Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | INNODATA INC | |
Entity Central Index Key | 903,651 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | INOD | |
Entity Common Stock, Shares Outstanding | 25,484,271 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 24,921 | $ 24,216 |
Accounts receivable, net | 9,146 | 10,445 |
Prepaid expenses and other current assets | 2,901 | 3,020 |
Deferred income taxes | 291 | 254 |
Total current assets | 37,259 | 37,935 |
Property and equipment, net | 4,941 | 5,915 |
Other assets | 2,365 | 2,718 |
Deferred income taxes | 1,445 | 1,397 |
Intangibles, net | 4,246 | 5,261 |
Goodwill | 1,506 | 1,635 |
Total assets | 51,762 | 54,861 |
Current liabilities: | ||
Accounts payable | 1,289 | 1,271 |
Accrued expenses | 3,169 | 3,427 |
Accrued salaries, wages and related benefits | 5,030 | 4,464 |
Income and other taxes | 1,310 | 1,325 |
Current portion of long term obligations | 1,527 | 1,606 |
Deferred income taxes | 62 | 75 |
Total current liabilities | 12,387 | 12,168 |
Deferred income taxes | 748 | 879 |
Long term obligations | $ 4,538 | $ 5,540 |
Commitments and contingencies | ||
Non-controlling interests | $ (3,361) | $ (2,949) |
STOCKHOLDERS' EQUITY: | ||
Serial preferred stock; 5,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value; 75,000,000 shares authorized; 27,068,000 shares issued and 25,484,000 outstanding at September 30, 2015 and 26,881,000 shares issued and 25,337,000 outstanding at December 31, 2014 | 270 | 268 |
Additional paid-in capital | 24,064 | 22,780 |
Retained earnings | 18,517 | 20,750 |
Accumulated other comprehensive loss | (1,013) | (287) |
Stockholders' Equity before Treasury Stock, Total | 41,838 | 43,511 |
Less: treasury stock, 1,584,000 shares at September 30, 2015 and 1,544,000 shares at December 31, 2014, at cost | (4,388) | (4,288) |
Total stockholders' equity | 37,450 | 39,223 |
Total liabilities and stockholders' equity | $ 51,762 | $ 54,861 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
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 | 27,068,000 | 26,881,000 |
Common stock, shares outstanding | 25,484,000 | 25,337,000 |
Treasury stock, shares | 1,584,000 | 1,544,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | $ 15,135 | $ 14,804 | $ 43,000 | $ 43,184 |
Operating costs and expenses: | ||||
Direct operating costs | 10,452 | 10,673 | 32,567 | 32,283 |
Selling and administrative expenses | 3,941 | 4,284 | 12,354 | 11,935 |
Interest expense (income), net | 6 | (33) | (39) | (64) |
Totals Totals | 14,399 | 14,924 | 44,882 | 44,154 |
Income (loss) before income taxes | 736 | (120) | (1,882) | (970) |
Provision for income taxes | 462 | 306 | 763 | 513 |
Net income (loss) | 274 | (426) | (2,645) | (1,483) |
Loss attributable to non-controlling interests | 132 | 207 | 412 | 790 |
Net income (loss) attributable to Innodata Inc. and Subsidiaries | $ 406 | $ (219) | $ (2,233) | $ (693) |
Income (loss) per share attributable to Innodata Inc. and Subsidiaries: | ||||
Basic and Diluted | $ 0.02 | $ (0.01) | $ (0.09) | $ (0.03) |
Weighted average shares outstanding: | ||||
Basic and Diluted | 25,455 | 25,294 | 25,377 | 25,197 |
Comprehensive loss: | ||||
Net income (loss) | $ 274 | $ (426) | $ (2,645) | $ (1,483) |
Pension liability adjustment, net of taxes | 10 | 9 | 30 | 29 |
Change in fair value of derivatives, net of taxes | (426) | (559) | 57 | 351 |
Foreign currency translation adjustment, net of taxes | (393) | (191) | (813) | (191) |
Other Comprehensive loss | (809) | (741) | (726) | 189 |
Total Comprehensive loss | (535) | (1,167) | (3,371) | (1,294) |
Comprehensive loss attributed to non-controlling interest | 132 | 207 | 412 | 790 |
Comprehensive loss attributable to Innodata Inc. and Subsidiaries | $ (403) | $ (960) | $ (2,959) | $ (504) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flow from operating activities: | ||
Net loss | $ (2,645) | $ (1,483) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 2,113 | 2,150 |
Stock-based compensation | 800 | 846 |
Deferred income taxes | (218) | (271) |
Pension cost | 397 | 542 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,152 | 3,745 |
Prepaid expenses and other current assets | 111 | (53) |
Other assets | 69 | 524 |
Accounts payable and accrued expenses | (86) | 90 |
Accrued salaries, wages and related benefits | 566 | (59) |
Restricted shares withheld for taxes | 0 | (37) |
Income and other taxes | 7 | (188) |
Net cash provided by operating activities | 2,266 | 5,806 |
Cash flow from investing activities: | ||
Capital expenditures | (466) | (1,797) |
Acquisition of business | 0 | (3,225) |
Net cash used in investing activities | (466) | (5,022) |
Cash flow from financing activities: | ||
Proceeds from equipment financing | 0 | 859 |
Proceeds from exercise of stock options | 0 | 351 |
Payment of long term obligations | (848) | (652) |
Purchase of treasury stock | (100) | 0 |
Net cash provided by (used in) financing activities | (948) | 558 |
Effect of exchange rate changes on cash and cash equivalents | (147) | (62) |
Net increase in cash and cash equivalents | 705 | 1,280 |
Cash and cash equivalents, beginning of period | 24,216 | 24,752 |
Cash and cash equivalents, end of period | 24,921 | 26,032 |
Supplemental disclosures of noncash investing and financing activities: | ||
Cash paid for income taxes | 768 | 828 |
Vendor financed software licenses acquired | $ 0 | $ 1,205 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Balance at Dec. 31, 2013 | $ 39,973 | $ 266 | $ 22,963 | $ 21,724 | $ (692) | $ (4,288) |
Balance (in shares) at Dec. 31, 2013 | 25,053 | |||||
Net loss | (693) | $ 0 | 0 | (693) | 0 | 0 |
Stock-based compensation | 846 | 0 | 846 | 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) | 288 | |||||
Restricted shares withheld for taxes | (14) | $ 0 | (14) | 0 | 0 | 0 |
Restricted shares withheld for taxes (in shares) | (5) | |||||
Acquisition of non-controlling interest | (1,653) | $ 0 | (1,653) | 0 | 0 | 0 |
Pension liability adjustments, net of taxes | 29 | 0 | 0 | 0 | 29 | 0 |
Foreign currency translation adjustment, net of taxes | (191) | 0 | 0 | 0 | (191) | 0 |
Change in fair value of derivatives, net of taxes | 351 | 0 | 0 | 0 | 351 | 0 |
Balance at Sep. 30, 2014 | 38,978 | $ 268 | 22,470 | 21,031 | (503) | (4,288) |
Balance (in shares) at Sep. 30, 2014 | 25,336 | |||||
Balance at Dec. 31, 2014 | 39,223 | $ 268 | 22,780 | 20,750 | (287) | (4,288) |
Balance (in shares) at Dec. 31, 2014 | 25,337 | |||||
Net loss | (2,233) | $ 0 | 0 | (2,233) | 0 | 0 |
Stock-based compensation | 800 | 0 | 800 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options | 486 | $ 2 | 484 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options (in shares) | 187 | |||||
Pension liability adjustments, net of taxes | 30 | $ 0 | 0 | 0 | 30 | 0 |
Foreign currency translation adjustment, net of taxes | (813) | 0 | 0 | 0 | (813) | 0 |
Change in fair value of derivatives, net of taxes | 57 | 0 | 0 | 0 | 57 | 0 |
Purchase of treasury stock, Value | (100) | $ 0 | 0 | 0 | 0 | (100) |
Purchase of treasury stock, Shares | (40) | |||||
Balance at Sep. 30, 2015 | $ 37,450 | $ 270 | $ 24,064 | $ 18,517 | $ (1,013) | $ (4,388) |
Balance (in shares) at Sep. 30, 2015 | 25,484 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | 1. Description of Business and Summary of Significant Accounting Policies Description of Business- 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 September 30, 2015, Innodata owned 90 94 In July 2014, the Company acquired MediaMiser, a leading provider of media monitoring and analysis software and professional services for organizations of all sizes. Through its innovative web-based and mobile solutions, MediaMiser reduces the time and effort it takes to gather, analyze and distribute valuable business intelligence extracted from traditional and social media sources. For organizations that prefer to outsource, MediaMiser also 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. Basis of Presentation These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2014, included in the Company's Annual Report on Form 10-K. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the December 31, 2014 consolidated financial statements. Principles of Consolidation Use of Estimates Foreign Currency Translation The functional currency 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 condensed consolidated financial statements. Income, expenses and cash flows are translated at weighted average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive loss in stockholders' equity. Foreign exchange transaction gains or losses are included in direct operating costs in the accompanying consolidated statements of operations and comprehensive income (loss). Revenue Recognition For the IADS segment, revenue is recognized primarily based on the quantity delivered, and the period in which services are performed and deliverables are made as per contracts. The MIS segment derives its revenues primarily from subscription arrangements. Revenue from subscriptions is 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. Recent Accounting Pronouncements 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 adopted the standard in the first quarter of 2015, and the adoption did not have a material impact on its condensed consolidated financial statements. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 2. Property and Equipment September 30, December 31, 2015 2014 Equipment $ 13,666 $ 13,719 Software 5,042 4,863 Furniture and equipment 2,351 2,348 Leasehold improvements 4,952 4,919 Total 26,011 25,849 Less: accumulated depreciation and amortization (21,070) (19,934) $ 4,941 $ 5,915 Depreciation and amortization expense of property and equipment was approximately $ 0.5 0.6 1.5 1.8 |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisition On July 28, 2014, the Company acquired 100 100 50 The purchase price for the acquisition aggregated $ 5.2 4.6 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 September 30, 2015 was $ 0.5 The amounts assigned to developed technology, customer relationships, trademarks and tradenames are amortized over the estimated useful life of 10 12 10 11 As this acquisition was effective on July 28, 2014, the results of operations of MediaMiser are included in the condensed consolidated financial statements for the period beginning July 29, 2014. 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 estimated fair value of trademarks and tradenames amounted to $ 320,000 160,000 5 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 2014, 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. Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Revenues: As reported $ 14,804 $ 43,184 Proforma $ 15,104 $ 45,632 Net loss attributable to Innodata Inc. and Subsidiaries: As reported $ (219) $ (693) Proforma $ (160) $ (826) Basic and diluted net loss per share: As reported $ (0.01) $ (0.03) Proforma $ (0.01) $ (0.03) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 4. Goodwill and Intangible Assets Balance as of January 1, 2015 $ 1,635 Foreign currency translation adjustment (129) Balance as of September 30, 2015 $ 1,506 Developed Customer Trademarks Patents Total Gross carrying amounts: Balance as of December 31, 2014 $ 2,369 $ 2,439 $ 596 $ 50 $ 5,454 Foreign currency translation (317) (327) (32) (7) (683) Balance as of September 30, 2015 $ 2,052 $ 2,112 $ 564 $ 43 $ 4,771 Developed Customer Trademarks Patents Total Accumulated amortization: Balance as of December 31, 2014 $ 98 $ 84 $ 11 $ - $ 193 Amortization expense 168 144 69 4 385 Foreign currency translation (27) (23) (3) - (53) Balance as of September 30, 2015 $ 239 $ 205 $ 77 $ 4 $ 525 Amortization expense relating to acquisition-related intangible assets was $ 0.2 0.1 0.4 0.1 Year Amortization 2016 $ 474 2017 $ 474 2018 $ 474 2019 $ 474 2020 $ 427 Thereafter $ 1,923 $ 4,246 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 5. Income Taxes The Company had unrecognized tax benefits of approximately $ 1.2 1.8 0.4 0.6 Unrecognized tax Balance - January 1, 2015 $ 1,760 Decrease for tax position settled for prior years (588) Increase for tax position in prior years 27 Foreign currency revaluation 6 Balance - September 30, 2015 $ 1,205 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 2014. 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 $ 260,000 260,000 284,000 300,000 284,000 1.0 481,000 0.3 481,000 151,000 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 $ 273,000 |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 6. Commitments and Contingencies Litigation 8.0 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 the 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 Foreign Currency Indemnifications Liens 0.5 |
Stock Options
