Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 02, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001031029 | |
Entity Registrant Name | StarTek, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-12793 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1370538 | |
Entity Address, Address Line One | 4610 South Ulster Street, | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80237 | |
City Area Code | 303 | |
Local Phone Number | 262-4500 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | SRT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,345,831 |
Consolidated Statement of Incom
Consolidated Statement of Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | $ 93,629 | $ 94,878 | $ 276,915 | $ 292,117 |
Cost of services | (81,141) | (80,311) | (239,782) | (253,182) |
Gross profit | 12,488 | 14,567 | 37,133 | 38,935 |
Selling, general and administrative expenses | (10,322) | (12,990) | (31,429) | (34,350) |
Impairment (losses)/ reversals and restructuring/exit cost | (24,894) | (37) | (24,769) | (110) |
Operating income (loss) | (22,728) | 1,540 | (19,065) | 4,475 |
Share of income (loss) of equity accounted investee | 0 | 297 | 0 | 4,122 |
Interest expense and other income (expense), net | (1,998) | (1,999) | (5,657) | (5,044) |
Foreign exchange gains (losses), net | (308) | 1,208 | 109 | 1,114 |
Income (loss) from continuing operations before tax expenses | (25,034) | 1,046 | (24,613) | 4,667 |
Tax (expenses) / benefits | 437 | (913) | (573) | (2,854) |
Income (loss) from continuing operations, net of tax (A) | (24,597) | 133 | (25,186) | 1,813 |
Income (loss) before income tax expenses from discontinued operations | 367 | 3,056 | 3,118 | 5,865 |
Pre-tax gain on disposal | 0 | 0 | 11,666 | 0 |
Tax expenses (A) | 0 | (925) | (5,374) | (2,500) |
Net income | 367 | 2,131 | 9,410 | 3,365 |
Income from continuing and discontinued operations | (24,230) | 2,264 | (15,776) | 5,178 |
Income (loss) from continuing operations (A) | ||||
Income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Income (loss) attributable to Startek shareholders | (24,597) | 133 | (25,186) | 1,813 |
Income (loss) from continuing operations, net of tax | (24,597) | 133 | (25,186) | 1,813 |
Income (loss) from discontinued operations (B) | ||||
Income (loss) attributable to noncontrolling interests | 0 | 2,021 | 2,589 | 4,311 |
Income (loss) attributable to Startek shareholders | 367 | 110 | 6,821 | (946) |
less: Income (loss) from discontinued operations, net of tax | 367 | 2,131 | 9,410 | 3,365 |
Net income (loss) attributable to noncontrolling interests | 0 | 2,021 | 2,589 | 4,311 |
Net income (loss) attributable to Startek shareholders | (24,230) | 243 | (18,365) | 867 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (24,230) | $ 2,264 | $ (15,776) | $ 5,178 |
Net income (loss) per common share from continuing operations | ||||
Basic net income (loss) attributable to Startek shareholders (in dollars per share) | $ (0.61) | $ 0.01 | $ (0.62) | $ 0.04 |
Diluted net income (loss) attributable to Startek shareholders (in dollars per share) | (0.61) | 0.01 | (0.62) | 0.04 |
Basic net income (loss) attributable to Startek shareholders (in dollars per share) | (0.6) | 0.01 | (0.45) | 0.02 |
Diluted net income (loss) attributable to Startek shareholders (in dollars per share) | (0.6) | 0.01 | (0.45) | 0.02 |
Net income (loss) per common share from discontinued operations | ||||
Basic net income (loss) attributable to Startek shareholders (in dollars per share) | 0.01 | 0 | 0.17 | (0.02) |
Diluted net income (loss) attributable to Startek shareholders (in dollars per share) | $ 0.01 | $ 0 | $ 0.17 | $ (0.02) |
Weighted average common shares outstanding | ||||
Shares used in basic earnings per share calculation (in shares) | 40,298 | 40,326 | 40,300 | 40,316 |
Diluted (in shares) | 40,298 | 40,333 | 40,300 | 40,354 |
Consolidated Statement of Other
Consolidated Statement of Other Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income (loss) (A+B) | $ (24,230) | $ 2,264 | $ (15,776) | $ 5,178 |
Net income (loss) attributable to noncontrolling interests | 0 | 2,021 | 2,589 | 4,311 |
Net income (loss) attributable to Startek shareholders | (24,230) | 243 | (18,365) | 867 |
Other comprehensive income (loss), net of taxes from continuing operations: | ||||
Foreign currency translation adjustments | (1,053) | (3,701) | (3,578) | (7,089) |
Pension amortization | 0 | 184 | 124 | 184 |
Other comprehensive income (loss) from continuing operations | (1,053) | (3,517) | (3,454) | (6,905) |
Other comprehensive income (loss), net of taxes from discontinued operations: | ||||
Foreign currency translation adjustments | 0 | 0 | (50) | (1) |
Pension amortization | 0 | (41) | 4,187 | (727) |
Other comprehensive income (loss) from discontinued operations | 0 | (41) | 4,137 | (728) |
Other comprehensive income (loss) from continuing and discontinued operations | (1,053) | (3,558) | 683 | (7,633) |
Other comprehensive income (loss), net of taxes from continuing operations | ||||
Attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Attributable to Startek shareholders | (1,053) | (3,517) | (3,454) | (6,905) |
Other Comprehensive Income (Loss) from Continuing Operations, Net of Tax | (1,053) | (3,517) | (3,454) | (6,905) |
Other comprehensive income (loss), net of taxes from discontinued operations | ||||
Attributable to noncontrolling interests | 0 | (23) | 614 | (397) |
Attributable to Startek shareholders | 0 | (18) | 3,523 | (331) |
Other Comprehensive Income (Loss) from Discontinued Operations, Net of Tax | 0 | (41) | 4,137 | (728) |
Comprehensive income (loss) from continuing and discontinued operations | ||||
Attributable to noncontrolling interests | 0 | 1,998 | 3,203 | 3,914 |
Attributable to Startek shareholders | (25,283) | (3,292) | (18,296) | (6,369) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (25,283) | $ (1,294) | $ (15,093) | $ (2,455) |
Consolidated Balance Sheet (Cur
Consolidated Balance Sheet (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 36,718 | $ 22,457 |
Restricted cash | 4,122 | 49,946 |
Trade accounts receivables, net | 41,144 | 47,138 |
Unbilled revenue | 27,109 | 24,207 |
Prepaid expenses and other current assets | 14,045 | 9,159 |
Assets classified as held for sale | (7,783) | (202,831) |
Total current assets | 130,921 | 355,738 |
Non-current assets | ||
Property, plant and equipment, net | 25,932 | 22,945 |
Operating lease right-of-use assets | 27,478 | 36,450 |
Intangible assets, net | 72,023 | 79,745 |
Goodwill | 100,857 | 120,505 |
Deferred tax assets, net | 3,126 | 2,771 |
Prepaid expenses and other non-current assets | 9,148 | 7,889 |
Total non-current assets | 238,564 | 270,305 |
Total assets | 369,485 | 626,043 |
Current liabilities | ||
Trade accounts payables | 8,696 | 2,428 |
Accrued expenses | 31,470 | 29,707 |
Short term debt | 10,643 | 14,267 |
Current maturity of term loan | 12,269 | 120,466 |
Current maturity of operating lease liabilities | 15,120 | 14,492 |
Other current liabilities | 21,067 | 17,615 |
Liabilities classified as held for sale | 6,365 | 89,486 |
Total current liabilities | 105,630 | 288,461 |
Non-current liabilities | ||
Long term debt | 54,755 | 41,175 |
Operating lease liabilities | 20,111 | 26,651 |
Other non-current liabilities | 3,279 | 2,682 |
Deferred tax liabilities, net | 15,274 | 15,508 |
Total non-current liabilities | 93,419 | 86,016 |
Total liabilities | 199,049 | 374,477 |
Stockholders’ equity | ||
Common stock, 60,000,000 non-convertible shares, $0.01 par value, authorized; 41,209,497 and 41,098,456 shares issued as of September 30, 2023 and December 31, 2022 respectively. | 412 | 411 |
Additional paid-in capital | 294,725 | 293,472 |
Accumulated deficit | (104,768) | (86,302) |
Treasury stock, 905,204 and 839,214 shares as of September 30, 2023 and December 31, 2022 respectively, at cost | (3,944) | (3,749) |
Accumulated other comprehensive loss | (15,989) | (16,058) |
Equity attributable to Startek shareholders | 170,436 | 187,774 |
Non-controlling interest | 0 | 63,792 |
Total stockholders’ equity | 170,436 | 251,566 |
Total liabilities and stockholders’ equity | $ 369,485 | $ 626,043 |
Consolidated Balance Sheet (C_2
Consolidated Balance Sheet (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 41,209,497 | 41,098,456 |
Treasury stock, shares (in shares) | 905,204 | 839,214 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Operating activities | |||||
Income from continuing and discontinued operations | $ (24,230) | $ 2,264 | $ (15,776) | $ 5,178 | |
less: Income (loss) from discontinued operations, net of tax | 367 | 2,131 | 9,410 | 3,365 | |
Income (loss) from continuing operations, net of tax | (24,597) | 133 | (25,186) | 1,813 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 16,420 | 16,856 | |||
Impairment of goodwill | 19,648 | 0 | 19,648 | 0 | $ 8,052 |
Impairment of right-of-use assets | 4,391 | 0 | |||
Profit on sale of property, plant and equipment | (41) | (166) | |||
Additions/(Reversal) during the period | (472) | (112) | |||
Amortization of debt issuance costs (including loss on extinguishment of debt) | 120 | 426 | |||
Amortization of call option premium | 0 | 1,080 | |||
Mark to market gain on derivative instrument | (314) | 0 | |||
Share-based compensation expense | 1,138 | 1,213 | |||
Deferred income taxes | (428) | (1,101) | |||
Share of income (loss) of equity accounted investee | 0 | (297) | 0 | (4,122) | |
Changes in operating assets and liabilities: | |||||
Trade accounts receivables (including unbilled revenue) | 766 | (1,119) | |||
Prepaid expenses and other assets | (3,979) | (2,289) | |||
Trade accounts payable | 6,386 | 2,391 | |||
Income taxes, net | (4,351) | 150 | |||
Accrued expenses and other liabilities | (1,181) | (4,216) | |||
Net cash generated from/used in by operating activities from continuing operations | 12,917 | 10,804 | |||
Net cash generated from/used in operating activities from discontinued operations | (7,691) | 11,464 | |||
Net cash generated from/used in operating activities | 5,226 | 22,268 | |||
Investing activities | |||||
Purchase of property, plant and equipment and intangible assets, net | (10,677) | (9,645) | |||
Proceeds from sale of discontinued operations, net of cash disposed | 35,782 | 0 | |||
Net cash generated from/used in investing activities from continuing operations | 25,105 | (9,645) | |||
Net cash generated from/used in investing activities from discontinued operations | (3,616) | (2,294) | |||
Net cash generated from/used in investing activities | 21,489 | (11,939) | |||
Financing activities | |||||
Proceeds from the issuance of common stock | 116 | 348 | |||
Payments of long term debt | (93,466) | 0 | |||
Payment from a line of credit, net | (3,569) | 1,110 | |||
Payments of other borrowings, net | (1,272) | (2,319) | |||
Common stock repurchases | (195) | (1,636) | |||
Net cash generated from/used in financing activities from continuing operations | (98,386) | (2,497) | |||
Net cash generated from/used in financing activities from discontinued operations | (325) | 534 | |||
Net cash generated from/used in financing activities | (98,711) | (1,963) | |||
Net increase (decrease) in cash and cash equivalents | (71,996) | 8,366 | |||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (1,142) | (2,432) | |||
Cash and cash equivalents and restricted cash at beginning of period | 115,146 | 55,396 | 55,396 | ||
Cash and cash equivalents and restricted cash at end of period | 42,008 | 61,330 | 42,008 | 61,330 | 115,146 |
Less:Cash and cash equivalents from discontinued operations | (1,168) | (33,358) | (1,168) | (33,358) | |
Cash and cash equivalents and restricted cash of continuing operations at end of period | 40,840 | 27,972 | 40,840 | 27,972 | |
Components of cash and cash equivalents and restricted cash | |||||
Balances with banks | 36,718 | 22,267 | 36,718 | 22,267 | $ 22,457 |
Restricted cash | 4,122 | 5,705 | 4,122 | 5,705 | |
Total cash and cash equivalents and restricted cash | $ 40,840 | $ 27,972 | 40,840 | 27,972 | |
Supplemental disclosure of cash flow information | |||||
Cash paid for interest and other finance cost | 8,442 | 7,071 | |||
Cash paid for income taxes | 5,024 | 3,619 | |||
Supplemental disclosure of non-cash activities | |||||
Non-cash share-based compensation expenses | $ 1,138 | $ 1,213 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member] Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Treasury Stock, Common [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Treasury Stock, Common [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 40,893,396 | 412,769 | ||||||||||||||||||
Balance at Dec. 31, 2021 | $ 409 | $ (1,912) | $ 291,537 | $ (84,043) | $ (6,816) | $ 0 | $ (3,871) | $ 195,304 | $ 58,016 | $ 253,320 | ||||||||||
Share-based compensation expenses | 0 | 0 | 1,213 | 0 | 0 | 0 | 0 | 1,213 | 0 | 1,213 | ||||||||||
Income (loss) from continuing operations, net of tax | 0 | 0 | 0 | 1,813 | 0 | 0 | 0 | 1,813 | 0 | 1,813 | ||||||||||
less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | (946) | 0 | 0 | 0 | (946) | 4,311 | 3,365 | ||||||||||
Other comprehensive income (loss) from continuing operations | 0 | 0 | 0 | 0 | (7,089) | 0 | 184 | (6,905) | 0 | (6,905) | ||||||||||
Other Comprehensive Income (Loss) from Discontinued Operations, Net of Tax | $ 0 | $ 0 | 0 | 0 | (1) | 0 | (330) | (331) | (397) | (728) | ||||||||||
Repurchase of common stock (in shares) | 0 | 370,133 | ||||||||||||||||||
Repurchase of common stock | $ 0 | $ (1,636) | 0 | 0 | 0 | 0 | 0 | (1,636) | 0 | (1,636) | ||||||||||
Issuance of common stock (in shares) | 172,126 | 0 | ||||||||||||||||||
Issuance of common stock | $ 2 | $ 0 | 346 | 0 | 0 | 0 | 0 | 348 | 0 | 348 | ||||||||||
Balance (in shares) at Sep. 30, 2022 | 41,065,522 | 782,902 | ||||||||||||||||||
Balance at Sep. 30, 2022 | $ 411 | $ (3,548) | 293,096 | (83,176) | (13,906) | 0 | (4,017) | 188,860 | 61,930 | 250,790 | ||||||||||
Balance (in shares) at Jun. 30, 2022 | 40,996,566 | 692,176 | ||||||||||||||||||
Balance at Jun. 30, 2022 | $ 410 | $ (3,246) | 292,615 | (83,419) | (10,205) | 0 | (4,183) | 191,972 | 59,932 | 251,904 | ||||||||||
Share-based compensation expenses | 0 | 0 | 380 | 0 | 0 | 0 | 0 | 380 | 0 | 380 | ||||||||||
Income (loss) from continuing operations, net of tax | 0 | 0 | 0 | 133 | 0 | 0 | 0 | 133 | 0 | 133 | ||||||||||
less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 110 | 0 | 0 | 0 | 110 | 2,021 | 2,131 | ||||||||||
Other comprehensive income (loss) from continuing operations | 0 | 0 | 0 | 0 | (3,701) | 0 | 184 | (3,517) | 0 | (3,517) | ||||||||||
