compensation.

The Company awards warrants to members of the board of directors following approval by the shareholders and to a limited number of consultants who have long-term relationships with the Company. Vesting may be over a one-year, two-year, three-year or four-year period, or may be immediate, depending on the nature of the service contract. All expenses related to these plans have been recorded in the Consolidated Statements of Operations in the same line items as the related service provider’s cash-based compensation.

The following table illustrates the number of shares (ADS equivalents are not presented) and weighted average exercise prices (WAEP) of, and movements in, stock options and warrants during the period:


	December 31,
	2023			2024			2025
	Number	WAEP		Number	WAEP		Number	WAEP
Outstanding at January 1,	5,868,521	$	1.51	6,811,814	$	1.27	9,422,814	$	0.82
Granted during the year	1,500,000	$	0.54	3,520,912	$	0.15	2,520,000	$	0.15
Forfeited during the year	(111,887)	$	1.70	(228,634)	$	2.04	(85,580)	$	1.08
Exercised during the year	—	$	—	—	$	—	—	$	—
Expired during the year	(444,820)	$	1.89	(681,278)	$	1.49	(815,114)	$	1.71
Outstanding at period end	6,811,814	$	1.27	9,422,814	$	0.82	11,042,120	$	0.60
Of which, warrants for consultants equivalent to employees	724,288	$	1.05	1,707,200	$	0.57	1,667,120	$	0.55
Exercisable at period end	5,420,965	$	1.44	6,142,512	$	1.17	8,009,667	$	0.77
Of which, warrants for consultants equivalent to employees	438,739	$	1.28	796,307	$	0.92	1,154,967	$	0.70

The following table illustrates the number of, and movements in, restricted shares awards (RSA) based on the number of ordinary shares (ADS equivalents are not presented) during the period:


	December 31,
	2023	2024	2025
Outstanding at January 1,	16,752,551	13,105,349	25,726,711
Granted during the year	2,640,460	21,432,152	3,580,000
Forfeited during the year	(686,092)	(3,807,502)	(1,388,638)
Vested during the year	(5,601,570)	(5,003,288)	(8,919,980)
Outstanding at period end	13,105,349	25,726,711	18,998,093

The weighted average remaining contractual life of stock options and warrants outstanding as December 31, 2025 was 4.8 years (2024: 3.1 years; 2023: 2.6 years).

The range of exercise prices per share for stock options and warrants outstanding at December 31, 2025 was $0.13 - $3.31, $0.13 - $3.31 at December 31, 2024 and $0.54—$3.31 at December 2023.

The weighted average fair value of stock options and warrants granted during the year ended December 31, 2025 was $0.07 (2024: $0.08; 2023: $0.27). The weighted average fair value of the restricted shares awards granted during the year ended December 31, 2025 was $0.13 (2024: $0.22; 2023: $0.66). The fair value is measured at the grant date. The following table lists the inputs to the models used for determining the value of the grants made for the years ended December 31, 2023, 2024 and 2025:


	December 31,
	2023	2024	2025
Dividend yield (%)	—	—	—
Expected volatility (%)	59	58 to 62	63
Risk–free interest rate (%)	2.5	4.35 to 4.75	3.97
Assumed annual lapse rate of awards (%)	20 for all except 2 for warrants and a limited group of beneficiaries	20 for all except 2 for warrants and a limited group of beneficiaries	15 for all except 2 for warrants and a limited group of beneficiaries
Sell price multiple (applied to exercise price)	2	2	2
Weighted average share price ($)	0.86	0.21	0.14
Model used	Binomial	Binomial	Binomial

Stock options and warrants can be exercised during a period after the vesting date until the plan terminates. In the pricing model, the assumption was made that plan participants will exercise before the end of the exercise period if the share price reaches a certain multiple of the exercise price.

If a sell-price multiple of 3 instead of 2 had been used (no impact on the restricted shares) and if the weighted average share price used in the pricing model had been decreased by 10%, share-based payment total compensation for stock options, warrants and restricted shares awards granted through December 31, 2025 would have decreased by (3.61)% (2024: (9.14)%; 2023: (7.51)%).

The expected life of the stock options and warrants is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome.