Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 10, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | INNODATA INC | ||
Entity Central Index Key | 903651 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Trading Symbol | INOD | ||
Entity Common Stock, Shares Outstanding | 25,337,267 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $71,556,952 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $24,216 | $24,752 |
Accounts receivable, net | 10,445 | 11,876 |
Prepaid expenses and other current assets | 3,020 | 1,907 |
Deferred income taxes | 254 | 45 |
Total current assets | 37,935 | 38,580 |
Property and equipment, net | 5,915 | 6,083 |
Other assets | 2,718 | 3,323 |
Deferred income taxes | 1,397 | 1,336 |
Intangibles, net | 5,261 | 0 |
Goodwill | 1,635 | 675 |
Total assets | 54,861 | 49,997 |
Current liabilities: | ||
Accounts payable | 1,271 | 898 |
Accrued expenses | 3,427 | 2,780 |
Accrued salaries, wages and related benefits | 4,464 | 4,647 |
Income and other taxes | 1,325 | 1,003 |
Current portion of long term obligations | 1,606 | 351 |
Deferred income taxes | 75 | 57 |
Total current liabilities | 12,168 | 9,736 |
Deferred income taxes | 879 | 190 |
Long-term obligations | 5,540 | 3,747 |
Commitments and contingencies | ||
Non-controlling interests | -2,949 | -3,649 |
STOCKHOLDERS' EQUITY: | ||
Serial preferred stock; 5,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value; 75,000,000 shares authorized; 26,881,000 shares issued and 25,337,000 outstanding at December 31, 2014 and 26,597,000 shares issued and 25,053,000 outstanding at December 31, 2013 | 268 | 266 |
Additional paid-in capital | 22,780 | 22,963 |
Retained earnings | 20,750 | 21,724 |
Accumulated other comprehensive loss | -287 | -692 |
Stockholders' Equity before Treasury Stock, Total | 43,511 | 44,261 |
Less: treasury stock, 1,544,000 shares at cost | -4,288 | -4,288 |
Total stockholders' equity | 39,223 | 39,973 |
Total liabilities and stockholders' equity | $54,861 | $49,997 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Serial preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Serial 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 | 26,881,000 | 26,597,000 |
Common stock, shares outstanding | 25,337,000 | 25,053,000 |
Treasury stock, shares | 1,544,000 | 1,544,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | $59,076 | $64,249 | $86,591 |
Operating costs and expenses: | |||
Direct operating costs | 43,905 | 49,127 | 57,382 |
Selling and administrative expenses | 16,412 | 17,295 | 22,189 |
Impairment charges | 374 | 5,524 | 505 |
Costs and Expenses | 60,691 | 71,946 | 80,076 |
Income (loss) from operations | -1,615 | -7,697 | 6,515 |
Interest income, net | -95 | -313 | -324 |
Income (loss) before provision for income taxes | -1,520 | -7,384 | 6,839 |
Provision for income taxes | 406 | 5,451 | 1,150 |
Net income (loss) | -1,926 | -12,835 | 5,689 |
Loss attributable to non-controlling interests | 952 | 2,203 | 1,784 |
Net income (loss) attributable to Innodata Inc. and Subsidiaries | -974 | -10,632 | 7,473 |
Income (loss) per share attributable to Innodata Inc. and Subsidiaries: | |||
Basic (in dollars per share) | ($0.04) | ($0.43) | $0.30 |
Diluted (in dollars per share) | ($0.04) | ($0.43) | $0.28 |
Weighted average shares outstanding: | |||
Basic (in shares) | 25,232 | 24,997 | 24,895 |
Diluted (in shares) | 25,232 | 24,997 | 26,232 |
Comprehensive income (loss): | |||
Net income (loss) | -1,926 | -12,835 | 5,689 |
Pension liability adjustment, net of taxes | 613 | -73 | -138 |
Change in fair value of derivatives, net of taxes of $0, $(46) and $705 for the years ended December 31, 2014, 2013 and 2012, respectively | 239 | -656 | 1,202 |
Foreign currency translation adjustment, net of taxes | -447 | 0 | 0 |
Other Comprehensive income (loss) | 405 | -729 | 1,064 |
Total Comprehensive income (loss) | -1,521 | -13,564 | 6,753 |
Comprehensive loss attributed to non-controlling interest | 952 | 2,203 | 1,784 |
Comprehensive income (loss) attributable to Innodata Inc. and Subsidiaries | ($569) | ($11,361) | $8,537 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) [Parenthetical] (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Total | $0 | ($46) | $705 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2011 | $41,168 | $262 | $21,338 | $24,883 | ($1,027) | ($4,288) |
Balance (in shares) at Dec. 31, 2011 | 24,691,000 | |||||
Net income (loss) | 7,473 | 0 | 0 | 7,473 | 0 | 0 |
Stock-based compensation | 977 | 0 | 977 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options | 574 | 2 | 572 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options (in shares) | 202,000 | |||||
Restricted shares withheld for taxes | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted shares withheld for taxes (in shares) | -4,000 | |||||
Acquisition of non-controlling interest | -747 | 0 | -747 | 0 | 0 | 0 |
Pension liability adjustments, net of taxes | -138 | 0 | 0 | 0 | -138 | 0 |
Foreign currency translation adjustment, net of taxes | 0 | |||||
Change in fair value of derivatives, net of taxes | 1,202 | 0 | 0 | 0 | 1,202 | 0 |
Balance at Dec. 31, 2012 | 50,509 | 264 | 22,140 | 32,356 | 37 | -4,288 |
Balance (in shares) at Dec. 31, 2012 | 24,889,000 | |||||
Net income (loss) | -10,632 | 0 | 0 | -10,632 | 0 | 0 |
Stock-based compensation | 935 | 0 | 935 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options | 72 | 2 | 70 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options (in shares) | 167,000 | |||||
Restricted shares withheld for taxes | -31 | 0 | -31 | 0 | 0 | 0 |
Restricted shares withheld for taxes (in shares) | -3,000 | |||||
Acquisition of non-controlling interest | -151 | 0 | -151 | 0 | 0 | 0 |
Pension liability adjustments, net of taxes | -73 | 0 | 0 | 0 | -73 | 0 |
Foreign currency translation adjustment, net of taxes | 0 | |||||
Change in fair value of derivatives, net of taxes | -656 | 0 | 0 | 0 | -656 | 0 |
Balance at Dec. 31, 2013 | 39,973 | 266 | 22,963 | 21,724 | -692 | -4,288 |
Balance (in shares) at Dec. 31, 2013 | 25,053,000 | |||||
Net income (loss) | -974 | 0 | 0 | -974 | 0 | 0 |
Stock-based compensation | 1,156 | 0 | 1,156 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options | 330 | 2 | 328 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options (in shares) | 289,000 | |||||
Restricted shares withheld for taxes | -14 | 0 | -14 | 0 | 0 | 0 |
Restricted shares withheld for taxes (in shares) | -5,000 | |||||
Acquisition of non-controlling interest | -1,653 | 0 | -1,653 | 0 | 0 | 0 |
Pension liability adjustments, net of taxes | 613 | 0 | 0 | 0 | 613 | 0 |
Foreign currency translation adjustment, net of taxes | -447 | 0 | 0 | 0 | -447 | 0 |
Change in fair value of derivatives, net of taxes | 239 | 0 | 0 | 0 | 239 | 0 |
Balance at Dec. 31, 2014 | $39,223 | $268 | $22,780 | $20,750 | ($287) | ($4,288) |
Balance (in shares) at Dec. 31, 2014 | 25,337,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flow from operating activities: | |||
Net income (loss) | ($1,926) | ($12,835) | $5,689 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Impairment charge | 374 | 5,524 | 505 |
Depreciation and amortization | 3,046 | 3,653 | 3,897 |
Stock-based compensation | 1,156 | 935 | 977 |
Deferred income taxes | -383 | 4,617 | -762 |
Pension cost | 717 | 519 | 668 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,874 | 2,441 | 7,389 |
Prepaid expenses and other current assets | -496 | 393 | 548 |
Other assets | 590 | -507 | -722 |
Accounts payable and accrued expenses | 160 | -999 | 9 |
Accrued salaries, wages and related benefits | -495 | -1,937 | -12 |
Restricted shares withheld for taxes | -37 | -31 | 0 |
Income and other taxes | 33 | -1,152 | -421 |
Net cash provided by operating activities | 4,613 | 621 | 17,765 |
Cash flow from investing activities: | |||
Capital expenditures | -2,033 | -3,780 | -6,845 |
Acquisition of business | -3,375 | 0 | 0 |
Sale of investments - other | 0 | 3,091 | 2,737 |
Net cash used in investing activities | -5,408 | -689 | -4,108 |
Cash flow from financing activities: | |||
Proceeds from equipment financing | 859 | 0 | 0 |
Proceeds from exercise of stock options | 351 | 72 | 574 |
Payment of long term obligations | -788 | -677 | -195 |
Net cash provided by (used in) financing activities | 422 | -605 | 379 |
Effect of exchange rate changes on cash and cash equivalents | -163 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | -536 | -673 | 14,036 |
Cash and cash equivalents, beginning of year | 24,752 | 25,425 | 11,389 |
Cash and cash equivalents, end of year | 24,216 | 24,752 | 25,425 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes | 957 | 1,568 | 1,794 |
Vendor financed software licenses acquired | $1,205 | $0 | $0 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Business Description and Accounting Policies [Text Block] | 1 | Description of Business and Summary of Significant Accounting Policies | |||||||||
Description of Business- Innodata Inc. and Subsidiaries (the “Company”) is a global digital services and solutions company. The Company’s technology and services power leading information products and online retail destinations around the world. The Company’s solutions help prestigious enterprises harness the power of digital data to re-imagine how they operate and drive performance. The Company serves publishers, media and information companies, digital retailers, banks, insurance companies, government agencies and many other industries. | |||||||||||
The Company operates in three reporting segments: Content Services (CS), Innodata Advanced Data Solutions (IADS) and Media Intelligence Solutions (MIS). | |||||||||||
The Company’s CS segment provides solutions to digital retailers, information services companies, publishers and enterprises that have one or more of the following broad business requirements: development of digital content (including e-books); development of new digital information products; and operational support of existing digital information products and systems. | |||||||||||
The Company’s IADS segment designs and develops new capabilities to enable clients in the financial services, insurance, medical and healthcare sectors to improve decision-support through digital technologies. IADS operates through two subsidiaries. Synodex offers a range of services for healthcare, medical and insurance companies, and docGenix provides services to financial services institutions. As of December 31, 2014, Innodata owned 90% of Synodex and 94% of docGenix, both limited liability companies. | |||||||||||
In July 2014, the Company acquired MediaMiser, a leading provider of media monitoring and analysis software and professional services to several Fortune 500 companies and Canadian government institutions, as well as small- and medium-sized businesses. Through web-based and mobile solutions, MediaMiser enables companies to reduce the time and effort required to extract, analyze and share valuable business intelligence from traditional and social media sources. For organizations that prefer to outsource, MediaMiser provides detailed analysis reports and daily media briefings through an expert client services team. In December 2014, the Company acquired intellectual property and related assets of Bulldog Reporter. Bulldog Reporter has provided PR industry newsletters, a journalist database, media intelligence and professional development programs for over 30 years. The Company’s MIS segment operates through its MediaMiser and Bulldog Reporter subsidiaries. | |||||||||||
Principles of Consolidation-The consolidated financial statements include the accounts of Innodata Inc. and its wholly-owned subsidiaries, MediaMiser, a corporation in which the Company owns substantially all of the economic interest, 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 financial statements in conformity with accounting principles generally accepted in the United States of America, 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 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 revenue recognition, allowance for doubtful accounts and billing adjustments, long-lived assets, intangible assets, goodwill, valuation of deferred tax assets, valuation of securities underlying stock-based compensation, litigation accruals, pension benefits, purchase price allocation of the assets acquired in the acquisition of MediaMiser and Bulldog Reporter, valuation of derivative instruments and estimated accruals for various tax exposures. | |||||||||||
Revenue Recognition-For CS segment revenue is recognized based on the quantity delivered or resources utilized, the period in which services are performed and delivered and when all the criteria of Staff Accounting Bulletin 104 have been met. Revenues for contracts billed on a time-and-materials basis are recognized as services are performed. Revenues under fixed-fee contracts, which are not significant to the overall revenues, are recognized on the percentage of completion method of accounting, as services are performed or milestones are achieved. | |||||||||||
For IADS segment revenue is recognized primarily earned based on the quantity delivered, and the period in which services are performed and deliverables are made as per contracts. | |||||||||||
MIS segment derives its revenues primarily from subscription arrangements. Revenue from subscriptions are recognized monthly when access to the service is provided to the end user and there are no significant remaining obligations, persuasive evidence of an arrangement exists, the fees are fixed or determinable and collection is reasonably assured. | |||||||||||
Revenues include reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. | |||||||||||
Foreign Currency Translation-The functional currency for 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 were translated to U.S. dollars at rates which approximate those in effect on transaction dates. Monetary assets and liabilities denominated in foreign currencies at December 31, 2014 and 2013 were translated at the exchange rate in effect as of those dates. Nonmonetary assets, liabilities, and stockholders’ equity were translated at the appropriate historical rates. Included in direct operating costs are exchange losses (gains) resulting from such transactions of approximately $246,000, $645,000 and $431,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
The financial statements of the foreign subsidiaries located in Germany and Canada are the Euro and the Canadian dollar, respectively. The financial statements of these subsidiaries are reported in these respective currencies. Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in our 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 consolidated statements of operations and comprehensive income (loss). The amount of foreign currency translation adjustment as of December 31, 2014 was $447,000. There was no foreign currency translation adjustment as of December 31, 2013 and 2012 as these subsidiaries were either acquired or formed in 2014. | |||||||||||
Derivative Instruments-The Company has designated its derivatives (foreign currency forward contracts) as a cash flow hedge. Accordingly, the effective portion of the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income or loss, and is subsequently reclassified to earnings when the hedge exposure affects earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedging activities. | |||||||||||
Cash Equivalents-For financial statement purposes (including cash flows), the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. | |||||||||||
Property and Equipment-Property and equipment are stated at cost and are depreciated on the straight-line method over the estimated useful lives of the related assets, which is generally two to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the lives of the leases. Certain assets under capital leases are amortized over the lives of the respective leases or the estimated useful lives of the assets, whichever is shorter. | |||||||||||
Long-lived Assets-Management assesses the recoverability of its long-lived assets, which consist primarily of fixed assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The following factors, if present, may trigger an impairment review: (i) significant underperformance relative to expected historical or projected future operating results; (ii) significant negative industry or economic trends; (iii) significant decline in the Company’s stock price for a sustained period; and (iv) a change in the Company’s market capitalization relative to net book value. If the recoverability of these assets is unlikely because of the existence of one or more of the above-mentioned factors, an impairment analysis is performed, initially using a projected undiscounted cash flow method. Management makes assumptions regarding estimated future cash flows and other factors to determine the fair value of these respective assets. An impairment loss will be recognized only if the carrying value of a long-lived asset is not recoverable, exceeds its fair value, and is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. | |||||||||||
During the fourth quarter of 2014, the Company recorded an impairment charge of $0.4 million representing the write-off of certain long lived assets on account of the consolidation of two India-based production facilities. | |||||||||||
The Synodex subsidiary of the IADS segment has not achieved significant revenue to date and has incurred losses since inception. As a result in the third quarter of 2013, the Company evaluated the carrying value of the fixed assets of its Synodex subsidiary compared to its fair value and concluded that that the carrying value exceeds its fair value. This resulted in an impairment charge of $5.5 million for the year ended December 31, 2013. | |||||||||||
In the impairment review conducted by management in 2012, the carrying value of the fixed assets of its docGenix subsidiary exceeded its fair value. The Company recorded an impairment charge of $0.5 million for the year ended December 31, 2012. | |||||||||||
Goodwill and Other Intangible Assets-Goodwill represents the excess purchase price paid over the fair value of net assets acquired. The Company tests its goodwill on an annual basis using a two-step fair value based test. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit, with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test must be performed to measure the amount of the impairment loss, if any. If impairment is determined, the Company will recognize additional charges to operating expenses in the period in which they are identified, which would result in a reduction of operating results and a reduction in the amount of goodwill. | |||||||||||
In the annual impairment test conducted by the Company as of September 30, 2014, 2013 and 2012, the estimated fair value of the reporting unit exceeded its carrying amount, including goodwill. As such, no impairment was identified or recorded. | |||||||||||
Income Taxes-Deferred taxes are determined based on the difference between the financial statement and tax basis 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 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. | |||||||||||
The Synodex subsidiary of the IADS segment has not achieved significant revenue to date and has incurred losses since inception. The Company's U.S. entity has incurred losses primarily on account of the losses of Synodex. 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. deferred tax assets will not be realizable. As the expectation of future taxable income resulting from Synodex could not be predicted with certainty, the Company created a valuation allowance against all the U.S. deferred tax assets starting third quarter of 2013. | |||||||||||
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 consolidated statements of operations and comprehensive income (loss). | |||||||||||
Accounting for Stock-Based Compensation - The Company measures and recognizes stock-based compensation expense for all share-based payment awards made to employees and directors based on estimated fair value at the grant date. The stock-based compensation expense is recognized over the requisite service period. The fair value is determined using the Black-Scholes option-pricing model. | |||||||||||
The stock-based compensation expense related to the Company’s various stock option plans was allocated as follows (in thousands): | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Direct operating costs | $ | 390 | $ | 280 | $ | 109 | |||||
Selling and adminstrative expenses | 766 | 655 | 868 | ||||||||