Other Comprehensive Income (Loss) from Discontinued Operations, Net of Tax | $ 0 | $ 0 | 0 | 0 | 0 | 0 | (18) | (18) | (23) | (41) | ||||||||||
Repurchase of common stock (in shares) | 0 | 90,726 | ||||||||||||||||||
Repurchase of common stock | $ 0 | $ (302) | 0 | 0 | 0 | 0 | 0 | (302) | 0 | (302) | ||||||||||
Issuance of common stock (in shares) | 68,956 | 0 | ||||||||||||||||||
Issuance of common stock | $ 1 | $ 0 | 101 | 0 | 0 | 0 | 0 | 102 | 0 | 102 | ||||||||||
Balance (in shares) at Sep. 30, 2022 | 41,065,522 | 782,902 | ||||||||||||||||||
Balance at Sep. 30, 2022 | $ 411 | $ (3,548) | 293,096 | (83,176) | (13,906) | 0 | (4,017) | 188,860 | 61,930 | 250,790 | ||||||||||
Balance (in shares) at Dec. 31, 2022 | 41,098,456 | 839,214 | ||||||||||||||||||
Balance at Dec. 31, 2022 | $ 0 | $ 0 | $ 0 | $ (101) | $ 0 | $ 0 | $ 0 | $ (101) | $ 0 | $ (101) | $ 411 | $ (3,749) | 293,472 | (86,302) | (11,781) | 0 | (4,277) | 187,774 | 63,792 | 251,566 |
Issuance of common stock (in shares) | 111,041 | 0 | ||||||||||||||||||
Issuance of common stock | $ 1 | $ 0 | 115 | 0 | 0 | 0 | 0 | 116 | 0 | 116 | ||||||||||
Share-based compensation expenses | 0 | 0 | 1,138 | 0 | 0 | 0 | 0 | 1,138 | 0 | 1,138 | ||||||||||
Income (loss) from continuing operations, net of tax | 0 | 0 | 0 | (25,186) | 0 | 0 | 0 | (25,186) | 0 | (25,186) | ||||||||||
less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 6,821 | 0 | 0 | 0 | 6,821 | 2,589 | 9,410 | ||||||||||
Other comprehensive income (loss) from continuing operations | 0 | 0 | 0 | 0 | (3,578) | 0 | 124 | (3,454) | 0 | (3,454) | ||||||||||
Other Comprehensive Income (Loss) from Discontinued Operations, Net of Tax | $ 0 | $ 0 | 0 | 0 | (50) | 0 | 3,573 | 3,523 | 614 | $ 4,137 | ||||||||||
Repurchase of common stock (in shares) | 0 | 65,990 | 65,990 | |||||||||||||||||
Repurchase of common stock | $ 0 | $ (195) | 0 | 0 | 0 | 0 | 0 | (195) | 0 | $ (195) | ||||||||||
c) Non-controlling interest | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | (66,995) | (66,995) | ||||||||||
Balance (in shares) at Sep. 30, 2023 | 41,209,497 | 905,204 | ||||||||||||||||||
Balance at Sep. 30, 2023 | $ 412 | $ (3,944) | 294,725 | (104,768) | (15,409) | 0 | (580) | 170,436 | 0 | 170,436 | ||||||||||
Balance (in shares) at Jun. 30, 2023 | 41,168,618 | 891,193 | ||||||||||||||||||
Balance at Jun. 30, 2023 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 412 | $ (3,904) | 294,266 | (80,538) | (14,356) | 0 | (580) | 195,300 | 0 | 195,300 |
Issuance of common stock (in shares) | 40,879 | 0 | ||||||||||||||||||
Issuance of common stock | $ 0 | $ 0 | 90 | 0 | 0 | 0 | 0 | 90 | 0 | 90 | ||||||||||
Share-based compensation expenses | 0 | 0 | 369 | 0 | 0 | 0 | 0 | 369 | 0 | 369 | ||||||||||
Income (loss) from continuing operations, net of tax | 0 | 0 | 0 | (24,597) | 0 | 0 | 0 | (24,597) | 0 | (24,597) | ||||||||||
less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 367 | 0 | 0 | 0 | 367 | 0 | 367 | ||||||||||
Other comprehensive income (loss) from continuing operations | 0 | 0 | 0 | 0 | (1,053) | 0 | 0 | (1,053) | 0 | (1,053) | ||||||||||
Other Comprehensive Income (Loss) from Discontinued Operations, Net of Tax | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Repurchase of common stock (in shares) | 0 | 14,011 | ||||||||||||||||||
Repurchase of common stock | $ 0 | $ (40) | 0 | 0 | 0 | 0 | 0 | (40) | 0 | (40) | ||||||||||
c) Non-controlling interest | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Balance (in shares) at Sep. 30, 2023 | 41,209,497 | 905,204 | ||||||||||||||||||
Balance at Sep. 30, 2023 | $ 412 | $ (3,944) | $ 294,725 | $ (104,768) | $ (15,409) | $ 0 | $ (580) | $ 170,436 | $ 0 | $ 170,436 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) - shares | Sep. 30, 2023 | Sep. 30, 2022 |
Common Stock, net off treasury stock (in shares) | 40,304,293 | 40,282,620 |
Note 1 - Overview and Basis of
Note 1 - Overview and Basis of Preparation | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Unless otherwise noted in this report, any description of "us," "we," or "our," refers to Startek, Inc. and its subsidiaries (the "Company"). Financial information in this report is presented in U.S. dollars. Business Startek is a leading global provider of technology-enabled business process management solutions. The Company provides omni-channel customer experience, digital transformation, and technology services to some of the finest brands globally. Startek is committed to impacting clients’ business outcomes by focusing on enhancing customer experience and digital enablement across all touchpoints and channels. Startek has more than 35,000 . The Company services over 145 The Company offers a repository of digital and omnichannel solutions based on decades of experience in driving growth by putting the customer at the center of our business. Because no one Canada During the previous year, the Company had classified Middle East and Argentina operations as 'Held for Sale and Discontinued Operations' and accordingly discussion in the business section pertains to continuing operations of the Company. Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and instructions to Form 10 10 X. not These consolidated financial statements reflect all adjustments (consisting only of normal recurring entries, except as noted) which, in the opinion of management, are necessary for fair presentation. The results of operations for interim periods are not The consolidated financial statements reflects the financial results of all subsidiaries that are more than 50% not 100%, As of December 31, 2022 not 10 10 December 31, 2022 The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles, impairment of goodwill, valuation allowances for deferred tax assets, leases, provision for doubtful debts and restructuring costs. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable and management has made assumption about the possible effect of the global macroeconomic conditions, including heightened inflation, changes to fiscal and monetary policy, higher interest rates, currency fluctuations, labor shortages & challenges in supply chain, have the potential to negatively impact the Company. There current macroeconomic conditions may Revenue The Company utilizes a five 606, 5 Allowance for Expected Credit Losses The Company maintains an allowance for current expected credit losses inherent in its accounts receivable portfolio. In establishing the required allowance, the Company considers past payment and recovery trends, and other related information for its customers to estimate the probability of default in the future. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Refer to Note 5 Leases We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current maturity of operating lease liabilities, and operating lease liabilities in our consolidated balance sheet. Finance leases are included in property plant and equipment, long-term debt, accrued expenses and other current liabilities in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the balance lease term. As most of our leases do not may ASC 842 360 We have lease agreements with lease and non-lease components, which are generally accounted for separately. Property, Plant and Equipment Property, plant, and equipment, are stated at depreciated cost. Additions and improvement activities are capitalized. Maintenance and repairs are expensed as incurred. Assets held under finance leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: Estimated Useful Life Buildings and building improvements 3-20 years Telephone and computer equipment 3-10 years Furniture, fixtures, and miscellaneous equipment 3-15 years Software 1-6 years We depreciate leasehold improvements associated with operating leases over the shorter of 15 Impairment of Long-Lived Assets The Company evaluates potential impairments of long-lived assets when it determines that the carrying value of a long-lived asset may not one not, may may not Goodwill and Intangible Assets Goodwill Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not December 31, not not not 4, 7, Intangible Assets We amortize all acquisition-related intangible assets that are subject to amortization using the straight-line method over the estimated useful life based on economic benefit as follows: Estimated Useful Life Customer Relationship 8 - 13.5 years Brand 13.5 years Trademarks 15 years Developed Technology 5 years We perform a review of intangible assets to determine if facts and circumstances indicate that the useful life is shorter than we had originally estimated or that the carrying amount of assets may not 4, Fair Value Measurements The carrying value of our cash and cash equivalents, accounts receivable, notes receivable, accounts payable, and restructuring liabilities approximate fair value because of their short-term nature. Our debt has a variable interest rate, so the carrying amount approximates fair value because interest rates on these instruments approximate the interest rate on debt with similar terms available to us. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below: Level 1 Level 2 not Level 3 Refer to Note 9, Cash and cash equivalents and restricted cash We consider cash equivalents to be short-term, highly liquid investments readily convertible to known amounts of cash and so near their maturity at purchase that they present insignificant risk of changes in value because of changes in interest rates. Restricted cash consists of margin money deposit that is contractually restricted as to usage or withdrawal. Borrowing costs Borrowing costs include interest as well as ancillary costs such as amortization of financing fees or charges and premium or discount on the borrowings. Borrowing costs (loan processing fee) are capitalized and amortized in the consolidated statement of income using effective interest method. Refer to Note 10, Interest and dividend income Interest revenue is recognized on an accrual basis taking into account the interest rates applicable to the financial assets. Dividend income is recognized when the Company’s right to receive such income is established by the reporting date. Government grants and subsidies Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received, and the Company will comply with all attached conditions. Government grants received on capital expenditure are generally deducted in arriving at the carrying amount of the asset purchased. Grants for revenue expenditure are netted against the cost incurred by the Company. Where retention of a government grant is dependent on the Company satisfying certain criteria, it is initially recognized as deferred income. When the criteria for retention have been satisfied, the deferred income balance is netted against the asset purchased. Government grant in the nature of export incentive is recognized as revenue. Restructuring Charges On an ongoing basis, management assesses the profitability and utilization of our facilities and in some cases, management has chosen to close facilities. Severance payments that occur from reductions in the workforce are in accordance with our post-employment policy and/or statutory requirements that are communicated to all employees; therefore, severance liabilities are recognized when termination of employment is communicated to the employee(s). Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, instead of upon commitment to an exit plan. A significant assumption used in determining the amount of the estimated liability for closing a facility is the estimated liability for future lease payments on vacant facilities. We determine our estimate of sublease payments based on our ability to successfully negotiate early termination agreements with landlords, a third may 7 Derivative Instruments and Hedging Activities In the ordinary course of business, the Company uses certain derivative financial instruments to reduce business risks which arise from its exposure to foreign exchange and interest rate fluctuations associated with borrowings (cash flow hedges). When the Company opts to undertake hedge accounting, the Company documents, at the inception of the hedging transaction, the economic relationship between hedging instruments and hedged items including whether the hedging instrument is expected to offset changes in cash flows or fair values of hedged items. The Company documents its risk management objective and strategy for undertaking various hedge transactions at the inception of each hedge relationship. Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated. Cash flow hedges that qualify for hedge accounting The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges, is recognised through OCI and as cash flow hedging reserve within equity, limited to the cumulative change in fair value of the hedged item on a present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in the Statement of Income (loss). Amounts accumulated in equity are reclassified to the Statement of Income (loss). Derivatives that are not When derivative contracts to hedge risks are not Presentation The entire fair value of a derivative contract is classified as a noncurrent asset or liability when the remaining maturity of the contract exceeds 12 not 12 8 Foreign Currency Matters The Company has operations in Argentina (classified as discontinued operations) and its functional currency has historically been the Argentine Peso. The Company monitors inflation rates in countries where it operates as required by U.S. GAAP. Under ASC 830 10 45 12, three 100%. July 1, 2018. 830, not Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect net effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. We are subject to foreign income taxes on our foreign operations. We are required to estimate our income taxes in each jurisdiction in which we operate. This process involves estimating our actual current tax exposure, together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes. The tax effects of these temporary differences are recorded as deferred tax assets or deferred tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the consolidated statement of income (loss) in the period during which such rates are enacted. We record a valuation allowance when it is more likely than not not We consider all available evidence to determine whether it is "more likely than not" We do not not not Employee benefits Contributions to defined contribution plans are charged to consolidated statements of operations in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on quarterly basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. Stock-Based Compensation We recognize expenses related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expenses. We use the Black-Scholes method for valuing stock-based awards. Refer to Note 12, Net Income (Loss) Per Share Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. When a net loss is reported, potentially issuable common shares are generally excluded from the computation of diluted earnings per share as their effect would be anti-dilutive. Refer to Note 6, Assets Held for Sale and Discontinued Operations The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the business is sold and classified as held for sale, in accordance with the criteria of Accounting Standard Codification ("ASC") Topic 205 20 360 10 not 205 20 45 7 Net assets to be sold or discontinued less debt that is required to be paid as a result of the disposal. The sum of total net assets of the entity plus debt other than: 1 2 3 If a business is classified as held for sale after the balance sheet but before the financial statements are issued or are available to be issued, the business continues to be classified as held and used in those financial statements when issued or when available to be issued. Refer to “Note 3A 3B Changes in Accounting Policies Except as described below, the Company has applied accounting policies consistently to all periods presented in these consolidated financial statements. The Company adopted ASC Topic 326, “Topic326” January 1, 2023. 326 326 326 January 1, 2023.Therefore, not Recent Accounting Pronouncements In March 2020, No. 2020 04, 848 December 31, 2022. December 2022, No. 2022 06, 848 848, 848 December 31, 2024. 2020 04. |
