Solution
When running lmstat and lmdiag you need to use the -c option to specify the location and name of the license file. This is needed even when the license file is in the same directory as lmstat. For example:
Note: The quotes are needed because the path includes spaces.
If the current working directory is the same as the license file then you need only specify that the license file name is license.dat. For example:
See the MATRIXx System Administrators Guide for more information on troubleshooting license issues.