Innodata (INOD) 10-Q 14 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Cover
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	INNODATA INC
Entity Central Index Key	0000903651
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Trading Symbol	INOD
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		24,459,359

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 10,745	$ 10,874
Accounts receivable, net of allowance for doubtful accounts of $773 and $750, respectively	9,505	9,723
Prepaid expenses and other current assets	3,676	3,418
Total current assets	23,926	24,015
Property and equipment, net	6,910	7,125
Right-of-use-asset	6,530	7,005
Other assets	2,442	2,110
Deferred income taxes	2,083	1,906
Intangibles, net	4,982	5,477
Goodwill	2,003	2,108
Total assets	48,876	49,746
Current liabilities:
Accounts payable	1,853	1,419
Accrued expenses	3,451	3,340
Accrued salaries, wages and related benefits	4,199	4,265
Income and other taxes	4,529	4,183
Long-term obligations - current portion	856	912
Operating lease liability - current portion	922	1,107
Total current liabilities	15,810	15,226
Deferred income taxes	326	363
Long-term obligations, net of current portion	4,579	4,534
Operating lease liability, net of current portion	6,328	6,731
Non-controlling interests	(3,406)	(3,417)
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Serial preferred stock; 4,998,000 shares authorized, none outstanding	0	0
Common stock, $.01 par value; 75,000,000 shares authorized; 27,643,000 shares issued and 24,459,000 outstanding at March 31, 2020 and December 31, 2019;	275	275
Additional paid-in capital	28,596	28,426
Retained earnings	4,628	4,993
Accumulated other comprehensive loss	(1,795)	(920)
Stockholders' Equity before Treasury Stock, Total	31,704	32,774
Less: treasury stock, 3,184,000 shares at March 31, 2020 and December 31, 2019 at cost	(6,465)	(6,465)
Total stockholders' equity	25,239	26,309
Total liabilities and stockholders' equity	$ 48,876	$ 49,746

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, net of allowance for doubtful accounts	$ 773	$ 750
Series preferred stock, shares authorized	4,998,000	4,998,000
Series preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	27,643,000	24,459,000
Common stock, shares outstanding	27,643,000	24,459,000
Treasury stock, shares	3,184,000	3,184,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Revenues	$ 14,530	$ 13,694
Operating costs and expenses:
Direct operating costs	9,743	9,560
Selling and administrative expenses	4,723	4,602
Interest expense, net	13	11
Totals	14,479	14,173
Income (loss) before provision for income taxes	51	(479)
Provision for income taxes	405	(28)
Consolidated net loss	(354)	(451)
Income attributable to non-controlling interests	11	1
Net loss attributable to Innodata Inc. and Subsidiaries	$ (365)	$ (452)
Loss per share attributable to Innodata Inc. and Subsidiaries:
Basic and diluted	$ (0.01)	$ (0.02)
Weighted average shares outstanding:
Basic and diluted	24,401	25,927
Comprehensive loss:
Consolidated net loss	$ (354)	$ (451)
Pension liability adjustment, net of taxes	14	(36)
Change in fair value of derivatives, net of taxes	(171)	0
Foreign currency translation adjustment, net of taxes	(718)	264
Other comprehensive loss	(875)	228
Total comprehensive loss	(1,229)	(223)
Comprehensive income attributed to non-controlling interests	11	1
Comprehensive loss attributable to Innodata Inc. and Subsidiaries	$ (1,240)	$ (224)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Consolidated net loss	$ (354)	$ (451)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:
Depreciation and amortization	643	809
Stock-based compensation	170	129
Deferred income taxes	(71)	(734)
Pension cost	200	113
Changes in operating assets and liabilities:
Accounts receivable	(92)	2,543
Prepaid expenses and other current assets	(439)	474
Other assets	(336)	75
Accounts payable and accrued expenses	666	20
Accrued salaries, wages and related benefits	(53)	(1,047)
Income and other taxes	369	170
Net cash provided by operating activities	703	2,101
Cash flows from investing activities:
Capital expenditures	(578)	(485)
Net cash used in investing activities	(578)	(485)
Cash flows from financing activities:
Payment of long-term obligations	(57)	(387)
Net cash used in financing activities	(57)	(387)
Effect of exchange rate changes on cash and cash equivalents	(197)	63
Net increase (decrease) in cash and cash equivalents	(129)	1,292
Cash and cash equivalents, beginning of period	10,874	10,869
Cash and cash equivalents, end of period	10,745	12,161
Supplemental disclosures of cash flow information:
Cash paid for income taxes	0	339
Cash paid for operating leases	$ 504	$ 501