Note 3A - Discontinued Operatio
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 3A. On November 10, 2022, 205 20. not September 30, 2022 Subsequently, on January 11, 2023, On April 3, 2023, Assets and Liabilities classified as Held for sale as on December 31, 2022 3A 3B 10K December 31, 2022. The following table summarizes the income statement information of discontinued operations for the period ended September 30, 2023 September 30, 2022: Statement of income (loss) Nine Months Ended September 30, 2023# 2022 Revenue 64,364 181,680 Cost of services (54,889 ) (162,234 ) Gross profit 9,475 19,446 Selling, general and administrative expenses (3,117 ) (8,219 ) Impairment losses and restructuring/exit cost (4 ) (30 ) Operating income 6,354 11,197 Interest and other cost (represents allocated interest)* (1,174 ) (2,198 ) Foreign exchange gains (losses), net (10 ) (20 ) Income before gain on disposal and tax expenses 5,170 8,979 Tax expenses (A) (1,185 ) (2,500 ) Net income 3,985 6,479 *Includes allocated interest. #Includes results of operations of CCC till March 31, 2023. The following table presents the gain associated with the sale, presented in the statement of Income as a part of discontinued operations; September 30, 2023 Gross purchase price, as adjusted per the terms of the Purchase Agreement 69,800 Less: Carrying value of net assets sold (55,122 ) Income/(Loss) on reclassification of items of AOCI to statement of income (loss) on disposal of component: Less: Unrecognised pension costs (3,062 ) Add: Foreign currency translation 50 Pre-tax gain on disposal 11,666 Tax expenses on gain on disposal net off deferred tax liability reversal of $ 3,056 (4,189 ) Total tax expenses of CCC (A+B) (5,374 ) The Carrying value of net assets sold are as follows; a) Assets Cash and cash equivalents 28,284 Restricted cash 5,735 Trade accounts receivables, net 33,853 Unbilled revenue 46,434 Prepaid and other assets 8,377 Property, plant and equipment, net 4,449 Operating lease right-of-use assets 11,289 Goodwill 54,840 Deferred tax assets, net 5,028 b) Liabilities Trade accounts payables (3,698 ) Accrued expenses (16,015 ) Other current and non current liabilities (45,965 ) Operating lease liabilities (10,494 ) c) Non-controlling interest (66,995 ) Carrying value of net assets sold (a+b+c) 55,122 Net cash flows attributable to the discontinued operations: September 30, 2023 September 30, 2022 Net cash generated from operating activities (5,870 ) 13,135 Net cash used in investing activities (3,513 ) (2,164 ) Net cash (used in) / provided by financing activities - - Net Cash Inflow/(Outflow) (9,383 ) 10,971 3B. On December 14, 2022, After consideration of the relevant facts, the Company concluded the assets and liabilities of Argentina met the criteria for classification as held for sale. The Company concluded the actual and proposed disposal activities represented a strategic shift that will have a major effect on the Company’s operations and financial results and qualified for presentation as discontinued operations in accordance with FASB Accounting Standards Codification (ASC) 205 20. not September 30, 2022 The following table summarizes the income statement information of discontinued operations for the period ended September 30, 2023 September 30, 2022: Statement of income (loss) Nine Months Ended September 30, 2023 2022 Revenue 19,027 24,295 Cost of services (17,756 ) (23,840 ) Gross profit (loss) 1,271 455 Selling, general and administrative expenses (1,462 ) (1,515 ) Impairment losses and restructuring/exit cost (3,570 ) (3,010 ) Operating income (loss) (3,761 ) (4,070 ) Interest expense and other income (expense), net 2,415 1,401 Foreign exchange gains (losses), net (706 ) (445 ) Income (loss) (2,052 ) (3,114 ) Tax expense - - Net (loss) (2,052 ) (3,114 ) The following table summarizes the carrying values of the assets and liabilities classified as held for sale in our consolidated balance sheet as: September 30, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents 1,168 367 Trade accounts receivables, net 1,984 2,483 Unbilled revenue 1,172 1,320 Prepaid and other current assets 1,906 1,988 Total current assets 6,230 6,158 Non-current assets Property, plant and equipment, net 957 854 Operating lease right-of-use assets 584 620 Prepaid expenses and other non-current assets 12 15 Total non-current assets 1,553 1,489 Total assets classified as held for sale in the consolidated balance sheet 7,783 7,647 Liabilities and Stockholders’ Equity Current liabilities Trade accounts payables 444 307 Accrued expenses 2,043 1,951 Short term debt - 325 Current maturity of operating lease liabilities 457 398 Other current liabilities 2,492 2,674 Total current liabilities 5,436 5,655 Non-current liabilities Operating lease liabilities 133 226 Other non-current liabilities 796 1,346 Total non-current liabilities 929 1,572 Total liabilities classified as discontinued operations in the consolidated balance sheet 6,365 7,227 September 30, 2023 September 30, 2022 Net cash used in operating activities (1,821 ) (1,671 ) Net cash used in investing activities (103 ) (130 ) Net cash generated from financing activities (325 ) 534 Net Cash outflow (2,249 ) (1,267 ) |
Note 4 - Goodwill and Intangibl
Note 4 - Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 4. Goodwill The carrying value of goodwill is allocated to reporting units as follows: Reporting Units: September 30, 2023 December 31, 2022 Americas 58,419 60,128 India 6,377 12,554 Malaysia 36,061 43,678 Australia - 4,145 Total 100,857 120,505 We perform a goodwill impairment analysis at least annually (in the fourth The Company, over the past few quarters faced business challenges and experienced macroeconomic headwinds affecting its industry generally, including challenges associated with disruptive technologies, reduction in call volumes by certain of the Company’s key clients (as a result of reduced economic activity in their underlying business operations), and a lengthening of the Company’s sales conversion pipeline. These factors led to the Company having to reassess its forecasts. In connection with the proposed merger transaction, the Company projected revenue, operating margins, and cash flows for a period of five The key assumptions used in performing the impairment test, by each Reporting Unit, were as follows: Reporting Units - As of September 30, 2023 Americas India Malaysia Australia Discount rate 10.9 % 17.1 % 12.6 % 10.8 % Perpetual growth rate 1.0 % 2.0 % 2.0 % 1.0 % Reporting Units - As of December 31, 2022 Americas India Malaysia Australia Discount rate 10.3 % 17.8 % 12.7 % 10.4 % Perpetual growth rate 1.0 % 3.0 % 2.0 % 1.0 % The results of these interim impairment tests indicated that the estimated fair value of the Americas, India, Malaysia, and Australia reporting units were each less than its carrying value. Consequently, it resulted in impairment charges of $1,709, $6,177, $7,617 and $4,145 in the Americas, India, Malaysia, and Australia reporting units respectively due to decline in forecasted business outlook. As of December 31, 2022, The following table presents the changes in goodwill during the nine September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Opening balance 120,505 128,557 Impairment (19,648 ) (8,052 ) Closing balance 100,857 120,505 Intangible Assets The following table presents our intangible assets: As of September 30, 2023 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 31,673 34,547 6.5 Brand 49,500 21,481 28,019 7.1 Trademarks 13,210 4,576 8,634 7.5 Other intangibles 2,130 1,307 823 4.9 131,060 59,037 72,023 As of December 31, 2022 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 27,484 38,736 6.5 Brand 49,500 18,740 30,760 7.1 Trademarks 13,210 3,917 9,293 7.5 Other intangibles 2,130 1,174 956 4.9 131,060 51,315 79,745 As of September 30, 2023 no Expected future amortization of intangible assets as of September 30, 2023 Year ending December 31, Amount Remainder of 2023 2,631 2024 10,252 2025 10,252 2026 9,490 2027 8,549 Thereafter 30,849 |
Note 5 - Revenue
Note 5 - Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 5. The Company follows a five 606, Contracts with Customers All of the Company's revenues are derived generally from written contracts with our customers. Our contracts document our customers' agreement to utilize our services and the relevant terms and conditions under which our services will be provided. Our contracts generally do not may ninety Our contracts give us the right to bill for services rendered during the period, which for most of our customers is a calendar month, with a few customers specifying a fiscal month. Our payment terms vary by client and generally range from due upon receipt to 60 90 Performance Obligations We have identified one Our stand-ready obligation involves outsourcing of the entire customer care life cycle, including: • The identification, operation, management, and maintenance of facilities, IT equipment, and IT and telecommunications infrastructure • Management of the entire human resources function, including recruiting, hiring, training, supervising, evaluating, coaching, retaining, compensating, providing employee benefits programs, and disciplinary activities These activities are all considered an integral part of the production activities required in the service of standing ready to accept calls as and when they are directed to us by our clients. Revenue Recognition Methods Because our customers receive and consume the benefit of our services as they are performed and we have the contractual right to invoice for services performed to date, we have concluded that our performance obligation is satisfied over time. Accordingly, we recognize revenue for our services in the month they are performed. We are entitled to invoice for our services on a monthly basis. We invoice according to the hourly and/or per-transaction rates stated in each contract for the various activities we perform. Some contracts include opportunities to earn bonuses or include parameters under which we will incur penalties related to performance in any given month. Bonus or penalty amounts are based on the current month’s performance. Formulas are included in the contracts for the calculation of any bonus or penalty. There is no not Practical expedients and exemptions Because the Company’s contracts are essentially month-to-month, we have elected the following practical expedients: • ASC 606 10 50 14 one • ASC 340 40 25 4 one • ASC 606 10 32 2A • ASC 606 10 55 18 may Disaggregated Revenue Revenues by our clients' industry verticals for the three nine September 30, 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, Vertical 2023 2022 2023 2022 Telecom 24,134 25,309 71,506 74,298 E-commerce & Consumer 15,524 20,276 48,061 59,015 Financial & Business Services 11,040 13,372 36,347 39,593 Media & Cable 15,439 10,748 44,942 40,503 Travel & Hospitality 13,023 13,103 36,569 37,659 Healthcare & Education 6,790 6,977 18,277 22,108 Technology, IT & Related Services 3,337 2,615 9,447 9,539 Other verticals 4,342 2,478 11,766 9,402 Revenue 93,629 94,878 276,915 292,117 Allowance for expected credit losses On January 1, 2023, 326, As a result of adoption of ASC 326, January 1, 2023. Trade accounts receivables and Unbilled revenue As of September 30, 2023 As of December 31, 2022 Trade accounts receivables and Unbilled Revenue 70,948 74,377 Less: Allowance for expected credit loss (2,695 ) (3,032 ) Trade accounts receivables and Unbilled Revenue 68,253 71,345 The movement in allowance for current expected credit loss on Trade accounts receivables and Unbilled revenue for the period ended September 30, 2023 As of September 30, 2023 Balance at the beginning of the period 3,032 Transition period adjustment pursuant to ASC 326 135 Additions/(Reversal) during the period (472 ) Balance at the end of the period 2,695 |
Note 6 - Net Income (Loss) Per
Note 6 - Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 6. Basic earnings per common share are computed based on our weighted average number of common shares outstanding. Diluted earnings per share are computed based on our weighted average number of common shares outstanding plus the effect of dilutive stock options, non-vested restricted stock, and deferred stock units, using the treasury stock method. When a net loss is reported, potentially issuable common shares are excluded from the computation of diluted earnings per share as their effect would be anti-dilutive. For three nine September 30, 2023 2022, Three months ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Shares used in basic earnings per share calculation 40,298 40,326 40,300 40,316 Effect of dilutive securities: Stock options - 7 - 38 Total effects of dilutive securities - 7 - 38 Shares used in dilutive earnings per share calculation 40,298 40,333 40,300 40,354 Three months ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Anti-dilutive securities Stock options 2,026 2 2,026 - |
