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RD Session Host connections don't appear on License Manager

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We have setup a Server 2012 R2 RDS deployment with remote-site RD Host Servers all pulling CALs from a central RD License Server. I am able to RDP five sessions into the first RD Session Host Server OK, and the RD License Diagnoser says all is well with the connection to the license server. However I am not seeing any licenses being issued by the central License Server for those five test users, even after a Refresh. The five test users are local to the RD Session Host Server, and not in AD. Do local accounts not show up in the License Server's RD Licensing Manager screen?  Do they not require the RD Session Host to 'pull' CALs from the License Server?  I am thinking I should be seeing the licenses being distributed to the five users and am concerned that I do not.

License Server 2012 R2 - Per User CALs - Joined to Active Directory

RD Host Server #1 with the five RDP sessions is 2012 R2 - Joined to Active Directory

Thanks in advance for any insights! 


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