Stock Options | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 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 41,096 Number of Weighted - Weighted- Aggregate Outstanding at January 1, 2015 3,641,857 $ 3.05 Granted - - Exercised - - Forfeited/Expired (251,711) 2.71 Outstanding at September 30, 2015 3,390,146 $ 3.08 4.08 $ - Exercisable at September 30, 2015 1,299,732 $ 3.18 2.66 $ - Vested and Expected to Vest at September 30, 2015 1,299,732 $ 3.18 2.66 $ - Nine Months Ended September 30, 2015 2014 Weighted average fair value of options granted $ - $ 1.35 Risk-free interest rate - 1.53% to 1.68 % Expected life (years) - 5 Expected volatility factor - 54.96 % Expected dividends - - Number of Shares Weighted- Unvested at January 1, 2015 7,500 $ 2.59 Granted - - Vested (7,500) 2.59 Forfeited/Expired - - Unvested at September 30, 2015 - $ - The total compensation cost related to non-vested stock awards not yet recognized as of September 30, 2015 totaled approximately $ 1.0 Three months ended Nine months ended 2015 2014 2015 2014 Direct operating costs $ 98 $ 107 $ 293 $ 283 Selling and administrative expenses 143 195 507 563 Total stock-based compensation $ 241 $ 302 $ 800 $ 846 There were no options exercised in the nine months ended September 30, 2015. |
Long term obligations
Long term obligations | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 8. Long term obligations September 30, December 31, 2015 2014 Vendor obligations Capital lease obligations (1) $ 464 $ 656 Deferred lease payments (2) 710 792 Microsoft licenses (3) 348 759 Acquisition related liability (4) 1,030 1,735 Pension obligations Accrued pension liability 3,513 3,204 6,065 7,146 Less: Current portion of long term obligations 1,527 1,606 Totals $ 4,538 $ 5,540 (1) 0.9 36 6 0.5 (2) (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 Prepaid expenses and other current assets $ 356 Other assets 713 Property and equipment 136 $ 1,205 Amount represents a $ 0.6 4.6 0.5 |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | 9. Comprehensive Income (Loss) Accumulated other comprehensive loss, as reflected in the condensed 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 loss as of September 30, 2015, and reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2015 and 2014, were as follows (net of tax): Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at July 1, 2015 $ 517 $ 146 $ (867) $ (204) Other comprehensive income (loss) before reclassifications, net of taxes - (486) (393) (879) Total other comprehensive income (loss) before reclassifications, net of taxes 517 (340) (1,260) (1,083) Net amount reclassified to earnings 10 60 70 Balance at September 30, 2015 $ 527 $ (280) $ (1,260) $ (1,013) Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at July 1, 2014 $ (96) $ 334 $ - $ 238 Other comprehensive income before reclassifications, net of taxes - (327) (191) (518) Total other comprehensive income (loss) before reclassifications, net of taxes (96) 7 (191) (280) Net amount reclassified to earnings 9 (232) - (223) Balance at September 30, 2014 $ (87) $ (225) $ (191) $ (503) Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at January 1, 2015 $ 497 $ (337) $ (447) $ (287) Other comprehensive income (loss) before reclassifications, net of taxes (81) (813) (894) Total other comprehensive income (loss) before reclassifications, net of taxes 497 (418) (1,260) (1,181) Net amount reclassified to earnings 30 138 168 Balance at September 30, 2015 $ 527 $ (280) $ (1,260) $ (1,013) Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at January 1, 2014 $ (116) $ (576) $ - $ (692) Other comprehensive income before reclassifications, net of taxes - 202 (191) 11 Total other comprehensive loss before reclassifications, net of taxes (116) (374) (191) (681) Net amount reclassified to earnings 29 149 - 178 Balance at September 30, 2014 $ (87) $ (225) $ (191) $ (503) All reclassifications out of accumulated other comprehensive income (loss) had an impact on direct operating costs in the condensed consolidated statements of operations and comprehensive income (loss). |
Segment Reporting and Concentra