Note 7 - Impairment Losses & Re
Note 7 - Impairment Losses & Restructuring Exit Cost | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | 7. Impairment Loss As of September 30, 2023, December 31, 2022, As of September 30, 2023 December 31, 2022, not not Restructuring / Exit Cost The table below summarizes the balance of accrued restructuring cost, voluntary/involuntary termination costs, and other exit-related costs, which are included in other accrued liabilities in our consolidated balance sheet. The changes during the nine September 30, 2023 December 31, 2022. Employee related Facilities related Total Balance on December 31, 2022 39 - 39 Accruals/(reversal) 730 - 730 Payments (605 ) - (605 ) Balance as of September 30, 2023 164 - 164 Employee related Facilities related Total Balance on December 31, 2021 310 155 465 Accruals/(reversal) 551 111 662 Payments (822 ) (266 ) (1,088 ) Balance on December 31, 2022 39 - 39 Employee related The Company has terminated services of some of its employees working in Peru, U.S., Canada, Philippines, India and Australia as a part of restructuring activities and recognized a severance cost regarding those terminations. |
Note 8 - Derivative Instruments
Note 8 - Derivative Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 8. Non-designated hedges In October 2022, May 2024. not 815, Unrealized gains and losses and changes in fair value of these derivatives are recognized as incurred in 'Interest expense and other income (expense), net' in Consolidated Statement of Income (loss). The following table presents these amounts for the three nine September 30, 2023 September 30, 2022 Derivatives not designated under ASC 815 Three months ended September 30, 2023 Three months ended September 30, 2022 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Mark to Market gain on Interest rate cap (42 ) - 314 - |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 9. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below: Level 1 Level 2 not Level 3 Derivative Instruments The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices, and yield curves. The inputs to the valuation pricing models are observable in the market, and as such the derivatives are classified as Level 2 The following tables set forth our assets and/or liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. These balances are included in 'Prepaid and Other current assets' and/or 'Other current liabilities', respectively, on our balance sheet. As of September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Interest rate cap - 201 - 201 Total fair value of assets measured on a recurring basis - 201 - 201 Liabilities: Interest rate cap - - - - Total fair value of liabilities measured on a recurring basis - - - - As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Interest rate cap - - - - Total fair value of assets measured on a recurring basis - - - - Liabilities: Interest rate cap - (113 ) - (113 ) Total fair value of liabilities measured on a recurring basis - (113 ) - (113 ) |
Note 10 - Debt
Note 10 - Debt | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10. The below table presents details of the Company's debt: As of September 30, 2023 As of December 31, 2022 Short term debt Working capital facilities 10,643 14,267 Current portion of long term debt Current maturity of term loan 12,269 119,194 Current maturity of equipment loan - 1,272 Total 22,912 134,733 Long term debt Term loan, net of debt issuance costs 54,755 41,175 Total 54,755 41,175 Term Loan and working capital facilities The Company has a number of working capital facilities in various countries in which it operates. These facilities provide for a combined borrowing capacity of approximately $35 million for a number of working capital products. These facilities bear interest at benchmark rate plus margins between 0.9% and 4.5% and are due on demand. These facilities are collateralized by various company assets and have a total outstanding balance of $10.6 million as of September 30, 2023 . Under the Senior debt arrangement, the Company has secured term loan of $165 million. Under the arrangement, the term loan bears a tiered interest rate which ranges between LIBOR plus 375 to 450 basis points, subject to certain financial ratios. The Company is required to meet these financial ratios on a quarterly basis. As of September 30, 2023 , the Company was in compliance with all financial covenants. The Adjusted Leverage (total net debt / adjusted EBITDA) in respect of the most recently completed relevant period was less than 2.25, hence the applicable margin was set at 375 basis points. The Company has completed the interest rate transition for its currently outstanding Senior debt arrangement as required to be done with effect from July 1, 2023. 9 November 2022, August 31, 2023, September 01, 2023. not On April 3, 2023, On July 12, 2023, April 2023 July 2023. The Company had filed a consent request with the lenders under its facilities agreement relating to the application of $55 million of the proceeds arising out of the Company's disposal of its ownership interest in CCC, which was accepted by the lenders on April 19, 2023. four 4 May 22, 2023, August 22, 2023, November 22, 2023 February 22, 2024 ( eight 8 In April 2023, Accordingly, senior term loan principal repayment schedule has been revised as below: Years Amount Remainder of 2023 - 2024 18,403 2025 42,940 2026 6,067 Total 67,410 Debt issuance cost represents the amount paid to the Company’s counsel and other third Following table presents the changes in debt issuance cost during the nine September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Opening balance 507 2,332 Less: Amortization of debt issuance cost* (120 ) (1,825 ) Closing balance 387 507 *includes one December 31, 2022 Equipment Loan On November 2, 2020, first September 30, 2023 Non-recourse factoring We have entered into factoring agreements with financial institutions to sell certain of our accounts receivable under non-recourse agreements. Under the arrangement, the Company sells the trade receivables on a non-recourse basis and accounts for the transactions as sales of receivables. The applicable receivables are removed from the Company's consolidated balance sheet when the Company receives the cash proceeds. We do not $19.1 m September 30, 2023 December 31, 2022 |
Note 11 - Other Current Liabili
Note 11 - Other Current Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | 11. September 30, 2023 December 31, 2022 Provision for leave encashment 5,066 6,258 Payables to government authorities 4,737 5,923 Current tax liabilities, net 8,194 2,651 Other liabilities 3,070 2,783 21,067 17,615 |
Note 12 - Share-based Compensat
Note 12 - Share-based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 12. Share-based compensation Our share-based compen sation arrangements include grants of stock options, restricted stock units and deferred stock units under the Startek, Inc. 2008 nine months ended September 30, 2023 , was $1,138 as compared to $1,213 for the nine September 30, 2022 three September 30, 2023 three September 30, 2022 September 30, 2023 $ 1,369 1.94 |
Note 13 - Accumulated Other Com
Note 13 - Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 13. Accumulated other comprehensive loss consists of the following items: Foreign Currency Translation Adjustments Defined Benefit Plan Equity attributable to Startek shareholders Non-controlling interests Total Balance on December 31, 2022 (11,781 ) (4,277 ) (16,058 ) (4,601 ) (20,659 ) Continuing Operations Foreign currency translation (3,578 ) - (3,578 ) - (3,578 ) Pension amortization* - 124 124 - 124 Discontinued Operations Foreign currency translation (50 ) - (50 ) - (50 ) Pension amortization - 3,573 3,573 614 4,187 Redemption of NCI on disposal of CCC - - - 3,987 3,987 Balance at September 30, 2023 (15,409 ) (580 ) (15,989 ) - (15,989 ) *Pension amortisation is net of tax impact of $97. |
Note 14 - Segment and Geographi
Note 14 - Segment and Geographical Information | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 14. The Company provides business process outsourcing services (“BPO”) to clients in various industries and geographical locations. Our approach is focused on providing our clients with the best possible combination of services and delivery locations to meet our clients' needs in the best and most efficient manner. Our Global Chief Executive Officer (CEO) who has been identified as the Chief Operating Decision Maker ("CODM"), reviews financial information mainly on a geographical basis. Our operating business model is focused on the geographies in which we operate. Our CODM reviews the performance and makes resource allocation geography-wise, hence the geographical level represents the operating segments of the Company. In the previous year with operations in Middle east and Argentina being considered as held for sale and discontinued operations, we identified following geographies as reportable segments; Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenue Americas 47,860 39,444 137,894 126,811 India & Sri Lanka 22,365 27,888 67,770 82,112 Malaysia 11,262 11,357 32,541 34,068 Australia 7,680 9,845 24,939 28,952 South Africa 4,460 5,392 13,734 17,574 Rest of World 2 952 37 2,600 Total 93,629 94,878 276,915 292,117 Three months ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating income (loss) Americas 129 (230 ) 4,927 (2,865 ) India & Sri Lanka (2,511 ) 1,281 (4,212 ) 5,925 Malaysia 2,903 3,173 7,956 7,778 Australia (126 ) 1,214 1,190 3,290 South Africa 276 870 1,388 2,721 Rest of World (867 ) (754 ) (2,640 ) (2,026 ) Segment operating income (196 ) 5,554 8,609 14,823 Startek consolidation adjustments Merger transaction cost (304 ) (1,411 ) (304 ) (2,603 ) Intangible amortization (2,580 ) (2,603 ) (7,722 ) (7,745 ) Goodwill impairment (19,648 ) - (19,648 ) - Total operating income (22,728 ) 1,540 (19,065 ) 4,475 A single client in the Americas segment accounted for 10% of the consolidated total net revenue during the three nine months ended September 30, 2023 and 2022 Property, plant and equipment, net by geography based on the location of the assets are presented below: As of As of September 30, 2023 December 31, 2022 Property, plant and equipment, net Americas 8,153 9,718 India & Sri Lanka 12,891 8,340 Malaysia 2,309 2,390 Australia 932 829 South Africa 1,559 1,508 Rest of World 88 160 Total 25,932 22,945 Investment in Equity Accounted Investees On February 25, 2021, 323 30 S99 1. December 27, 2022, |
Note 15 - Leases
Note 15 - Leases | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 15. We have operating and finance leases for service centers, corporate offices, and certain equipment. Our leases have remaining lease terms of 1 year to 9 years, some of which include options to extend the leases for up to 3-5 years, and some of which include options to terminate the leases within 1 year. The components of lease expense were as follows: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Operating lease cost 3,759 4,760 12,540 14,988 Finance lease cost Amortization of right-of-use assets - 117 38 373 Interest on lease liabilities - 3 - 67 Total finance lease cost - 120 38 440 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 14,447 16,356 Operating cash flow from finance leases - 67 Financing cash flows from finance leases - 380 Right-of-use assets obtained in exchange for lease obligations Operating leases 10,802 1,493 Finance leases - - Supplemental balance sheet information related to leases was as follows: As of September 30, 2023 As of December 31, 2022 Operating leases Operating lease right-of-use assets 27,478 36,450 Operating lease liabilities - Current 15,120 14,492 Operating lease liabilities - Non-current 20,111 26,651 Total operating lease liabilities 35,231 41,143 Finance Leases Property and equipment, at cost 1,509 1,509 Accumulated depreciation (1,509 ) (1,471 ) Property and equipment, at net - 38 Weighted average remaining lease term As of September 30, 2023 As of December 31, 2022 Operating leases (in years) 2.83 years 2.60 years Finance leases (in years) 0.00 years 0.00 years Weighted average discount rate Operating leases 7 % 6 % Finance leases 0 % 0 % The following table reconciles the undiscounted cash flows for the Company’s finance and operating leases as of September 30, 2023 Operating Leases Year ending December 31, Remainder of 2023 4,611 2024 16,374 2025 9,709 2026 4,202 2027 2,068 Thereafter 2,486 Total lease payments 39,450 Less: Imputed interest (4,219 ) Total present value to lease liabilities 35,231 |
Note 16 - Common Stock
Note 16 - Common Stock | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | 16. Share Repurchase Plan On April 24, 2023, not 10b 18. Our stock repurchase programs are intended to programmatically offset the impact of dilution from our equity compensation programs and, subject to market conditions and other factors, to make opportunistic and programmatic repurchases of our common stock to reduce our outstanding share count. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes. Our stock repurchase plan may Stock repurchase activity during the nine September 30, 2023 Period Ended Total number of shares purchased Average price paid per share (1) ($) Total number of shares purchased as part of publicly announced program Maximum dollar value that may yet to be purchased under program ($) April 30, 2023 - - - 20,000,000 May 31, 2023 13,894 3.02 13,894 19,957,988 June 30, 2023 38,085 2.94 38,085 19,845,980 July 30, 2023 14,011 2.87 14,011 19,805,835 August 31, 2023 - - - 19,805,835 September 30, 2023 - - - 19,805,835 Total 65,990 65,990 |
Note 17 - Merger Transaction