Total stock-based compensation | $ | 1,156 | $ | 935 | $ | 977 | |||||
Fair Value of Financial Instruments- The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of December 31, 2014 and 2013, because of the relative short maturity of these instruments. | |||||||||||
Fair value measurements and disclosures define fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | |||||||||||
The accounting standard establishes a fair value hierarchy that prioritizes the inputs used to measure fair value into three levels. The three levels are defined as follows: | |||||||||||
· | Level 1: Unadjusted quoted price in active market for identical assets and liabilities. | ||||||||||
· | Level 2: Observable inputs other than those included in Level 1. | ||||||||||
· | Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. | ||||||||||
Accounts Receivable-The majority of the Company’s accounts receivable are due from publishers, information providers and e-book platform providers. The Company establishes credit terms for new clients based upon management’s review of their credit information and project terms, and performs ongoing credit evaluations of its clients, adjusting credit terms when management believes appropriate based upon payment history and an assessment of the client’s current creditworthiness. The Company records an allowance for doubtful accounts for estimated losses resulting from the inability of its clients to make required payments. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due (accounts outstanding longer than the payment terms are considered past due), the Company’s previous loss history, the client’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. While credit losses have generally been within expectations and the provisions established, the Company cannot guarantee that credit loss rates in the future will be consistent with those experienced in the past. In addition, there is credit exposure if the financial condition of one of the Company’s major clients were to deteriorate. In the event that the financial condition of one of the Company’s clients were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be necessary. | |||||||||||
Concentration of Credit Risk-The Company maintains its cash with highly rated financial institutions, located in the United States and in foreign locations where the Company has its operations. At December 31, 2014, the Company had cash and cash equivalents of $24.2 million, of which $22.5 million was held by its foreign subsidiaries with local banks located in Asia and $1.7 million was held in the United States. To the extent that such cash exceeds the maximum insurance levels, the Company would be uninsured. The Company has not experienced any losses in such accounts. | |||||||||||
Income (Loss) per Share- Basic income (loss) per share is computed using the weighted-average number of common shares outstanding during the year. Diluted income (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 income (loss) per share is used. | |||||||||||
Pension-The Company records annual pension costs based on calculations, which include various actuarial assumptions including discount rates, compensation increases and other assumptions involving demographic factors. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. The Company believes that the assumptions used in recording its pension obligations are reasonable based on its experience, market conditions and inputs from its actuaries. | |||||||||||
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 accompanying consolidated balance sheets as of December 31, 2014 and 2013 is deferred revenue amounting to $1.3 million and $0.6 million, respectively. | |||||||||||
Recent Accounting Pronouncements-In May 2014, the FASB issued guidance on revenue from contracts with clients. This update is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This accounting guidance is effective prospectively for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016 and early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt the new standard when it takes effect. The Company has not yet determined the potential effects of the adoption of this standard on its consolidated financial statements. | |||||||||||
In June 2014, the FASB issued guidance on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This new guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This accounting guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. | |||||||||||
Property_and_equipment
Property and equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | 2 | Property and equipment | ||||||
Property and equipment, which include amounts recorded under capital leases, are stated at cost less accumulated depreciation and amortization (in thousands), and consist of the following: | ||||||||
December 31 | ||||||||
2014 | 2013 | |||||||
Equipment | $ | 13,719 | $ | 17,327 | ||||
Software | 4,863 | 4,045 | ||||||
Furniture and equipment | 2,348 | 2,600 | ||||||
Leasehold improvements | 4,919 | 5,810 | ||||||
Total | 25,849 | 29,782 | ||||||
Less: accumulated depreciation and amortization | -19,934 | -23,699 | ||||||
$ | 5,915 | $ | 6,083 | |||||
Depreciation and amortization expense of property and equipment was approximately $2.5 million, $3.0 million and $3.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
During the fourth quarter of 2014 the Company recorded an impairment charge of $0.4 million representing the write-off of certain long lived assets on account of the consolidation of two India-based production facilities. | ||||||||
The Synodex subsidiary of the IADS segment has not achieved significant revenue to date and has incurred losses since inception. As a result, in the third quarter of 2013, the Company evaluated the carrying value of the fixed assets of its Synodex subsidiary compared to its fair value and concluded that that the carrying value exceeds its fair value. This resulted in an impairment charge of $5.5 million for the year ended December 31, 2013. | ||||||||
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Business Combinations [Abstract] | |||||||||||
Business Combination Disclosure [Text Block] | 3 | Acquisitions | |||||||||
On July 28, 2014 the Company acquired 100% of the common shares and 100% of the preferred shares of MediaMiser. These shares represent substantially all of the economic ownership interest of MediaMiser. A MediaMiser Employee Trust will retain special voting shares equivalent to 50% of the voting rights in MediaMiser for the term specified in the articles of amalgamation of MediaMiser. The Trustees of the MediaMiser Employee Trust are the former and continuing management of MediaMiser. MediaMiser is an Ottawa, Canada-based provider of automated, real-time traditional and social media monitoring services. | |||||||||||
The Company believes its global infrastructure will provide a base from which MediaMiser will expand into newer geographical markets as well as penetrate further into its existing market. The Company also believes that MediaMiser will enable the Company to expand in areas of Big Data and user generated content. | |||||||||||
The purchase price for the acquisition, on a constant currency basis, aggregated $5.4 million of non-contingent consideration, plus up to a maximum of $4.6 million of contingent consideration. The acquisition was made on a debt free basis. Of the non-contingent portion of the purchase price, $4.1 million was paid by the Company in cash at closing; $0.6 million is payable by the Company on July 28, 2015 in shares of Innodata Inc.’s common stock, or at the Company’s option in cash; and $0.7 million is payable by the Company on July 28, 2016 in shares of Innodata Inc.’s common stock, or at the Company’s option in cash. The contingent portion of the purchase price is a potential earn-out of up to $4.6 million based on MediaMiser’s revenues and Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) during the period from April 1, 2016 until March 31, 2017. The contingent consideration if earned is payable in May 2017 in cash, or at the Company’s option in up to 70% in Innodata Inc.’s common stock with the balance in cash. Shares of Innodata Inc.’s common stock will be valued for any payment at the weighted average closing price for the ten consecutive trading days immediately preceding the date on which the payment is due. | |||||||||||
The following table summarizes (in thousands) the fair value of the consideration transferred or to be transferred, to acquire MediaMiser. | |||||||||||
Amount | |||||||||||
Cash (net of working capital adjustment of $862) | $ | 3,225 | |||||||||
Shares of common stock payable by July 28, 2015 | 587 | ||||||||||
Shares of common stock payable by July 28, 2016 | 697 | ||||||||||
Contingent consideration | 585 | ||||||||||
$ | 5,094 | ||||||||||
As this acquisition was effective on July 28, 2014, the results of operations of MediaMiser are included in the consolidated financial statements for the period beginning July 29, 2014. The transaction has been accounted for using the acquisition method of accounting. This method requires that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. The excess of the purchase price over the net assets acquired was recorded as goodwill. | |||||||||||
The Company has finalized third party valuations of certain non-monetary assets, intangible assets and contingent consideration. The following table summarizes (in thousands) the purchase price allocation for the acquisition: | |||||||||||
Purchase price allocation for the acquisition | |||||||||||
Amount | |||||||||||
Accounts receivable | $ | 468 | |||||||||
Prepaid expenses and other current assets | 288 | ||||||||||
Property and equipment, net | 181 | ||||||||||
Other assets | 21 | ||||||||||
Developed technology | 2,629 | ||||||||||
Customer relationships | 2,555 | ||||||||||
Trademarks and tradenames | 297 | ||||||||||
Total identifiable assets acquired | 6,439 | ||||||||||
Accounts payable and accrued expenses | 583 | ||||||||||
Accrued salaries, wages and related benefits | 315 | ||||||||||
Deferred revenues | 382 | ||||||||||
Income and other taxes | 310 | ||||||||||
Deferred tax liability | 751 | ||||||||||
Capital lease obligation | 38 | ||||||||||
Total liabilities assumed | 2,379 | ||||||||||
Net identifiable assets acquired | 4,060 | ||||||||||
Goodwill | 1,034 | ||||||||||
Net assets acquired | $ | 5,094 | |||||||||
The estimated fair value of the developed technology and trademarks and tradenames intangible assets was determined using the “relief from royalty method” under the income approach, which is a valuation technique that provides an estimate of the fair value of an asset based on the cost savings that are available through ownership of the asset by the avoidance of paying royalties to license the use of the assets from another owner. The estimated fair value of the customer relationships was determined using the “excess earnings method” under the income approach, which represents the total income to be generated by the asset. Some of the more significant assumptions inherent in the development of these asset valuations include the projected revenue associated with the asset, the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, as well as other factors. The discount rate used to arrive at the present value of the customer relationships, developed technology and trademarks and tradenames, at the acquisition date, was 19%. The remaining useful lives of the developed technology and trademarks and tradenames were based on historical product development cycles, the projected rate of technology migration and a market participant’s use of these intangible assets and the pattern of projected economic benefit of these intangible assets. The remaining useful lives of customer relationships were based on the customer attrition and the projected economic benefit of these clients. | |||||||||||
The fair value measurement of the contingent consideration obligation was determined using Level 3 unobservable inputs supported by little or no market activity based on the Company’s assumptions. The estimated fair value of the contingent consideration was determined based on the Company’s estimates using the probability-weighted discounted cash flow approach. The fair value of the contingent consideration as of December 31, 2014 was $0.6 million and the Company has recorded this amount in accrued expenses on the consolidated financial statements. Any subsequent changes in the fair value of the contingent consideration obligations will be recorded in the consolidated statements of operations and comprehensive income (loss). | |||||||||||
The amounts assigned to developed technology, customer relationships, trademarks and trade names are amortized over the estimated useful life of 10 years, 12 years and 10 years, respectively. The weighted average life over which these acquired intangibles will be amortized is approximately 11 years. | |||||||||||
The Company funded the cash portion of the purchase price from its available overseas cash on hand. Transaction expenses amounted to $0.1 million and have been expensed. | |||||||||||
On December 23, 2014 the Company acquired intellectual property and related assets of Bulldog Reporter from Sirius Information, Inc. Bulldog Reporter has provided PR industry newsletters, a journalist database, media intelligence and professional development programs for over 30 years. Both MediaMiser and Bulldog Reporter clients will benefit from the combined product offerings. The Company expects that Bulldog Reporter business will accelerate the product development cycle for certain products and further penetration into the U.S. market for the MIS service offering. | |||||||||||
The assets acquired included the Daily Dog, the Bulldog Awards, Inside Health Media, Media Pro, and certain leading industry books and publications. | |||||||||||
The transaction has been accounted for using the acquisition method of accounting. The estimated fair value of trademarks and tradenames amounted to $320,000 and deferred revenues of $160,000. The amount assigned to trademarks and tradenames is amortized over the estimated useful life of 5 years. | |||||||||||
The unaudited pro forma information for the periods set forth below gives effect to the acquisition of MediaMiser as if it had occurred at the beginning of fiscal year 2012, and after including the impact of adjustments such as amortization of intangible assets, stock-based compensation expense and interest expense. The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time or that may result in the future. | |||||||||||
The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2012 (amount in thousands, except per share amounts): | |||||||||||
December 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues: | |||||||||||
As reported | $ | 59,076 | $ | 64,249 | $ | 86,591 | |||||
Proforma | $ | 61,524 | $ | 67,872 | $ | 89,536 | |||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries: | |||||||||||
As reported | $ | -974 | $ | -10,632 | $ | 7,473 | |||||
Proforma | $ | -1,106 | $ | -10,491 | $ | 7,716 | |||||
Basic net income (loss) per share: | |||||||||||
As reported | $ | -0.04 | $ | -0.43 | $ | 0.3 | |||||
Proforma | $ | -0.04 | $ | -0.42 | $ | 0.31 | |||||
Diluted net income (loss) per share: | |||||||||||
As reported | $ | -0.04 | $ | -0.43 | $ | 0.28 | |||||
Proforma | $ | -0.04 | $ | -0.42 | $ | 0.29 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | 4 | Goodwill and Intangible Assets | |||||||||
The changes in the carrying amount of goodwill as of December 31, 2014 were as follows (in thousands): | |||||||||||
Goodwill | |||||||||||
Balance as of January 1, 2014 | $ | 675 | |||||||||
Goodwill recorded in connection with an acquisition | 1,034 | ||||||||||
Foreign currency translation adjustment | -74 | ||||||||||
Balance as of December 31, 2014 | $ | 1,635 | |||||||||
The goodwill recorded in connection with the acquisition is not deductible for tax purposes. | |||||||||||
Information regarding our acquisition-related intangible assets is as follows (in thousands): | |||||||||||
December 31, 2014 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Developed technology | $ | 2,369 | $ | -98 | $ | 2,271 | |||||
Customer relationships | 2,439 | -84 | 2,355 | ||||||||
Trademarks and tradenames | 596 | -11 | 585 | ||||||||
Patents | 50 | - | 50 | ||||||||
Total | $ | 5,454 | $ | -193 | $ | 5,261 | |||||
Amortization expense relating to acquisition-related intangible assets for the year ended December 31, 2014 was $0.2 million. There was no amortization expense during the prior year as the acquisition of MediaMiser was consummated on July 28, 2014 and Bulldog Reporter assets were acquired on December 23, 2014. | |||||||||||
Estimated annual amortization expense for intangible assets subsequent to December 31, 2014 is as follows (in thousands): | |||||||||||
Year | Amortization | ||||||||||
2015 | $ | 532 | |||||||||
2016 | 532 | ||||||||||
2017 | 532 | ||||||||||
2018 | 532 | ||||||||||
2019 | 532 | ||||||||||
Thereafter | 2,601 | ||||||||||
$ | 5,261 | ||||||||||
Income_taxes
Income taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax Disclosure [Text Block] | 5 | Income taxes | |||||||||||
The significant components of the provision for (benefit from) income taxes for each of the three years in the period ended December 31, 2014 are as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current income tax expense: | |||||||||||||
Foreign | $ | 778 | $ | 946 | $ | 1,912 | |||||||
Federal | - | -24 | - | ||||||||||
State and local | 22 | 13 | 11 | ||||||||||
800 | 935 | 1,923 | |||||||||||
Deferred income tax expense (benefit): | |||||||||||||
Foreign | -413 | -493 | -69 | ||||||||||
Federal | 19 | 4,530 | -738 | ||||||||||
State and local | - | 479 | 34 | ||||||||||
-394 | 4,516 | -773 | |||||||||||
Provision for income taxes | $ | 406 | $ | 5,451 | $ | 1,150 | |||||||
The reconciliation of the U.S. statutory rate with the Company’s effective tax rate for each of the three years in the period ended December 31, 2014 is summarized as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal statutory rate | -34 | % | -34 | % | 34 | % | |||||||
Effect of: | |||||||||||||
State income taxes (net of federal tax benefit) | -2.1 | -2.1 | 3 | ||||||||||
Taxes on foreign income at rates that differ from U.S. | |||||||||||||
statutory rate | -11.7 | -0.6 | -21.8 | ||||||||||
Change in valuation allowance on deferred tax assets | 94.1 | 106.3 | - | ||||||||||
Increase (decrease) in unrecognized tax benefits | -21.7 | 1.6 | 1.4 | ||||||||||
Other | 2.1 | 2.6 | 0.2 | ||||||||||
Effective tax rate | 26.7 | % | 73.8 | % | 16.8 | % | |||||||
No tax benefits related to stock option exercises were recorded for each of the three years in the period ended December 31, 2014, due to net operating loss carryforwards. | |||||||||||||
Deferred tax assets and liabilities are classified as current or non-current according to the classification of the related asset or liability. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Allowances not currently deductible | $ | 341 | $ | 388 | |||||||||
Depreciation and amortization | 2,066 | 2,018 | |||||||||||
Equity compensation not currently deductible | 1,228 | 1,080 | |||||||||||
Net operating loss carryforwards | 6,164 | 4,479 | |||||||||||
Expenses not deductible until paid | 915 | 974 | |||||||||||
Tax credit carryforwards | 176 | 176 | |||||||||||
Derivatives | 125 | 213 | |||||||||||
Other | 263 | 113 | |||||||||||
Total gross deferred income tax assets before valuation allowance | 11,278 | 9,441 | |||||||||||
Valuation allowance | -9,627 | -8,060 | |||||||||||
Net deferred income tax assets | 1,651 | 1,381 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Acquisition of MediaMiser | -670 | - | |||||||||||
Other | -284 | -247 | |||||||||||
Totals | -954 | -247 | |||||||||||
Net deferred tax assets | $ | 697 | $ | 1,134 | |||||||||
Net deferred income tax asset-current | 254 | 45 | |||||||||||
Net deferred income tax asset-long term | 1,397 | 1,336 | |||||||||||
Net deferred income tax liability-current | -75 | -57 | |||||||||||
Net deferred income tax liability-long term | -879 | -190 | |||||||||||
Net deferred income tax assets | $ | 697 | $ | 1,134 | |||||||||
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realizable. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences are deductible and net operating losses are available. | |||||||||||||