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Total
Balance at Dec. 31, 2018	$ 275	$ 27,579	$ 7,349	$ (15)	$ (4,622)	$ 30,566
Balance (in shares) at Dec. 31, 2018	25,877,000
Balance (in shares) at Dec. 31, 2018					1,681,000
Net loss attributable to Innodata Inc. and Subsidiaries	$ 0	0	(452)	0	$ 0	(452)
Stock-based compensation	$ 0	129	0	0	0	129
Stock based compensation (in shares)	75,000
Pension liability adjustments, net of taxes	$ 0	0	0	(36)	0	(36)
Foreign currency translation adjustment	0	0	0	264	0	264
Change in fair value of derivatives, net of taxes						0
Balance at Mar. 31, 2019	$ 275	27,708	6,897	213	$ (4,622)	30,471
Balance (in shares) at Mar. 31, 2019	25,952,000
Balance (in shares) at Mar. 31, 2019					1,681,000
Balance at Dec. 31, 2019	$ 275	28,426	4,993	(920)	$ (6,465)	$ 26,309
Balance (in shares) at Dec. 31, 2019	27,643,000
Balance (in shares) at Dec. 31, 2019					3,184,000	3,184,000
Net loss attributable to Innodata Inc. and Subsidiaries	$ 0	0	(365)	0	$ 0	$ (365)
Stock-based compensation	$ 0	170	0	0	0	170
Stock based compensation (in shares)	0
Pension liability adjustments, net of taxes	$ 0	0	0	14	0	14
Foreign currency translation adjustment	0	0	0	(718)	0	(718)
Change in fair value of derivatives, net of taxes	0	0	0	(171)	0	(171)
Balance at Mar. 31, 2020	$ 275	$ 28,596	$ 4,628	$ (1,795)	$ (6,465)	$ 25,239
Balance (in shares) at Mar. 31, 2020	27,643,000
Balance (in shares) at Mar. 31, 2020					3,184,000	3,184,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation - The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company as of March 31, 2020, the results of its operations and comprehensive loss for the three months ended March 31, 2020 and 2019, cash flows for the three months ended March 31, 2020 and 2019, and stockholders’ equity for the three months ended March 31, 2020 and 2019. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Certain information and note disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) have been condensed or omitted from these condensed consolidated financial statements pursuant to the rules and regulations of the SEC and, accordingly, these condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10‑K. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the condensed consolidated financial statements for the year December 31, 2019. Principles of Consolidation - The condensed consolidated financial statements include the accounts of Innodata Inc. and its wholly owned subsidiaries, and the Synodex and docGenix limited liability companies that are majority-owned by the Company. The non-controlling interests in the Synodex and docGenix limited liability companies are accounted for in accordance with Financial Accounting Standards Board (FASB) non-controlling interest guidance. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates - In preparing condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those related to allowance for doubtful accounts and billing adjustments, long-lived assets, intangible assets, goodwill, valuation of deferred tax assets, valuation of stock-based compensation, litigation accruals and estimated accruals for various tax exposures. Revenue Recognition – The Company’s revenue is recognized when services are rendered to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those services as per the agreement with the customer. In cases where there are agreements with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligation is distinct within the context of the agreement at the agreement’s inception. Performance obligations that are not distinct at agreement inception are combined. The Company allocates the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation, if any, and then evaluates how the services are performed for the customer to determine the timing of revenue recognition. For the Digital Data Solutions (DDS) segment, revenue is recognized primarily based on the quantity delivered or resources utilized in the period in which services are performed and performance conditions are satisfied as per the agreement. Revenues for agreements billed on a time-and-materials basis are recognized as services are performed. Revenues under fixed-fee agreements, which are not significant to the overall revenues, are recognized based on the proportional performance method of accounting, as services are performed, or milestones are achieved. For the Synodex segment, revenue is recognized primarily based on the quantity delivered in the period in which services are performed and performance conditions are satisfied as per the agreement. A portion of our Synodex segment revenue is derived from licensing our functional software and providing access to our hosted software platform. Revenue from such services is recognized monthly when all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; access to the service is provided to the end user; and collection is probable. The Agility segment derives its revenue primarily from subscription arrangements and provision of enriched media analysis services. It also derives revenue as a reseller of corporate communication solutions. Revenue from subscriptions is recognized monthly when access to the service is provided to the end user; all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; and collection is probable. Revenue from enriched media analysis services is recognized when the services are performed, and performance conditions are satisfied. Revenues from the reseller agreements are recognized at gross with our functioning as a principal due to our meeting the following criteria. We act as the primary obligor in the sales transaction; assume the credit risk; set the price; can select suppliers; and are involved in the execution of the services, including after sales service. Revenues include reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. The Company considers U.S. GAAP criteria for determining whether to report revenue gross as a principal versus net as an agent. Factors considered include whether we are the primary obligor, have risks and rewards of ownership, and bear the risk that a customer may not pay for the services performed. If there are circumstances where the above criteria are not met and therefore, we are not the principal in providing services, amounts received from customers are presented net of payments in the condensed consolidated statements of operations and comprehensive loss. Contract acquisition cost, which is included in prepaid expenses and other current assets, for our Agility segment is amortized over the term of a subscription agreement that normally has a duration of 12 months or less. The Company reviews these costs on a periodic basis to determine the need to adjust the carrying values for pre-terminated contracts. Foreign Currency - The functional currency of the Company’s production operations located in the Philippines, India, Sri Lanka and Israel is the U.S. dollar. Transactions denominated in Philippine pesos, Indian and Sri Lankan rupees and Israeli shekels are translated to U.S. dollars at rates using the average rates in effect on the transaction dates. The functional currency for the Company’s subsidiaries in Germany, the United Kingdom and Canada are the Euro, the Pound Sterling and the Canadian dollar, respectively. The financial statements of these subsidiaries are prepared in these respective currencies. Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in the condensed consolidated financial statements. Income, expenses and cash flows are translated at weighted average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of Accumulated other comprehensive loss in stockholders’ equity. Foreign exchange transaction gains or losses are included in Direct operating costs in the accompanying condensed consolidated statements of operations and comprehensive loss. To the extent that the currencies of the Company’s production facilities located in the Philippines, India, Sri Lanka and Israel fluctuate, the Company is subject to risks of changing costs of production after pricing is established for certain client projects. In addition, the Company is exposed to the risk of foreign currency fluctuation on the non-U.S. dollar denominated revenues, and on the monetary assets and liabilities held by its foreign subsidiaries that are denominated in local currencies. Income Taxes - Deferred taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates, as well as any net operating loss or tax credit carryforwards expected to reduce taxes payable in future years. A valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax assets will not be realized. While the Company considers future taxable income in assessing the need for the valuation allowance, in the event that the Company determines that it would be able to realize the deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax assets would increase income in the period such determination was made. Similarly, in the event that the Company determines that it would not be able to realize the deferred tax assets in the future considering future taxable income, an adjustment to the deferred tax assets would decrease income in the period such determination was made. Changes in the valuation allowance from period to period are included in the Company’s tax provision in the period of change. The Company indefinitely reinvests the foreign earnings in its foreign subsidiaries. Unremitted earnings of foreign subsidiaries have been included in the condensed consolidated financial statements without giving effect to the United States taxes that may be payable on distribution to the United States, because such earnings are not anticipated to be remitted to the United States. In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the U.S. and Canadian deferred tax assets will not be realizable. As the expectation of future taxable income resulting from the U.S. and Canadian operations cannot be predicted with certainty, the Company maintains a valuation allowance against all the U.S. and Canadian deferred tax assets. The Company accounts for income taxes regarding uncertain tax positions, and recognizes interest and penalties related to uncertain tax positions in Income tax expense in the condensed consolidated statements of operations and comprehensive loss. Deferred Revenue - Deferred revenue represents payments received from clients in advance of providing services and amounts deferred if conditions for revenue recognition have not been met. Included in Accrued expenses on the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 is deferred revenue amounting to $1.3 million and $1.1 million, respectively. Recent Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update (ASU) No. 2018‑14, “Compensation-Retirement Benefits-Defined Benefit Plans-General: Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans” (ASU 2018‑14), that makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018‑14 is effective for fiscal years ending after December 15, 2020 for public entities; early adoption is permitted. The Company is currently evaluating ASU 2018‑14 but does not expect it to have a material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit a Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. The change will result in earlier recognition of credit losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022 for smaller reporting companies; early adoption is permitted. The Company is currently evaluating ASU 2016-13 but does not expect it to have a material impact on the Company’s condensed consolidated financial statements.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets
Goodwill and Intangible Assets	2. Goodwill and Intangible Assets The Company has determined that recent adverse changes in macroeconomic trends as a consequence of the outbreak of COVID-19 constitute a triggering event under U.S. GAAP (Accounting Standards Codification (ASC) No. 350, Intangibles-Goodwill and Other and Accounting Standards Codification No. 360, Impairment and Disposal of Long-Lived Assets). The Company has completed its impairment analysis procedures on its reporting units as of March 31, 2020 and has determined that there was no impairment of long-lived assets, tangible nor intangible, in any reporting units. The changes in the carrying amount of goodwill for the three months ended March 31, 2020 and 2019 were as follows (in thousands): Balance as of January 1, 2019 $ 2,050 Foreign currency translation adjustment 39 Balance as of March 31, 2019 $ 2,089 Balance as of January 1, 2020 $ 2,108 Foreign currency translation adjustment (105) Balance as of March 31, 2020 $ 2,003 The fair value measurement of goodwill was classified within Level 3 of the fair value hierarchy because the Company used the income approach, which utilizes significant inputs that are unobservable in the market. The Company believes it made reasonable estimates and assumptions to calculate the fair value of the reporting unit as of the impairment test measurement date. Information regarding the Company’s acquisition-related intangible assets was as follows (in thousands): Trademarks Media Developed Customer and Contact technology relationships tradenames Patents Database Total Gross carrying amounts: Balance as of January 1, 2020 $ 3,108 $ 2,177 $ 871 $ 44 $ 3,605 $ 9,805 Foreign currency translation (206) (184) (29) (3) (95) (517) Balance as of March 31, 2020 $ 2,902 $ 1,993 $ 842 $ 41 $ 3,510 $ 9,288 Trademarks Media Developed Customer and Contact technology relationships tradenames Patents Database Total Gross carrying amounts: Balance as of January 1, 2019 $ 2,999 $ 2,081 $ 855 $ 42 $ 3,546 $ 9,523 Foreign currency translation 61 47 10 1 59 178 Balance as of March 31, 2019 $ 3,060 $ 2,128 $ 865 $ 43 $ 3,605 $ 9,701 Trademarks Media Developed Customer and Contact technology relationships tradenames Patents Database Total Accumulated amortization: Balance as of January 1, 2020 $ 1,493 $ 983 $ 567 $ 24 $ 1,262 $ 4,329 Amortization expense 78 45 14 1 90 228 Foreign currency translation (111) (87) (15) (2) (36) (251) Balance as of March 31, 2020 $ 1,460 $ 941 $ 566 $ 23 $ 1,316 $ 4,306 Trademarks Media Developed Customer and Contact technology relationships tradenames Patents Database Total Accumulated amortization: Balance as of January 1, 2019 $ 1,137 $ 766 $ 440 $ 19 $ 886 $ 3,248 Amortization expense 77 45 30 1 89 242 Foreign currency translation 24 16 4 — 16 60 Balance as of March 31, 2019 $ 1,238 $ 827 $ 474 $ 20 $ 991 $ 3,550 Amortization expense relating to acquisition-related intangible assets was $0.2 million for each of the three months ended March 31, 2020 and 2019. As of the date hereof, estimated amortization expense for intangible assets after March 31, 2020 is as follows (in thousands): Year Amortization 2020 $ 648 2021 864 2022 864 2023 864 2024 772 Thereafter 970 $ 4,982