Segment Reporting and Concentrations | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 10. 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 and 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. Both these businesses constitute the Company’s MIS Segment. A significant portion of the Company’s revenues are generated from its production facilities in the Philippines, India, Sri Lanka, Canada, Germany and Israel. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues: Content Services $ 13,474 $ 14,032 $ 38,035 $ 42,162 IADS 484 115 1,434 365 MediaMiser 1,177 657 3,531 657 Total Consolidated $ 15,135 $ 14,804 $ 43,000 $ 43,184 Income (loss) before provision for income taxes (1) Content Services $ 2,534 $ 1,950 $ 3,596 $ 4,821 IADS (1,496) (1,961) (4,590) (5,682) MediaMiser (302) (109) (889) (109) Total Consolidated $ 736 $ (120) $ (1,883) $ (970) Income (loss) before provision for income taxes (2) Content Services $ 1,892 $ 1,436 $ 1,755 $ 3,369 IADS (861) (1,447) (2,773) (4,230) MediaMiser (295) (109) (865) (109) Total Consolidated $ 736 $ (120) $ (1,883) $ (970) September 30, 2015 December 31, 2014 Total assets: Content Services $ 42,815 $ 46,681 IADS 623 540 MediaMiser 8,324 7,640 Total Consolidated $ 51,762 $ 54,861 (1) (2) Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 United States $ 7,275 $ 7,424 $ 20,478 $ 23,169 United Kingdom 2,520 2,540 6,771 7,824 The Netherlands 2,514 2,404 7,274 6,520 Canada 1,472 984 4,298 1,694 Other - principally Europe 1,354 1,452 4,179 3,977 $ 15,135 $ 14,804 $ 43,000 $ 43,184 September 30, December 31, 2015 2014 United States $ 1,171 $ 1,600 Foreign countries: Philippines 1,685 2,081 India 1,740 2,136 Sri Lanka 701 890 Canada 5,360 6,061 Israel 34 29 Germany 2 14 Total foreign 9,522 11,211 $ 10,693 $ 12,811 Three clients generated approximately 44 42 10 52 50 Two clients generated approximately 34 32 10 52 46 As of September 30, 2015, approximately 59 62 49 58 |
Income (Loss) Per Share
Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 11. Income (Loss) Per Share Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (in thousands) (in thousands) Net income (loss) attributable to Innodata Inc. and Subsidiaries $ 406 $ (219) $ (2,233) $ (693) Weighted average common shares outstanding 25,455 25,294 25,377 25,197 Dilutive effect of outstanding options - - - - Adjusted for dilutive computation 25,455 25,294 25,377 25,197 Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net 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 per share is used. Options to purchase 3.4 1.4 2.2 Options to purchase 2.6 1.4 0.8 2.2 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 12. 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 September 30, 2015 and December 31, 2014 was $ 18.6 19.4 Balance Sheet Location Fair Value 2015 2014 Derivatives designated as hedging instruments: Foreign currency forward contracts Accrued expenses $ 280 $ 337 Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net gain (loss) recognized in OCI (1) $ (486) $ (327) $ (81) $ 202 Net gain (loss) reclassified from accumulated OCI into income (2) $ (60) $ 232 $ (138) $ (149) Net gain recognized in income (3) $ - $ - $ - $ - (1) (2) (3) |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments Disclosure [Text Block] | 13. Financial Instruments The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of September 30, 2015 and December 31, 2014, because of the relative short maturity of these instruments. “ Fair Value Measurements and Disclosures 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 · Level 2: · Level 3: September 30, 2015 Level 1 Level 2 Level 3 Liabilities Derivatives $ - $ 280 $ - Contingent Considerations $ - $ - $ 470 December 31, 2014 Level 1 Level 2 Level 3 Liabilities Derivatives $ - $ 337 $ - Contingent Considerations $ - $ - $ 553 Balance at December 31, 2014 553 Effect of foreign currency translation adjustment (83) Balance at September 30, 2015 470 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 September 30, 2015 and December 31, 2014 is included in accrued expenses in the accompanying condensed 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 September 30, 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 September 30, 2015 and December 31, 2014 was $ 0.5 For the nine months ended September 30, 2015, the Company had no transfers between Level 1, Level 2 and Level 3. The change in fair value of the Level 3 liability is on account of foreign currency fluctuation. |
Description of Business and S20