Note 17 - Merger Transaction | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 17. TRANSACTION On October 10, 2023, $0.01 third $4.30 The board of directors of the Company (the “Board”) (acting on the unanimous recommendation of a special committee, comprised solely of independent and disinterested directors (the “Special Committee”)) unanimously (i) determined that the Merger Agreement and the transactions contemplated thereby, including the Merger, are advisable, fair to, and in the best interests of the Company and its stockholders (other than Parent, Merger Sub, the Sponsors and their respective affiliates (such stockholders, the “Unaffiliated Stockholders”)), (ii) approved, authorized, adopted and declared advisable the execution, delivery and performance of the Merger Agreement by the Company and the consummation of the transactions contemplated thereby, including the Merger, by the Company, (iii) directed that the Merger Agreement and the transactions contemplated thereby, including the Merger, be submitted to the stockholders of the Company for adoption and approval, and (iv) resolved to recommend that the stockholders of the Company approve and adopt the Merger Agreement and the transactions contemplated thereby, including the Merger. On October 10, 2023, 6:00 November 9, 2023 ( may The transaction is currently expected to close before the end of 2023. no 8 October 10, 2023 14C November 3, 2023. |
Note 18 - Subsequent Events
Note 18 - Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 18. SUBSEQUENT EVENTS None 17 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Revenue from Contract with Customer [Policy Text Block] | Revenue The Company utilizes a five 606, 5 |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Allowance for Expected Credit Losses The Company maintains an allowance for current expected credit losses inherent in its accounts receivable portfolio. In establishing the required allowance, the Company considers past payment and recovery trends, and other related information for its customers to estimate the probability of default in the future. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Refer to Note 5 |
Lessee, Leases [Policy Text Block] | Leases We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current maturity of operating lease liabilities, and operating lease liabilities in our consolidated balance sheet. Finance leases are included in property plant and equipment, long-term debt, accrued expenses and other current liabilities in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the balance lease term. As most of our leases do not may ASC 842 360 We have lease agreements with lease and non-lease components, which are generally accounted for separately. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant, and equipment, are stated at depreciated cost. Additions and improvement activities are capitalized. Maintenance and repairs are expensed as incurred. Assets held under finance leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: Estimated Useful Life Buildings and building improvements 3-20 years Telephone and computer equipment 3-10 years Furniture, fixtures, and miscellaneous equipment 3-15 years Software 1-6 years We depreciate leasehold improvements associated with operating leases over the shorter of 15 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company evaluates potential impairments of long-lived assets when it determines that the carrying value of a long-lived asset may not one not, may may not |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not December 31, not not not 4, 7, |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets We amortize all acquisition-related intangible assets that are subject to amortization using the straight-line method over the estimated useful life based on economic benefit as follows: Estimated Useful Life Customer Relationship 8 - 13.5 years Brand 13.5 years Trademarks 15 years Developed Technology 5 years We perform a review of intangible assets to determine if facts and circumstances indicate that the useful life is shorter than we had originally estimated or that the carrying amount of assets may not 4, |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements The carrying value of our cash and cash equivalents, accounts receivable, notes receivable, accounts payable, and restructuring liabilities approximate fair value because of their short-term nature. Our debt has a variable interest rate, so the carrying amount approximates fair value because interest rates on these instruments approximate the interest rate on debt with similar terms available to us. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below: Level 1 Level 2 not Level 3 Refer to Note 9, |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents and restricted cash We consider cash equivalents to be short-term, highly liquid investments readily convertible to known amounts of cash and so near their maturity at purchase that they present insignificant risk of changes in value because of changes in interest rates. Restricted cash consists of margin money deposit that is contractually restricted as to usage or withdrawal. |
Debt, Policy [Policy Text Block] | Borrowing costs Borrowing costs include interest as well as ancillary costs such as amortization of financing fees or charges and premium or discount on the borrowings. Borrowing costs (loan processing fee) are capitalized and amortized in the consolidated statement of income using effective interest method. Refer to Note 10, |
Interest and Dividend Income, Policy [Policy Text Block] | Interest and dividend income Interest revenue is recognized on an accrual basis taking into account the interest rates applicable to the financial assets. Dividend income is recognized when the Company’s right to receive such income is established by the reporting date. |
Government Grants and Subsidies, Policy [Policy Text Block] | Government grants and subsidies Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received, and the Company will comply with all attached conditions. Government grants received on capital expenditure are generally deducted in arriving at the carrying amount of the asset purchased. Grants for revenue expenditure are netted against the cost incurred by the Company. Where retention of a government grant is dependent on the Company satisfying certain criteria, it is initially recognized as deferred income. When the criteria for retention have been satisfied, the deferred income balance is netted against the asset purchased. Government grant in the nature of export incentive is recognized as revenue. |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Restructuring Charges On an ongoing basis, management assesses the profitability and utilization of our facilities and in some cases, management has chosen to close facilities. Severance payments that occur from reductions in the workforce are in accordance with our post-employment policy and/or statutory requirements that are communicated to all employees; therefore, severance liabilities are recognized when termination of employment is communicated to the employee(s). Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, instead of upon commitment to an exit plan. A significant assumption used in determining the amount of the estimated liability for closing a facility is the estimated liability for future lease payments on vacant facilities. We determine our estimate of sublease payments based on our ability to successfully negotiate early termination agreements with landlords, a third may 7 |
Derivatives, Policy [Policy Text Block] | Derivative Instruments and Hedging Activities In the ordinary course of business, the Company uses certain derivative financial instruments to reduce business risks which arise from its exposure to foreign exchange and interest rate fluctuations associated with borrowings (cash flow hedges). When the Company opts to undertake hedge accounting, the Company documents, at the inception of the hedging transaction, the economic relationship between hedging instruments and hedged items including whether the hedging instrument is expected to offset changes in cash flows or fair values of hedged items. The Company documents its risk management objective and strategy for undertaking various hedge transactions at the inception of each hedge relationship. Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated. Cash flow hedges that qualify for hedge accounting The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges, is recognised through OCI and as cash flow hedging reserve within equity, limited to the cumulative change in fair value of the hedged item on a present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in the Statement of Income (loss). Amounts accumulated in equity are reclassified to the Statement of Income (loss). Derivatives that are not When derivative contracts to hedge risks are not Presentation The entire fair value of a derivative contract is classified as a noncurrent asset or liability when the remaining maturity of the contract exceeds 12 not 12 8 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Matters The Company has operations in Argentina (classified as discontinued operations) and its functional currency has historically been the Argentine Peso. The Company monitors inflation rates in countries where it operates as required by U.S. GAAP. Under ASC 830 10 45 12, three 100%. July 1, 2018. 830, not |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect net effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. We are subject to foreign income taxes on our foreign operations. We are required to estimate our income taxes in each jurisdiction in which we operate. This process involves estimating our actual current tax exposure, together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes. The tax effects of these temporary differences are recorded as deferred tax assets or deferred tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the consolidated statement of income (loss) in the period during which such rates are enacted. We record a valuation allowance when it is more likely than not not We consider all available evidence to determine whether it is "more likely than not" We do not not not |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Employee benefits Contributions to defined contribution plans are charged to consolidated statements of operations in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on quarterly basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation We recognize expenses related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expenses. We use the Black-Scholes method for valuing stock-based awards. Refer to Note 12, |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) Per Share Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. When a net loss is reported, potentially issuable common shares are generally excluded from the computation of diluted earnings per share as their effect would be anti-dilutive. Refer to Note 6, |
Discontinued Operations, Policy [Policy Text Block] | Assets Held for Sale and Discontinued Operations The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the business is sold and classified as held for sale, in accordance with the criteria of Accounting Standard Codification ("ASC") Topic 205 20 360 10 not 205 20 45 7 Net assets to be sold or discontinued less debt that is required to be paid as a result of the disposal. The sum of total net assets of the entity plus debt other than: 1 2 3 If a business is classified as held for sale after the balance sheet but before the financial statements are issued or are available to be issued, the business continues to be classified as held and used in those financial statements when issued or when available to be issued. Refer to “Note 3A 3B |
New Accounting Pronouncements, Policy [Policy Text Block] | Changes in Accounting Policies Except as described below, the Company has applied accounting policies consistently to all periods presented in these consolidated financial statements. The Company adopted ASC Topic 326, “Topic326” January 1, 2023. 326 326 326 January 1, 2023.Therefore, not Recent Accounting Pronouncements In March 2020, No. 2020 04, 848 December 31, 2022. December 2022, No. 2022 06, 848 848, 848 December 31, 2024. 2020 04. |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Property, Plant and Equipment, Useful Lives [Table Text Block] | Estimated Useful Life Buildings and building improvements 3-20 years Telephone and computer equipment 3-10 years Furniture, fixtures, and miscellaneous equipment 3-15 years Software 1-6 years |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Estimated Useful Life Customer Relationship 8 - 13.5 years Brand 13.5 years Trademarks 15 years Developed Technology 5 years |
Note 3A - Discontinued Operat_2
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Statement of income (loss) Nine Months Ended September 30, 2023# 2022 Revenue 64,364 181,680 Cost of services (54,889 ) (162,234 ) Gross profit 9,475 19,446 Selling, general and administrative expenses (3,117 ) (8,219 ) Impairment losses and restructuring/exit cost (4 ) (30 ) Operating income 6,354 11,197 Interest and other cost (represents allocated interest)* (1,174 ) (2,198 ) Foreign exchange gains (losses), net (10 ) (20 ) Income before gain on disposal and tax expenses 5,170 8,979 Tax expenses (A) (1,185 ) (2,500 ) Net income 3,985 6,479 September 30, 2023 Gross purchase price, as adjusted per the terms of the Purchase Agreement 69,800 Less: Carrying value of net assets sold (55,122 ) Income/(Loss) on reclassification of items of AOCI to statement of income (loss) on disposal of component: Less: Unrecognised pension costs (3,062 ) Add: Foreign currency translation 50 Pre-tax gain on disposal 11,666 Tax expenses on gain on disposal net off deferred tax liability reversal of $ 3,056 (4,189 ) Total tax expenses of CCC (A+B) (5,374 ) The Carrying value of net assets sold are as follows; a) Assets Cash and cash equivalents 28,284 Restricted cash 5,735 Trade accounts receivables, net 33,853 Unbilled revenue 46,434 Prepaid and other assets 8,377 Property, plant and equipment, net 4,449 Operating lease right-of-use assets 11,289 Goodwill 54,840 Deferred tax assets, net 5,028 b) Liabilities Trade accounts payables (3,698 ) Accrued expenses (16,015 ) Other current and non current liabilities (45,965 ) Operating lease liabilities (10,494 ) c) Non-controlling interest (66,995 ) Carrying value of net assets sold (a+b+c) 55,122 Statement of income (loss) Nine Months Ended September 30, 2023 2022 Revenue 19,027 24,295 Cost of services (17,756 ) (23,840 ) Gross profit (loss) 1,271 455 Selling, general and administrative expenses (1,462 ) (1,515 ) Impairment losses and restructuring/exit cost (3,570 ) (3,010 ) Operating income (loss) (3,761 ) (4,070 ) Interest expense and other income (expense), net 2,415 1,401 Foreign exchange gains (losses), net (706 ) (445 ) Income (loss) (2,052 ) (3,114 ) Tax expense - - Net (loss) (2,052 ) (3,114 ) September 30, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents 1,168 367 Trade accounts receivables, net 1,984 2,483 Unbilled revenue 1,172 1,320 Prepaid and other current assets 1,906 1,988 Total current assets 6,230 6,158 Non-current assets Property, plant and equipment, net 957 854 Operating lease right-of-use assets 584 620 Prepaid expenses and other non-current assets 12 15 Total non-current assets 1,553 1,489 Total assets classified as held for sale in the consolidated balance sheet 7,783 7,647 Liabilities and Stockholders’ Equity Current liabilities Trade accounts payables 444 307 Accrued expenses 2,043 1,951 Short term debt - 325 Current maturity of operating lease liabilities 457 398 Other current liabilities 2,492 2,674 Total current liabilities 5,436 5,655 Non-current liabilities Operating lease liabilities 133 226 Other non-current liabilities 796 1,346 Total non-current liabilities 929 1,572 Total liabilities classified as discontinued operations in the consolidated balance sheet 6,365 7,227 |