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Taxes
Income Taxes	3. Income Taxes The Company recorded a provision for income taxes of $0.4 million and ($28,000) for the three months ended March 31, 2020 and 2019, respectively. Taxes primarily consist of a provision for foreign taxes recorded by the Company’s foreign subsidiaries in accordance with local tax regulations. Effective income tax rates are disproportionate due to the losses incurred by the Company’s U.S. entities and Canadian subsidiaries and a valuation allowance recorded on deferred taxes of these entities and tax effects of foreign operations, including foreign exchange gains and losses. The reconciliations of the U.S. statutory rate with the Company’s effective tax rate for the three-month periods ended March 31, 2020 and 2019 are summarized in the table below: For the three months ended March 31, 2020 2019 Federal income tax expense at statutory rate 21.0 % 21.0 % Effect of: Tax effects of foreign operations 597.8 (34.0) Foreign operations permanent difference - foreign exchange gains and losses 355.3 104.2 Increase in unrecognized tax benefits (ASC 740) 165.1 (36.8) State income tax net of federal benefit 39.8 — Withholding tax 22.9 — Return to provision true up 1.2 (28.0) Foreign rate differential (85.5) (8.1) Change in valuation allowance (193.3) (7.9) Other (130.2) (4.6) Effective tax rate 794.1 % 5.8 % As of March 31, 2020, the Company performed a calculation of the Global Intangible Low-Taxed Income (GILTI) provisions and concluded that it continues to have no impact on account of the net losses of our foreign subsidiaries. The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the three months ended March 31, 2020 (in thousands): Unrecognized tax benefits Balance - January 1, 2020 $ 2,957 Increase in tax position 75 Interest accrual 45 Foreign currency remeasurement (149) Balance -March 31, 2020 $ 2,928 The Company had unrecognized tax benefits of approximately $2.9 million and $3.0 million as of March 31, 2020 and December 31, 2019, respectively. The portion of unrecognized tax benefits relating to an increase in tax positions was approximately $0.1 million while the portion of unrecognized tax benefits relating to interest and penalties was approximately $45,000 for the three months ended March 31, 2020. The Company expects that unrecognized tax benefits as of March 31, 2020 and December 31, 2019, if recognized, would have a material impact on the Company’s effective tax rate. The Company is subject to Federal income tax, as well as income tax in various states and foreign jurisdictions. The Company has open periods for U.S. Federal and state taxes from 2016 through 2019. Various foreign subsidiaries currently have open tax years from 2003 through 2019. Tax Assessments In September 2015, the Company’s Indian subsidiary was subject to an inquiry by the Service Tax Department in India regarding the classification of services provided by this subsidiary, asserting that the services provided by this subsidiary fall under the category of online information and database access or retrieval services (OID Services), and not under the category of business support services (BS Services) that are exempt from service tax as historically indicated in the subsidiary’s service tax filings. The Company disagrees with the Service Tax Department’s position. In November 2019, the Commissioner of Central Tax, GST & Central Excise issued an order confirming the Service Tax Department's position. The Company is contesting this order in an appeal to the Customs, Excise and Service Tax Appellate Tribunal. In the event the Service Tax Department is ultimately successful in proving that the services fall under the category of OID Services, the revenues earned by the Company’s Indian subsidiary for the period July 2012 through November 2016 would be subject to a service tax of between 12.36% and 15%, and this subsidiary may also be liable for interest and penalties. The revenue of our Indian subsidiary during this period was approximately $66.0 million. In accordance with new rules promulgated by the Service Tax Department, as of December 1, 2016 service tax is no longer applicable to OID or BS Services. Based on the assessment of the Company’s counsel, the Company has not recorded any tax liability for this case. In a separate action relating to service tax refunds, in October 2016, the Company’s Indian subsidiary received notices from the Indian Service Tax Department in India seeking to reverse service tax refunds of approximately $160,000 previously granted to our Indian subsidiary for three quarters in 2014, asserting that the services provided by this subsidiary fall under the category of OID Services and not BS Services. The appeal was determined in favor of the Service Tax Department. The Company disagrees with the basis of this decision and is contesting it. The Company expects delays in its Indian subsidiary receiving further service tax refunds until this matter is adjudicated with finality, and currently has service tax credits of approximately $1.0 million recorded as a receivable. Based on the assessment of the Company’s counsel, the Company has not recorded any tax liability for this case. Substantial recovery against the Company in the above referenced 2015 Service Tax Department case could have a material adverse impact on the Company, and unfavorable rulings or recoveries in other tax proceedings could have a material adverse impact on the consolidated operating results of the period in which the rulings or recovery occurs.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies.
Commitments and Contingencies	4. Commitments and Contingencies COVID-19 Pandemic - The novel coronavirus disease 2019 (“COVID-19”), which the World Health Organization declared as a pandemic on March 11, 2020, continues to spread throughout the world. COVID-19 has created significant global economic downturn, disrupted global trade and supply chains, adversely impacted many industries, caused federal and regional governments to impose substantial restrictions on the operations of non-essential businesses and contributed to significant declines and volatility in financial markets. The rapid development and fluidity of this situation precludes any prediction as to the ultimate impact of COVID-19 on the Company’s performance and financial results. The situation surrounding COVID-19 crisis remains fluid and the extent and duration of its impact to the economy remains unclear. For this reason, the company cannot reasonably estimate with any degree of certainty the future impact to its results of operations and financial condition. In late March, as a result of the COVID-19 crisis, the Company began to experience reduced demand for its services from existing and prospective customers. The potential for a material impact on the Company’s results of operations and financial position increases the longer the virus affects the level of economic activity in the United States and globally. The Company believes it has existing cash and cash equivalents which provide sufficient sources of liquidity to satisfy the Company’s financial needs for the next 12 months from the date of this Report while sustaining the current level of reduced demand for our services for a period of time. In the event the Company experiences a significant or prolonged reduction in revenues, the likelihood of which is uncertain, it would seek to manage its liquidity by reducing capital expenditures, deferring investing activities, and reducing costs as it would likely have no other source of liquidity to support ongoing operations in a manner that is not significantly detrimental to the business. Litigation – In 2008, a judgment was rendered in the Philippines against a Philippine subsidiary of the Company that is no longer active and purportedly also against Innodata Inc., in favor of certain former employees of the Philippine subsidiary. The potential payment amount aggregates to approximately $6.4 million, plus legal interest that accrued at 12% per annum from August 13, 2008 to June 30, 2013, and thereafter accrued and continues to accrue at 6% per annum. The potential payment amount as expressed in U.S. dollars varies with the Philippine peso to U.S. dollar exchange rate. In December 2017, a group of 97 of the former employees of the Philippine subsidiary indicated that they proposed to record the judgment as to themselves in New Jersey. In January 2018, in response to an action initiated by Innodata Inc., the United States District Court for the District of New Jersey (USDC) entered a preliminary injunction that enjoins these former employees from pursuing or seeking recognition or enforcement of the judgment against Innodata Inc. in the United States during the pendency of the action and until further order of the USDC. In June 2018, the USDC entered a consent order administratively closing the action subject to return of the action to the active docket upon the written request of Innodata Inc. or the former employees, with the USDC retaining jurisdiction over the matter and the preliminary injunction remaining in full force and effect. The Company is also subject to various other legal proceedings and claims that have arisen in the ordinary course of business. While management currently believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s consolidated financial position or overall trends in consolidated results of operations, litigation is subject to inherent uncertainties. Substantial recovery against the Company in the above-referenced Philippine action could have a material adverse impact on the Company, and unfavorable rulings or recoveries in the other proceedings could have a material adverse impact on the consolidated operating results of the Company. In addition, the Company’s estimate of the potential impact on the Company’s consolidated financial position or overall consolidated results of operations for the above referenced legal proceedings could change in the future. The Company’s legal accruals related to legal proceedings and claims are based on the Company's determination of whether or not a loss is probable. The Company reviews outstanding proceedings and claims with external counsel to assess probability and estimates of loss. The accruals are adjusted if necessary. While the Company intends to defend these matters vigorously, adverse outcomes that it estimates could reach approximately $300,000 in the aggregate beyond recorded amounts are reasonably possible. If circumstances change, the Company may be required to record adjustments that could be material to its reported consolidated financial condition and results of operations.

Stock Options

Stock Options	3 Months Ended
	Mar. 31, 2020
Stock Options
Stock Options	5. Stock Options On June 7, 2016, stockholders of the Company approved amendments to the Innodata Inc. 2013 Stock Plan. The Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016, is referred to herein as the “Plan.” The number of shares of common stock of Innodata Inc. that may be delivered, purchased or used for reference purposes (with respect to stock appreciation rights or stock units) for awards granted under the Plan after June 7, 2016 is 5,858,892 (the Share Reserve). Shares subject to an option or stock appreciation right granted under the Plan after June 7, 2016 count against the Share Reserve as one share for every share granted, and shares subject to any other type of award granted under the Plan after June 7, 2016 count against the Share Reserve as two shares for every share granted. Any award, or portion of an award, under the Plan or under the Company’s 2009 Stock Plan (as amended and restated (the Prior Plan)) that expires or terminates unexercised, becomes unexercisable or is forfeited or otherwise terminated, surrendered or canceled as to any shares without delivery of shares or other consideration will be added back to the Share Reserve as one share for each such share that was subject to an option or stock appreciation right granted under the Plan or the Prior Plan, and two shares for each such share that was subject to an award other than an option or stock appreciation right granted under the Plan or the Prior Plan. If any shares are withheld, tendered or exchanged by a participant in the Plan as full or partial payment to Innodata of the exercise price under an option under the Plan or the Prior Plan or in satisfaction of a participant’s tax withholding obligations with respect to any award under the Plan or the Prior Plan, there will be added back to the Share Reserve one share for each such share that was withheld, tendered or exchanged in respect of an option or stock appreciation right granted under the Plan or the Prior Plan, and two shares for each such share that was withheld, tendered or exchanged in respect of an award other than an option or stock appreciation right granted under the Plan or the Prior Plan. A summary of stock option activity under the Plan as of March 31, 2020, and changes during the three months then ended, are presented below: Weighted- Weighted - Average Average Remaining Aggregate Number of Exercise Contractual Term Intrinsic Options Price (years) Value Outstanding at January 1, 2020 6,833,303 $ 1.86 Granted — Exercised — Forfeited/Expired (544,303) 3.39 Outstanding at March 31, 2020 6,289,000 $ 1.73 7.19 $ - Exercisable at March 31, 2020 4,108,622 $ 2.01 6.29 $ - Vested and Expected to Vest at March 31, 2020 6,289,000 $ 1.73 $ - The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average fair value of the options granted, and weighted-average assumptions were as follows: For the three months ended March 31, 2020 2019 Weighted average fair value of options granted $ — $ 0.64 Risk-free interest rate — 2.55 % Expected term (years) — 6 Expected volatility factor — 45 % Expected dividends — None A summary of restricted shares under the Company’s Plan as of March 31, 2020 are presented below: Weighted-Average Grant Date Fair Number of Shares Value Granted 75,000 $ 1.38 Vested (25,000) — Forfeited/Expired — — Unvested at March 31, 2020 50,000 $ 1.38 The compensation cost related to non-vested stock options and restricted stock awards not yet recognized as of March 31, 2020 totaled approximately $1.2 million. The weighted-average period over which these costs will be recognized is twenty-three months. The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands): For the three months ended March 31, 2020 2019 Direct operating costs $ 40 $ 18 Selling and administrative expenses 130 111 Total stock-based compensation $ 170 $ 129