The Synodex subsidiary of the Company’s IADS segment has not achieved significant revenue to date and has incurred losses since inception. The Company’s U.S. entity has incurred losses primarily on account of Synodex’s losses. In assessing the realization of deferred tax assets in 2013, management considered whether it was more likely than not that all or some of the U.S. deferred tax assets would not be realizable. As the expectation of future taxable income resulting from Synodex could not be predicted with certainty, the Company created a $7.1 million valuation allowance against all U.S. deferred tax assets. In addition, in the third quarter of 2013, the Company recorded a valuation allowance of $0.7 million on all deferred tax assets arising from unrealized losses on foreign currency forward contracts in the third quarter of 2013. As of December 31, 2014, the Company continues to maintain a valuation allowance on all U.S. deferred tax assets. | |||||||||||||
The Company indefinitely reinvests the foreign earnings in its foreign subsidiaries. Unremitted earnings of foreign subsidiaries have been included in the 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. Undistributed earnings of foreign subsidiaries amount to approximately $34.7 million at December 31, 2014. These earnings are considered to be indefinitely reinvested, and accordingly, no provision for U.S. federal or state income taxes has been made. If such earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, the Company will accrue the applicable amount of taxes associated with such earnings, net of foreign tax credits. Determination at this point in time of the amount of unrecognized deferred tax liability related to these earnings is not practicable. | |||||||||||||
United States and foreign components of income (loss) before provision for income taxes for each of the three years ended December 31, (in thousands) are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | -4,259 | $ | -8,482 | $ | -1,920 | |||||||
Foreign | 2,739 | 1,098 | 8,759 | ||||||||||
Total | $ | -1,520 | $ | -7,384 | $ | 6,839 | |||||||
Certain of the Company’s foreign subsidiaries are subject to preferential tax rates. In addition, one of the foreign subsidiaries enjoys a tax holiday. Due to the tax holiday and the preferential tax rates, the income tax rate for the Company was substantially reduced, the tax benefit from which was approximately $0.2 million, $0.1 million and $1.1 million for each of the three years in the period ended December 31, 2014, respectively. | |||||||||||||
MediaMiser claims deductions of eligible research and development expenses within the Scientific Research and Experimental Development (SR&ED) Program, a federal tax incentive program, administered by the Canada Revenue Agency. Amounts recorded for the federal and provincial research and development tax credits aggregated $0.2 million from the date of acquisition to December 31, 2014. Such amounts have been recorded as a reduction in the selling and administrative expenses. | |||||||||||||
At December 31, 2014, the Company has available U.S. federal and New Jersey state net operating loss carryforwards of approximately $20.8 million and $22.2 million, respectively. These net operating loss carryforwards expire at various times through the year 2033. Stock option exercises resulted in tax deductions in excess of previously recorded benefits based on the option value at the time of grant (a “windfall”). Although these benefits were reflected in the net operating losses, the additional tax benefit associated with the windfall is not recognized until the deduction reduces taxes payable. Accordingly, since the tax benefit did not reduce the current taxes payable due to net operating losses, these windfall tax benefits were not reflected in the deferred tax assets for 2014 and 2013. Windfalls included in net operating losses but not reflected in deferred tax assets as of December 31, 2014 were approximately $4.7 million. | |||||||||||||
At December 31, 2014, MediaMiser has available net operating loss carryforwards of approximately $1.2 million in Canada which begin to expire in 2028. In addition, MediaMiser also has research and development expenditures of approximately $0.9 million available to reduce taxable income in future years which may be carried forward indefinitely. The potential benefits from these balances have not been recognized for financial statement purposes. | |||||||||||||
The Company had unrecognized tax benefits of $1.8 million and $2.2 million at December 31, 2014 and 2013, respectively. The portion of unrecognized tax benefits relating to interest and penalties was $0.6 million and $0.8 million at December 31, 2014 and 2013, respectively. The unrecognized tax benefits as of December 31, 2014 and 2013, if recognized, would have an impact on the Company’s effective tax rate. | |||||||||||||
The Company had established a valuation allowance of approximately $9.6 million and $8.1 million at December 31, 2014 and 2013, respectively. The entire valuation allowance as of December 31, 2013 relates to U.S. deferred tax assets. The net change in the total valuation for each of the years ended December 31, 2014 and 2013 was an increase of $1.5 million and $8.1 million, respectively. There was no valuation allowance as of December 31, 2012. | |||||||||||||
The following table represents a roll forward of the Company’s unrecognized tax benefits and associated interest for the years ended (amounts in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of year | $ | 2,245 | $ | 2,442 | |||||||||
Increase for tax position in prior years | 206 | - | |||||||||||
Decrease for tax position in prior years | -722 | - | |||||||||||
Interest accrual | 53 | 57 | |||||||||||
Foreign currency revaluation | -22 | -254 | |||||||||||
Balance at end of year | $ | 1,760 | $ | 2,245 | |||||||||
The Company is subject to Federal income tax, as well as income tax in various states and foreign jurisdictions. The Company is no longer subject to examination by Federal tax authorities for years prior to 2006 and by New Jersey tax authorities for years prior to 2012. Various foreign subsidiaries currently have open tax years from 2003 through 2013. | |||||||||||||
Pursuant to an income tax audit by the Indian Bureau of Taxation in March 2006, one of the Company’s Indian subsidiaries received a tax assessment approximating $257,000, including interest, through December 31, 2014, for the fiscal tax year ended March 31, 2003. Management disagreed with the basis of the tax assessment and filed an appeal with the Appeal Officer against the assessment. In October 2010, the matter was resolved with a judgment in the Company’s favor. Under the Indian Income Tax Act, however, the income tax assessing officer has the right to appeal against the judgment passed by the Appeal Officer. In December 2010, the income tax assessing officer exercised this right, against which the Company has filed an application to defend the case, and the Company intends to contest it vigorously. The Indian Bureau of Taxation has also completed an audit of the Company’s Indian subsidiary’s income tax return for the fiscal tax year ended March 31, 2004. The ultimate outcome was favorable, and there was no tax assessment imposed for the fiscal tax year ended March 31, 2004. In 2008 and 2009, the Indian subsidiary received a final tax assessment for the fiscal years ended March 31, 2005 and 2006 from the Indian Bureau of Taxation. The tax assessment amounted to $281,000 and $301,000, including interest through December 31, 2014, for the fiscal years ended March 31, 2005 and 2006, respectively. Management disagrees with the basis of these tax assessments, has filed an appeal against the assessments and is contesting them vigorously. In January 2012, the Indian subsidiary received a final tax assessment of approximately $1.0 million, including interest, for the fiscal year ended March 31, 2008, from the Indian Bureau of Taxation. Management disagrees with the basis of this tax assessment, and has filed an appeal against it. Due to this assessment, the Company recorded a tax provision amounting to $476,000 including interest through December 31, 2014. Based on recent experience and the current regulatory environment, management believes that the tax provision of $476,000 including interest is adequate. In February 2014, the Indian Bureau of Taxation also completed an audit of the Company’s Indian subsidiary’s income tax return for the fiscal tax year ended March 31, 2009. The ultimate outcome was favorable, and there was no tax assessment imposed for the fiscal tax year ended March 31, 2009. The Company had previously recorded a tax provision amounting to $722,000 including interest for the fiscal tax year ended March 31, 2009. As the ultimate outcome was favorable, the Company reversed this amount in the first quarter of 2014. The Indian Bureau of Taxation commenced an audit of this subsidiary’s income tax return for the fiscal years ended March 31, 2010 and 2011. The Company received a favorable outcome for the fiscal year ended March 31, 2010; however, the ultimate outcome for the fiscal year ended March 31, 2011 cannot be determined at this time. As the Company is continually subject to tax audits by the Indian Bureau of Taxation, the Company continuously assesses the likelihood of an unfavorable assessment for all fiscal years for which the Company has not been audited, and as of December 31, 2014, the Company recorded a tax provision amounting to $146,000 including interest for such year. | |||||||||||||
The Company from time to time is also subject to various other tax proceedings and claims for its Philippines subsidiaries. The Company has recorded a tax provision amounting to $300,000 including interest through December 31, 2014, for several ongoing tax proceedings in the Philippines. Although the ultimate outcome cannot be determined at this time, the Company continues to contest these claims vigorously. | |||||||||||||
Longterm_obligations
Long-term obligations | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Debt Disclosure [Abstract] | ||||||
Debt Disclosure [Text Block] | 6 | Long-term obligations | ||||
Total long-term obligations as of December 31, 2014 and 2013 consist of the following (in thousands): | ||||||
2014 | 2013 | |||||
Vendor obligations | ||||||
Capital lease obligations (1) | 656 | 17 | ||||
Deferred lease payments (2) | 792 | 764 | ||||
Microsoft license (3) | 759 | - | ||||
Acquisition related liability (4) | 1,735 | - | ||||
Pension obligations | ||||||
Accrued pension liability | 3,204 | 3,317 | ||||
7,146 | 4,098 | |||||
Less: Current portion of long-term obligations | 1,606 | 351 | ||||
Total | 5,540 | 3,747 | ||||
(1) In March 2014, the Company entered into an equipment sale leaseback agreement with a financing company. The cash proceeds from the transaction were $0.9 million. The Company leased the equipment for a period of 36 months at an effective interest rate of approximately 6% and has the option to purchase the equipment at a nominal amount at the end of the lease term. The Company has accounted for this transaction as a financing arrangement, wherein the equipment remains on the Company’s books and will continue to be depreciated. As of December 31, 2014, the Company had made $0.3 million in lease payments under the sale leaseback agreement. | ||||||
(2) Deferred lease payments represents the effect of straight-lining non-financing type lease payments over the respective lease terms. | ||||||
(3) In March 2014, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2017. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. The total cost, net of deferred interest (in thousands), was allocated to the following asset accounts in 2014: | ||||||
Prepaid expenses and other current assets | $ | 356 | ||||
Other assets | 713 | |||||
Property and equipment | 136 | |||||
$ | 1,205 | |||||
(4) Amount represents a portion of the purchase price consideration for the acquisition of MediaMiser to be paid by the Company as follows (after giving effect of foreign currency movements): $0.5 million on July 28, 2015 in shares of the Innodata Inc.’s common stock or at the Company’s option in cash and $0.6 million on July 28, 2016 in shares of the Innodata Inc.’s common stock or at the Company’s option in cash. In addition, the Company agreed to pay up to a maximum of $4.3 million of contingent consideration based on MediaMiser achieving certain revenue and EBITDA levels during the period from April 1, 2016 to March 31, 2017. The fair value of the contingent consideration as of December 31, 2014 was $0.6 million. | ||||||
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | 7 | Commitments and contingencies | |||
Leases-The Company is obligated under various operating lease agreements for office and production space. Certain agreements contain escalation clauses and requirements that the Company pay taxes, insurance and maintenance costs. Company leases that include escalated lease payments are expensed on a straight-line basis over the lease period. | |||||
Lease agreements for production space in most overseas facilities, which expire through 2030, contain provisions pursuant to which the Company may cancel the leases with a minimal notice period, generally subject to forfeiture of the security deposit. Rent expense, principally for office and production space totaled approximately $3.0 million, $3.3 million and $3.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Future minimum lease payments under non-cancelable leases, by year and in the aggregate as of December 31, 2014 (in thousands) are as follows: | |||||
Years Ending December 31, | |||||
2015 | $ | 156 | |||
2016 | 164 | ||||
2017 | 32 | ||||
2018 | - | ||||
2019 | - | ||||
Thereafter | - | ||||
Total minimum lease payments | $ | 352 | |||
Litigation - In 2008, the Supreme Court of the Republic of the Philippines refused to review a decision of the Court of Appeals in Manila against a Philippines subsidiary of the Company that is inactive and has no material assets, and purportedly also against Innodata Inc., that orders the reinstatement of certain former employees of the subsidiary to their former positions and also orders the payment of back wages and benefits that aggregate approximately $8.0 million. Based on consultation with legal counsel, the Company believes that recovery against the Company is unlikely. | |||||
The Company is also subject to various legal proceedings and claims which arise 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 Philippines 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 operating results of the period in which the ruling or recovery occurs. In addition, the Company’s estimate of potential impact on the Company’s consolidated financial position or overall consolidated results of operations for the above legal proceedings could change in the future. | |||||
The Company’s legal reserves related to legal proceedings and claims are based on a 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 reserves are adjusted if necessary. While the Company intends to defend these matters vigorously, adverse outcomes that it estimates could reach approximately $100,000 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. | |||||
Foreign Currency- 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 foreign exchange 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 currency. | |||||
Indemnifications-The Company is obligated under certain circumstances to indemnify directors, certain officers and employees against costs and liabilities incurred in actions or threatened actions brought against such individuals because such individuals acted in the capacity of director and/or officer or fiduciary of the Company. In addition, the Company has contracts with certain clients pursuant to whom the Company has agreed to indemnify the client for certain specified and limited claims. These indemnification obligations occur in the ordinary course of business and, in many cases, do not include a limit on potential maximum future payments. As of December 31, 2014, the Company has not recorded a liability for any obligations arising as a result of these indemnifications. | |||||
Liens-In connection with the procurement of tax incentives at one of the Company’s foreign subsidiaries, the foreign zoning authority was granted a first lien on the subsidiary’s property and equipment. As of December 31, 2014, the net book value of the property and equipment was $0.6 million. | |||||
Pension_benefits
Pension benefits | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | 8 | Pension benefits | |||||||||
U.S. Defined Contribution Pension Plan-The Company has a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code, pursuant to which substantially all of its U.S. employees are eligible to participate after completing six months of service. Participants may elect to contribute a portion of their compensation to the plan. Under the plan, the Company has the discretion to match a portion of participants’ contributions. The Company intends to match approximately $0.1 million to the plan for the year ended December 31, 2014. For the years ended December 31, 2013 and 2012, the Company did not make any matching contributions. | |||||||||||
Non-U.S. Pension benefits-The accounting standard for pensions requires an employer to recognize a net liability or asset and an offsetting adjustment to accumulated other comprehensive income (loss) to report the funded status of defined benefit pension and other post-retirement benefit plans. | |||||||||||
Most of the non-U.S. subsidiaries provide for government-mandated defined pension benefits. For certain of these subsidiaries, vested eligible employees are provided a lump sum payment upon retiring from the Company at a defined age. The lump sum amount is based on the salary and tenure as of retirement date. Other non-U.S subsidiaries provide for a lump sum payment to vested employees on retirement, death, incapacitation or termination of employment, based upon the salary and tenure as of the date employment ceases. The liability for such defined benefit obligations is determined and provided on the basis of actuarial valuations. As of December 31, 2014, these plans are unfunded. Pension expense for foreign subsidiaries totaled approximately $0.7 million, $0.5 million and $0.7 million for each of the three years in the period ended December 31, 2014. | |||||||||||
The following table summarizes the amounts recognized in accumulated other comprehensive income (loss), net of taxes (in thousands): | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Amortization of transition obligation | $ | 39 | $ | 112 | $ | 90 | |||||
Actuarial gain (loss) | 574 | -185 | -228 | ||||||||
Totals | $ | 613 | $ | -73 | $ | -138 | |||||
Amounts in accumulated other comprehensive income (loss) not yet | |||||||||||
reflected in net periodic pension cost, net of taxes: | |||||||||||
Actuarial gain | $ | 756 | $ | 178 | |||||||
Transition obligation | -253 | -294 | |||||||||
Totals | $ | 503 | $ | -116 | |||||||
Amounts in accumulated other comprehensive loss expected to | |||||||||||
be amortized in 2015 net periodic pension cost, net of taxes: | |||||||||||
Actuarial gain | $ | -130 | |||||||||
Transition obligation | 43 | ||||||||||
Totals | $ | -87 | |||||||||
The following table sets out the status of the non-U.S pension benefits and the amounts (in thousands) recognized in the Company’s consolidated financial statements as of and for each of the three years in the period ended December 31, 2014: | |||||||||||
Benefit Obligations: | |||||||||||
Change in the Benefit Obligation: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Projected benefit obligation at beginning of the year | $ | 3,652 | $ | 3,552 | $ | 2,695 | |||||
Service cost | 491 | 517 | 420 | ||||||||
Interest cost | 222 | 238 | 218 | ||||||||
Actuarial loss (gain) | -855 | 115 | 186 | ||||||||
Curtailments | - | -328 | - | ||||||||
Foreign currency exchange rate changes | 132 | -359 | 101 | ||||||||
Benefits paid | -111 | -83 | -68 | ||||||||
Projected benefit obligation at end of year | $ | 3,531 | $ | 3,652 | $ | 3,552 | |||||
Components of Net Periodic Pension Cost: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Service cost | $ | 491 | $ | 517 | $ | 420 | |||||
Interest cost | 222 | 238 | 218 | ||||||||
Curtailments | - | -328 | - | ||||||||
Actuarial loss recognized | 4 | 92 | 30 | ||||||||
Net periodic pension cost | $ | 717 | $ | 519 | $ | 668 | |||||
The accumulated benefit obligation, which represents benefits earned to date, was approximately $1.8 million as of both December 31, 2014 and 2013. | |||||||||||
