On June 3, 2026, at the Company’s 2026 Annual Meeting of Stockholders, the Company’s stockholders approved the issuance of 16,133 service-only stock options and 22,214 tenure-based RSUs to each of the Company’s six non-executive members of the Board of Directors, as well as the issuance of 48,509 service-only stock options and 66,797 tenure-based RSUs to two non-executive members of the Board of Directors for their initial grants in accordance with ASX rules. These awards are subject to vesting conditions as denoted in the individual grants.

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- and six-months ended June 30, 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 from 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 (in thousands):


	Three-Months Ended				Six-Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Sales and marketing expenses	$	548	$	594	$	1,031	$	1,098
General and administrative expenses		954		1,439		1,128		3,017
Research and development expenses		486		636		930		1,246
Total	$	1,988	$	2,669	$	3,089	$	5,361

A summary of share option activity as of June 30, 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		872,777			-			872,777
Exercised		-			-			-
Expired		(250,852	)		(27,112	)		(277,964	)
Forfeited		(43,372	)		-			(43,372	)
Outstanding shares at June 30, 2026		4,944,156			144,189			5,088,345
Exercisable at June 30, 2026		2,693,385			134,595			2,827,980
Vested and expected to vest - June 30, 2026		4,944,156			144,189			5,088,345

A summary of the status of the Company’s unvested RSUs as of June 30, 2026, and changes that occurred during the period, is presented below:


	Tenure-Based RSUs
Unvested RSUs outstanding at December 31, 2025		67,048
Granted		951,648
Vested		(67,048	)
Forfeited		(16,270	)
Unvested RSUs outstanding at June 30, 2026		935,378