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Business Combinations Policy [Policy Text Block] | Description of Business- 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 September 30, 2015, Innodata owned 90 94 In July 2014, the Company acquired MediaMiser, a leading provider of media monitoring and analysis software and professional services for organizations of all sizes. Through its innovative web-based and mobile solutions, MediaMiser reduces the time and effort it takes to gather, analyze and distribute valuable business intelligence extracted from traditional and social media sources. For organizations that prefer to outsource, MediaMiser also 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. |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2014, included in the Company's Annual Report on Form 10-K. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the December 31, 2014 consolidated financial statements. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The functional currency 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 condensed consolidated financial statements. Income, expenses and cash flows are translated at weighted average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive loss in stockholders' equity. Foreign exchange transaction gains or losses are included in direct operating costs in the accompanying consolidated statements of operations and comprehensive income (loss). |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition For the IADS segment, revenue is recognized primarily based on the quantity delivered, and the period in which services are performed and deliverables are made as per contracts. The MIS segment derives its revenues primarily from subscription arrangements. Revenue from subscriptions is 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements 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 adopted the standard in the first quarter of 2015, and the adoption did not have a material impact on its condensed consolidated financial statements. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at cost less accumulated depreciation and amortization (in thousands) and consist of the following: September 30, December 31, 2015 2014 Equipment $ 13,666 $ 13,719 Software 5,042 4,863 Furniture and equipment 2,351 2,348 Leasehold improvements 4,952 4,919 Total 26,011 25,849 Less: accumulated depreciation and amortization (21,070) (19,934) $ 4,941 $ 5,915 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma summary presents condensed consolidated information of the Company as if the business combination had occurred on January 1, 2014 (amount in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Revenues: As reported $ 14,804 $ 43,184 Proforma $ 15,104 $ 45,632 Net loss attributable to Innodata Inc. and Subsidiaries: As reported $ (219) $ (693) Proforma $ (160) $ (826) Basic and diluted net loss per share: As reported $ (0.01) $ (0.03) Proforma $ (0.01) $ (0.03) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the nine months ended September 30, 2015 were as follows (in thousands): Balance as of January 1, 2015 $ 1,635 Foreign currency translation adjustment (129) Balance as of September 30, 2015 $ 1,506 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Information regarding the Company’s acquisition-related intangible assets is as follows (in thousands): Developed Customer Trademarks Patents Total Gross carrying amounts: Balance as of December 31, 2014 $ 2,369 $ 2,439 $ 596 $ 50 $ 5,454 Foreign currency translation (317) (327) (32) (7) (683) Balance as of September 30, 2015 $ 2,052 $ 2,112 $ 564 $ 43 $ 4,771 Developed Customer Trademarks Patents Total Accumulated amortization: Balance as of December 31, 2014 $ 98 $ 84 $ 11 $ - $ 193 Amortization expense 168 144 69 4 385 Foreign currency translation (27) (23) (3) - (53) Balance as of September 30, 2015 $ 239 $ 205 $ 77 $ 4 $ 525 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated annual amortization expense for intangible assets subsequent to September 30, 2015 is as follows (in thousands): Year Amortization 2016 $ 474 2017 $ 474 2018 $ 474 2019 $ 474 2020 $ 427 Thereafter $ 1,923 $ 4,246 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The following presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the nine months ended September 30, 2015 (amounts in thousands): Unrecognized tax Balance - January 1, 2015 $ 1,760 Decrease for tax position settled for prior years (588) Increase for tax position in prior years 27 Foreign currency revaluation 6 Balance - September 30, 2015 $ 1,205 |
Stock Options (Tables)
