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, 2026 and 2025.

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 of stockholders. 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, 2026		March 31, 2025
Sales and marketing expenses	$	483	$	504
General and administrative expenses		174		1,579
Research and development expenses		444		611
Total	$	1,101	$	2,694

A summary of share option activity as of March 31, 2026, 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, 2025		4,365,603			171,301			4,536,904
Granted		727,470			-			727,470
Exercised		-			-			-
Expired		(179,629	)		(27,112	)		(206,741	)
Forfeited		(32,206	)		-			(32,206	)
Outstanding shares at March 31, 2026		4,881,238			144,189			5,025,427
Exercisable at March 31, 2026		2,592,805			134,595			2,727,400
Vested and expected to vest - March 31, 2026		4,881,238			144,189			5,025,427

A summary of the status of the Company’s unvested RSUs as of March 31, 2026, and changes that occurred during the period, is presented below:


	Tenure-Based RSUs
Unvested RSUs outstanding at December 31, 2025		67,048
Granted		738,140
Vested		(60,132	)
Forfeited		(13,560	)
Unvested RSUs outstanding at March 31, 2026		731,496