Actuarial assumptions for all non-U.S. plans are described below. The discount rates are used to measure the year end benefit obligations and the earnings effects for the subsequent year. The assumptions for each of the three years in the period ended December 31, 2014 are as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Discount rate | 4.7% -9.5% | 4.8%-12% | 5.8%-14% | ||||||||
Rate of increase in compensation levels | 6%-9% | 7%-9% | 7%-9% | ||||||||
Estimated Future Benefit Payments: | |||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): | |||||||||||
Years Ending December 31, | |||||||||||
2015 | $ | 373 | |||||||||
2016 | 154 | ||||||||||
2017 | 127 | ||||||||||
2018 | 173 | ||||||||||
2019 | 48 | ||||||||||
2020 to 2024 | 889 | ||||||||||
$ | 1,764 | ||||||||||
Capital_Stock
Capital Stock | 12 Months Ended | |
Dec. 31, 2014 | ||
Stockholders' Equity Note [Abstract] | ||
Stockholders' Equity Note Disclosure [Text Block] | 9 | Capital Stock |
Common Stock-The Company is authorized to issue 75,000,000 shares of common stock. Each share of common stock has one vote. Subject to preferences that may be applicable to any outstanding shares of preferred stock, the holders of common stock are entitled to receive ratably such dividends, if any, as may be declared by the Board of Directors. No common stock dividends have been declared to date. | ||
Preferred Stock-The Company is authorized to issue 5,000,000 shares of preferred stock. The Board of Directors is authorized to fix the terms, rights, preferences and limitations of the preferred stock and to issue the preferred stock in series which differ as to their relative terms, rights, preferences and limitations. | ||
Stockholders Rights Agreement- On December 27, 2012, the Board of Directors declared a dividend of one preferred share purchase right (each, a “Right,” and collectively, the “Rights”) for each outstanding share of the Company’s common stock on January 14, 2013. The description and terms of the Rights are set forth in a Rights Agreement between the Company and American Stock Transfer & Trust Co., as rights agent, dated as of December 27, 2012 (the “Rights Agreement”). Each Right entitles its holder to purchase, under certain conditions, one one-thousandth of a share of Series C Participating Preferred Stock (“Preferred Stock”). Each one one-thousandth of a share of Preferred Stock has substantially the same rights as one share of the Company’s common stock. Subject to the terms and conditions of the Rights Agreement, Rights become exercisable ten days after the public announcement that a “Person” has become an “Acquiring Person” (as each such term is defined in the Rights Agreement) by obtaining beneficial ownership of 20% or more of the Company’s outstanding common stock, or, if earlier, ten business days (or a later date determined by the Board of Directors before any Person becomes an Acquiring Person) after a Person begins a tender or exchange offer which, if completed, would result in that Person becoming an Acquiring Person. Any Rights held by an Acquiring Person are void and may not be exercised. | ||
If a Person becomes an Acquiring Person, all holders of Rights, except the Acquiring Person, may purchase at the Right’s then-current exercise price, the Company’s common stock having a market value equal to twice the exercise price. Moreover, at any time after a Person becomes an Acquiring Person (unless such Person acquires 50 percent or more of the common stock of the Company then outstanding, as more fully described in the Rights Agreement), the Board of Directors may exchange one share of the Company’s common stock for each outstanding Right (other than rights owned by such Person, which would have become void). In addition, if the Company is acquired in a merger or other business combination transaction after a Person becomes an Acquiring Person, all holders of Rights, except the Acquiring Person, may purchase at the Right’s then-current exercise price, a number of the acquiring Company’s common stock having a market value of twice the exercise price. If the Company receives a “qualifying offer” (which includes certain all-cash fully financed tender offers or exchange offers for all of the Company’s outstanding common stock), under certain circumstances, holders of 10 percent of the Company’s outstanding common stock (excluding stock held by the offeror and its affiliates and associates) may direct the Board of Directors to call a special meeting of stockholders to consider a resolution exempting such “qualifying offer” from the Rights Agreement. The Rights themselves have no voting power. The Board of Directors may redeem the Rights at an initial redemption price of $0.001 per Right under certain circumstances set forth in the Rights Agreement. | ||
The Rights Agreement was approved by the Company’s stockholders at the 2013 annual meeting. The Rights will expire on January 13, 2016 unless earlier redeemed or exchanged. | ||
Common Stock Reserved-As of December 31, 2014, the Company had reserved for issuance approximately 5,095,000 shares of common stock pursuant to the Company’s stock option plans. | ||
Treasury Stock-In September 2011, the Company’s Board of Directors authorized the repurchase of up to $2.0 million of its common stock in open market or private transactions. There is no expiration date associated with the program. The Company did not repurchase any shares of its common stock under the September 2011 authorization. | ||
Stock_Options
Stock Options | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10 | Stock Options | |||||||||||
The Company adopted, with stockholder approval, amendments to the Innodata Inc. 2013 Stock Plan. The maximum number of shares of common stock that may be delivered, purchased or used for reference purposes (with respect to stock appreciation rights or stock units) with respect to awards granted under the Innodata Inc. 2013 Stock Plan, as amended and restated (the “2013 Plan”) is 2,138,655 shares of common stock of Innodata (“Stock”), plus (i) 41,096 shares of Stock that were available for issuance under the Innodata Isogen, Inc. 2009 Stock Plan, as amended and restated (the “Prior Plan”) as of June 4, 2013, plus (ii) any shares subject to an award or portion of any award under the Prior Plan that were outstanding as of June 4, 2013 that expire or terminate unexercised, become unexercisable or are forfeited or otherwise terminated, surrendered or canceled as to any shares without the delivery of shares of stock or other consideration. Shares of stock subject to options or stock appreciation rights granted under the 2013 Plan count against the share reserve as one share for every one share subject to such option or stock appreciation right and shares subject to any other type of award granted under the 2013 Plan count against the share reserve as two shares for every one share subject to such award. If any award, or portion of an award, under the 2013 Plan or Prior Plan expires or terminates unexercised, becomes unexercisable or is forfeited or otherwise terminated, surrendered or canceled as to any shares without the delivery of shares of Stock or other consideration, the shares subject to such award will thereafter be available for further awards under the 2013 Plan as provided in the next sentence. Shares of Stock that again become available for awards pursuant to the expiration, termination, forfeiture or cancellation of any award (other than an option or stock appreciation right) granted under the 2013 Plan, or of any award (other than an option or stock appreciation right) granted after March 31, 2011 under the Prior Plan, will be added back as two shares for every one share subject to such award or Prior Plan award. All other awards under the 2013 Plan and all other awards under the Prior Plan will be added back as one share for every one share subject to such award or Prior Plan award. The number of shares used for reference purposes in connection with these awards will be considered "delivered" for purposes of computing the maximum number of shares that may be delivered under the 2013 Plan. | |||||||||||||
The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average fair values of the options granted and weighted average assumptions are as follows: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average fair value of options granted | $ | 1.35 | $ | 1.89 | $ | 2.32 | |||||||
Risk-free interest rate | 1.68 | % | 0.76 | % | 0.65%-0.74 | % | |||||||
Expected life (years) | 5 | 7-May | 5 | ||||||||||
Expected volatility factor | 55 | % | 67 | % | 69 | % | |||||||
Expected dividends | None | None | None | ||||||||||
The Company estimates the risk-free interest rate using the U.S. Treasury yield curve for periods equal to the expected term of the options in effect at the time of grant. The expected term of options granted is based on a combination of vesting schedules, term of the options and historical experience. Expected volatility is based on historical volatility of the Company’s common stock. The Company uses an expected dividend yield of zero since it has never declared or paid any dividends on its capital stock. | |||||||||||||
A summary of option activity under the Plans as of December 31, 2014, and changes during the year then ended, is presented below: | |||||||||||||
Weighted-Average Remaining | |||||||||||||
Number of Options | Weighted - Average Exercise Price | Contractual Term (years) | Aggregate Intrinsic Value | ||||||||||
Outstanding at January 1, 2014 | 3,048,069 | $ | 2.99 | ||||||||||
Granted | 1,292,000 | 2.79 | |||||||||||
Exercised | -434,200 | 1.73 | |||||||||||
Forfeited/Expired | -264,012 | 3.24 | |||||||||||
Outstanding at December 31, 2014 | 3,641,857 | $ | 3.05 | 4.92 | $ | 534,777 | |||||||
Exercisable at December 31, 2014 | 1,344,982 | $ | 3.04 | 3.63 | $ | 300,687 | |||||||
Vested and Expected to Vest at December 31, 2014 | 3,641,857 | $ | 3.05 | 4.92 | $ | 534,777 | |||||||
The total compensation cost related to non-vested stock options not yet recognized as of December 31, 2014 totaled approximately $2 million. The weighted-average period over which these costs will be recognized is twenty-two months. | |||||||||||||
Because of the Company’s net operating loss carryforwards, no tax benefits resulting from the exercise of stock options have been recorded, thus there was no effect on cash flows from operating or financing activities. | |||||||||||||
The total intrinsic value of options exercised during the year amounted to approximately $0.6 million, $ 0.5 million and $ 0.5 million for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
In March 2014 the Company’s Chairman and CEO (the “CEO”) exercised 154,000 stock options at a total exercise price of $0.4 million. The CEO paid the exercise price by surrendering to the Company 137,065 of the shares of common stock he would have otherwise received on the option exercise. In addition, the CEO surrendered 7,866 shares to the Company in consideration of the payment by the Company on his behalf of $22,891 of the Company’s minimum withholding tax requirement payable in respect of the option exercise. Because the payment value attributable to the surrendered shares upon settlement does not exceed the fair value of the option, no compensation cost was recognized at the date of settlement. In connection with this transaction, the Company issued a net total of 9,069 shares of common stock to the CEO. | |||||||||||||
In July 2013, the CEO exercised 126,000 stock options at a total exercise price of $0.1 million. The CEO paid the exercise price by surrendering to the Company 19,688 of the shares of common stock he would have otherwise received on the option exercise. In addition, the CEO surrendered 49,382 shares to the Company in consideration of the payment by the Company on his behalf of $158,023 of the Company’s minimum withholding tax requirement payable in respect of the option exercise. Because the payment value attributable to the surrendered shares upon settlement does not exceed the fair value of the option, no compensation cost was recognized at the date of settlement. In connection with this transaction, the Company issued a net total of 56,930 shares of common stock to the CEO. | |||||||||||||
A summary of restricted shares under the Company’s stock option plans as of December 31, 2014, and changes during the period then ended, are presented below: | |||||||||||||
Weighted-Average Grant Date | |||||||||||||
Number of Shares | Fair Value | ||||||||||||
Unvested at January 1, 2014 | 25,000 | $ | 3.31 | ||||||||||
Granted | - | - | |||||||||||
Vested | -17,500 | 3.62 | |||||||||||
Forfeited/Expired | |||||||||||||
Unvested at December 31, 2014 | 7,500 | $ | 2.59 | ||||||||||
Comprehensive_income_loss
Comprehensive income (loss) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | 11 | Comprehensive income (loss) | ||||||||||||
Accumulated other comprehensive loss, as reflected in the consolidated balance sheets, consists of pension liability adjustments, net of taxes, foreign currency translation adjustment, net of taxes and changes in fair value of derivatives, net of taxes. The components of accumulated other comprehensive income (loss) as of December 31, 2014 and 2013, and reclassifications out of other comprehensive income (loss) for the years then ended, are presented below (in thousands): | ||||||||||||||
Foreign Currency Translation | Accumulated Other | |||||||||||||
Pension Liability Adjustment | Fair Value of Derivatives | Adjustment | Comprehensive Income (Loss) | |||||||||||
Balance at January 1, 2014 | $ | -116 | $ | -576 | $ | - | $ | -692 | ||||||
Other comprehensive income (loss) before reclassifications, net of taxes | 574 | 140 | -447 | 267 | ||||||||||
Total other comprehensive income (loss) before reclassifications, net of taxes | 458 | -436 | -447 | -425 | ||||||||||
Net amount reclassified to earnings | 39 | 99 | - | 138 | ||||||||||
Balance at December 31, 2014 | $ | 497 | $ | -337 | $ | -447 | $ | -287 | ||||||
Foreign Currency Translation | Accumulated Other | |||||||||||||
Pension Liability Adjustment | Fair Value of Derivatives | Adjustment | Comprehensive Income (Loss) | |||||||||||
Balance at January 1, 2013 | $ | -43 | $ | 80 | $ | - | $ | 37 | ||||||
Other comprehensive income (loss) before reclassifications, net of taxes | -185 | 789 | - | 604 | ||||||||||
Total other comprehensive income (loss) before reclassifications, net of taxes | -228 | 869 | - | 641 | ||||||||||
Net amount reclassified to earnings | 112 | -1,445 | - | -1,333 | ||||||||||
Balance at December 31, 2013 | $ | -116 | $ | -576 | $ | - | $ | -692 | ||||||
All reclassifications out of accumulated other comprehensive income (loss) had an impact on direct operating costs in the consolidated statement of operations and comprehensive income (loss). | ||||||||||||||
Segment_reporting_and_concentr
Segment reporting and concentrations | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Segment Reporting Disclosure [Text Block] | 12 | Segment reporting and concentrations | |||||||||
The Company’s operations are classified into three reportable segments: Content Services (CS), Innodata Advanced Data Solutions (IADS) and Media Intelligence Solutions (MIS). | |||||||||||
The CS segment provides solutions to digital retailers, information services companies, publishers and enterprises that have one or more of the following broad business requirements: development of digital content (including e-books); development of new digital information products; and operational support of existing digital information products and systems. | |||||||||||
The IADS segment performs advanced data analysis. IADS operates through two subsidiaries: Synodex and docGenix. Synodex offers a range of data analysis services in the healthcare, medical and insurance areas. docGenix provides services to certain financial services institutions. | |||||||||||
In July 2014, the Company acquired MediaMiser, an Ottawa, Canada-based provider of automated, real-time traditional and social media monitoring services. In December 2014, the Company acquired intellectual property and related assets of Bulldog Reporter. MIS segment operates through MediaMiser and Bulldog Reporter subsidiaries. | |||||||||||
A significant portion of the Company’s revenues is generated from its production facilities in the Philippines, India, Sri Lanka, Canada, Germany and Israel. | |||||||||||
Revenues from external clients and segment operating profit (loss), and other reportable segment information are as follows (in thousands): | |||||||||||
For the Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues: | |||||||||||
Content Services | $ | 56,794 | $ | 63,102 | $ | 85,386 | |||||
IADS | 614 | 1,147 | 1,205 | ||||||||
MIS | 1,668 | - | - | ||||||||
Total Consolidated | $ | 59,076 | $ | 64,249 | $ | 86,591 | |||||
Income (loss) before provision for income taxes(1): | |||||||||||
Content Services | $ | 6,356 | $ | 6,212 | $ | 14,775 | |||||
IADS | -7,572 | -13,596 | -7,936 | ||||||||
MIS | -304 | - | - | ||||||||
Total Consolidated | $ | -1,520 | $ | -7,384 | $ | 6,839 | |||||
Income (loss) before provision for income taxes(2): | |||||||||||
Content Services | $ | 4,363 | $ | 4,392 | $ | 13,137 | |||||
IADS | -5,582 | -11,776 | -6,298 | ||||||||
MIS | -301 | - | - | ||||||||
Total Consolidated | $ | -1,520 | $ | -7,384 | $ | 6,839 | |||||
December 31, 2014 | December 31, 2013 | ||||||||||
Total assets: | |||||||||||
Content Services | $ | 46,681 | $ | 48,981 | |||||||
IADS | 540 | 1,016 | |||||||||
MIS | 7,640 | - | |||||||||
Total Consolidated | $ | 54,861 | $ | 49,997 | |||||||
December 31, 2014 | December 31, 2013 | ||||||||||
Goodwill: | |||||||||||
Content Services | $ | 675 | $ | 675 | |||||||
MIS | 960 | - | |||||||||
Total Consolidated | $ | 1,635 | $ | 675 | |||||||
(1) Before elimination of any inter-segment profits | |||||||||||
(2) After elimination of any inter-segment profits | |||||||||||
Long-lived assets as of December 31, 2014 and 2013 by geographic region are comprised of: | |||||||||||
2014 | 2013 | ||||||||||
(in thousands) | |||||||||||
United States | $ | 1,600 | $ | 1,151 | |||||||
Foreign countries: | |||||||||||
Canada | 6,061 | - | |||||||||
India | 2,136 | 2,660 | |||||||||
Philippines | 2,081 | 1,917 | |||||||||
Sri Lanka | 890 | 989 | |||||||||
Israel | 29 | 41 | |||||||||
Germany | 14 | - | |||||||||
Total foreign | 11,211 | 5,607 | |||||||||
Total | $ | 12,811 | $ | 6,758 | |||||||
Two clients generated approximately 27%, 26% and 41% of the Company’s total revenues in the fiscal years ended December 31, 2014, 2013 and 2012, respectively. Another client accounted for 14% and 15% of the Company’s total revenues for the year ended December 31, 2014 and 2013, respectively, but accounted for less than 10% for the years ended December 31, 2012. One other client accounted for less than 10% of the Company’s total revenues for the years ended December 31, 2014 and 2012 but accounted for 15% of the Company’s total revenues for the year ended December 31, 2013. No other client accounted for 10% or more of total revenues during these periods. Further, in the years ended December 31, 2014, 2013 and 2012, revenues from non-US clients accounted for 47%, 35% and 24%, respectively, of the Company's revenues. | |||||||||||
Revenues for each of the three years in the period ended December 31, 2014 by geographic region (determined based upon client’s domicile), are as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
United States | $ | 31,489 | $ | 41,616 | $ | 65,533 | |||||
The Netherlands | 9,870 | 9,163 | 7,658 | ||||||||
United Kingdom | 9,113 | 8,128 | 8,529 | ||||||||
Canada | 3,126 | 1,726 | 441 | ||||||||
Others - principally Europe | 5,478 | 3,616 | 4,430 | ||||||||
Total | $ | 59,076 | $ | 64,249 | $ | 86,591 | |||||
As of December 31, 2014, approximately 49% of the Company's accounts receivable was from foreign (principally European) clients and 58% of accounts receivable was due from four clients. As of December 31, 2013, approximately 38% of the Company's accounts receivable was from foreign (principally European) clients and 65% of accounts receivable was due from four clients. No other client accounts for 10% or more of the receivables as of December 31, 2014 and 2013. | |||||||||||
Income_Loss_per_Share
Income (Loss) per Share | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Share [Text Block] | 13 | Income (Loss) per Share | |||||||||
For the Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries | $ | -974 | $ | -10,632 | $ | 7,473 | |||||