Operating Leases

Operating Leases	3 Months Ended
	Mar. 31, 2020
Operating Leases
Operating Leases	6. Operating Leases The Company has various operating lease agreements for its offices and service delivery centers. The Company has determined that the risks and benefits related to the leased properties are retained by the lessors. Accordingly, these are accounted for as operating leases. These lease agreements are for terms ranging from two to eleven years and, in most cases, provide for rental escalations ranging from 1.75% to 10%. Most of these agreements are renewable at the mutual consent of the parties in the contract. The Company adopted ASU 2016-02, "Leases (Topic 842) ," beginning January 1, 2019 and applied the practical expedients consistently for all of its leases. The table below summarizes the amounts recognized in the financial statements related to operating leases for the periods presented (in thousands): For the three months ended March 31, 2020 2019 Rent expense for long-term operating leases $ 443 $ 415 Rent expense for short-term leases 61 86 Total rent expense $ 504 $ 501 The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of these amounts to the remaining net present value of the operating lease liability reported in the condensed consolidated balance sheet as of March 31, 2020 (in thousands): Year Amount 2020 $ 1,188 2021 1,232 2022 1,182 2023 1,031 2024 1,048 2025 and thereafter 4,585 Total lease payments 10,266 Less: Interest (3,016) Net present value of lease liabilities $ 7,250 Current portion $ 922 Long-term portion 6,328 Total $ 7,250 The weighted-average remaining lease terms and discount rates for all of our operating leases as of March 31, 2020 were as follows: Weighted-average lease term remaining 68 months Weighted-average discount rate 8.92 %

Long-term Obligations

Long-term Obligations	3 Months Ended
	Mar. 31, 2020
Long-term Obligations
Long-term Obligations	7. Long-term Obligations Total long-term obligations of the Company as of March 31, 2020 and December 31, 2019 consisted of the following (in thousands): March 31, December 31, 2020 2019 Pension obligations - accrued pension liability $ 4,670 $ 4,611 Settlement agreement (1) 652 708 Capital lease obligations 113 127 5,435 5,446 Less: Current portion of long-term obligations 856 912 Totals $ 4,579 $ 4,534 (1) Represents payment to be made pursuant to a settlement agreement entered into in December 2018 between a subsidiary of the Company and 19 former employees of such subsidiary. The balance is payable in monthly installments through March 2023.

Comprehensive Loss

Comprehensive Loss	3 Months Ended
	Mar. 31, 2020
Comprehensive Loss
Comprehensive Loss	8. Comprehensive Loss Accumulated other comprehensive loss, as reflected in the condensed consolidated balance sheets, consists of pension liability adjustments, net of taxes, foreign currency translation adjustments, net of taxes and changes in fair value of derivatives, net of taxes. The components of Accumulated other comprehensive loss as of March 31, 2020, and reclassifications out of Accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019, were as follows (net of tax) (in thousands): Foreign Accumulated Pension Fair Value Currency Other Liability of Translation Comprehensive Adjustment Derivatives Adjustment Loss Balance at January 1, 2020 $ (53) $ 33 $ (900) $ (920) Other comprehensive loss before reclassifications, net of taxes — (166) (718) (884) Total other comprehensive loss before reclassifications, net of taxes (53) (133) (1,618) (1,804) Net amount reclassified to earnings 14 (5) - 9 Balance at March 31, 2020 $ (39) $ (138) $ (1,618) $ (1,795) Foreign Accumulated Pension Fair Value Currency Other Liability of Translation Comprehensive Adjustment Derivatives Adjustment Loss Balance at January 1, 2019 $ 1,451 $ — $ (1,466) $ (15) Other comprehensive income before reclassifications, net of taxes — — 264 264 Total other comprehensive income (loss) before reclassifications, net of taxes 1,451 — (1,202) 249 Net amount reclassified to earnings (36) — — (36) Balance at March 31, 2019 $ 1,415 $ — $ (1,202) $ 213 All reclassifications out of Accumulated other comprehensive loss had an impact on Direct operating costs in the condensed consolidated statements of operations and comprehensive loss.

Segment Reporting and Concentra

Segment Reporting and Concentrations	3 Months Ended
	Mar. 31, 2020
Segment Reporting and Concentrations
Segment Reporting and Concentrations	9. Segment Reporting and Concentrations The Company’s operations are classified in three reporting segments: Digital Data Solutions (DDS), Synodex and Agility. The DDS segment provides a range of solutions and platforms for solving complex data challenges that companies face when they seek to obtain the benefits of artificial intelligence (AI) systems and analytics platforms. These include data annotation, data transformation, data curation and intelligent automation. The DDS segment also provides a variety of services for clients in the information industry that relate to content operations and product development. The Synodex segment provides an intelligent data platform that transforms medical records into useable digital data organized in accordance with our proprietary data models or client data models. The Agility segment provides an intelligent data platform that provides marketing communications and public relations professionals with the ability to target and distribute content to journalists and social media influencers world-wide and to monitor and analyze global news channels (print, web, radio and TV) and social media channels. A significant portion of the Company’s revenues is generated from its facilities in the Philippines, India, Sri Lanka, Canada, Germany, the United Kingdom and Israel. Revenues from external clients and segment operating profit (loss), and other reportable segment information were as follows (in thousands): For the three months ended March 31, 2020 2019 Revenues: DDS $ 10,409 $ 10,177 Synodex 1,282 1,024 Agility 2,839 2,493 Total Consolidated $ 14,530 $ 13,694 Income (loss) before provision for income taxes (1) : DDS $ 129 $ 74 Synodex 196 119 Agility (274) (672) Total Consolidated $ 51 $ (479) Income (loss) before provision for income taxes (2) : DDS $ 59 $ 12 Synodex 241 159 Agility (249) (650) Total Consolidated $ 51 $ (479) March 31, 2020 December 31 , 2019 Total assets: DDS $ 21,537 $ 23,196 Synodex 598 675 Agility 26,741 25,875 Total Consolidated $ 48,876 $ 49,746 March 31, 2020 December 31, 2019 Goodwill: Agility $ 2,003 $ 2,108 Total Consolidated $ 2,003 $ 2,108 (1) Before elimination of any inter-segment profits (2) After elimination of any inter-segment profits The following table summarizes revenues by geographic region (determined and based upon customer’s domicile) (in thousands): For the three months ended March 31, 2020 2019 United States $ 6,690 $ 6,531 United Kingdom 2,771 2,318 The Netherlands 1,640 1,722 Canada 1,545 1,484 Others - principally Europe 1,884 1,639 Totals $ 14,530 $ 13,694 Long-lived assets of the Company as of March 31, 2020 and December 31, 2019, respectively, by geographic region, were comprised of the following (in thousands): March 31, December 31, 2020 2019 United States $ 4,455 $ 4,591 Foreign countries: Canada 8,216 8,876 United Kingdom 1,738 1,907 Philippines 4,998 5,135 India 381 508 Sri Lanka 632 678 Israel 4 19 Germany 1 1 Total foreign 15,970 17,124 Totals $ 20,425 $ 21,715 Long-lived assets include the unamortized balance of right-of-use assets amounting to $6.5 million and $7.0 million as of March 31, 2020 and December 31, 2019, respectively. One client in the DDS segment generated approximately 14% of the Company’s total revenues for the three months ended March 31, 2020 and 16% of the Company’s total revenues for the three months ended March 31, 2019. Another client generated less than 10% of the Company’s total revenues for the three months ended March 31, 2020 and 10% of the Company’s total revenues for the three months ended March 31, 2019. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 54% and 52% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, approximately 59% of the Company's accounts receivable was from foreign (principally European) clients and 28% of the Company’s accounts receivable was due from two clients. As of December 31, 2019, approximately 60% of the Company's accounts receivable was from foreign (principally European) clients and 44% of the Company’s accounts receivable was due from three clients.