Disposal Groups, Including Discontinued Operations. Cash Flows [Table Text Block] | Net cash flows attributable to the discontinued operations: September 30, 2023 September 30, 2022 Net cash generated from operating activities (5,870 ) 13,135 Net cash used in investing activities (3,513 ) (2,164 ) Net cash (used in) / provided by financing activities - - Net Cash Inflow/(Outflow) (9,383 ) 10,971 September 30, 2023 September 30, 2022 Net cash used in operating activities (1,821 ) (1,671 ) Net cash used in investing activities (103 ) (130 ) Net cash generated from financing activities (325 ) 534 Net Cash outflow (2,249 ) (1,267 ) |
Note 4 - Goodwill and Intangi_2
Note 4 - Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Reporting Units: September 30, 2023 December 31, 2022 Americas 58,419 60,128 India 6,377 12,554 Malaysia 36,061 43,678 Australia - 4,145 Total 100,857 120,505 September 30, 2023 December 31, 2022 Opening balance 120,505 128,557 Impairment (19,648 ) (8,052 ) Closing balance 100,857 120,505 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of September 30, 2023 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 31,673 34,547 6.5 Brand 49,500 21,481 28,019 7.1 Trademarks 13,210 4,576 8,634 7.5 Other intangibles 2,130 1,307 823 4.9 131,060 59,037 72,023 As of December 31, 2022 Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Customer relationships 66,220 27,484 38,736 6.5 Brand 49,500 18,740 30,760 7.1 Trademarks 13,210 3,917 9,293 7.5 Other intangibles 2,130 1,174 956 4.9 131,060 51,315 79,745 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, Amount Remainder of 2023 2,631 2024 10,252 2025 10,252 2026 9,490 2027 8,549 Thereafter 30,849 |
Goodwill [Member] | |
Notes Tables | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Reporting Units - As of September 30, 2023 Americas India Malaysia Australia Discount rate 10.9 % 17.1 % 12.6 % 10.8 % Perpetual growth rate 1.0 % 2.0 % 2.0 % 1.0 % Reporting Units - As of December 31, 2022 Americas India Malaysia Australia Discount rate 10.3 % 17.8 % 12.7 % 10.4 % Perpetual growth rate 1.0 % 3.0 % 2.0 % 1.0 % |
Note 5 - Revenue (Tables)
Note 5 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, Vertical 2023 2022 2023 2022 Telecom 24,134 25,309 71,506 74,298 E-commerce & Consumer 15,524 20,276 48,061 59,015 Financial & Business Services 11,040 13,372 36,347 39,593 Media & Cable 15,439 10,748 44,942 40,503 Travel & Hospitality 13,023 13,103 36,569 37,659 Healthcare & Education 6,790 6,977 18,277 22,108 Technology, IT & Related Services 3,337 2,615 9,447 9,539 Other verticals 4,342 2,478 11,766 9,402 Revenue 93,629 94,878 276,915 292,117 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | As of September 30, 2023 As of December 31, 2022 Trade accounts receivables and Unbilled Revenue 70,948 74,377 Less: Allowance for expected credit loss (2,695 ) (3,032 ) Trade accounts receivables and Unbilled Revenue 68,253 71,345 |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | As of September 30, 2023 Balance at the beginning of the period 3,032 Transition period adjustment pursuant to ASC 326 135 Additions/(Reversal) during the period (472 ) Balance at the end of the period 2,695 |
Note 6 - Net Income (Loss) Pe_2
Note 6 - Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Shares used in basic earnings per share calculation 40,298 40,326 40,300 40,316 Effect of dilutive securities: Stock options - 7 - 38 Total effects of dilutive securities - 7 - 38 Shares used in dilutive earnings per share calculation 40,298 40,333 40,300 40,354 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three months ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Anti-dilutive securities Stock options 2,026 2 2,026 - |
Note 7 - Impairment Losses & _2
Note 7 - Impairment Losses & Restructuring Exit Cost (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Employee related Facilities related Total Balance on December 31, 2022 39 - 39 Accruals/(reversal) 730 - 730 Payments (605 ) - (605 ) Balance as of September 30, 2023 164 - 164 Employee related Facilities related Total Balance on December 31, 2021 310 155 465 Accruals/(reversal) 551 111 662 Payments (822 ) (266 ) (1,088 ) Balance on December 31, 2022 39 - 39 |
Note 8 - Derivative Instrumen_2
Note 8 - Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | Derivatives not designated under ASC 815 Three months ended September 30, 2023 Three months ended September 30, 2022 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Mark to Market gain on Interest rate cap (42 ) - 314 - |
Note 9 - Fair Value Measureme_2
Note 9 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | As of September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Interest rate cap - 201 - 201 Total fair value of assets measured on a recurring basis - 201 - 201 Liabilities: Interest rate cap - - - - Total fair value of liabilities measured on a recurring basis - - - - As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Interest rate cap - - - - Total fair value of assets measured on a recurring basis - - - - Liabilities: Interest rate cap - (113 ) - (113 ) Total fair value of liabilities measured on a recurring basis - (113 ) - (113 ) |
Note 10 - Debt (Tables)
Note 10 - Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | As of September 30, 2023 As of December 31, 2022 Short term debt Working capital facilities 10,643 14,267 Current portion of long term debt Current maturity of term loan 12,269 119,194 Current maturity of equipment loan - 1,272 Total 22,912 134,733 Long term debt Term loan, net of debt issuance costs 54,755 41,175 Total 54,755 41,175 |
Contractual Obligation, Fiscal Year Maturity [Table Text Block] | Years Amount Remainder of 2023 - 2024 18,403 2025 42,940 2026 6,067 Total 67,410 |
Schedule of Debt Issuance Cost [Table Text Block] | September 30, 2023 December 31, 2022 Opening balance 507 2,332 Less: Amortization of debt issuance cost* (120 ) (1,825 ) Closing balance 387 507 |
Note 11 - Other Current Liabi_2
Note 11 - Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Other Current Liabilities [Table Text Block] | September 30, 2023 December 31, 2022 Provision for leave encashment 5,066 6,258 Payables to government authorities 4,737 5,923 Current tax liabilities, net 8,194 2,651 Other liabilities 3,070 2,783 21,067 17,615 |
Note 13 - Accumulated Other C_2
Note 13 - Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments Defined Benefit Plan Equity attributable to Startek shareholders Non-controlling interests Total Balance on December 31, 2022 (11,781 ) (4,277 ) (16,058 ) (4,601 ) (20,659 ) Continuing Operations Foreign currency translation (3,578 ) - (3,578 ) - (3,578 ) Pension amortization* - 124 124 - 124 Discontinued Operations Foreign currency translation (50 ) - (50 ) - (50 ) Pension amortization - 3,573 3,573 614 4,187 Redemption of NCI on disposal of CCC - - - 3,987 3,987 Balance at September 30, 2023 (15,409 ) (580 ) (15,989 ) - (15,989 ) |
Note 14 - Segment and Geograp_2
Note 14 - Segment and Geographical Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenue Americas 47,860 39,444 137,894 126,811 India & Sri Lanka 22,365 27,888 67,770 82,112 Malaysia 11,262 11,357 32,541 34,068 Australia 7,680 9,845 24,939 28,952 South Africa 4,460 5,392 13,734 17,574 Rest of World 2 952 37 2,600 Total 93,629 94,878 276,915 292,117 Three months ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating income (loss) Americas 129 (230 ) 4,927 (2,865 ) India & Sri Lanka (2,511 ) 1,281 (4,212 ) 5,925 Malaysia 2,903 3,173 7,956 7,778 Australia (126 ) 1,214 1,190 3,290 South Africa 276 870 1,388 2,721 Rest of World (867 ) (754 ) (2,640 ) (2,026 ) Segment operating income (196 ) 5,554 8,609 14,823 Startek consolidation adjustments Merger transaction cost (304 ) (1,411 ) (304 ) (2,603 ) Intangible amortization (2,580 ) (2,603 ) (7,722 ) (7,745 ) Goodwill impairment (19,648 ) - (19,648 ) - Total operating income (22,728 ) 1,540 (19,065 ) 4,475 As of As of September 30, 2023 December 31, 2022 Property, plant and equipment, net Americas 8,153 9,718 India & Sri Lanka 12,891 8,340 Malaysia 2,309 2,390 Australia 932 829 South Africa 1,559 1,508 Rest of World 88 160 Total 25,932 22,945 |
Note 15 - Leases (Tables)
Note 15 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Operating lease cost 3,759 4,760 12,540 14,988 Finance lease cost Amortization of right-of-use assets - 117 38 373 Interest on lease liabilities - 3 - 67 Total finance lease cost - 120 38 440 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 14,447 16,356 Operating cash flow from finance leases - 67 Financing cash flows from finance leases - 380 Right-of-use assets obtained in exchange for lease obligations Operating leases 10,802 1,493 Finance leases - - |
Assets And Liabilities, Lessee [Table Text Block] | As of September 30, 2023 As of December 31, 2022 Operating leases Operating lease right-of-use assets 27,478 36,450 Operating lease liabilities - Current 15,120 14,492 Operating lease liabilities - Non-current 20,111 26,651 Total operating lease liabilities 35,231 41,143 Finance Leases Property and equipment, at cost 1,509 1,509 Accumulated depreciation (1,509 ) (1,471 ) Property and equipment, at net - 38 Weighted average remaining lease term As of September 30, 2023 As of December 31, 2022 Operating leases (in years) 2.83 years 2.60 years Finance leases (in years) 0.00 years 0.00 years Weighted average discount rate Operating leases 7 % 6 % Finance leases 0 % 0 % |
Finance Lease, Liability, to be Paid, Maturity [Table Text Block] | Operating Leases Year ending December 31, Remainder of 2023 4,611 2024 16,374 2025 9,709 2026 4,202 2027 2,068 Thereafter 2,486 Total lease payments 39,450 Less: Imputed interest (4,219 ) Total present value to lease liabilities 35,231 |
Note 16 - Common Stock (Tables)
Note 16 - Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Class of Treasury Stock [Table Text Block] | Period Ended Total number of shares purchased Average price paid per share (1) ($) Total number of shares purchased as part of publicly announced program Maximum dollar value that may yet to be purchased under program ($) April 30, 2023 - - - 20,000,000 May 31, 2023 13,894 3.02 13,894 19,957,988 June 30, 2023 38,085 2.94 38,085 19,845,980 July 30, 2023 14,011 2.87 14,011 19,805,835 August 31, 2023 - - - 19,805,835 September 30, 2023 - - - 19,805,835 Total 65,990 65,990 |
Note 1 - Overview and Basis o_2
Note 1 - Overview and Basis of Preparation (Details Textual) | Sep. 30, 2023 |
Number of Countries in which Entity Operates | 11 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies - Useful Lives of Property, Plant & Equipment (Details) | Sep. 30, 2023 |
Minimum [Member] | Building and Building Improvements [Member] | |
Estimated useful life (Year) | 3 years |
Minimum [Member] | Telephone and Computer Equipment [Member] | |
Estimated useful life (Year) | 3 years |
Minimum [Member] | Furniture, Fixtures, and Miscellaneous Equipment [Member] | |
Estimated useful life (Year) | 3 years |
Minimum [Member] | Computer Software [Member] | |
Estimated useful life (Year) | 1 year |
Maximum [Member] | Building and Building Improvements [Member] | |
Estimated useful life (Year) | 20 years |
Maximum [Member] | Telephone and Computer Equipment [Member] | |
Estimated useful life (Year) | 10 years |
Maximum [Member] | Furniture, Fixtures, and Miscellaneous Equipment [Member] | |
Estimated useful life (Year) | 15 years |
Maximum [Member] | Computer Software [Member] | |
Estimated useful life (Year) | 6 years |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Intangibles (Details) | Sep. 30, 2023 |
Brand [Member] | |
Estimated useful life (Year) | 13 years 6 months |
Trademarks [Member] | |
Estimated useful life (Year) | 15 years |
Developed Technology Rights [Member] | |
Estimated useful life (Year) | 5 years |
Minimum [Member] | Customer Relationships [Member] | |
Estimated useful life (Year) | 8 years |
Maximum [Member] | Customer Relationships [Member] | |
Estimated useful life (Year) | 13 years 6 months |
Note 3A - Discontinued Operat_3
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company (Details Textual) $ in Thousands, ر.س in Millions | Apr. 03, 2023 USD ($) | Jan. 11, 2023 USD ($) | Jan. 11, 2023 SAR (ر.س) | Dec. 31, 2022 USD ($) | Nov. 10, 2022 |
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | |||||
Disposal Group, Including Discontinued Operation, Assets | $ 195,184 | ||||
Disposal Group, Including Discontinued Operation, Liabilities | $ 82,259 | ||||
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | Subsidiaries [Member] | |||||
Fair Value Disclosure, Fair Value of Subsidiary | $ 120,000 | ر.س 450 | |||
Disposal Group, Including Discontinued Operation, Consideration | $ 69,800 | ||||
Contact Center Company (CCC) [Member] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 51% | ||||
Contact Center Company (CCC) [Member] | Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 51% |
Note 3A - Discontinued Operat_4
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company - Income Statement and Balance Sheet Information of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Income before gain on disposal and tax expenses | $ 367 | $ 3,056 | $ 3,118 | $ 5,865 | ||
Tax expenses (A) | 0 | (925) | (5,374) | (2,500) | ||
Net income | 367 | 2,131 | 9,410 | 3,365 | ||
Less: Unrecognised pension costs | 0 | (41) | 4,187 | (727) | ||
Foreign currency translation adjustments | 0 | 0 | (50) | (1) | ||
Tax expenses on gain on disposal net off deferred tax liability reversal of $ 3,056 (B) | (4,189) | |||||
Total tax expenses of CCC (A+B) | 0 | $ (925) | (5,374) | (2,500) | ||
