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RDS CALs not getting issued to users

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I am trying to add users to this new azure vm using RDS.

To test it out I purchased 2 RDS CALs from Microsoft and installed.

As it shows it is available but not getting issued to users as a result users cannot access the VM using RDS.

What steps I am missing?

The RDS report is as follow:

 

 

CAL Usage Report

RD License Server:,"XXXXXX-WEB01"

Report Date:,"Thursday, December 15, 2016 4:36:11 PM"

 

CAL Version,CAL Type,Installed CALs,CALs in Use,CAL Availability

Windows Server 2012,RDS Per Device CAL,1,0,Available

Windows Server 2012,RDS Per User CAL,1,0,Available

 

No Per User License has been Issued

 

No Per User License Issuance has failed

 

No Per Device License has been issued


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