Loss per Share

Loss per Share	3 Months Ended
	Mar. 31, 2020
Loss per Share
Loss per Share	10. Loss Per Share For the three months ended March 31, 2020 2019 Net loss attributable to Innodata Inc. and Subsidiaries $ (365) $ (452) Weighted average common shares outstanding 24,401 25,927 Dilutive effect of outstanding options — — Adjusted for dilutive computation 24,401 25,927 Basic loss per share is computed using the weighted-average number of common shares outstanding during the year. Diluted loss per share is computed by considering the impact of the potential issuance of common shares, using the treasury stock method, on the weighted average number of shares outstanding. For those securities that are not convertible into a class of common stock, the two-class method of computing loss per share is used. Options to purchase 6.3 million shares and 5.0 million shares of common stock for the three months ended March 31, 2020 and 2019, respectively, were outstanding but not included in the computation of diluted loss per share because the exercise price of the options was greater than the average market price of the common shares and therefore the effect would have been anti-dilutive.

Derivatives

Derivatives	3 Months Ended
	Mar. 31, 2020
Derivatives
Derivatives	11. Derivatives The Company conducts a large portion of its operations in international markets that subject it to foreign currency fluctuations. The most significant foreign currency exposures occur when revenue and associated accounts receivable are collected in one currency and expenses to generate that revenue are incurred in another currency. The Company’s primary exchange rate exposure relates to payroll, other payroll costs and operating expenses in the Philippines, India, Sri Lanka and Israel. In addition, although most of the Company’s revenues are denominated in U.S. dollars, a significant portion of the total revenues is denominated in Canadian dollars, Pound Sterling and Euros. To manage its exposure to fluctuations in foreign currency exchange rates, the Company enters into foreign currency forward contracts, authorized under Company policies. The Company utilizes non-deliverable forward contracts expiring within six months to reduce its foreign currency risk. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking hedging transactions. The Company does not hold or issue derivatives for trading purposes. All derivatives are recognized at their fair value and classified based on the instrument’s maturity date. The total notional amount for outstanding derivatives as of March 31, 2020 and December 31, 2019 was $3.2 million and $4.3 million, respectively, which was comprised of cash flow hedges denominated in U.S. dollars. The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 (in thousands): Balance Sheet Location Fair Value 2020 2019 Derivatives designated as hedging instruments: Foreign currency forward contracts Accrued expenses $ 138 $ — Foreign currency forward contracts Prepaid expenses and other current assets $ — $ 33 The effects of foreign currency forward contracts designated as cash flow hedges on the Company’s condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2020 and 2019, respectively, were as follows (in thousands): For the three months ended March 31, 2020 2019 Net gain (loss) recognized in OCI (1) $ (166) $ — Net (gain) loss reclassified from accumulated OCI into income (2) $ (5) $ — Net gain recognized in income (3) $ — $ — (1) Net change in fair value of the effective portion classified into other comprehensive income ("OCI") (2) Effective portion classified within direct operating costs (3) There were no ineffective portions for the period presented.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2020
Subsequent Event
Subsequent Event	12 . Subsequent Event On May 4, 2020, the Company received loan proceeds of $579,700 under the Paycheck Protection Program (PPP) established as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The loans and accrued interest are forgivable as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The unforgiven portion of the loan is payable over two years at an interest rate of 1% per year, with a deferral of payments for the first six months.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation - The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company as of March 31, 2020, the results of its operations and comprehensive loss for the three months ended March 31, 2020 and 2019, cash flows for the three months ended March 31, 2020 and 2019, and stockholders’ equity for the three months ended March 31, 2020 and 2019. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Certain information and note disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) have been condensed or omitted from these condensed consolidated financial statements pursuant to the rules and regulations of the SEC and, accordingly, these condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10‑K. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the condensed consolidated financial statements for the year December 31, 2019.
Principles of Consolidation	Principles of Consolidation - The condensed consolidated financial statements include the accounts of Innodata Inc. and its wholly owned subsidiaries, and the Synodex and docGenix limited liability companies that are majority-owned by the Company. The non-controlling interests in the Synodex and docGenix limited liability companies are accounted for in accordance with Financial Accounting Standards Board (FASB) non-controlling interest guidance. All significant intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates - In preparing condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those related to allowance for doubtful accounts and billing adjustments, long-lived assets, intangible assets, goodwill, valuation of deferred tax assets, valuation of stock-based compensation, litigation accruals and estimated accruals for various tax exposures.
Revenue Recognition	Revenue Recognition – The Company’s revenue is recognized when services are rendered to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those services as per the agreement with the customer. In cases where there are agreements with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligation is distinct within the context of the agreement at the agreement’s inception. Performance obligations that are not distinct at agreement inception are combined. The Company allocates the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation, if any, and then evaluates how the services are performed for the customer to determine the timing of revenue recognition. For the Digital Data Solutions (DDS) segment, revenue is recognized primarily based on the quantity delivered or resources utilized in the period in which services are performed and performance conditions are satisfied as per the agreement. Revenues for agreements billed on a time-and-materials basis are recognized as services are performed. Revenues under fixed-fee agreements, which are not significant to the overall revenues, are recognized based on the proportional performance method of accounting, as services are performed, or milestones are achieved. For the Synodex segment, revenue is recognized primarily based on the quantity delivered in the period in which services are performed and performance conditions are satisfied as per the agreement. A portion of our Synodex segment revenue is derived from licensing our functional software and providing access to our hosted software platform. Revenue from such services is recognized monthly when all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; access to the service is provided to the end user; and collection is probable. The Agility segment derives its revenue primarily from subscription arrangements and provision of enriched media analysis services. It also derives revenue as a reseller of corporate communication solutions. Revenue from subscriptions is recognized monthly when access to the service is provided to the end user; all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; and collection is probable. Revenue from enriched media analysis services is recognized when the services are performed, and performance conditions are satisfied. Revenues from the reseller agreements are recognized at gross with our functioning as a principal due to our meeting the following criteria. We act as the primary obligor in the sales transaction; assume the credit risk; set the price; can select suppliers; and are involved in the execution of the services, including after sales service. Revenues include reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. The Company considers U.S. GAAP criteria for determining whether to report revenue gross as a principal versus net as an agent. Factors considered include whether we are the primary obligor, have risks and rewards of ownership, and bear the risk that a customer may not pay for the services performed. If there are circumstances where the above criteria are not met and therefore, we are not the principal in providing services, amounts received from customers are presented net of payments in the condensed consolidated statements of operations and comprehensive loss. Contract acquisition cost, which is included in prepaid expenses and other current assets, for our Agility segment is amortized over the term of a subscription agreement that normally has a duration of 12 months or less. The Company reviews these costs on a periodic basis to determine the need to adjust the carrying values for pre-terminated contracts.
Foreign Currency	Foreign Currency - The functional currency of the Company’s production operations located in the Philippines, India, Sri Lanka and Israel is the U.S. dollar. Transactions denominated in Philippine pesos, Indian and Sri Lankan rupees and Israeli shekels are translated to U.S. dollars at rates using the average rates in effect on the transaction dates. The functional currency for the Company’s subsidiaries in Germany, the United Kingdom and Canada are the Euro, the Pound Sterling and the Canadian dollar, respectively. The financial statements of these subsidiaries are prepared in these respective currencies. Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in the condensed consolidated financial statements. Income, expenses and cash flows are translated at weighted average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of Accumulated other comprehensive loss in stockholders’ equity. Foreign exchange transaction gains or losses are included in Direct operating costs in the accompanying condensed consolidated statements of operations and comprehensive loss. To the extent that the currencies of the Company’s production facilities located in the Philippines, India, Sri Lanka and Israel fluctuate, the Company is subject to risks of changing costs of production after pricing is established for certain client projects. In addition, the Company is exposed to the risk of foreign currency fluctuation on the non-U.S. dollar denominated revenues, and on the monetary assets and liabilities held by its foreign subsidiaries that are denominated in local currencies.
Income Taxes	Income Taxes - Deferred taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates, as well as any net operating loss or tax credit carryforwards expected to reduce taxes payable in future years. A valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax assets will not be realized. While the Company considers future taxable income in assessing the need for the valuation allowance, in the event that the Company determines that it would be able to realize the deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax assets would increase income in the period such determination was made. Similarly, in the event that the Company determines that it would not be able to realize the deferred tax assets in the future considering future taxable income, an adjustment to the deferred tax assets would decrease income in the period such determination was made. Changes in the valuation allowance from period to period are included in the Company’s tax provision in the period of change. The Company indefinitely reinvests the foreign earnings in its foreign subsidiaries. Unremitted earnings of foreign subsidiaries have been included in the condensed consolidated financial statements without giving effect to the United States taxes that may be payable on distribution to the United States, because such earnings are not anticipated to be remitted to the United States. In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the U.S. and Canadian deferred tax assets will not be realizable. As the expectation of future taxable income resulting from the U.S. and Canadian operations cannot be predicted with certainty, the Company maintains a valuation allowance against all the U.S. and Canadian deferred tax assets. The Company accounts for income taxes regarding uncertain tax positions, and recognizes interest and penalties related to uncertain tax positions in Income tax expense in the condensed consolidated statements of operations and comprehensive loss.
Deferred Revenue	Deferred Revenue - Deferred revenue represents payments received from clients in advance of providing services and amounts deferred if conditions for revenue recognition have not been met. Included in Accrued expenses on the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 is deferred revenue amounting to $1.3 million and $1.1 million, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update (ASU) No. 2018‑14, “Compensation-Retirement Benefits-Defined Benefit Plans-General: Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans” (ASU 2018‑14), that makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018‑14 is effective for fiscal years ending after December 15, 2020 for public entities; early adoption is permitted. The Company is currently evaluating ASU 2018‑14 but does not expect it to have a material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit a Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. The change will result in earlier recognition of credit losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022 for smaller reporting companies; early adoption is permitted. The Company is currently evaluating ASU 2016-13 but does not expect it to have a material impact on the Company’s condensed consolidated financial statements.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets
Schedule of Carrying Amount of Goodwill	The changes in the carrying amount of goodwill for the three months ended March 31, 2020 and 2019 were as follows (in thousands): Balance as of January 1, 2019 $ 2,050 Foreign currency translation adjustment 39 Balance as of March 31, 2019 $ 2,089 Balance as of January 1, 2020 $ 2,108 Foreign currency translation adjustment (105) Balance as of March 31, 2020 $ 2,003
Schedule of company's acquisition-related intangible assets	Information regarding the Company’s acquisition-related intangible assets was as follows (in thousands): Trademarks Media Developed Customer and Contact technology relationships tradenames Patents Database Total Gross carrying amounts: Balance as of January 1, 2020 $ 3,108 $ 2,177 $ 871 $ 44 $ 3,605 $ 9,805 Foreign currency translation (206) (184) (29) (3) (95) (517) Balance as of March 31, 2020 $ 2,902 $ 1,993 $ 842 $ 41 $ 3,510 $ 9,288 Trademarks Media Developed Customer and Contact technology relationships tradenames Patents Database Total Gross carrying amounts: Balance as of January 1, 2019 $ 2,999 $ 2,081 $ 855 $ 42 $ 3,546 $ 9,523 Foreign currency translation 61 47 10 1 59 178 Balance as of March 31, 2019 $ 3,060 $ 2,128 $ 865 $ 43 $ 3,605 $ 9,701 Trademarks Media Developed Customer and Contact technology relationships tradenames Patents Database Total Accumulated amortization: Balance as of January 1, 2020 $ 1,493 $ 983 $ 567 $ 24 $ 1,262 $ 4,329 Amortization expense 78 45 14 1 90 228 Foreign currency translation (111) (87) (15) (2) (36) (251) Balance as of March 31, 2020 $ 1,460 $ 941 $ 566 $ 23 $ 1,316 $ 4,306 Trademarks Media Developed Customer and Contact technology relationships tradenames Patents Database Total Accumulated amortization: Balance as of January 1, 2019 $ 1,137 $ 766 $ 440 $ 19 $ 886 $ 3,248 Amortization expense 77 45 30 1 89 242 Foreign currency translation 24 16 4 — 16 60 Balance as of March 31, 2019 $ 1,238 $ 827 $ 474 $ 20 $ 991 $ 3,550
Schedule of estimated amortization expense for intangible assets	As of the date hereof, estimated amortization expense for intangible assets after March 31, 2020 is as follows (in thousands): Year Amortization 2020 $ 648 2021 864 2022 864 2023 864 2024 772 Thereafter 970 $ 4,982