c) Non-controlling interest | 0 | (66,995) | ||||
Total current assets | 7,783 | 7,783 | $ 202,831 | |||
Total current liabilities | 6,365 | 6,365 | 89,486 | |||
Contact Center Company (CCC) [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||||
Gross purchase price, as adjusted per the terms of the Purchase Agreement | 69,800 | 69,800 | ||||
Less: Carrying value of net assets sold | (55,122) | (55,122) | ||||
Less: Unrecognised pension costs | (3,062) | |||||
Foreign currency translation adjustments | 50 | |||||
Pre-tax gain on disposal | 11,666 | |||||
Cash and cash equivalents | 28,284 | 28,284 | ||||
Restricted cash | 5,735 | 5,735 | ||||
Trade accounts receivables, net | 33,853 | 33,853 | ||||
Unbilled revenue | 46,434 | 46,434 | ||||
Prepaid and other assets | 8,377 | 8,377 | ||||
Property, plant and equipment, net | 4,449 | 4,449 | ||||
Operating lease right-of-use assets | 11,289 | 11,289 | ||||
Goodwill | 54,840 | 54,840 | ||||
Deferred tax assets, net | 5,028 | 5,028 | ||||
Trade accounts payables | (3,698) | (3,698) | ||||
Accrued expenses | (16,015) | (16,015) | ||||
Other current and non current liabilities | (45,965) | (45,965) | ||||
Operating lease liabilities | (10,494) | (10,494) | ||||
c) Non-controlling interest | (66,995) | |||||
Carrying value of net assets sold (a+b+c) | 55,122 | 55,122 | ||||
Trade accounts payables | 3,698 | 3,698 | ||||
Accrued expenses | 16,015 | 16,015 | ||||
Other current liabilities | 45,965 | 45,965 | ||||
Operating lease liabilities | 10,494 | 10,494 | ||||
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | ||||||
Revenue | 64,364 | [1] | 181,680 | |||
Cost of services | (54,889) | [1] | (162,234) | |||
Gross profit | 9,475 | [1] | 19,446 | |||
Selling, general and administrative expenses | (3,117) | [1] | (8,219) | |||
Impairment losses and restructuring/exit cost | (4) | [1] | (30) | |||
Operating income | 6,354 | [1] | 11,197 | |||
Interest and other cost (represents allocated interest)* | (1,174) | [1] | (2,198) | |||
Foreign exchange gains (losses), net | (10) | [1] | (20) | |||
Income before gain on disposal and tax expenses | 5,170 | [1] | 8,979 | |||
Tax expenses (A) | (1,185) | [1] | (2,500) | |||
Net income | 3,985 | [1] | 6,479 | |||
Total tax expenses of CCC (A+B) | (1,185) | [1] | (2,500) | |||
Total assets classified as held for sale in the consolidated balance sheet | 195,184 | |||||
Total liabilities classified as discontinued operations in the consolidated balance sheet | 82,259 | |||||
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | ARGENTINA | ||||||
Revenue | 19,027 | 24,295 | ||||
Cost of services | (17,756) | (23,840) | ||||
Gross profit | 1,271 | 455 | ||||
Selling, general and administrative expenses | (1,462) | (1,515) | ||||
Impairment losses and restructuring/exit cost | (3,570) | (3,010) | ||||
Operating income | (3,761) | (4,070) | ||||
Foreign exchange gains (losses), net | (706) | (445) | ||||
Income before gain on disposal and tax expenses | (2,052) | (3,114) | ||||
Tax expenses (A) | 0 | 0 | ||||
Net income | (2,052) | (3,114) | ||||
Total tax expenses of CCC (A+B) | 0 | 0 | ||||
Interest expense and other income (expense), net | 2,415 | $ 1,401 | ||||
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale [Member] | ARGENTINA | ||||||
Cash and cash equivalents | 1,168 | 1,168 | 367 | |||
Trade accounts receivables, net | 1,984 | 1,984 | 2,483 | |||
Unbilled revenue | 1,172 | 1,172 | 1,320 | |||
Operating lease right-of-use assets | 584 | 584 | 620 | |||
Trade accounts payables | (444) | (444) | (307) | |||
Accrued expenses | (2,043) | (2,043) | (1,951) | |||
Other current and non current liabilities | (2,492) | (2,492) | (2,674) | |||
Operating lease liabilities | (133) | (133) | (226) | |||
Prepaid and other current assets | 1,906 | 1,906 | 1,988 | |||
Total current assets | 6,230 | 6,230 | 6,158 | |||
Property, plant and equipment, net | 957 | 957 | 854 | |||
Prepaid expenses and other non-current assets | 12 | 12 | 15 | |||
Total non-current assets | 1,553 | 1,553 | 1,489 | |||
Total assets classified as held for sale in the consolidated balance sheet | 7,783 | 7,783 | 7,647 | |||
Trade accounts payables | 444 | 444 | 307 | |||
Accrued expenses | 2,043 | 2,043 | 1,951 | |||
Short term debt | 0 | 0 | 325 | |||
Current maturity of operating lease liabilities | 457 | 457 | 398 | |||
Other current liabilities | 2,492 | 2,492 | 2,674 | |||
Total current liabilities | 5,436 | 5,436 | 5,655 | |||
Operating lease liabilities | 133 | 133 | 226 | |||
Other non-current liabilities | 796 | 796 | 1,346 | |||
Total non-current liabilities | 929 | 929 | 1,572 | |||
Total liabilities classified as discontinued operations in the consolidated balance sheet | $ 6,365 | $ 6,365 | $ 7,227 | |||
[1]Includes results of operations of CCC till March 31, 2023. |
Note 3A - Discontinued Operat_5
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company - Income Statement and Balance Sheet Information of Discontinued Operations (Details) (Parentheticals) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Deferred tax liability reversal | $ 3,056 |
Note 3A - Discontinued Operat_6
Note 3A - Discontinued Operations and Held for Sale - Contact Center Company - Net Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Net cash generated from/used in operating activities from discontinued operations | $ (7,691) | $ 11,464 |
Net cash generated from/used in investing activities from discontinued operations | (3,616) | (2,294) |
Net cash generated from/used in financing activities from discontinued operations | (325) | 534 |
Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | ||
Net cash generated from/used in operating activities from discontinued operations | (5,870) | 13,135 |
Net cash generated from/used in investing activities from discontinued operations | (3,513) | (2,164) |
Net cash generated from/used in financing activities from discontinued operations | 0 | 0 |
Net Cash Inflow/(Outflow) | (9,383) | 10,971 |
ARGENTINA | Contact Center Company (CCC) [Member] | Discontinued Operations, Held-for-Sale or Disposed of by Sale [Member] | ||
Net cash generated from/used in operating activities from discontinued operations | (1,821) | (1,671) |
Net cash generated from/used in investing activities from discontinued operations | (103) | (130) |
Net cash generated from/used in financing activities from discontinued operations | (325) | 534 |
Net Cash Inflow/(Outflow) | $ (2,249) | $ (1,267) |
Note 4 - Goodwill and Intangi_3
Note 4 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill Impairment Analysis, Period for Which Revenue, Operating Margins and Cash Flows Are Projected (Year) | 5 years | ||||
Goodwill, Impairment Loss | $ 19,648 | $ 0 | $ 19,648 | $ 0 | $ 8,052 |
Americas [Member] | |||||
Goodwill, Impairment Loss | 1,709 | 4,187 | |||
INDIA | |||||
Goodwill, Impairment Loss | 6,177 | ||||
MALAYSIA | |||||
Goodwill, Impairment Loss | 7,617 | $ 3,865 | |||
AUSTRALIA | |||||
Goodwill, Impairment Loss | $ 4,145 |
Note 4 - Goodwill and Intangi_4
Note 4 - Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill | $ 100,857 | $ 100,857 | $ 120,505 | ||
Opening balance | 120,505 | $ 128,557 | 128,557 | ||
Impairment | (19,648) | $ 0 | (19,648) | $ 0 | (8,052) |
Closing balance | 100,857 | 100,857 | 120,505 | ||
Americas [Member] | |||||
Goodwill | 58,419 | 58,419 | 60,128 | ||
Opening balance | 60,128 | ||||
Impairment | (1,709) | (4,187) | |||
Closing balance | 58,419 | 58,419 | 60,128 | ||
INDIA | |||||
Goodwill | 6,377 | 6,377 | 12,554 | ||
Opening balance | 12,554 | ||||
Impairment | (6,177) | ||||
Closing balance | 6,377 | 6,377 | 12,554 | ||
Malaysia 1 [Member] | |||||
Goodwill | 36,061 | 36,061 | 43,678 | ||
Opening balance | 43,678 | ||||
Closing balance | 36,061 | 36,061 | 43,678 | ||
AUSTRALIA | |||||
Goodwill | 0 | 0 | 4,145 | ||
Opening balance | 4,145 | ||||
Impairment | (4,145) | ||||
Closing balance | $ 0 | $ 0 | $ 4,145 |
Note 4 - Goodwill and Intangi_5
Note 4 - Goodwill and Intangible Assets - Key Assumptions used in Performing Impairment Test, by Each Reporting Unit (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Americas [Member] | Measurement Input, Discount Rate [Member] | ||
Goodwill impairment assumption | 0.109 | 0.103 |
Americas [Member] | Measurement Input, Long-Term Revenue Growth Rate [Member] | ||
Goodwill impairment assumption | 0.01 | |
Americas [Member] | Measurement Input, Perpetual Growth Rate [Member] | ||
Goodwill impairment assumption | 0.01 | |
INDIA | Measurement Input, Discount Rate [Member] | ||
Goodwill impairment assumption | 0.171 | 0.178 |
INDIA | Measurement Input, Long-Term Revenue Growth Rate [Member] | ||
Goodwill impairment assumption | 0.02 | |
INDIA | Measurement Input, Perpetual Growth Rate [Member] | ||
Goodwill impairment assumption | 0.03 | |
MALAYSIA | Measurement Input, Discount Rate [Member] | ||
Goodwill impairment assumption | 0.126 | 0.127 |
MALAYSIA | Measurement Input, Long-Term Revenue Growth Rate [Member] | ||
Goodwill impairment assumption | 0.02 | |
MALAYSIA | Measurement Input, Perpetual Growth Rate [Member] | ||
Goodwill impairment assumption | 0.02 | |
AUSTRALIA | Measurement Input, Discount Rate [Member] | ||
Goodwill impairment assumption | 0.108 | 0.104 |
AUSTRALIA | Measurement Input, Long-Term Revenue Growth Rate [Member] | ||
Goodwill impairment assumption | 0.01 | |
AUSTRALIA | Measurement Input, Perpetual Growth Rate [Member] | ||
Goodwill impairment assumption | 0.01 |
Note 4 - Goodwill and Intangi_6
Note 4 - Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Gross Intangibles | $ 131,060 | $ 131,060 |
Accumulated Amortization | 59,037 | 51,315 |
Net Intangibles | 72,023 | 79,745 |
Customer Relationships [Member] | ||
Gross Intangibles | 66,220 | 66,220 |
Accumulated Amortization | 31,673 | 27,484 |
Net Intangibles | $ 34,547 | $ 38,736 |
Weighted Average Amortization Period (Year) | 6 years 6 months | 6 years 6 months |
Brand [Member] | ||
Gross Intangibles | $ 49,500 | $ 49,500 |
Accumulated Amortization | 21,481 | 18,740 |
Net Intangibles | $ 28,019 | $ 30,760 |
Weighted Average Amortization Period (Year) | 7 years 1 month 6 days | 7 years 1 month 6 days |
Trademarks [Member] | ||
Gross Intangibles | $ 13,210 | $ 13,210 |
Accumulated Amortization | 4,576 | 3,917 |
Net Intangibles | $ 8,634 | $ 9,293 |
Weighted Average Amortization Period (Year) | 7 years 6 months | 7 years 6 months |
Other Intangible Assets [Member] | ||
Gross Intangibles | $ 2,130 | $ 2,130 |
Accumulated Amortization | 1,307 | 1,174 |
Net Intangibles | $ 823 | $ 956 |
Weighted Average Amortization Period (Year) | 4 years 10 months 24 days | 4 years 10 months 24 days |
Note 4 - Goodwill and Intangi_7
Note 4 - Goodwill and Intangible Assets - Expected Future Amortization of Intangible Assets (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Remainder of 2023 | $ 2,631 |
2024 | 10,252 |
2025 | 10,252 |
2026 | 9,490 |
2027 | 8,549 |
Thereafter | $ 30,849 |
Note 5 - Revenue (Details Textu
Note 5 - Revenue (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Accounts Receivable, Allowance for Credit Loss | $ 2,695 | $ 3,032 | |
Deferred Income Tax Assets, Net | 3,126 | 2,771 | |
Retained Earnings (Accumulated Deficit) | $ (104,768) | $ (86,302) | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||
Accounts Receivable, Allowance for Credit Loss | $ (135,000) | ||
Deferred Income Tax Assets, Net | 34,000 | ||
Retained Earnings (Accumulated Deficit) | $ (101,000) |
Note 5 - Revenue - Disaggregate
Note 5 - Revenue - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | $ 93,629 | $ 94,878 | $ 276,915 | $ 292,117 |
Communications [Member] | ||||
Revenue | 24,134 | 25,309 | 71,506 | 74,298 |
E-Commerce and Consumer [Member] | ||||
Revenue | 15,524 | 20,276 | 48,061 | 59,015 |
Financial and Business Service [Member] | ||||
Revenue | 11,040 | 13,372 | 36,347 | 39,593 |
Media [Member] | ||||
Revenue | 15,439 | 10,748 | 44,942 | 40,503 |
Travel and Hospitality [Member] | ||||
Revenue | 13,023 | 13,103 | 36,569 | 37,659 |
Health Care and Education [Member] | ||||
Revenue | 6,790 | 6,977 | 18,277 | 22,108 |
Technology, IT and Related Service [Member] | ||||
Revenue | 3,337 | 2,615 | 9,447 | 9,539 |
Other Sector [Member] | ||||
Revenue | $ 4,342 | $ 2,478 | $ 11,766 | $ 9,402 |
Note 5 - Revenue - Trace Accoun
Note 5 - Revenue - Trace Accounts Receivables and Unbilled Revenue (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Trade accounts receivables and Unbilled Revenue | $ 70,948 | $ 74,377 |
Less: Allowance for expected credit loss | (2,695) | (3,032) |
Trade accounts receivables and Unbilled Revenue | $ 68,253 | $ 71,345 |
Note 5 - Revenue - Allowance fo
Note 5 - Revenue - Allowance for Expected Credit Loss (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Balance at the beginning of the period | $ 3,032 | |
Transition period adjustment pursuant to ASC 326 | 135 | |
Additions/(Reversal) during the period | (472) | $ (112) |
Balance at the end of the period | $ 2,695 |
Note 6 - Net Income (Loss) Pe_3
Note 6 - Net Income (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Shares used in basic earnings per share calculation (in shares) | 40,298 | 40,326 | 40,300 | 40,316 |
Total effects of dilutive securities (in shares) | 0 | 7 | 0 | 38 |
Shares used in dilutive earnings per share calculation (in shares) | 40,298 | 40,333 | 40,300 | 40,354 |
Share-Based Payment Arrangement, Option [Member] | ||||
Effect of dilutive securities (in shares) | 0 | 7 | 0 | 38 |
Note 6 - Net Income (Loss) Pe_4
Note 6 - Net Income (Loss) Per Share - Summary of Anti-dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement, Option [Member] | ||||
Stock options (in shares) | 2,026 | 2 | 2,026 | 0 |
Note 7 - Impairment Losses & _3
Note 7 - Impairment Losses & Restructuring Exit Cost (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill, Impairment Loss | $ 19,648 | $ 0 | $ 19,648 | $ 0 | $ 8,052 |
Operating Lease, Impairment Loss | $ 4,391 | 1,110 | |||
Minimum [Member] | |||||
Lessee, Operating Lease, Remaining Lease Term (Month) | 12 months | 12 months | |||
Maximum [Member] | |||||
Lessee, Operating Lease, Remaining Lease Term (Month) | 21 months | 21 months | |||
Americas [Member] | |||||
Goodwill, Impairment Loss | $ 1,709 | 4,187 | |||
INDIA | |||||
Goodwill, Impairment Loss | 6,177 | ||||
MALAYSIA | |||||
Goodwill, Impairment Loss | 7,617 | $ 3,865 | |||
AUSTRALIA | |||||
Goodwill, Impairment Loss | $ 4,145 |
Note 7 - Impairment Losses & _4