Weighted average common shares outstanding | 25,232 | 24,997 | 24,895 | ||||||||
Dilutive effect of outstanding options | - | - | 1,337 | ||||||||
Adjusted for dilutive computation | 25,232 | 24,997 | 26,232 | ||||||||
Basic income (loss) per share is computed using the weighted-average number of common shares outstanding during the year. Diluted income (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 income (loss) per share is used. | |||||||||||
Options to purchase 1.4 million, 1.5 million and 0.1 million shares of common stock in 2014, 2013 and 2012, respectively, were outstanding but not included in the computation of diluted income (loss) per share because the options’ exercise price was greater than the average market price of the common shares and therefore, the effect would have been antidilutive. In addition, diluted net loss per share in 2014 and 2013 does not include 2.2 million and 1.5 million potential common shares, respectively, derived from the exercise of stock options because as a result of the Company’s incurring losses, their effect would have been antidilutive. | |||||||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Quarterly Financial Information [Text Block] | 14 | Quarterly Financial Data (Unaudited) | ||||||||||||
The quarterly results of operations are summarized below: | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(in thousands, except per share amounts) | ||||||||||||||
2014 | ||||||||||||||
Revenues | $ | 14,066 | $ | 14,314 | $ | 14,804 | $ | 15,892 | ||||||
Gross profit | $ | 3,775 | $ | 2,995 | $ | 4,131 | $ | 4,270 | ||||||
Net income (loss) and income (loss) per share attributable to Innodata Inc. and Subsidiaries: | ||||||||||||||
Net income (loss) | $ | 189 | $ | -663 | $ | -219 | $ | -281 | ||||||
Basic and diluted net income (loss) per share | $ | 0.01 | $ | -0.03 | $ | -0.01 | $ | -0.01 | ||||||
2013 | ||||||||||||||
Revenues | $ | 16,903 | $ | 16,160 | $ | 15,746 | $ | 15,440 | ||||||
Gross profit | $ | 4,112 | $ | 2,741 | $ | 3,773 | $ | 4,496 | ||||||
Net income (loss) and income (loss) per share attributable to Innodata Inc. and Subsidiaries: | ||||||||||||||
Net income (loss) | $ | 316 | $ | -121 | $ | -11,692 | $ | 865 | ||||||
Basic and diluted net income (loss) per share | $ | 0.01 | $ | - | $ | -0.47 | $ | 0.03 | ||||||
Derivatives
Derivatives | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 15 | 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 the majority of the Company’s revenues is denominated in U.S. dollars, a significant portion of the total revenues is denominated in Canadian dollars and Euros. | |||||||||||
To manage its exposure to fluctuations in foreign currency exchange rates, the Company entered into foreign currency forward contracts, authorized under Company policies, with counterparties that were highly rated financial institutions. The Company utilized non-deliverable forward contracts expiring within twelve 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 objective and strategy for undertaking hedge 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 December 31, 2014 and 2013 was $19.4 million and $15.2 million, respectively, which is comprised of cash flow hedges denominated in U.S. dollars. | |||||||||||
The following table presents the fair value of derivative instruments included within the consolidated balance sheets as of December 31, 2014 and 2013 (in thousands): | |||||||||||
Balance Sheet Location | Fair Value | ||||||||||
2014 | 2013 | ||||||||||
Derivative designated as hedging instruments | |||||||||||
Foreign currency forwards contracts | Accrued expenses | $ | 337 | $ | 577 | ||||||
The effect of foreign currency forward contracts designated as cash flow hedges on the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012 were as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net gain (loss) recognized in OCI(1) | $ | 141 | $ | 743 | $ | 966 | |||||
Net gain (loss) reclassified from accumulated OCI into income(2) | $ | -99 | $ | -1,445 | $ | -941 | |||||
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 cost | |||||||||||
(3) There were no ineffective portions for the period presented. | |||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Investments, All Other Investments [Abstract] | |||||||||||
Financial Instruments Disclosure [Text Block] | 16 | Financial Instruments | |||||||||
The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of December 31, 2014 and 2013, because of the relative short maturity of these instruments. | |||||||||||
“Fair Value Measurements and Disclosures” defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | |||||||||||
The accounting standard establishes a fair value hierarchy that prioritizes the inputs used to measure fair value into three levels. The three levels are defined as follows: | |||||||||||
⋅ Level 1: Unadjusted quoted price in active market for identical assets and liabilities. | |||||||||||
⋅ Level 2: Observable inputs other than those included in Level 1. | |||||||||||
⋅ Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. | |||||||||||
The following table sets forth the assets and liabilities as of December 31, 2014 and 2013 that the Company measured at fair value, on a recurring basis by level, within the fair value hierarchy (in thousands). As required by the standard, assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. | |||||||||||
31-Dec-14 | Level 1 | Level 2 | Level 3 | ||||||||
Liabilities | |||||||||||
Derivatives | $ | - | $ | 337 | $ | - | |||||
Contingent Considerations | $ | - | $ | - | $ | 553 | |||||
31-Dec-13 | Level 1 | Level 2 | Level 3 | ||||||||
Liabilities | |||||||||||
Derivatives | $ | - | $ | 577 | $ | - | |||||
The Level 2 liabilities contain foreign currency forward contracts. Fair value is determined based on the observable market transactions of spot and forward rates. The fair value of these contracts as of December 31, 2014 and 2013 are included in accrued expenses in the accompanying consolidated balance sheets. | |||||||||||
The acquisition of MediaMiser includes contingent consideration that requires additional amounts to be paid by the Company based on MediaMiser’s revenues and EBITDA during the period from April 1, 2016 to March 31, 2017. The fair value measurement of the contingent consideration obligation is determined using Level 3 unobservable inputs supported by little or no market activity by applying the probability-weighted discounted cash flow approach. The fair value of the contingent consideration as of December 31, 2014 was $0.6 million and the Company has recorded this amount in long term obligations in the consolidated financial statements. | |||||||||||
The Synodex subsidiary of the IADS segment has not achieved significant revenue to date and has incurred losses since inception. As a result in the third quarter of 2013, the Company evaluated the carrying value of the fixed assets of its Synodex subsidiary compared to its fair value and concluded that the carrying value exceeds its fair value. This resulted in an impairment charge of $5.5 million for the year ended December 31, 2013. The fixed assets were measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3). | |||||||||||
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Activity for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||||||
Additions | |||||||||||||||||
Description | Balance at Beginning of Year | Charged to Costs and | Charged to Other Accounts | Deductions | Balance at End of Year | ||||||||||||
Expenses | |||||||||||||||||
2014 | |||||||||||||||||
Allowance for doubtful accounts | $ | 608 | $ | 118 | $ | - | $ | - | $ | 726 | |||||||
Valuation allowance | 8,060 | 1,125 | - | - | 9,185 | ||||||||||||
Total | $ | 8,668 | $ | 1,243 | $ | - | $ | - | $ | 9,911 | |||||||
2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 608 | $ | - | $ | - | $ | - | $ | 608 | |||||||
Valuation allowance | - | 7,100 | 960 | - | 8,060 | ||||||||||||
Total | $ | 608 | $ | 7,100 | $ | 960 | $ | - | $ | 8,668 | |||||||
2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 608 | $ | - | $ | - | $ | - | $ | 608 | |||||||
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates-In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, 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 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 revenue recognition, allowance for doubtful accounts and billing adjustments, long-lived assets, intangible assets, goodwill, valuation of deferred tax assets, valuation of securities underlying stock-based compensation, litigation accruals, pension benefits, purchase price allocation of the assets acquired in the acquisition of MediaMiser and Bulldog Reporter, valuation of derivative instruments and estimated accruals for various tax exposures. | ||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition-For CS segment revenue is recognized based on the quantity delivered or resources utilized, the period in which services are performed and delivered and when all the criteria of Staff Accounting Bulletin 104 have been met. Revenues for contracts billed on a time-and-materials basis are recognized as services are performed. Revenues under fixed-fee contracts, which are not significant to the overall revenues, are recognized on the percentage of completion method of accounting, as services are performed or milestones are achieved. | ||||||||||
For IADS segment revenue is recognized primarily earned based on the quantity delivered, and the period in which services are performed and deliverables are made as per contracts. | |||||||||||
MIS segment derives its revenues primarily from subscription arrangements. Revenue from subscriptions are recognized monthly when access to the service is provided to the end user and there are no significant remaining obligations, persuasive evidence of an arrangement exists, the fees are fixed or determinable and collection is reasonably assured. | |||||||||||
Revenues include reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. | |||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation-The functional currency for 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 were translated to U.S. dollars at rates which approximate those in effect on transaction dates. Monetary assets and liabilities denominated in foreign currencies at December 31, 2014 and 2013 were translated at the exchange rate in effect as of those dates. Nonmonetary assets, liabilities, and stockholders’ equity were translated at the appropriate historical rates. Included in direct operating costs are exchange losses (gains) resulting from such transactions of approximately $246,000, $645,000 and $431,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
The financial statements of the foreign subsidiaries located in Germany and Canada are the Euro and the Canadian dollar, respectively. The financial statements of these subsidiaries are reported in these respective currencies. Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in our 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 consolidated statements of operations and comprehensive income (loss). The amount of foreign currency translation adjustment as of December 31, 2014 was $447,000. There was no foreign currency translation adjustment as of December 31, 2013 and 2012 as these subsidiaries were either acquired or formed in 2014. | |||||||||||
Derivatives, Policy [Policy Text Block] | Derivative Instruments-The Company has designated its derivatives (foreign currency forward contracts) as a cash flow hedge. Accordingly, the effective portion of the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income or loss, and is subsequently reclassified to earnings when the hedge exposure affects earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedging activities. | ||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents-For financial statement purposes (including cash flows), the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. | ||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment-Property and equipment are stated at cost and are depreciated on the straight-line method over the estimated useful lives of the related assets, which is generally two to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the lives of the leases. Certain assets under capital leases are amortized over the lives of the respective leases or the estimated useful lives of the assets, whichever is shorter. | ||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-lived Assets-Management assesses the recoverability of its long-lived assets, which consist primarily of fixed assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The following factors, if present, may trigger an impairment review: (i) significant underperformance relative to expected historical or projected future operating results; (ii) significant negative industry or economic trends; (iii) significant decline in the Company’s stock price for a sustained period; and (iv) a change in the Company’s market capitalization relative to net book value. If the recoverability of these assets is unlikely because of the existence of one or more of the above-mentioned factors, an impairment analysis is performed, initially using a projected undiscounted cash flow method. Management makes assumptions regarding estimated future cash flows and other factors to determine the fair value of these respective assets. An impairment loss will be recognized only if the carrying value of a long-lived asset is not recoverable, exceeds its fair value, and is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. | ||||||||||
During the fourth quarter of 2014, the Company recorded an impairment charge of $0.4 million representing the write-off of certain long lived assets on account of the consolidation of two India-based production facilities. | |||||||||||
The Synodex subsidiary of the IADS segment has not achieved significant revenue to date and has incurred losses since inception. As a result in the third quarter of 2013, the Company evaluated the carrying value of the fixed assets of its Synodex subsidiary compared to its fair value and concluded that that the carrying value exceeds its fair value. This resulted in an impairment charge of $5.5 million for the year ended December 31, 2013. | |||||||||||
In the impairment review conducted by management in 2012, the carrying value of the fixed assets of its docGenix subsidiary exceeded its fair value. The Company recorded an impairment charge of $0.5 million for the year ended December 31, 2012 | |||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | |||||||||||
Goodwill and Other Intangible Assets-Goodwill represents the excess purchase price paid over the fair value of net assets acquired. The Company tests its goodwill on an annual basis using a two-step fair value based test. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit, with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test must be performed to measure the amount of the impairment loss, if any. If impairment is determined, the Company will recognize additional charges to operating expenses in the period in which they are identified, which would result in a reduction of operating results and a reduction in the amount of goodwill. | |||||||||||
In the annual impairment test conducted by the Company as of September 30, 2014, 2013 and 2012, the estimated fair value of the reporting unit exceeded its carrying amount, including goodwill. As such, no impairment was identified or recorded. | |||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes-Deferred taxes are determined based on the difference between the financial statement and tax basis 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 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. | ||||||||||
The Synodex subsidiary of the IADS segment has not achieved significant revenue to date and has incurred losses since inception. The Company's U.S. entity has incurred losses primarily on account of the losses of Synodex. 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. deferred tax assets will not be realizable. As the expectation of future taxable income resulting from Synodex could not be predicted with certainty, the Company created a valuation allowance against all the U.S. deferred tax assets starting third quarter of 2013. | |||||||||||
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 consolidated statements of operations and comprehensive income (loss). | |||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Accounting for Stock-Based Compensation - The Company measures and recognizes stock-based compensation expense for all share-based payment awards made to employees and directors based on estimated fair value at the grant date. The stock-based compensation expense is recognized over the requisite service period. The fair value is determined using the Black-Scholes option-pricing model. | ||||||||||
The stock-based compensation expense related to the Company’s various stock option plans was allocated as follows (in thousands): | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Direct operating costs | $ | 390 | $ | 280 | $ | 109 | |||||
Selling and adminstrative expenses | 766 | 655 | 868 | ||||||||
Total stock-based compensation | $ | 1,156 | $ | 935 | $ | 977 | |||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments- The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of December 31, 2014 and 2013, because of the relative short maturity of these instruments. | ||||||||||
Fair value measurements and disclosures define fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | |||||||||||
The accounting standard establishes a fair value hierarchy that prioritizes the inputs used to measure fair value into three levels. The three levels are defined as follows: | |||||||||||
· | Level 1: Unadjusted quoted price in active market for identical assets and liabilities. | ||||||||||
· | Level 2: Observable inputs other than those included in Level 1. | ||||||||||
· | Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. | ||||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable-The majority of the Company’s accounts receivable are due from publishers, information providers and e-book platform providers. The Company establishes credit terms for new clients based upon management’s review of their credit information and project terms, and performs ongoing credit evaluations of its clients, adjusting credit terms when management believes appropriate based upon payment history and an assessment of the client’s current creditworthiness. The Company records an allowance for doubtful accounts for estimated losses resulting from the inability of its clients to make required payments. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due (accounts outstanding longer than the payment terms are considered past due), the Company’s previous loss history, the client’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. While credit losses have generally been within expectations and the provisions established, the Company cannot guarantee that credit loss rates in the future will be consistent with those experienced in the past. In addition, there is credit exposure if the financial condition of one of the Company’s major clients were to deteriorate. In the event that the financial condition of one of the Company’s clients were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be necessary. | ||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk-The Company maintains its cash with highly rated financial institutions, located in the United States and in foreign locations where the Company has its operations. At December 31, 2014, the Company had cash and cash equivalents of $24.2 million, of which $22.5 million was held by its foreign subsidiaries with local banks located in Asia and $1.7 million was held in the United States. To the extent that such cash exceeds the maximum insurance levels, the Company would be uninsured. The Company has not experienced any losses in such accounts. | ||||||||||
Earnings Per Share, Policy [Policy Text Block] | Income (Loss) per Share- Basic income (loss) per share is computed using the weighted-average number of common shares outstanding during the year. Diluted income (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 income (loss) per share is used. | ||||||||||
Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | Pension-The Company records annual pension costs based on calculations, which include various actuarial assumptions including discount rates, compensation increases and other assumptions involving demographic factors. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. The Company believes that the assumptions used in recording its pension obligations are reasonable based on its experience, market conditions and inputs from its actuaries. | ||||||||||
Revenue Recognition, Deferred Revenue [Policy Text Block] | 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 accompanying consolidated balance sheets as of December 31, 2014 and 2013 is deferred revenue amounting to $1.3 million and $0.6 million, respectively. | ||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements-In May 2014, the FASB issued guidance on revenue from contracts with clients. This update is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This accounting guidance is effective prospectively for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016 and early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt the new standard when it takes effect. The Company has not yet determined the potential effects of the adoption of this standard on its consolidated financial statements. | ||||||||||
In June 2014, the FASB issued guidance on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This new guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This accounting guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. | |||||||||||
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | The stock-based compensation expense related to the Company’s various stock option plans was allocated as follows (in thousands): | ||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Direct operating costs | $ | 390 | $ | 280 | $ | 109 | |||||
Selling and adminstrative expenses | 766 | 655 | 868 | ||||||||
Total stock-based compensation | $ | 1,156 | $ | 935 | $ | 977 | |||||
Property_and_equipment_Tables
Property and equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | Property and equipment, which include amounts recorded under capital leases, are stated at cost less accumulated depreciation and amortization (in thousands), and consist of the following: | |||||||
December 31 | ||||||||
2014 | 2013 | |||||||
Equipment | $ | 13,719 | $ | 17,327 | ||||
Software | 4,863 | 4,045 | ||||||
Furniture and equipment | 2,348 | 2,600 | ||||||
Leasehold improvements | 4,919 | 5,810 | ||||||
Total | 25,849 | 29,782 | ||||||
Less: accumulated depreciation and amortization | -19,934 | -23,699 | ||||||
$ | 5,915 | $ | 6,083 | |||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Business Combinations [Abstract] | |||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes (in thousands) the fair value of the consideration transferred or to be transferred, to acquire MediaMiser. | ||||||||||
Amount | |||||||||||
Cash (net of working capital adjustment of $862) | $ | 3,225 | |||||||||
Shares of common stock payable by July 28, 2015 | 587 | ||||||||||
Shares of common stock payable by July 28, 2016 | 697 | ||||||||||
Contingent consideration | 585 | ||||||||||
$ | 5,094 | ||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The Company has finalized third party valuations of certain non-monetary assets, intangible assets and contingent consideration. The following table summarizes (in thousands) the purchase price allocation for the acquisition: | ||||||||||
Purchase price allocation for the acquisition | |||||||||||
Amount | |||||||||||
Accounts receivable | $ | 468 | |||||||||
Prepaid expenses and other current assets | 288 | ||||||||||
Property and equipment, net | 181 | ||||||||||
Other assets | 21 | ||||||||||
Developed technology | 2,629 | ||||||||||
Customer relationships | 2,555 | ||||||||||
Trademarks and tradenames | 297 | ||||||||||
Total identifiable assets acquired | 6,439 | ||||||||||
Accounts payable and accrued expenses | 583 | ||||||||||
Accrued salaries, wages and related benefits | 315 | ||||||||||
Deferred revenues | 382 | ||||||||||
Income and other taxes | 310 | ||||||||||
Deferred tax liability | 751 | ||||||||||
Capital lease obligation | 38 | ||||||||||
Total liabilities assumed | 2,379 | ||||||||||
Net identifiable assets acquired | 4,060 | ||||||||||
Goodwill | 1,034 | ||||||||||
Net assets acquired | $ | 5,094 | |||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2012 (amount in thousands, except per share amounts): | ||||||||||
December 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues: | |||||||||||
As reported | $ | 59,076 | $ | 64,249 | $ | 86,591 | |||||
Proforma | $ | 61,524 | $ | 67,872 | $ | 89,536 | |||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries: | |||||||||||
As reported | $ | -974 | $ | -10,632 | $ | 7,473 | |||||
Proforma | $ | -1,106 | $ | -10,491 | $ | 7,716 | |||||
Basic net income (loss) per share: | |||||||||||
As reported | $ | -0.04 | $ | -0.43 | $ | 0.3 | |||||
Proforma | $ | -0.04 | $ | -0.42 | $ | 0.31 | |||||
Diluted net income (loss) per share: | |||||||||||
As reported | $ | -0.04 | $ | -0.43 | $ | 0.28 | |||||
Proforma | $ | -0.04 | $ | -0.42 | $ | 0.29 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill as of December 31, 2014 were as follows (in thousands): | ||||||||||
Goodwill | |||||||||||
Balance as of January 1, 2014 | $ | 675 | |||||||||
Goodwill recorded in connection with an acquisition | 1,034 | ||||||||||
Foreign currency translation adjustment | -74 | ||||||||||
Balance as of December 31, 2014 | $ | 1,635 | |||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Information regarding our acquisition-related intangible assets is as follows (in thousands): | ||||||||||
December 31, 2014 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Developed technology | $ | 2,369 | $ | -98 | $ | 2,271 | |||||
Customer relationships | 2,439 | -84 | 2,355 | ||||||||
Trademarks and tradenames | 596 | -11 | 585 | ||||||||
Patents | 50 | - | 50 | ||||||||
Total | $ | 5,454 | $ | -193 | $ | 5,261 | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated annual amortization expense for intangible assets subsequent to December 31, 2014 is as follows (in thousands): | ||||||||||
Year | Amortization | ||||||||||
2015 | $ | 532 | |||||||||
2016 | 532 | ||||||||||
2017 | 532 | ||||||||||
2018 | 532 | ||||||||||
2019 | 532 | ||||||||||
Thereafter | 2,601 | ||||||||||
$ | 5,261 | ||||||||||
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The significant components of the provision for (benefit from) income taxes for each of the three years in the period ended December 31, 2014 are as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current income tax expense: | |||||||||||||
Foreign | $ | 778 | $ | 946 | $ | 1,912 | |||||||
Federal | - | -24 | - | ||||||||||
State and local | 22 | 13 | 11 | ||||||||||
800 | 935 | 1,923 | |||||||||||
Deferred income tax expense (benefit): | |||||||||||||
Foreign | -413 | -493 | -69 | ||||||||||
Federal | 19 | 4,530 | -738 | ||||||||||
State and local | - | 479 | 34 | ||||||||||
-394 | 4,516 | -773 | |||||||||||
Provision for income taxes | $ | 406 | $ | 5,451 | $ | 1,150 | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation of the U.S. statutory rate with the Company’s effective tax rate for each of the three years in the period ended December 31, 2014 is summarized as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal statutory rate | -34 | % | -34 | % | 34 | % | |||||||
Effect of: | |||||||||||||
State income taxes (net of federal tax benefit) | -2.1 | -2.1 | 3 | ||||||||||
Taxes on foreign income at rates that differ from U.S. | |||||||||||||
statutory rate | -11.7 | -0.6 | -21.8 | ||||||||||
Change in valuation allowance on deferred tax assets | 94.1 | 106.3 | - | ||||||||||
Increase (decrease) in unrecognized tax benefits | -21.7 | 1.6 | 1.4 | ||||||||||
Other | 2.1 | 2.6 | 0.2 | ||||||||||
Effective tax rate | 26.7 | % | 73.8 | % | 16.8 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and liabilities are classified as current or non-current according to the classification of the related asset or liability. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Allowances not currently deductible | $ | 341 | $ | 388 | |||||||||
Depreciation and amortization | 2,066 | 2,018 | |||||||||||
Equity compensation not currently deductible | 1,228 | 1,080 | |||||||||||
Net operating loss carryforwards | 6,164 | 4,479 | |||||||||||
Expenses not deductible until paid | 915 | 974 | |||||||||||
Tax credit carryforwards | 176 | 176 | |||||||||||
Derivatives | 125 | 213 | |||||||||||
Other | 263 | 113 | |||||||||||
Total gross deferred income tax assets before valuation allowance | 11,278 | 9,441 | |||||||||||
Valuation allowance | -9,627 | -8,060 | |||||||||||
Net deferred income tax assets | 1,651 | 1,381 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Acquisition of MediaMiser | -670 | - | |||||||||||
Other | -284 | -247 | |||||||||||
Totals | -954 | -247 | |||||||||||
Net deferred tax assets | $ | 697 | $ | 1,134 | |||||||||
Net deferred income tax asset-current | 254 | 45 | |||||||||||
Net deferred income tax asset-long term | 1,397 | 1,336 | |||||||||||
Net deferred income tax liability-current | -75 | -57 | |||||||||||
Net deferred income tax liability-long term | -879 | -190 | |||||||||||
Net deferred income tax assets | $ | 697 | $ | 1,134 | |||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | United States and foreign components of income (loss) before provision for income taxes for each of the three years ended December 31, (in thousands) are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | -4,259 | $ | -8,482 | $ | -1,920 | |||||||
Foreign | 2,739 | 1,098 | 8,759 | ||||||||||
Total | $ | -1,520 | $ | -7,384 | $ | 6,839 | |||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The following table represents a roll forward of the Company’s unrecognized tax benefits and associated interest for the years ended (amounts in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of year | $ | 2,245 | $ | 2,442 | |||||||||
Increase for tax position in prior years | 206 | - | |||||||||||
Decrease for tax position in prior years | -722 | - | |||||||||||
Interest accrual | 53 | 57 | |||||||||||
Foreign currency revaluation | -22 | -254 | |||||||||||
Balance at end of year | $ | 1,760 | $ | 2,245 | |||||||||
Longterm_obligations_Tables
Long-term obligations (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Debt Disclosure [Abstract] | ||||||
Schedule of Debt [Table Text Block] | Total long-term obligations as of December 31, 2014 and 2013 consist of the following (in thousands): | |||||
2014 | 2013 | |||||
Vendor obligations | ||||||
Capital lease obligations (1) | 656 | 17 | ||||
Deferred lease payments (2) | 792 | 764 | ||||
Microsoft license (3) | 759 | - | ||||
Acquisition related liability (4) | 1,735 | - | ||||
Pension obligations | ||||||
Accrued pension liability | 3,204 | 3,317 | ||||
7,146 | 4,098 | |||||
Less: Current portion of long-term obligations | 1,606 | 351 | ||||
Total | 5,540 | 3,747 | ||||
(1) In March 2014, the Company entered into an equipment sale leaseback agreement with a financing company. The cash proceeds from the transaction were $0.9 million. The Company leased the equipment for a period of 36 months at an effective interest rate of approximately 6% and has the option to purchase the equipment at a nominal amount at the end of the lease term. The Company has accounted for this transaction as a financing arrangement, wherein the equipment remains on the Company’s books and will continue to be depreciated. As of December 31, 2014, the Company had made $0.3 million in lease payments under the sale leaseback agreement. | ||||||
(2) Deferred lease payments represents the effect of straight-lining non-financing type lease payments over the respective lease terms. | ||||||
(3) In March 2014, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2017. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. The total cost, net of deferred interest (in thousands), was allocated to the following asset accounts in 2014: | ||||||
Prepaid expenses and other current assets | $ | 356 | ||||
Other assets | 713 | |||||
Property and equipment | 136 | |||||
$ | 1,205 | |||||
(4) Amount represents a portion of the purchase price consideration for the acquisition of MediaMiser to be paid by the Company as follows (after giving effect of foreign currency movements): $0.5 million on July 28, 2015 in shares of the Innodata Inc.’s common stock or at the Company’s option in cash and $0.6 million on July 28, 2016 in shares of the Innodata Inc.’s common stock or at the Company’s option in cash. In addition, the Company agreed to pay up to a maximum of $4.3 million of contingent consideration based on MediaMiser achieving certain revenue and EBITDA levels during the period from April 1, 2016 to March 31, 2017. The fair value of the contingent consideration as of December 31, 2014 was $0.6 million. | ||||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under non-cancelable leases, by year and in the aggregate as of December 31, 2014 (in thousands) are as follows: | ||||
Years Ending December 31, | |||||
2015 | $ | 156 | |||
2016 | 164 | ||||
2017 | 32 | ||||
2018 | - | ||||
2019 | - | ||||
Thereafter | - | ||||
Total minimum lease payments | $ | 352 | |||
Pension_benefits_Tables
Pension benefits (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||
Schedule of Accumulated and Projected Benefit Obligations [Table Text Block] | The following table summarizes the amounts recognized in accumulated other comprehensive income (loss), net of taxes (in thousands): | ||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Amortization of transition obligation | $ | 39 | $ | 112 | $ | 90 | |||||
Actuarial gain (loss) | 574 | -185 | -228 | ||||||||
Totals | $ | 613 | $ | -73 | $ | -138 | |||||
Amounts in accumulated other comprehensive income (loss) not yet | |||||||||||
reflected in net periodic pension cost, net of taxes: | |||||||||||
Actuarial gain | $ | 756 | $ | 178 | |||||||
Transition obligation | -253 | -294 | |||||||||
Totals | $ | 503 | $ | -116 | |||||||
Amounts in accumulated other comprehensive loss expected to | |||||||||||
be amortized in 2015 net periodic pension cost, net of taxes: | |||||||||||
Actuarial gain | $ | -130 | |||||||||
Transition obligation | 43 | ||||||||||
Totals | $ | -87 | |||||||||
Schedule of Changes in Accumulated Postemployment Benefit Obligations [Table Text Block] | |||||||||||
The following table sets out the status of the non-U.S pension benefits and the amounts (in thousands) recognized in the Company’s consolidated financial statements as of and for each of the three years in the period ended December 31, 2014: | |||||||||||
Benefit Obligations: | |||||||||||
Change in the Benefit Obligation: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Projected benefit obligation at beginning of the year | $ | 3,652 | $ | 3,552 | $ | 2,695 | |||||
Service cost | 491 | 517 | 420 | ||||||||
Interest cost | 222 | 238 | 218 | ||||||||
Actuarial loss (gain) | -855 | 115 | 186 | ||||||||
Curtailments | - | -328 | - | ||||||||
Foreign currency exchange rate changes | 132 | -359 | 101 | ||||||||
Benefits paid | -111 | -83 | -68 | ||||||||
Projected benefit obligation at end of year | $ | 3,531 | $ | 3,652 | $ | 3,552 | |||||
Schedule of Net Benefit Costs [Table Text Block] | |||||||||||
Components of Net Periodic Pension Cost: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Service cost | $ | 491 | $ | 517 | $ | 420 | |||||
Interest cost | 222 | 238 | 218 | ||||||||
Curtailments | - | -328 | - | ||||||||
Actuarial loss recognized | 4 | 92 | 30 | ||||||||
Net periodic pension cost | $ | 717 | $ | 519 | $ | 668 | |||||
Schedule of Assumptions Used [Table Text Block] | The assumptions for each of the three years in the period ended December 31, 2014 are as follows: | ||||||||||
2014 | 2013 | 2012 | |||||||||
Discount rate | 4.7% -9.5% | 4.8%-12% | 5.8%-14% | ||||||||
Rate of increase in compensation levels | 6%-9% | 7%-9% | 7%-9% | ||||||||
Schedule of Expected Benefit Payments [Table Text Block] | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): | ||||||||||
Years Ending December 31, | |||||||||||
2015 | $ | 373 | |||||||||
2016 | 154 | ||||||||||
2017 | 127 | ||||||||||
2018 | 173 | ||||||||||
2019 | 48 | ||||||||||
2020 to 2024 | 889 | ||||||||||
$ | 1,764 | ||||||||||
Stock_Options_Tables
Stock Options (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average fair values of the options granted and weighted average assumptions are as follows: | ||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average fair value of options granted | $ | 1.35 | $ | 1.89 | $ | 2.32 | |||||||
Risk-free interest rate | 1.68 | % | 0.76 | % | 0.65%-0.74 | % | |||||||
Expected life (years) | 5 | 7-May | 5 | ||||||||||
Expected volatility factor | 55 | % | 67 | % | 69 | % | |||||||
Expected dividends | None | None | None | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of option activity under the Plans as of December 31, 2014, and changes during the year then ended, is presented below: | ||||||||||||
Weighted-Average Remaining | |||||||||||||
Number of Options | Weighted - Average Exercise Price | Contractual Term (years) | Aggregate Intrinsic Value | ||||||||||
Outstanding at January 1, 2014 | 3,048,069 | $ | 2.99 | ||||||||||
Granted | 1,292,000 | 2.79 | |||||||||||
Exercised | -434,200 | 1.73 | |||||||||||
Forfeited/Expired | -264,012 | 3.24 | |||||||||||
Outstanding at December 31, 2014 | 3,641,857 | $ | 3.05 | 4.92 | $ | 534,777 | |||||||
Exercisable at December 31, 2014 | 1,344,982 | $ | 3.04 | 3.63 | $ | 300,687 | |||||||
Vested and Expected to Vest at December 31, 2014 | 3,641,857 | $ | 3.05 | 4.92 | $ | 534,777 | |||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | A summary of restricted shares under the Company’s stock option plans as of December 31, 2014, and changes during the period then ended, are presented below: | ||||||||||||
Weighted-Average Grant Date | |||||||||||||
Number of Shares | Fair Value | ||||||||||||
Unvested at January 1, 2014 | 25,000 | $ | 3.31 | ||||||||||
Granted | - | - | |||||||||||
Vested | -17,500 | 3.62 | |||||||||||
Forfeited/Expired | |||||||||||||
Unvested at December 31, 2014 | 7,500 | $ | 2.59 | ||||||||||
Comprehensive_income_loss_Tabl
Comprehensive income (loss) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive income (loss) as of December 31, 2014 and 2013, and reclassifications out of other comprehensive income (loss) for the years then ended, are presented below (in thousands): | |||||||||||||
Foreign Currency Translation | Accumulated Other | |||||||||||||
Pension Liability Adjustment | Fair Value of Derivatives | Adjustment | Comprehensive Income (Loss) | |||||||||||
Balance at January 1, 2014 | $ | -116 | $ | -576 | $ | - | $ | -692 | ||||||
Other comprehensive income (loss) before reclassifications, net of taxes | 574 | 140 | -447 | 267 | ||||||||||
Total other comprehensive income (loss) before reclassifications, net of taxes | 458 | -436 | -447 | -425 | ||||||||||
Net amount reclassified to earnings | 39 | 99 | - | 138 | ||||||||||
Balance at December 31, 2014 | $ | 497 | $ | -337 | $ | -447 | $ | -287 | ||||||
Foreign Currency Translation | Accumulated Other | |||||||||||||
Pension Liability Adjustment | Fair Value of Derivatives | Adjustment | Comprehensive Income (Loss) | |||||||||||
Balance at January 1, 2013 | $ | -43 | $ | 80 | $ | - | $ | 37 | ||||||
Other comprehensive income (loss) before reclassifications, net of taxes | -185 | 789 | - | 604 | ||||||||||
Total other comprehensive income (loss) before reclassifications, net of taxes | -228 | 869 | - | 641 | ||||||||||
Net amount reclassified to earnings | 112 | -1,445 | - | -1,333 | ||||||||||
Balance at December 31, 2013 | $ | -116 | $ | -576 | $ | - | $ | -692 | ||||||
Segment_reporting_and_concentr1
Segment reporting and concentrations (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Revenues from external clients and segment operating profit (loss), and other reportable segment information are as follows (in thousands): | ||||||||||
For the Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues: | |||||||||||
Content Services | $ | 56,794 | $ | 63,102 | $ | 85,386 | |||||
IADS | 614 | 1,147 | 1,205 | ||||||||
MIS | 1,668 | - | - | ||||||||
Total Consolidated | $ | 59,076 | $ | 64,249 | $ | 86,591 | |||||
Income (loss) before provision for income taxes(1): | |||||||||||
Content Services | $ | 6,356 | $ | 6,212 | $ | 14,775 | |||||
IADS | -7,572 | -13,596 | -7,936 | ||||||||
MIS | -304 | - | - | ||||||||
Total Consolidated | $ | -1,520 | $ | -7,384 | $ | 6,839 | |||||
Income (loss) before provision for income taxes(2): | |||||||||||