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2020
Income Taxes
Schedule of Effective Income Tax Rate Reconciliation	The reconciliations of the U.S. statutory rate with the Company’s effective tax rate for the three-month periods ended March 31, 2020 and 2019 are summarized in the table below: For the three months ended March 31, 2020 2019 Federal income tax expense at statutory rate 21.0 % 21.0 % Effect of: Tax effects of foreign operations 597.8 (34.0) Foreign operations permanent difference - foreign exchange gains and losses 355.3 104.2 Increase in unrecognized tax benefits (ASC 740) 165.1 (36.8) State income tax net of federal benefit 39.8 — Withholding tax 22.9 — Return to provision true up 1.2 (28.0) Foreign rate differential (85.5) (8.1) Change in valuation allowance (193.3) (7.9) Other (130.2) (4.6) Effective tax rate 794.1 % 5.8 %
Schedule Of unrecognized Tax Benefits	The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the three months ended March 31, 2020 (in thousands): Unrecognized tax benefits Balance - January 1, 2020 $ 2,957 Increase in tax position 75 Interest accrual 45 Foreign currency remeasurement (149) Balance -March 31, 2020 $ 2,928

Stock Options (Tables)

Stock Options (Tables)	3 Months Ended
	Mar. 31, 2020
Stock Options
Schedule of Stock Option Activity	A summary of stock option activity under the Plan as of March 31, 2020, and changes during the three months then ended, are presented below: Weighted- Weighted - Average Average Remaining Aggregate Number of Exercise Contractual Term Intrinsic Options Price (years) Value Outstanding at January 1, 2020 6,833,303 $ 1.86 Granted — Exercised — Forfeited/Expired (544,303) 3.39 Outstanding at March 31, 2020 6,289,000 $ 1.73 7.19 $ - Exercisable at March 31, 2020 4,108,622 $ 2.01 6.29 $ - Vested and Expected to Vest at March 31, 2020 6,289,000 $ 1.73 $ -
Schedule of weighted average assumptions	The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average fair value of the options granted, and weighted-average assumptions were as follows: For the three months ended March 31, 2020 2019 Weighted average fair value of options granted $ — $ 0.64 Risk-free interest rate — 2.55 % Expected term (years) — 6 Expected volatility factor — 45 % Expected dividends — None
Summary of restricted shares under the Company's Plan	A summary of restricted shares under the Company’s Plan as of March 31, 2020 are presented below: Weighted-Average Grant Date Fair Number of Shares Value Granted 75,000 $ 1.38 Vested (25,000) — Forfeited/Expired — — Unvested at March 31, 2020 50,000 $ 1.38
Schedule of Stock-Based Compensation Expense	The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands): For the three months ended March 31, 2020 2019 Direct operating costs $ 40 $ 18 Selling and administrative expenses 130 111 Total stock-based compensation $ 170 $ 129

Operating Leases (Tables)

Operating Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Operating Leases
Schedule of Operating Lease Expense Recognized in Financial Statements	The table below summarizes the amounts recognized in the financial statements related to operating leases for the periods presented (in thousands): For the three months ended March 31, 2020 2019 Rent expense for long-term operating leases $ 443 $ 415 Rent expense for short-term leases 61 86 Total rent expense $ 504 $ 501
Schedule of Net Present Value of Operating Lease Liability	The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of these amounts to the remaining net present value of the operating lease liability reported in the condensed consolidated balance sheet as of March 31, 2020 (in thousands): Year Amount 2020 $ 1,188 2021 1,232 2022 1,182 2023 1,031 2024 1,048 2025 and thereafter 4,585 Total lease payments 10,266 Less: Interest (3,016) Net present value of lease liabilities $ 7,250 Current portion $ 922 Long-term portion 6,328 Total $ 7,250
Schedule of Weighted Average Remaining Lease Terms and Discount Rates	The weighted-average remaining lease terms and discount rates for all of our operating leases as of March 31, 2020 were as follows: Weighted-average lease term remaining 68 months Weighted-average discount rate 8.92 %

Long-term Obligations (Tables)

Long-term Obligations (Tables)	3 Months Ended
	Mar. 31, 2020
Long-term Obligations
Schedule of Total Long-Term Obligations	Total long-term obligations of the Company as of March 31, 2020 and December 31, 2019 consisted of the following (in thousands): March 31, December 31, 2020 2019 Pension obligations - accrued pension liability $ 4,670 $ 4,611 Settlement agreement (1) 652 708 Capital lease obligations 113 127 5,435 5,446 Less: Current portion of long-term obligations 856 912 Totals $ 4,579 $ 4,534 (1) Represents payment to be made pursuant to a settlement agreement entered into in December 2018 between a subsidiary of the Company and 19 former employees of such subsidiary. The balance is payable in monthly installments through March 2023.