Stock Options (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [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: Number of Weighted - Weighted- Aggregate Outstanding at January 1, 2015 3,641,857 $ 3.05 Granted - - Exercised - - Forfeited/Expired (251,711) 2.71 Outstanding at September 30, 2015 3,390,146 $ 3.08 4.08 $ - Exercisable at September 30, 2015 1,299,732 $ 3.18 2.66 $ - Vested and Expected to Vest at September 30, 2015 1,299,732 $ 3.18 2.66 $ - |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [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: Nine Months Ended September 30, 2015 2014 Weighted average fair value of options granted $ - $ 1.35 Risk-free interest rate - 1.53% to 1.68 % Expected life (years) - 5 Expected volatility factor - 54.96 % Expected dividends - - |
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 plans as of September 30, 2015, and changes during the period then ended, are presented below: Number of Shares Weighted- Unvested at January 1, 2015 7,500 $ 2.59 Granted - - Vested (7,500) 2.59 Forfeited/Expired - - Unvested at September 30, 2015 - $ - |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Direct operating costs $ 98 $ 107 $ 293 $ 283 Selling and administrative expenses 143 195 507 563 Total stock-based compensation $ 241 $ 302 $ 800 $ 846 |
Long term obligations (Tables)
Long term obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Total long-term obligations as of September 30, 2015 and December 31, 2014 consist of the following (in thousands): September 30, December 31, 2015 2014 Vendor obligations Capital lease obligations (1) $ 464 $ 656 Deferred lease payments (2) 710 792 Microsoft licenses (3) 348 759 Acquisition related liability (4) 1,030 1,735 Pension obligations Accrued pension liability 3,513 3,204 6,065 7,146 Less: Current portion of long term obligations 1,527 1,606 Totals $ 4,538 $ 5,540 (1) 0.9 36 months 6 0.5 (2) (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 Prepaid expenses and other current assets $ 356 Other assets 713 Property and equipment 136 $ 1,205 (4) Amount represents a $ 0.6 4.6 0.5 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive loss as of September 30, 2015, and reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2015 and 2014, were as follows (net of tax): Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at July 1, 2015 $ 517 $ 146 $ (867) $ (204) Other comprehensive income (loss) before reclassifications, net of taxes - (486) (393) (879) Total other comprehensive income (loss) before reclassifications, net of taxes 517 (340) (1,260) (1,083) Net amount reclassified to earnings 10 60 70 Balance at September 30, 2015 $ 527 $ (280) $ (1,260) $ (1,013) Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at July 1, 2014 $ (96) $ 334 $ - $ 238 Other comprehensive income before reclassifications, net of taxes - (327) (191) (518) Total other comprehensive income (loss) before reclassifications, net of taxes (96) 7 (191) (280) Net amount reclassified to earnings 9 (232) - (223) Balance at September 30, 2014 $ (87) $ (225) $ (191) $ (503) Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at January 1, 2015 $ 497 $ (337) $ (447) $ (287) Other comprehensive income (loss) before reclassifications, net of taxes (81) (813) (894) Total other comprehensive income (loss) before reclassifications, net of taxes 497 (418) (1,260) (1,181) Net amount reclassified to earnings 30 138 168 Balance at September 30, 2015 $ 527 $ (280) $ (1,260) $ (1,013) Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at January 1, 2014 $ (116) $ (576) $ - $ (692) Other comprehensive income before reclassifications, net of taxes - 202 (191) 11 Total other comprehensive loss before reclassifications, net of taxes (116) (374) (191) (681) Net amount reclassified to earnings 29 149 - 178 Balance at September 30, 2014 $ (87) $ (225) $ (191) $ (503) |
Segment Reporting and Concent28