Content Services | $ | 4,363 | $ | 4,392 | $ | 13,137 | |||||
IADS | -5,582 | -11,776 | -6,298 | ||||||||
MIS | -301 | - | - | ||||||||
Total Consolidated | $ | -1,520 | $ | -7,384 | $ | 6,839 | |||||
December 31, 2014 | December 31, 2013 | ||||||||||
Total assets: | |||||||||||
Content Services | $ | 46,681 | $ | 48,981 | |||||||
IADS | 540 | 1,016 | |||||||||
MIS | 7,640 | - | |||||||||
Total Consolidated | $ | 54,861 | $ | 49,997 | |||||||
December 31, 2014 | December 31, 2013 | ||||||||||
Goodwill: | |||||||||||
Content Services | $ | 675 | $ | 675 | |||||||
MIS | 960 | - | |||||||||
Total Consolidated | $ | 1,635 | $ | 675 | |||||||
(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, by Geographical Areas [Table Text Block] | Long-lived assets as of December 31, 2014 and 2013 by geographic region are comprised of: | ||||||||||
2014 | 2013 | ||||||||||
(in thousands) | |||||||||||
United States | $ | 1,600 | $ | 1,151 | |||||||
Foreign countries: | |||||||||||
Canada | 6,061 | - | |||||||||
India | 2,136 | 2,660 | |||||||||
Philippines | 2,081 | 1,917 | |||||||||
Sri Lanka | 890 | 989 | |||||||||
Israel | 29 | 41 | |||||||||
Germany | 14 | - | |||||||||
Total foreign | 11,211 | 5,607 | |||||||||
Total | $ | 12,811 | $ | 6,758 | |||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Revenues for each of the three years in the period ended December 31, 2014 by geographic region (determined based upon client’s domicile), are as follows: | ||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
United States | $ | 31,489 | $ | 41,616 | $ | 65,533 | |||||
The Netherlands | 9,870 | 9,163 | 7,658 | ||||||||
United Kingdom | 9,113 | 8,128 | 8,529 | ||||||||
Canada | 3,126 | 1,726 | 441 | ||||||||
Others - principally Europe | 5,478 | 3,616 | 4,430 | ||||||||
Total | $ | 59,076 | $ | 64,249 | $ | 86,591 | |||||
Income_Loss_per_Share_Tables
Income (Loss) per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries | $ | -974 | $ | -10,632 | $ | 7,473 | |||||
Weighted average common shares outstanding | 25,232 | 24,997 | 24,895 | ||||||||
Dilutive effect of outstanding options | - | - | 1,337 | ||||||||
Adjusted for dilutive computation | 25,232 | 24,997 | 26,232 | ||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The quarterly results of operations are summarized below: | |||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(in thousands, except per share amounts) | ||||||||||||||
2014 | ||||||||||||||
Revenues | $ | 14,066 | $ | 14,314 | $ | 14,804 | $ | 15,892 | ||||||
Gross profit | $ | 3,775 | $ | 2,995 | $ | 4,131 | $ | 4,270 | ||||||
Net income (loss) and income (loss) per share attributable to Innodata Inc. and Subsidiaries: | ||||||||||||||
Net income (loss) | $ | 189 | $ | -663 | $ | -219 | $ | -281 | ||||||
Basic and diluted net income (loss) per share | $ | 0.01 | $ | -0.03 | $ | -0.01 | $ | -0.01 | ||||||
2013 | ||||||||||||||
Revenues | $ | 16,903 | $ | 16,160 | $ | 15,746 | $ | 15,440 | ||||||
Gross profit | $ | 4,112 | $ | 2,741 | $ | 3,773 | $ | 4,496 | ||||||
Net income (loss) and income (loss) per share attributable to Innodata Inc. and Subsidiaries: | ||||||||||||||
Net income (loss) | $ | 316 | $ | -121 | $ | -11,692 | $ | 865 | ||||||
Basic and diluted net income (loss) per share | $ | 0.01 | $ | - | $ | -0.47 | $ | 0.03 | ||||||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table presents the fair value of derivative instruments included within the consolidated balance sheets as of December 31, 2014 and 2013 (in thousands): | ||||||||||
Balance Sheet Location | Fair Value | ||||||||||
2014 | 2013 | ||||||||||
Derivative designated as hedging instruments | |||||||||||
Foreign currency forwards contracts | Accrued expenses | $ | 337 | $ | 577 | ||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The effect of foreign currency forward contracts designated as cash flow hedges on the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012 were as follows (in thousands): | ||||||||||
2014 | 2013 | 2012 | |||||||||
Net gain (loss) recognized in OCI(1) | $ | 141 | $ | 743 | $ | 966 | |||||
Net gain (loss) reclassified from accumulated OCI into income(2) | $ | -99 | $ | -1,445 | $ | -941 | |||||
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 cost | |||||||||||
(3) There were no ineffective portions for the period presented. | |||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Investments, All Other Investments [Abstract] | |||||||||||
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | The following table sets forth the assets and liabilities as of December 31, 2014 and 2013 that the Company measured at fair value, on a recurring basis by level, within the fair value hierarchy (in thousands). As required by the standard, assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. | ||||||||||
31-Dec-14 | Level 1 | Level 2 | Level 3 | ||||||||
Liabilities | |||||||||||
Derivatives | $ | - | $ | 337 | $ | - | |||||
Contingent Considerations | $ | - | $ | - | $ | 553 | |||||
31-Dec-13 | Level 1 | Level 2 | Level 3 | ||||||||
Liabilities | |||||||||||
Derivatives | $ | - | $ | 577 | $ | - | |||||
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives, Fair Value [Line Items] | |||
Direct operating costs | $43,905 | $49,127 | $57,382 |
Total stock-based compensation | 1,156 | 935 | 977 |
Stock Option [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Direct operating costs | 390 | 280 | 109 |
Selling and adminstrative expenses | 766 | 655 | 868 |
Total stock-based compensation | $1,156 | $935 | $977 |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Foreign Currency Transaction Gain (Loss), before Tax | $246,000 | $645,000 | $431,000 | ||
Asset Impairment Charges | 400,000 | 374,000 | 5,524,000 | 505,000 | |
Deferred Revenue | 1,300,000 | 1,300,000 | 600,000 | ||
Cash and Cash Equivalents At Carrying Value | 24,216,000 | 24,216,000 | 24,752,000 | 25,425,000 | 11,389,000 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 447,000 | 0 | 0 | ||
UNITED STATES | |||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Cash and Cash Equivalents At Carrying Value | 1,700,000 | 1,700,000 | |||
Synodex [Member] | |||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage By Parent | 90.00% | 90.00% | |||
DocGenix [Member] | |||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage By Parent | 94.00% | 94.00% | |||
Foreign Subsidiaries [Member] | |||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Cash and Cash Equivalents At Carrying Value | $22,500,000 | $22,500,000 |
Property_and_equipment_Details
Property and equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total | $25,849 | $29,782 |
Less: accumulated depreciation and amortization | -19,934 | -23,699 |
Property, Plant and Equipment, Net | 5,915 | 6,083 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 13,719 | 17,327 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 4,863 | 4,045 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,348 | 2,600 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $4,919 | $5,810 |
Property_and_equipment_Details1
Property and equipment (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation, Depletion and Amortization | $3,046,000 | $3,653,000 | $3,897,000 | |
Impairment of Long-Lived Assets Held-for-use | 400,000 | |||
Synodex [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of Long-Lived Assets Held-for-use | 5,500,000 | |||
Property, Plant and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation, Depletion and Amortization | $2,500,000 | $3,000,000 | $3,100,000 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||
Cash (net of working capital adjustment of $862) | $3,375 | $0 | $0 |
MediaMiser [Member] | |||
Business Acquisition [Line Items] | |||
Cash (net of working capital adjustment of $862) | 3,225 | ||
Shares of common stock payable by July 28, 2015 | 587 | ||
Shares of common stock payable by July 28, 2016 | 697 | ||
Contingent consideration | 585 | ||
Business Combination, Consideration Transferred | $5,094 |
Acquisitions_Details_1
Acquisitions (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 28, 2014 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | |||
Goodwill | $1,635 | $675 | |
MediaMiser [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 468 | ||
Prepaid expenses and other current assets | 288 | ||
Property and equipment, net | 181 | ||
Other assets | 21 | ||
Total identifiable assets acquired | 6,439 | ||
Accounts payable and accrued expenses | 583 | ||
Accrued salaries, wages and related benefits | 315 | ||
Deferred revenues | 382 | ||
Income and other taxes | 310 | ||
Deferred tax liability | 751 | ||
Capital lease obligation | 38 | ||
Total liabilities assumed | 2,379 | ||
Net identifiable assets acquired | 4,060 | ||
Goodwill | 1,034 | ||
Net assets acquired | 5,094 | ||
MediaMiser [Member] | Developed Technology Rights [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,629 | ||
MediaMiser [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,555 | ||
MediaMiser [Member] | Trademarks and Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $297 |
Acquisitions_Details_2
Acquisitions (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||||||||||
As reported | $15,892 | $14,804 | $14,314 | $14,066 | $15,440 | $15,746 | $16,160 | $16,903 | $59,076 | $64,249 | $86,591 |
Proforma | 61,524 | 67,872 | 89,536 | ||||||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries: | |||||||||||
As reported | -281 | -219 | -663 | 189 | 865 | -11,692 | -121 | 316 | -974 | -10,632 | 7,473 |
Proforma | ($1,106) | ($10,491) | $7,716 | ||||||||
Basic net income (loss) per share: | |||||||||||
As reported | ($0.01) | ($0.01) | ($0.03) | $0.01 | $0.03 | ($0.47) | $0 | $0.01 | ($0.04) | ($0.43) | $0.30 |
Proforma | ($0.04) | ($0.42) | $0.31 | ||||||||
Diluted net income (loss) per share: | |||||||||||
As reported | ($0.04) | ($0.43) | $0.28 | ||||||||
Proforma | ($0.04) | ($0.42) | $0.29 |
Acquisitions_Details_Textual
Acquisitions (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jul. 28, 2014 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||
Business Combination, Contingent Consideration Arrangements, Basis for Amount | The contingent consideration if earned is payable in May 2017 in cash, or at the Companys option in up to 70% in Innodata Inc.s common stock with the balance in cash. | |
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | $0.10 | |
Trademarks and Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years | |
MediaMiser [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Consideration Transferred, Noncontingent Consideration | 5.4 | |
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | |
Payments to Acquire Businesses, Gross | 4.1 | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 4.6 | |
Fair Value Inputs, Discount Rate | 19.00% | |
Business Combination, Contingent Consideration, Liability | 0.6 | $0.60 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | |
MediaMiser [Member] | Developed Technology Rights [Member] | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
MediaMiser [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 12 years | |
MediaMiser [Member] | Trademarks and Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
MediaMiser [Member] | Common Stock [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |
MediaMiser [Member] | Preferred Stock [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Goodwill [Line Items] | |
Balance | $675 |
Goodwill recorded in connection with an acquisition | 1,034 |
Foreign currency translation adjustment | -74 |
Balance | $1,635 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Gross | $5,454 |
Finite-Lived Intangible Assets, Accumulated Amortization | -193 |
Finite-Lived Intangible Assets, Net | 5,261 |
Developed Technology Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Gross | 2,369 |
Finite-Lived Intangible Assets, Accumulated Amortization | -98 |
Finite-Lived Intangible Assets, Net | 2,271 |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Gross | 2,439 |
Finite-Lived Intangible Assets, Accumulated Amortization | -84 |
Finite-Lived Intangible Assets, Net | 2,355 |
Trademarks and Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Gross | 596 |
Finite-Lived Intangible Assets, Accumulated Amortization | -11 |
Finite-Lived Intangible Assets, Net | 585 |
Patents [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Gross | 50 |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 |
Finite-Lived Intangible Assets, Net | $50 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets [Line Items] | |
2015 | $532 |
2016 | 532 |
2017 | 532 |
2018 | 532 |
2019 | 532 |
Thereafter | 2,601 |
Finite-Lived Intangible Assets, Net | $5,261 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of Intangible Assets | $0.20 |
Income_taxes_Details
Income taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current income tax expense: | |||
Foreign | $778 | $946 | $1,912 |
Federal | 0 | -24 | 0 |
State and local | 22 | 13 | 11 |
Current income tax expense (benefit) | 800 | 935 | 1,923 |
Deferred income tax expense (benefit): | |||
Foreign | -413 | -493 | -69 |
Federal | 19 | 4,530 | -738 |
State and local | 0 | 479 | 34 |
Deferred income tax expense (benefit) | -383 | 4,617 | -762 |
Provision for income taxes | $406 | $5,451 | $1,150 |
Income_taxes_Details_1
Income taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
Federal statutory rate | -34.00% | -34.00% | 34.00% |
Effect of: | |||
State income taxes (net of federal tax benefit) | -2.10% | -2.10% | 3.00% |
Taxes on foreign income at rates that differ from U.S. statutory rate | -11.70% | -0.60% | -21.80% |
Change in valuation allowance on deferred tax assets | 94.10% | 106.30% | 0.00% |
Increase (decrease) in unrecognized tax benefits | -21.70% | 1.60% | 1.40% |
Other | 2.10% | 2.60% | 0.20% |
Effective tax rate | 26.70% | 73.80% | 16.80% |
Income_taxes_Details_2
Income taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ||
Allowances not currently deductible | $341 | $388 |
Depreciation and amortization | 2,066 | 2,018 |
Equity compensation not currently deductible | 1,228 | 1,080 |
Net operating loss carryforwards | 6,164 | 4,479 |
Expenses not deductible until paid | 915 | 974 |
Tax credit carryforwards | 176 | 176 |
Derivatives | 125 | 213 |
Other | 263 | 113 |
Total gross deferred income tax assets before valuation allowance | 11,278 | 9,441 |
Valuation allowance | -9,627 | -8,060 |
Net deferred income tax assets | 1,651 | 1,381 |
Deferred income tax liabilities: | ||
Acquisition of MediaMiser | -670 | 0 |
Other | -284 | -247 |
Totals | -954 | -247 |
Net deferred tax assets | 697 | 1,134 |
Net deferred income tax asset-current | 254 | 45 |
Net deferred income tax asset-long term | 1,397 | 1,336 |
Net deferred income tax liability-current | -75 | -57 |
Net deferred income tax liability-long term | -879 | -190 |
Net deferred income tax assets | $697 | $1,134 |
Income_taxes_Details_3
Income taxes (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | |||
United States | ($4,259) | ($8,482) | ($1,920) |
Foreign | 2,739 | 1,098 | 8,759 |
Income (loss) before provision for income taxes | ($1,520) | ($7,384) | $6,839 |
Income_taxes_Details_4
Income taxes (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Contingency [Line Items] | ||
Balance at beginning of year | $2,245 | $2,442 |
Increase for tax position in prior years | 206 | 0 |
Decrease for tax position in prior years | -722 | 0 |
Interest accrual | 53 | 57 |
Foreign currency revaluation | -22 | -254 |
Balance at end of year | $1,760 | $2,245 |
Income_taxes_Details_Textual
Income taxes (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2006 | Dec. 31, 2005 | |
Income Taxes [Line Items] | ||||||||
Income Tax Examination, Penalties and Interest Accrued | $600,000 | $800,000 | ||||||
Deferred Foreign Income Tax Expense (Benefit) | -413,000 | -493,000 | -69,000 | |||||
Income Tax Expense (Benefit) | 406,000 | 5,451,000 | 1,150,000 | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 7,100,000 | 1,500,000 | 8,100,000 | |||||
Valuation Allowance Deferred Tax Asset From Unrealized Losses On Foreign Currency | 700,000 | |||||||
Undistributed Earnings of Foreign Subsidiaries | 34,700,000 | |||||||
Income Tax Holiday, Aggregate Dollar Amount | 200,000 | 100,000 | 1,100,000 | |||||
Unrecognized Tax Benefits | 1,760,000 | 2,245,000 | 2,442,000 | |||||
Windfall [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Operating Loss Carryforwards | 4,700,000 | |||||||
Domestic Tax Authority [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Operating Loss Carryforwards | 20,800,000 | |||||||
Foreign Tax Authority [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Operating Loss Carryforwards | 22,200,000 | |||||||
Indian Bureau Of Taxation [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign Income Tax Expense (Benefit), Continuing Operations | 257,000 | 1,000,000 | 301,000 | 281,000 | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 476,000 | |||||||
Deferred Foreign Income Tax Expense (Benefit) | 146,000 | |||||||
Income Tax Expense (Benefit) | 300,000 | 722,000 | ||||||
Operating Loss Carryforwards Expiration Date1 | These net operating loss carryforwards expire at various times through the year 2033. | |||||||
MediaMiser [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Operating Loss Carryforwards | 1,200,000 | |||||||
Tax Credit Carryforward, Amount | 200,000 | |||||||
Operating Loss Carryforwards, Expiration Date | 31-Dec-28 | |||||||
MediaMiser [Member] | Research Tax Credit Carryforward [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Tax Credit Carryforward, Amount | $900,000 |
Longterm_obligations_Details
Long-term obligations (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Vendor obligations | ||||
Capital lease obligations | $656 | [1] | $17 | [1] |
Deferred lease payments | 792 | [2] | 764 | [2] |
Microsoft license | 759 | [3] | 0 | [3] |
Acquisition related liability | 1,735 | 0 | ||
Pension obligations | ||||
Accrued pension liability | 3,204 | 3,317 | ||
Long-term Debt | 7,146 | 4,098 | ||
Less: Current portion of long-term obligations | 1,606 | 351 | ||
Total | $5,540 | $3,747 | ||
[1] | In March 2014, the Company entered into an equipment sale leaseback agreement with a financing company. The cash proceeds from the transaction were $0.9 million. The Company leased the equipment for a period of 36 months at an effective interest rate of approximately 6% and has the option to purchase the equipment at a nominal amount at the end of the lease term. The Company has accounted for this transaction as a financing arrangement, wherein the equipment remains on the Companybs books and will continue to be depreciated. As of December 31, 2014, the Company had made $0.3 million in lease payments under the sale leaseback agreement. | |||
[2] | Deferred lease payments represents the effect of straight-lining non-financing type lease payments over the respective lease terms. | |||
[3] | In March 2014, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2017. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. |
Longterm_obligations_Details_1
Long-term obligations (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Microsoft Licenses Obligations | $759 | [1] | $0 | [1] |
Prepaid expenses and other current assets [Member] | ||||
Debt Instrument [Line Items] | ||||
Microsoft Licenses Obligations | 356 | |||
Other assets [Member] | ||||
Debt Instrument [Line Items] | ||||
Microsoft Licenses Obligations | 713 | |||
Property and equipment [Member] | ||||
Debt Instrument [Line Items] | ||||
Microsoft Licenses Obligations | $136 | |||
[1] | In March 2014, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2017. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. |
Longterm_obligations_Details_T
Long-term obligations (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Jul. 28, 2016 | Jul. 28, 2015 | Jul. 28, 2014 | |
Debt Instrument [Line Items] | |||||||
Proceeds from Long-term Capital Lease Obligations | $859,000 | $0 | $0 | ||||
MediaMiser [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 587,000 | ||||||
Business Combination, Contingent Consideration, Liability | 600,000 | 600,000 | |||||
MediaMiser [Member] | Scenario, Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability, Current | 4,300,000 | ||||||
Vendor Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
License Costs | 400,000 | ||||||
Sale Leaseback Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Capital Lease Obligations Lease Period | 36 months | ||||||
Sale Leaseback Transaction, Imputed Interest Rate | 6.00% | ||||||
Proceeds from Long-term Capital Lease Obligations | 900,000 | ||||||