Comprehensive Loss (Tables)

Comprehensive Loss (Tables)	3 Months Ended
	Mar. 31, 2020
Comprehensive Loss
Schedule of Accumulated Other Comprehensive Loss	The components of Accumulated other comprehensive loss as of March 31, 2020, and reclassifications out of Accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019, were as follows (net of tax) (in thousands): Foreign Accumulated Pension Fair Value Currency Other Liability of Translation Comprehensive Adjustment Derivatives Adjustment Loss Balance at January 1, 2020 $ (53) $ 33 $ (900) $ (920) Other comprehensive loss before reclassifications, net of taxes — (166) (718) (884) Total other comprehensive loss before reclassifications, net of taxes (53) (133) (1,618) (1,804) Net amount reclassified to earnings 14 (5) - 9 Balance at March 31, 2020 $ (39) $ (138) $ (1,618) $ (1,795) Foreign Accumulated Pension Fair Value Currency Other Liability of Translation Comprehensive Adjustment Derivatives Adjustment Loss Balance at January 1, 2019 $ 1,451 $ — $ (1,466) $ (15) Other comprehensive income before reclassifications, net of taxes — — 264 264 Total other comprehensive income (loss) before reclassifications, net of taxes 1,451 — (1,202) 249 Net amount reclassified to earnings (36) — — (36) Balance at March 31, 2019 $ 1,415 $ — $ (1,202) $ 213

Segment Reporting and Concent_2

Segment Reporting and Concentrations (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting and Concentrations
Schedule of Segment Reporting Information, by Segment	Revenues from external clients and segment operating profit (loss), and other reportable segment information were as follows (in thousands): For the three months ended March 31, 2020 2019 Revenues: DDS $ 10,409 $ 10,177 Synodex 1,282 1,024 Agility 2,839 2,493 Total Consolidated $ 14,530 $ 13,694 Income (loss) before provision for income taxes (1) : DDS $ 129 $ 74 Synodex 196 119 Agility (274) (672) Total Consolidated $ 51 $ (479) Income (loss) before provision for income taxes (2) : DDS $ 59 $ 12 Synodex 241 159 Agility (249) (650) Total Consolidated $ 51 $ (479) March 31, 2020 December 31 , 2019 Total assets: DDS $ 21,537 $ 23,196 Synodex 598 675 Agility 26,741 25,875 Total Consolidated $ 48,876 $ 49,746 March 31, 2020 December 31, 2019 Goodwill: Agility $ 2,003 $ 2,108 Total Consolidated $ 2,003 $ 2,108 (1) Before elimination of any inter-segment profits (2) After elimination of any inter-segment profits
Schedule of Revenue from External Customers and Long-Lived Assets	The following table summarizes revenues by geographic region (determined and based upon customer’s domicile) (in thousands): For the three months ended March 31, 2020 2019 United States $ 6,690 $ 6,531 United Kingdom 2,771 2,318 The Netherlands 1,640 1,722 Canada 1,545 1,484 Others - principally Europe 1,884 1,639 Totals $ 14,530 $ 13,694
Schedule of Revenue from External Customers based on Client domicile	Long-lived assets of the Company as of March 31, 2020 and December 31, 2019, respectively, by geographic region, were comprised of the following (in thousands): March 31, December 31, 2020 2019 United States $ 4,455 $ 4,591 Foreign countries: Canada 8,216 8,876 United Kingdom 1,738 1,907 Philippines 4,998 5,135 India 381 508 Sri Lanka 632 678 Israel 4 19 Germany 1 1 Total foreign 15,970 17,124 Totals $ 20,425 $ 21,715

Loss per Share (Tables)

Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Loss per Share
Schedule of Earnings Per Share, Basic and Diluted	For the three months ended March 31, 2020 2019 Net loss attributable to Innodata Inc. and Subsidiaries $ (365) $ (452) Weighted average common shares outstanding 24,401 25,927 Dilutive effect of outstanding options — — Adjusted for dilutive computation 24,401 25,927

Derivatives (Tables)

Derivatives (Tables)	3 Months Ended
	Mar. 31, 2020
Derivatives
Schedule of fair value of derivative instruments	The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 (in thousands): Balance Sheet Location Fair Value 2020 2019 Derivatives designated as hedging instruments: Foreign currency forward contracts Accrued expenses $ 138 $ — Foreign currency forward contracts Prepaid expenses and other current assets $ — $ 33
Schedule	The effects of foreign currency forward contracts designated as cash flow hedges on the Company’s condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2020 and 2019, respectively, were as follows (in thousands): For the three months ended March 31, 2020 2019 Net gain (loss) recognized in OCI (1) $ (166) $ — Net (gain) loss reclassified from accumulated OCI into income (2) $ (5) $ — Net gain recognized in income (3) $ — $ — (1) Net change in fair value of the effective portion classified into other comprehensive income ("OCI") (2) Effective portion classified within direct operating costs There were no ineffective portions for the period presented.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Addtional Information (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Deferred Revenue	$ 1.3	$ 1.1

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Goodwill and Intangible Assets
Balance	$ 2,108	$ 2,050
Foreign currency translation adjustment	(105)	39
Balance	$ 2,003	$ 2,089

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Acquisition-Related Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Gross carrying amounts:
Balance	$ 9,805	$ 9,523
Foreign currency translation	(517)	178
Balance	9,288	9,701
Accumulated amortization:
Balance	4,329	3,248
Amortization expense	228	242
Foreign currency translation	(251)	60
Balance	4,306	3,550
Developed technology [Member]
Gross carrying amounts:
Balance	3,108	2,999
Foreign currency translation	(206)	61
Balance	2,902	3,060
Accumulated amortization:
Balance	1,493	1,137
Amortization expense	78	77
Foreign currency translation	(111)	24
Balance	1,460	1,238
Customer relationships [Member]
Gross carrying amounts:
Balance	2,177	2,081
Foreign currency translation	(184)	47
Balance	1,993	2,128
Accumulated amortization:
Balance	983	766
Amortization expense	45	45
Foreign currency translation	(87)	16
Balance	941	827
Trademarks and trade names [Member]
Gross carrying amounts:
Balance	871	855
Foreign currency translation	(29)	10
Balance	842	865
Accumulated amortization:
Balance	567	440
Amortization expense	14	30
Foreign currency translation	(15)	4
Balance	566	474
Patents [Member]
Gross carrying amounts:
Balance	44	42
Foreign currency translation	(3)	1
Balance	41	43
Accumulated amortization:
Balance	24	19
Amortization expense	1	1
Foreign currency translation	(2)
Balance	23	20
Media Contact Database [Member]
Gross carrying amounts:
Balance	3,605	3,546
Foreign currency translation	(95)	59
Balance	3,510	3,605
Accumulated amortization:
Balance	1,262	886
Amortization expense	90	89
Foreign currency translation	(36)	16
Balance	$ 1,316	$ 991

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands	Mar. 31, 2020USD ($)
Goodwill and Intangible Assets
2020	$ 648
2021	864
2022	864
2023	864
2024	772
Thereafter	970
Finite-Lived Intangible Assets, Net	$ 4,982

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Goodwill and Intangible Assets
Amortization expense	$ 228	$ 242
Intangible Assets, Amortization Period [Member]
Goodwill and Intangible Assets
Amortization expense	$ 200	$ 200

Income Taxes - Tax Rate Reconci

Income Taxes - Tax Rate Reconciliation (Details)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Taxes
Federal income tax expense at statutory rate	21.00%	21.00%
Effect of:
Tax effects of foreign operations	597.80%	(34.00%)
Foreign operations permanent difference - foreign exchange gains and losses	355.30%	104.20%
Increase in unrecognized tax benefits (ASC 740)	165.10%	(36.80%)
State income tax net of federal benefit	39.80%
Withholding tax	22.90%
Return to provision true up	1.20%	(28.00%)
Foreign rate differential	(85.50%)	(8.10%)
Change in valuation allowance	(193.30%)	(7.90%)
Other	(130.20%)	(4.60%)
Effective tax rate	794.10%	5.80%

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Income Taxes
Balance - January 1, 2020	$ 2,957
Increase in tax position	75
Interest accrual	45
Foreign currency remeasurement	(149)
Balance - March 31, 2020	$ 2,928

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended
	Oct. 31, 2016	Sep. 30, 2015	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Income Taxes [Line Items]
Income Tax Expense (Benefit)			$ 405,000	$ (28,000)
Income Tax Examination, Increase (Decrease) in Liability from Prior Year			100,000
Income Tax Examination, Penalties and Interest Accrued			45,000
Unrecognized Tax Benefits			$ 2,928,000		$ 2,957,000
Subsidiary Revenue		$ 66,000,000
Reversal of Service Tax Refund	$ 160,000
Service Tax Credit Receivable	$ 1,000,000
Maximum [Member]
Income Taxes [Line Items]
Percentage for Subsidiary Service Tax		15.00%
Minimum [Member]
Income Taxes [Line Items]
Percentage for Subsidiary Service Tax		12.36%

Commitments and Contingencies (

Commitments and Contingencies (Details)	3 Months Ended
	Mar. 31, 2020USD ($)
Commitments and Contingencies.
Estimated Litigation Liability	$ 6,400,000
Interest Rate Description Litigation	plus legal interest that accrued at 12% per annum from August 13, 2008 to June 30, 2013, and thereafter accrued and continues to accrue at 6% per annum
Litigation Settlement, Expense	$ 300,000

Stock Options - Summary of Stoc

Stock Options - Summary of Stock Option Activity (Details) - Employee Stock Option [Member]	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options, Outstanding at January 1, 2020 (in shares)	6,833,303
Number of Options, Granted (in shares)	0
Number of Options, Exercised (in shares)	0
Number of Options, Forfeited/Expired (in shares)	(544,303)
Number of Options, Outstanding at March 31, 2020 (in shares)	6,289,000
Number of Options Exercisable at March 31, 2020 (in shares)	4,108,622
Number of Options, Vested and Expected to Vest at March 31, 2020 (in shares)	6,289,000
Weighted Average Exercise Price Outstanding at January 1, 2020 (in dollars per shares) | $ / shares	$ 1.86
Weighted Average Exercise Price Forfeited/Expired (in dollars per shares) | $ / shares	3.39
Weighted Average Exercise Price Outstanding at March 31, 2020 (in dollars per shares) | $ / shares	1.73
Weighted Average Exercise Price Exercisable at March 31, 2020 (in dollars per shares) | $ / shares	2.01
Weighted Average Exercise Price Vested and Expected to Vest at March 31, 2020 (in dollars per shares) | $ / shares	$ 1.73
Weighted Average Remaining Contractual Term Outstanding at March 31, 2020 (in years)	7 years 2 months 9 days
Weighted Average Remaining Contractual Term Exercisable at March 31, 2020 (in years)	6 years 3 months 15 days
Weighted Average Remaining Contractual Term Vested and Expected to Vest at March 31, 2020 (in years)	7 years 2 months 9 days