Note 7 - Impairment Losses & Restructuring Exit Cost - Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Balance | $ 39 | $ 465 |
Accruals/(reversal) | 730 | 662 |
Payments | (605) | (1,088) |
Ending balance | 164 | 39 |
Employee Severance [Member] | ||
Balance | 39 | 310 |
Accruals/(reversal) | 730 | 551 |
Payments | (605) | (822) |
Ending balance | 164 | 39 |
Facility Closing [Member] | ||
Balance | 0 | 155 |
Accruals/(reversal) | 0 | 111 |
Payments | 0 | (266) |
Ending balance | $ 0 | $ 0 |
Note 8 - Derivative Instrumen_3
Note 8 - Derivative Instruments - Derivative Instruments Not Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest Rate Cap [Member] | Interest and Other Cost [Member] | ||||
Mark to Market gain on Interest rate cap | $ (42) | $ 0 | $ 314 | $ 0 |
Note 9 - Fair Value Measureme_3
Note 9 - Fair Value Measurements - Assets and Liabilities Measured At Fair Value On a Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Total fair value of assets measured on a recurring basis | $ 201 | $ 0 |
Total fair value of liabilities measured on a recurring basis | 0 | (113) |
Fair Value, Inputs, Level 1 [Member] | ||
Total fair value of assets measured on a recurring basis | 0 | 0 |
Total fair value of liabilities measured on a recurring basis | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Total fair value of assets measured on a recurring basis | 201 | 0 |
Total fair value of liabilities measured on a recurring basis | 0 | (113) |
Fair Value, Inputs, Level 3 [Member] | ||
Total fair value of assets measured on a recurring basis | 0 | 0 |
Total fair value of liabilities measured on a recurring basis | 0 | 0 |
Interest Rate Cap [Member] | ||
Interest rate cap | 201 | 0 |
Interest rate cap | 0 | (113) |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Interest rate cap | 0 | 0 |
Interest rate cap | 0 | 0 |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Interest rate cap | 201 | 0 |
Interest rate cap | 0 | (113) |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Interest rate cap | 0 | 0 |
Interest rate cap | $ 0 | $ 0 |
Note 10 - Debt (Details Textual
Note 10 - Debt (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Feb. 18, 2021 | Apr. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jul. 31, 2023 | Jul. 12, 2023 | Apr. 19, 2023 | Apr. 03, 2023 | Nov. 02, 2020 | ||
Short-Term Debt | $ 10,643 | $ 14,267 | |||||||||
Repayments of Debt | $ 55,000 | ||||||||||
Amortization of Debt Issuance Costs | 120 | $ 426 | |||||||||
Contact Center Company (CCC) [Member] | |||||||||||
Disposal Group, Including Discontinued Operation, Consideration | 68,900 | $ 900 | $ 69,800 | ||||||||
Contact Center Company (CCC) [Member] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 51% | ||||||||||
Senior Debt Facility [Member] | |||||||||||
Debt Instrument, Covenant Compliance, Adjusted Leverage | 0.0225% | ||||||||||
Required Debt Repayments | $ 55,000 | ||||||||||
Repayments of Debt | 48,000 | ||||||||||
Amortization of Debt Issuance Costs | [1] | 120 | 1,825 | ||||||||
Senior Debt Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ||||||||||
Senior Debt Facility [Member] | Loans Payable [Member] | |||||||||||
Debt Instrument, Face Amount | $ 165,000 | ||||||||||
One-time Debt Amortization [Member] | |||||||||||
Amortization of Debt Issuance Costs | 1,260 | ||||||||||
Equipment Loan [Member] | Secured Debt [Member] | |||||||||||
Debt Instrument, Face Amount | $ 4,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.27% | ||||||||||
Long-term Debt, Term (Month) | 34 months | ||||||||||
Non-recourse Factoring [Member] | |||||||||||
Long-Term Debt, Gross | 19,100 | $ 18,090 | |||||||||
Minimum [Member] | Senior Debt Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ||||||||||
Maximum [Member] | Senior Debt Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | ||||||||||
Line of Credit [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 35,000 | ||||||||||
Short-Term Debt | $ 10,600 | ||||||||||
Required Debt Repayments | $ 7,000 | ||||||||||
Repayments of Debt | $ 7,000 | ||||||||||
Line of Credit [Member] | Minimum [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.90% | ||||||||||
Line of Credit [Member] | Maximum [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | ||||||||||
[1]includes one time amortisation of $1,260 during period ended December 31, 2022. |
Note 10 - Debt - Summary of Deb
Note 10 - Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Short-Term Debt | $ 10,643 | $ 14,267 |
Current maturity of term loan | 12,269 | 120,466 |
Current maturity of equipment loan | 12,269 | 120,466 |
Total current debt | 22,912 | 134,733 |
Long term debt | 54,755 | 41,175 |
Loans Payable [Member] | ||
Current maturity of term loan | 12,269 | 119,194 |
Current maturity of equipment loan | 12,269 | 119,194 |
Long term debt | 54,755 | 41,175 |
Secured Debt [Member] | ||
Current maturity of term loan | 0 | 1,272 |
Current maturity of equipment loan | 0 | 1,272 |
Working Capital Facilities [Member] | ||
Short-Term Debt | $ 10,643 | $ 14,267 |
Note 10 - Debt - Principal Paym
Note 10 - Debt - Principal Payments Due on Term Loan (Details) $ in Thousands | Sep. 30, 2023 USD ($) | |
Remainder of 2023 | $ 0 | [1] |
2026 | 6,067 | |
Total | 67,410 | |
Loans Payable [Member] | ||
2024 | 18,403 | |
2025 | $ 42,940 | |
[1]Paid on April 21, 2023 |
Note 10 - Debt - Debt Issuance
Note 10 - Debt - Debt Issuance Cost (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Less: Amortization of debt issuance cost* | $ (120) | $ (426) | ||
Senior Debt Facility [Member] | ||||
Opening balance | 507 | $ 2,332 | $ 2,332 | |
Less: Amortization of debt issuance cost* | [1] | (120) | (1,825) | |
Closing balance | $ 387 | $ 507 | ||
[1]includes one time amortisation of $1,260 during period ended December 31, 2022. |
Note 11 - Other Current Liabi_3
Note 11 - Other Current Liabilities - Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Provision for leave encashment | $ 5,066 | $ 6,258 |
Payables to government authorities | 4,737 | 5,923 |
Current tax liabilities, net | 8,194 | 2,651 |
Other liabilities | 3,070 | 2,783 |
Other Liabilities Total | $ 21,067 | $ 17,615 |
Note 12 - Share-based Compens_2
Note 12 - Share-based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement, Option [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 1,369 | $ 1,369 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 11 months 8 days | |||
Selling, General and Administrative Expenses [Member] | ||||
Share-Based Payment Arrangement, Expense | $ 369 | $ 380 | $ 1,138 | $ 1,213 |
Note 13 - Accumulated Other C_3
Note 13 - Accumulated Other Comprehensive Loss (Details Textual) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | $ 97 |
Note 13 - Accumulated Other C_4
Note 13 - Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Foreign currency translation, Discontinued | $ 0 | $ 0 | $ (50) | $ (1) | |
Pension amortization | 0 | $ 41 | (4,187) | $ 727 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Balance on December 31, 2022 | (11,781) | ||||
Foreign currency translation | (3,578) | ||||
Pension amortization* | [1] | 0 | |||
Foreign currency translation, Discontinued | (50) | ||||
Pension amortization | 0 | ||||
Redemption of NCI on disposal of CCC | 0 | ||||
Balance | (15,409) | (15,409) | |||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |||||
Balance on December 31, 2022 | (4,277) | ||||
Foreign currency translation | 0 | ||||
Pension amortization* | [1] | 124 | |||
Foreign currency translation, Discontinued | 0 | ||||
Pension amortization | 3,573 | ||||
Redemption of NCI on disposal of CCC | 0 | ||||
Balance | (580) | (580) | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Balance on December 31, 2022 | (16,058) | ||||
Foreign currency translation | (3,578) | ||||
Pension amortization* | [1] | 124 | |||
Foreign currency translation, Discontinued | (50) | ||||
Pension amortization | 3,573 | ||||
Redemption of NCI on disposal of CCC | 0 | ||||
Balance | (15,989) | (15,989) | |||
AOCI Attributable to Noncontrolling Interest [Member] | |||||
Balance on December 31, 2022 | (4,601) | ||||
Foreign currency translation | 0 | ||||
Pension amortization* | [1] | 0 | |||
Foreign currency translation, Discontinued | 0 | ||||
Pension amortization | 614 | ||||
Redemption of NCI on disposal of CCC | 3,987 | ||||
Balance | 0 | 0 | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||||
Balance on December 31, 2022 | (20,659) | ||||
Foreign currency translation | (3,578) | ||||
Pension amortization* | [1] | 124 | |||
Foreign currency translation, Discontinued | (50) | ||||
Pension amortization | 4,187 | ||||
Redemption of NCI on disposal of CCC | 3,987 | ||||
Balance | $ (15,989) | $ (15,989) | |||
[1]Pension amortisation is net of tax impact of $97. |
Note 14 - Segment and Geograp_3
Note 14 - Segment and Geographical Information (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 27, 2022 | Feb. 25, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CSS Corp. [Member] | ||||||
Payments to Acquire Equity Method Investments | $ 25 | |||||
CSS Corp LP [Member] | ||||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 45.6 | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 8.4 | |||||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer One [Member] | ||||||
Concentration Risk, Percentage | 10% | 10% | 10% | 10% |
Note 14 - Segment and Geograp_4
Note 14 - Segment and Geographical Information - Summary of Segment Reporting Information, By Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue | $ 93,629 | $ 94,878 | $ 276,915 | $ 292,117 | |
Operating income (loss) | (22,728) | 1,540 | (19,065) | 4,475 | |
Merger transaction cost | (304) | (1,411) | (304) | (2,603) | |
Impairment | (19,648) | 0 | (19,648) | 0 | $ (8,052) |
Property, plant and equipment, net | 25,932 | 25,932 | 22,945 | ||
Operating Segments [Member] | |||||
Operating income (loss) | (196) | 5,554 | 8,609 | 14,823 | |
Segment Reconciling Items [Member] | |||||
Intangible amortization | (2,580) | (2,603) | (7,722) | (7,745) | |
Americas [Member] | |||||
Property, plant and equipment, net | 8,153 | 8,153 | 9,718 | ||
Americas [Member] | Operating Segments [Member] | |||||
Revenue | 47,860 | 39,444 | 137,894 | 126,811 | |
Operating income (loss) | 129 | (230) | 4,927 | (2,865) | |
India and Sri Lanka [Member] | |||||
Property, plant and equipment, net | 12,891 | 12,891 | 8,340 | ||
India and Sri Lanka [Member] | Operating Segments [Member] | |||||
Revenue | 22,365 | 27,888 | 67,770 | 82,112 | |
Operating income (loss) | (2,511) | 1,281 | (4,212) | 5,925 | |
Malaysia 1 [Member] | |||||
Property, plant and equipment, net | 2,309 | 2,309 | 2,390 | ||
Malaysia 1 [Member] | Operating Segments [Member] | |||||
Revenue | 11,262 | 11,357 | 32,541 | 34,068 | |
Operating income (loss) | 2,903 | 3,173 | 7,956 | 7,778 | |
AUSTRALIA | |||||
Property, plant and equipment, net | 932 | 932 | 829 | ||
AUSTRALIA | Operating Segments [Member] | |||||
Revenue | 7,680 | 9,845 | 24,939 | 28,952 | |
Operating income (loss) | (126) | 1,214 | 1,190 | 3,290 | |
SOUTH AFRICA | |||||
Property, plant and equipment, net | 1,559 | 1,559 | 1,508 | ||
SOUTH AFRICA | Operating Segments [Member] | |||||
Revenue | 4,460 | 5,392 | 13,734 | 17,574 | |
Operating income (loss) | 276 | 870 | 1,388 | 2,721 | |
Rest of World [Member] | |||||
Property, plant and equipment, net | 88 | 88 | $ 160 | ||
Rest of World [Member] | Operating Segments [Member] | |||||
Revenue | 2 | 952 | 37 | 2,600 | |
Operating income (loss) | $ (867) | $ (754) | $ (2,640) | $ (2,026) |
Note 15 - Leases (Details Textu
Note 15 - Leases (Details Textual) | 9 Months Ended |
Sep. 30, 2023 | |
Lessee, Lease, Termination Period (Year) | 1 year |
Minimum [Member] | |
Lease, Remaining Lease Term (Year) | 1 year |
Lessee, Lease, Renewal Term (Year) | 3 years |
Maximum [Member] | |
Lease, Remaining Lease Term (Year) | 9 years |
Lessee, Lease, Renewal Term (Year) | 5 years |
Note 15 - Leases - Components o
Note 15 - Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating lease cost | $ 3,759 | $ 4,760 | $ 12,540 | $ 14,988 |
Amortization of right-of-use assets | 0 | 117 | 38 | 373 |
Interest on lease liabilities | 0 | 3 | 0 | 67 |
Total finance lease cost | $ 0 | $ 120 | 38 | 440 |
Operating cash flows from operating leases | 14,447 | 16,356 | ||
Operating cash flow from finance leases | 0 | 67 | ||
Financing cash flows from finance leases | 0 | 380 | ||
Operating leases | 10,802 | 1,493 | ||
Finance leases | $ 0 | $ 0 |
Note 15 - Leases - Supplemental
Note 15 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Operating lease right-of-use assets | $ 27,478 | $ 36,450 |
Operating lease liabilities - Current | 15,120 | 14,492 |
Operating lease liabilities - Non-current | 20,111 | 26,651 |
Total operating lease liabilities | $ 35,231 | $ 41,143 |
Operating leases (Year) | 2 years 9 months 29 days | 2 years 7 months 6 days |
Finance leases (Year) | 0 years | 0 years |
Operating leases | 7% | 6% |
Finance leases | 0% | 0% |
Property, Plant and Equipment, Net [Member] | ||
Property and equipment, at cost | $ 1,509 | $ 1,509 |
Accumulated depreciation | (1,509) | (1,471) |
Property and equipment, at net | $ 0 | $ 38 |
Note 15 - Leases - Maturities o
Note 15 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Remainder of 2023, Operating leases | $ 4,611 | |
2024, Operating leases | 16,374 | |
2025, Operating leases | 9,709 | |
2026, Operating leases | 4,202 | |
2027, Operating leases | 2,068 | |
Thereafter, Operating leases | 2,486 | |
Total lease payments, Operating leases | 39,450 | |
Less imputed interest, Operating leases | (4,219) | |
Total present value to lease liabilities, Operating leases | $ 35,231 | $ 41,143 |
Note 16 - Common Stock (Details
Note 16 - Common Stock (Details Textual) $ in Millions | Apr. 24, 2023 USD ($) |
Repurchase Plan [Member] | |
Stock Repurchase Program, Authorized Amount | $ 20 |
Note 16 - Common Stock - Stock
Note 16 - Common Stock - Stock Repurchase Activity (Details) - USD ($) | 9 Months Ended | ||||||
Sep. 30, 2023 | Aug. 31, 2023 | Jul. 30, 2023 | Jun. 30, 2023 | May 31, 2023 | Apr. 30, 2023 | Sep. 30, 2023 | |
Total Number of Shares Purchased (in shares) | 0 | 0 | 14,011 | 38,085 | 13,894 | 0 | 65,990 |
Average Price Paid per Share (in dollars per share) | $ 0 | $ 0 | $ 2.87 | $ 2.94 | $ 3.02 | $ 0 | |
Repurchase Plan [Member] | |||||||
Total Number of Shares Purchased (in shares) | 0 | 0 | 14,011 | 38,085 | 13,894 | 0 | 65,990 |
Maximum Dollar Value that May Yet be Purchased Under the Programs | $ 19,805,835 | $ 19,805,835 | $ 19,805,835 | $ 19,845,980 | $ 19,957,988 | $ 20,000,000 | $ 19,805,835 |