Sale Leaseback Transaction, Rent Expense | 300,000 | ||||||
Subsequent Event [Member] | MediaMiser [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $600,000 | $500,000 |
Commitments_and_contingencies_1
Commitments and contingencies (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Years Ending December 31, | |
2015 | $156 |
2016 | 164 |
2017 | 32 |
2018 | 0 |
2019 | 0 |
Thereafter | 0 |
Total minimum lease payments | $352 |
Commitments_and_contingencies_2
Commitments and contingencies (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies [Line Items] | |||
Estimated Litigation Liability | $8,000,000 | ||
Litigation Settlement, Expense | 100,000 | ||
Operating Leases, Rent Expense | 3,000,000 | 3,300,000 | 3,600,000 |
Property, Plant and Equipment, Net | 5,915,000 | 6,083,000 | |
Liens Under Foreign Tax Authority [Member] | |||
Commitments and Contingencies [Line Items] | |||
Property, Plant and Equipment, Net | $600,000 |
Pension_benefits_Details
Pension benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of transition obligation | $39 | $112 | $90 |
Actuarial gain (loss) | 574 | -185 | -228 |
Pension liability adjustment, net of taxes | 613 | -73 | -138 |
Amounts in accumulated other comprehensive income (loss) not yet reflected in net periodic pension cost, net of taxes: | |||
Actuarial gain | 756 | 178 | |
Transition obligation | -253 | -294 | |
Totals | 503 | -116 | |
Amounts in accumulated other comprehensive loss expected to be amortized in 2015 net periodic pension cost, net of taxes: | |||
Actuarial gain | -130 | ||
Transition obligation | 43 | ||
Totals | ($87) |
Pension_benefits_Details_1
Pension benefits (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of the year | $3,652 | $3,552 | $2,695 |
Service cost | 491 | 517 | 420 |
Interest cost | 222 | 238 | 218 |
Actuarial loss (gain) | -855 | 115 | 186 |
Curtailments | 0 | -328 | 0 |
Foreign currency exchange rate changes | 132 | -359 | 101 |
Benefits paid | -111 | -83 | -68 |
Projected benefit obligation at end of year | $3,531 | $3,652 | $3,552 |
Pension_benefits_Details_2
Pension benefits (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $491 | $517 | $420 |
Interest cost | 222 | 238 | 218 |
Curtailments | 0 | -328 | 0 |
Actuarial loss recognized | 4 | 92 | 30 |
Net periodic pension cost | $717 | $519 | $668 |
Pension_benefits_Details_3
Pension benefits (Details 3) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.70% | 4.80% | 5.80% |
Rate of increase in compensation levels | 6.00% | 7.00% | 7.00% |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 9.50% | 12.00% | 14.00% |
Rate of increase in compensation levels | 9.00% | 9.00% | 9.00% |
Pension_benefits_Details_4
Pension benefits (Details 4) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Years Ending December 31, | |
2015 | $373 |
2016 | 154 |
2017 | 127 |
2018 | 173 |
2019 | 48 |
2020 to 2024 | 889 |
Estimated Future Benefit Payments,Net | $1,764 |
Pension_benefits_Details_Textu
Pension benefits (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension Expense | $717,000 | $519,000 | $668,000 |
Defined Benefit Plan, Accumulated Benefit Obligation | 1,800,000 | 1,800,000 | |
Defined Contribution Plan, Entities Matching Contribution, Amount | $100,000 |
Capital_Stock_Details_Textual
Capital Stock (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 27, 2012 | |
Capital Stock [Line Items] | ||||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 | ||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 5,095,000 | |||
Treasury Stock, Shares, Acquired | 2,000,000 | |||
Stockholders Rights Agreement Expiration Date | 13-Jan-16 | |||
Stockholders Rights Agreement [Member] | ||||
Capital Stock [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 20.00% | |||
Stockholder Rights Exercisable Description | Person becomes an Acquiring Person (unless such Person acquires 50 percent or more of the common stock of the Company then outstanding, as more fully described in the Rights Agreement), the Board of Directors may exchange one share of the Companys common stock for each outstanding Right (other than rights owned by such Person, which would have become void). In addition, if the Company is acquired in a merger or other business combination transaction after a Person becomes an Acquiring Person, all holders of Rights, except the Acquiring Person, may purchase at the Rights then-current exercise price, a number of the acquiring Companys common stock having a market value of twice the exercise price. If the Company receives a qualifying offer (which includes certain all-cash fully financed tender offers or exchange offers for all of the Companys outstanding common stock), under certain circumstances, holders of 10 percent of the Companys outstanding common stock (excluding stock held by the offeror and its affiliates and associates) may direct the Board of Directors to call a special meeting of stockholders to consider a resolution exempting such qualifying offer from the Rights Agreement. | |||
Redemption Rights Per Share Value | 0.001 |
Stock_Options_Details
Stock Options (Details) (Employee Stock Option [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of options granted (in dollars per share) | $1.35 | $1.89 | $2.32 |
Risk-free interest rate | 1.68% | 0.76% | |
Expected life (years) | 5 years | 5 years | |
Expected volatility factor | 55.00% | 67.00% | 69.00% |
Expected dividends | |||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.65% | ||
Expected life (years) | 5 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.74% | ||
Expected life (years) | 7 years |
Stock_Options_Details_1
Stock Options (Details 1) (Employee Stock Option [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Outstanding at January 1, 2014 (in shares) | 3,048,069 |
Number of Options, Granted (in shares) | 1,292,000 |
Number of Options, Exercised (in shares) | -434,200 |
Number of Options, Forfeited/Expired (in shares) | -264,012 |
Number of Options, Outstanding at December 31, 2014 (in shares) | 3,641,857 |
Number of Options, Exercisable at December 31, 2014 (in shares) | 1,344,982 |
Number of Options, Vested and Expected to Vest at December 31, 2014 (in shares) | 3,641,857 |
Weighted - Average Exercise Price, Outstanding at January 1, 2014 (in dollars per share) | $2.99 |
Weighted - Average Exercise Price, Granted (in dollars per shares) | $2.79 |
Weighted - Average Exercise Price, Exercised (in dollars per share) | $1.73 |
Weighted - Average Exercise Price, Forfeited/Expired (in dollars per share) | $3.24 |
Weighted - Average Exercise Price, Outstanding at December 31, 2014 (in dollars per share) | $3.05 |
Weighted - Average Exercise Price, Exercisable at December 31, 2014 (in dollars per share) | $3.04 |
Weighted - Average Exercise Price, Vested and Expected to Vest at December 31, 2014 (in dollars per share) | $3.05 |
Weighted - Average Remaining Contractual Term, Outstanding at December 31, 2014 (in years) | 4 years 11 months 1 day |
Weighted - Average Remaining Contractual Term, Exercisable at December 31, 2014 (in years) | 3 years 7 months 17 days |
Weighted - Average Remaining Contractual Term, Vested and Expected to Vest at December 31, 2014 (in years) | 4 years 11 months 1 day |
Aggregate Intrinsic Value, Outstanding at December 31, 2014 | $534,777 |
Aggregate Intrinsic Value, Exercisable at December 31, 2014 | 300,687 |
Aggregate Intrinsic Value, Vested and Expected to Vest at December 31, 2014 | $534,777 |
Stock_Options_Details_2
Stock Options (Details 2) (Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Unvested at January 1, 2014 (in shares) | 25,000 |
Number of Shares, Granted (in shares) | 0 |
Number of Shares, Vested (in shares) | -17,500 |
Number of Shares, Forfeited/Expired (in shares) | |
Number of Shares, Unvested at December 31, 2014 (in shares) | 7,500 |
Weighted-Average Grant Date Fair Value, Unvested at January 1, 2014 (in dollars per share) | $3.31 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $0 |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $3.62 |
Weighted-Average Grant Date Fair Value, Forfeited/Expired (in dollars per share) | |
Weighted-Average Grant Date Fair Value, Unvested at December 31, 2014 (in dollars per share) | $2.59 |
Stock_Options_Details_Textual
Stock Options (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Jul. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized | $2,000,000 | ||||
Stock Issued During Period Value Stock Options Exercised1 | 330,000 | 72,000 | 574,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 600,000 | 500,000 | 500,000 | ||
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 | 2,138,655 | ||||
2009 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 Available for Grant | 41,096 | ||||
Chief Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Issued During Period Shares Stock Options Exercised | 154,000 | 126,000 | |||
Stock Issued During Period Value Stock Options Exercised1 | 400,000 | 100,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 137,065 | 19,688 | |||
Payments Related to Tax Withholding for Share-based Compensation | $22,891 | $158,023 | |||
Shares Paid for Tax Withholding for Share Based Compensation | 7,866 | 49,382 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 9,069 | 56,930 |
Comprehensive_income_loss_Deta
Comprehensive income (loss) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Liability Adjustment, Other comprehensive income (loss): | ||
Pension Liability Adjustment, Balance at Beginning of the Period | ($116) | ($43) |
Pension Liability Adjustment, Other comprehensive income (loss) before reclassifications, net of taxes | 574 | -185 |
Pension Liability Adjustment, Total other comprehensive loss before reclassifications, net of taxes | 458 | -228 |
Pension Liability Adjustment, Net amount reclassified to earnings | 39 | 112 |
Pension Liability Adjustment, Balance at End of the Period | 497 | -116 |
Fair Value of Derivatives, Other comprehensive income (loss): | ||
Fair Value of Derivatives, Balance at Beginning of the Period | -576 | 80 |
Fair Value of Derivatives, Other comprehensive income (loss) before reclassifications, net of taxes | 140 | 789 |
Fair Value of Derivatives, Total other comprehensive loss before reclassifications, net of taxes | -436 | 869 |
Fair Value of Derivatives, Net amount reclassified to earnings | 99 | -1,445 |
Fair Value of Derivatives, Balance at End of the Period | -337 | -576 |
Foreign Currency Translation Adjustment, Other comprehensive income (loss): | ||
Foreign Currency Translation Adjustment, Balance at Beginning of the Period | 0 | 0 |
Foreign Currency Translation Adjustment, Other comprehensive income (loss) before reclassifications, net of taxes | -447 | 0 |
Foreign Currency Translation Adjustment, Total other comprehensive loss before reclassifications, net of taxes | -447 | 0 |
Foreign Currency Translation Adjustment, Net amount reclassified to earnings | 0 | 0 |
Foreign Currency Translation Adjustment, Balance at End of the period | -447 | 0 |
Accumulated Other Comprehensive Income (loss), Other comprehensive income (loss): | ||
Accumulated Other Comprehensive Income (loss), Balance at Beginning of the period | -692 | 37 |
Accumulated Other Comprehensive Income (loss), Other comprehensive income (loss) before reclassifications, net of taxes | 267 | 604 |
Accumulated Other Comprehensive Income (loss), Total other comprehensive loss before reclassifications, net of taxes | -425 | 641 |
Accumulated Other Comprehensive Income (loss), Net amount reclassified to earnings | 138 | -1,333 |
Accumulated Other Comprehensive Income (loss), Balance at End of the period | ($287) | ($692) |
Segment_reporting_and_concentr2
Segment reporting and concentrations (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | $15,892 | $14,804 | $14,314 | $14,066 | $15,440 | $15,746 | $16,160 | $16,903 | $59,076 | $64,249 | $86,591 | |||
Assets | 54,861 | 49,997 | 54,861 | 49,997 | ||||||||||
Goodwill | 1,635 | 675 | 1,635 | 675 | ||||||||||
Before Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income (loss) before provision for income taxes | -1,520 | [1] | -7,384 | [1] | 6,839 | [1] | ||||||||
After Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income (loss) before provision for income taxes | -1,520 | [2] | -7,384 | [2] | 6,839 | [2] | ||||||||
Content Services [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 56,794 | 63,102 | 85,386 | |||||||||||
Assets | 46,681 | 48,981 | 46,681 | 48,981 | ||||||||||
Goodwill | 675 | 675 | 675 | 675 | ||||||||||
Content Services [Member] | Before Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income (loss) before provision for income taxes | 6,356 | [1] | 6,212 | [1] | 14,775 | [1] | ||||||||
Content Services [Member] | After Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income (loss) before provision for income taxes | 4,363 | [2] | 4,392 | [2] | 13,137 | [2] | ||||||||
IADS [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 614 | 1,147 | 1,205 | |||||||||||
Assets | 540 | 1,016 | 540 | 1,016 | ||||||||||
IADS [Member] | Before Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income (loss) before provision for income taxes | -7,572 | [1] | -13,596 | [1] | -7,936 | [1] | ||||||||
IADS [Member] | After Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income (loss) before provision for income taxes | -5,582 | [2] | -11,776 | [2] | -6,298 | [2] | ||||||||
MIS [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 1,668 | 0 | 0 | |||||||||||
Assets | 7,640 | 0 | 7,640 | 0 | ||||||||||
Goodwill | 960 | 0 | 960 | 0 | ||||||||||
MIS [Member] | Before Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income (loss) before provision for income taxes | -304 | [1] | 0 | [1] | 0 | [1] | ||||||||
MIS [Member] | After Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income (loss) before provision for income taxes | ($301) | [2] | $0 | [2] | $0 | [2] | ||||||||
[1] | Before elimination of any inter-segment profits | |||||||||||||
[2] | After elimination of any inter-segment profits |
Segment_reporting_and_concentr3
Segment reporting and concentrations (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | $12,811 | $6,758 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1,600 | 1,151 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 2,081 | 1,917 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 2,136 | 2,660 |
Sri Lanka | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 890 | 989 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 6,061 | 0 |
Israel | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 29 | 41 |
Foreign Countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 11,211 | 5,607 |
GERMANY | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | $14 | $0 |
Segment_reporting_and_concentr4
Segment reporting and concentrations (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $15,892 | $14,804 | $14,314 | $14,066 | $15,440 | $15,746 | $16,160 | $16,903 | $59,076 | $64,249 | $86,591 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 31,489 | 41,616 | 65,533 | ||||||||
The Netherlands | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 9,870 | 9,163 | 7,658 | ||||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 9,113 | 8,128 | 8,529 | ||||||||
CANADA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,126 | 1,726 | 441 | ||||||||
Other - principally Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $5,478 | $3,616 | $4,430 |
Recovered_Sheet1
Segment Reporting and Concentrations (Details Textual) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts Receivable [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 | 47.00% | 35.00% | 24.00% |
Foreign Customer [Member] | Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 49.00% | 38.00% | |
Two clients [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 27.00% | 26.00% | 41.00% |
Two other clients [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 15.00% | 10.00% |
Concentration Risks, Types, No Concentration Percentage [Abstract] | |||
Concentration Risk, Customer | less than 10% | ||
Four Clients [Member] | Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 58.00% | 65.00% | |
One Other Client [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 15.00% | 10.00% |
Concentration Risks, Types, No Concentration Percentage [Abstract] | |||
Concentration Risk, Customer | less than 10% |
Income_Loss_per_Share_Details
Income (Loss) per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share Basic and Diluted [Line Items] | |||||||||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries | ($281) | ($219) | ($663) | $189 | $865 | ($11,692) | ($121) | $316 | ($974) | ($10,632) | $7,473 |
Weighted average common shares outstanding | 25,232 | 24,997 | 24,895 | ||||||||
Dilutive effect of outstanding options | 0 | 0 | 1,337 | ||||||||
Adjusted for dilutive computation | 25,232 | 24,997 | 26,232 |
Income_Loss_per_Share_Details_
Income (Loss) per Share (Details Textual) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Compensation Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 2.2 | 1.5 | |
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 | 1.4 | 1.5 | 0.1 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Quarterly Financial Information [Line Items] | |||||||||||
Revenues | $15,892 | $14,804 | $14,314 | $14,066 | $15,440 | $15,746 | $16,160 | $16,903 | $59,076 | $64,249 | $86,591 |
Gross Profit | 4,270 | 4,131 | 2,995 | 3,775 | 4,496 | 3,773 | 2,741 | 4,112 | |||
Net income (loss) attributable to Innodata Inc. and Subsidiaries: | |||||||||||
Net income (loss) | ($281) | ($219) | ($663) | $189 | $865 | ($11,692) | ($121) | $316 | ($974) | ($10,632) | $7,473 |
Basic and diluted net income (loss) per share (in dollars per share) | ($0.01) | ($0.01) | ($0.03) | $0.01 | $0.03 | ($0.47) | $0 | $0.01 | ($0.04) | ($0.43) | $0.30 |
Derivatives_Details
Derivatives (Details) (Accrued expenses [Member], Foreign currency forward contracts [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued expenses [Member] | Foreign currency forward contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Liabilities | $337 | $577 |
Derivatives_Details_1
Derivatives (Details 1) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gain (loss) recognized in OCI | $141 | [1] | $743 | [1] | $966 | [1] |
Net gain (loss) reclassified from accumulated OCI into income | -99 | [2] | -1,445 | [2] | -941 | [2] |
Net gain recognized in income | $0 | [3] | $0 | [3] | $0 | [3] |
[1] | Net change in fair value of the effective portion classified into other comprehensive income ("OCI") | |||||
[2] | Effective portion classified within direct operating cost | |||||
[3] | There were no ineffective portions for the period presented. |
Derivatives_Details_Textual
Derivatives (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $19.40 | $15.20 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | ||
Liabilities | ||
Derivatives | $0 | $0 |
Contingent Considerations | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Liabilities | ||
Derivatives | 337 | 577 |
Contingent Considerations | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Liabilities | ||
Derivatives | 0 | 0 |
Contingent Considerations | $553 |
Financial_Instruments_Details_
Financial Instruments (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of Long-Lived Assets Held-for-use | $0.40 | |
Synodex [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of Long-Lived Assets Held-for-use | 5.5 | |
MediaMiser [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Combination, Contingent Consideration, Liability | $0.60 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation and Qualifying Accounts, Activity for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||
Balance at Beginning of Year | $8,668 | $608 | |
Additions, Charged to Costs and Expenses | 1,243 | 7,100 | |
Additions, Charged to Other Accounts | 0 | 960 | |
Deductions | 0 | 0 | |
Balance at End of Year | 9,911 | 8,668 | |
Allowance for doubtful accounts [Member] | |||
Valuation and Qualifying Accounts, Activity for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||
Balance at Beginning of Year | 608 | 608 | 608 |
Additions, Charged to Costs and Expenses | 118 | 0 | 0 |
Additions, Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 726 | 608 | 608 |
Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts, Activity for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||
Balance at Beginning of Year | 8,060 | 0 | |
Additions, Charged to Costs and Expenses | 1,125 | 7,100 | |
Additions, Charged to Other Accounts | 0 | 960 | |
Deductions | 0 | 0 | |
Balance at End of Year | $9,185 | $8,060 |