Stock Options - Weighted Averag

Stock Options - Weighted Average Fair Values and Assumptions (Details) - Employee Stock Option [Member] - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of options granted (in dollars per share)	$ 0	$ 0.64
Risk-free interest rate		2.55%
Expected term (years)		6 years
Expected volatility factor		45.00%
Expected dividends	0.00%	0.00%

Stock Options - Summary of Rest

Stock Options - Summary of Restricted Shares (Details)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Stock Options
Number of Shares, Granted | shares	75,000
Number of Shares, Vested | shares	(25,000)
Number of Shares, Forfeited/Expired | shares	0
Number of Shares, Unvested at March 31, 2020 | shares	50,000
Weighted-Average Grant Date Fair Value, Granted | $ / shares	$ 1.38
Weighted-Average Grant Date Fair Value, Vested | $ / shares	0
Weighted-Average Grant Date Fair Value, Forfeited/Expired | $ / shares	0
Weighted-Average Grant Date Fair Value, Unvested at March 31, 2020 | $ / shares	$ 1.38

Stock Options - Stock-Based Com

Stock Options - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Stock Options
Direct operating costs	$ 40	$ 18
Selling and administrative expenses	130	111
Total stock-based compensation	$ 170	$ 129

Stock Options - Additional Info

Stock Options - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Jun. 07, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized	$ 1.2
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	23 months
2013 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized		5,858,892

Operating Leases - Operating Le

Operating Leases - Operating Leases Amount Recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating Leases, Rent Expense	$ 504	$ 501
Long Term Operating Lease [Member]
Operating Leases, Rent Expense	443	415
Short Term Operating Lease [Member]
Operating Leases, Rent Expense	$ 61	$ 86

Operating Leases - Net Present

Operating Leases - Net Present Value of Operating Lease Liability (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Operating Leases
2020	$ 1,188
2021	1,232
2022	1,182
2023	1,031
2024	1,048
2025 and thereafter	4,585
Total lease payments	10,266
Less: Interest	(3,016)
Net present value of lease liabilities	7,250
Current portion	922	$ 1,107
Long- term portion	6,328	$ 6,731
Total	$ 7,250

Operating Leases - Weighted Ave

Operating Leases - Weighted Average Remaining Lease Terms (Details)	Mar. 31, 2020
Operating Leases
Weighted-average lease term remaining	68 months
Weighted-average discount rate	8.92%

Operating Leases - Additional I

Operating Leases - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020
Minimum [Member]
Lessee, Operating Lease, Term of Contract	2 years
Percentage of Rental Escalations	1.75%
Maximum [Member]
Lessee, Operating Lease, Term of Contract	11 years
Percentage of Rental Escalations	10.00%

Long-term Obligations (Details)

Long-term Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Pension obligations
Pension obligations - accrued pension liability	$ 4,670	$ 4,611
Settlement agreement	652	708
Capital lease obligations	113	127
Long-term Debt	5,435	5,446
Less: Current portion of long-term obligations	856	912
Totals	$ 4,579	$ 4,534

Comprehensive Loss - Reclassifi

Comprehensive Loss - Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 26,309	$ 30,566
Balance	25,239	30,471
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(920)	(15)
Other comprehensive income (loss) before reclassifications, net of taxes	(884)	264
Total other comprehensive income (loss) before reclassifications, net of taxes	(1,804)	249
Net amount reclassified to earnings	9	(36)
Balance	(1,795)	213
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(53)	1,451
Total other comprehensive income (loss) before reclassifications, net of taxes	(53)	1,451
Net amount reclassified to earnings	14	(36)
Balance	(39)	1,415
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	33
Other comprehensive income (loss) before reclassifications, net of taxes	(166)
Total other comprehensive income (loss) before reclassifications, net of taxes	(133)
Net amount reclassified to earnings	(5)
Balance	(138)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(900)	(1,466)
Other comprehensive income (loss) before reclassifications, net of taxes	(718)	264
Total other comprehensive income (loss) before reclassifications, net of taxes	(1,618)	(1,202)
Balance	$ (1,618)	$ (1,202)

Segment Reporting and Concent_3

Segment Reporting and Concentrations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Segment reporting information
Revenues	$ 14,530	$ 13,694
Income (loss) before provision for income taxes	51	(479)
Total assets	48,876		$ 49,746
Goodwill	2,003	2,089	2,108	$ 2,050
Before Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	51	(479)
After Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	51	(479)
DDS [Member]
Segment reporting information
Revenues	10,409	10,177
Total assets	21,537		23,196
DDS [Member] | Before Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	129	74
DDS [Member] | After Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	59	12
Synodex [Member]
Segment reporting information
Revenues	1,282	1,024
Total assets	598		675
Synodex [Member] | Before Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	196	119
Synodex [Member] | After Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	241	159
Agility [Member]
Segment reporting information
Revenues	2,839	2,493
Total assets	26,741		25,875
Goodwill	2,003		$ 2,108
Agility [Member] | Before Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	(274)	(672)
Agility [Member] | After Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	$ (249)	$ (650)

Segment Reporting and Concent_4

Segment Reporting and Concentrations - Long-lived assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	$ 20,425	$ 21,715
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	4,455	4,591
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	8,216	8,876
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	1,738	1,907
Philippines [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	4,998	5,135
India [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	381	508
Sri Lanka [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	632	678
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	4	19
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	1	1
Foreign Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	$ 15,970	$ 17,124

Segment Reporting and Concent_5

Segment Reporting and Concentrations - Revenues by geographic region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Revenues	$ 14,530	$ 13,694
Other - principally Europe
Segment Reporting Information [Line Items]
Revenues	1,884	1,639
United States
Segment Reporting Information [Line Items]
Revenues	6,690	6,531
United Kingdom
Segment Reporting Information [Line Items]
Revenues	2,771	2,318
The Netherlands
Segment Reporting Information [Line Items]
Revenues	1,640	1,722
Canada
Segment Reporting Information [Line Items]
Revenues	$ 1,545	$ 1,484

Segment Reporting and Concent_6

Segment Reporting and Concentrations - Additional information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020USD ($)segmentclient	Mar. 31, 2019USD ($)client	Dec. 31, 2019USD ($)client
Segment Reporting Information [Line Items]
Number of Reportable Segments | segment	3
Operating Lease, Right-of-Use Asset | $	$ 6,530		$ 7,005
Revenues | $	$ 14,530	$ 13,694
Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Concentration Risk, Percentage	10.00%	10.00%
Foreign Customer [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Concentration Risk, Percentage	54.00%	52.00%
Foreign Customer [Member] | Accounts Receivable [Member]
Segment Reporting Information [Line Items]
Concentration Risk, Percentage	59.00%		60.00%
One Client [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Number of clients	1	1
Concentration Risk, Percentage	14.00%	16.00%
Two clients [Member] | Accounts Receivable [Member]
Segment Reporting Information [Line Items]
Number of clients	2
Concentration Risk, Percentage	28.00%
Three Clients [Member] | Accounts Receivable [Member]
Segment Reporting Information [Line Items]
Number of clients			3
Concentration Risk, Percentage			44.00%
Client [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Number of clients	0	0
Concentration Risk, Percentage	10.00%	10.00%

Loss per Share (Details)

Loss per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Loss per Share
Net loss attributable to Innodata Inc. and Subsidiaries	$ (365)	$ (452)
Weighted average common shares outstanding	24,401	25,927
Dilutive effect of outstanding options	0	0
Adjusted for dilutive computation	24,401	25,927

Loss Per Share - Additional inf

Loss Per Share - Additional information (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount	6.3	5

Derivatives - (Details)

Derivatives - (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accrued expenses [Member]
Derivatives, Fair Value [Line Items]
Derivatives designated as hedging instruments	$ 138
Prepaid expenses and other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivatives designated as hedging instruments		$ 33

Derivatives - Contracts designa

Derivatives - Contracts designated as cash flow hedges (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Derivatives
Net gain (loss) recognized in OCI(1)	$ (166)
Net (gain) loss reclassified from accumulated OCI into income(2)	$ (5)

Derivatives - Additional Inform

Derivatives - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Derivatives
Derivative, Notional Amount	$ 3.2	$ 4.3

Subsequent Event (Details)

Subsequent Event (Details) - Paycheck Protection Program Loan [Member] - Subsequent Event [Member]	May 04, 2020USD ($)
Proceeds from Issuance of Debt	$ 579,700
Unforgiven portion of loan payable term	2 years
Interest rate	1.00%