Segment Reporting and Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenues: Content Services $ 13,474 $ 14,032 $ 38,035 $ 42,162 IADS 484 115 1,434 365 MediaMiser 1,177 657 3,531 657 Total Consolidated $ 15,135 $ 14,804 $ 43,000 $ 43,184 Income (loss) before provision for income taxes (1) Content Services $ 2,534 $ 1,950 $ 3,596 $ 4,821 IADS (1,496) (1,961) (4,590) (5,682) MediaMiser (302) (109) (889) (109) Total Consolidated $ 736 $ (120) $ (1,883) $ (970) Income (loss) before provision for income taxes (2) Content Services $ 1,892 $ 1,436 $ 1,755 $ 3,369 IADS (861) (1,447) (2,773) (4,230) MediaMiser (295) (109) (865) (109) Total Consolidated $ 736 $ (120) $ (1,883) $ (970) September 30, 2015 December 31, 2014 Total assets: Content Services $ 42,815 $ 46,681 IADS 623 540 MediaMiser 8,324 7,640 Total Consolidated $ 51,762 $ 54,861 (1) (2) |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following table summarizes revenues by geographic region (determined based upon customer’s domicile) (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 United States $ 7,275 $ 7,424 $ 20,478 $ 23,169 United Kingdom 2,520 2,540 6,771 7,824 The Netherlands 2,514 2,404 7,274 6,520 Canada 1,472 984 4,298 1,694 Other - principally Europe 1,354 1,452 4,179 3,977 $ 15,135 $ 14,804 $ 43,000 $ 43,184 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Long-lived assets as of September 30, 2015 and December 31, 2014, respectively, by geographic region, are comprised of (in thousands): September 30, December 31, 2015 2014 United States $ 1,171 $ 1,600 Foreign countries: Philippines 1,685 2,081 India 1,740 2,136 Sri Lanka 701 890 Canada 5,360 6,061 Israel 34 29 Germany 2 14 Total foreign 9,522 11,211 $ 10,693 $ 12,811 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (in thousands) (in thousands) Net income (loss) attributable to Innodata Inc. and Subsidiaries $ 406 $ (219) $ (2,233) $ (693) Weighted average common shares outstanding 25,455 25,294 25,377 25,197 Dilutive effect of outstanding options - - - - Adjusted for dilutive computation 25,455 25,294 25,377 25,197 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 and December 31, 2014 (in thousands): Balance Sheet Location Fair Value 2015 2014 Derivatives designated as hedging instruments: Foreign currency forward contracts Accrued expenses $ 280 $ 337 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The effects of foreign currency forward contracts designated as cash flow hedges on the Company’s condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014, respectively, were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net gain (loss) recognized in OCI (1) $ (486) $ (327) $ (81) $ 202 Net gain (loss) reclassified from accumulated OCI into income (2) $ (60) $ 232 $ (138) $ (149) Net gain recognized in income (3) $ - $ - $ - $ - (1) (2) (3) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, All Other Investments [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table sets forth the assets and liabilities as of September 30, 2015 and December 31, 2014 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. September 30, 2015 Level 1 Level 2 Level 3 Liabilities Derivatives $ - $ 280 $ - Contingent Considerations $ - $ - $ 470 December 31, 2014 Level 1 Level 2 Level 3 Liabilities Derivatives $ - $ 337 $ - Contingent Considerations $ - $ - $ 553 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table summarizes the change in fair value of the Level 3 liability for the nine months ended September 30, 2015: Balance at December 31, 2014 553 Effect of foreign currency translation adjustment (83) Balance at September 30, 2015 470 |
Description of Business and S32
Description of Business and Summary of Significant Accounting Policies (Details Textual) | Sep. 30, 2015 |
Synodex [Member] | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |
Noncontrolling Interest, Ownership Percentage By Parent | 90.00% |
DocGenix [Member] | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |
Noncontrolling Interest, Ownership Percentage By Parent | 94.00% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 26,011 | $ 25,849 |
Less: accumulated depreciation and amortization | (21,070) | (19,934) |
Property, Plant and Equipment, Net | 4,941 | 5,915 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 13,666 | 13,719 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 5,042 | 4,863 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,351 | 2,348 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 4,952 | $ 4,919 |
Property and Equipment (Detai34
Property and Equipment (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation, Depletion and Amortization | $ 2,113 | $ 2,150 | ||
Property, Plant and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation, Depletion and Amortization | $ 500 | $ 600 | $ 1,500 | $ 1,800 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
As reported | $ 15,135 | $ 14,804 | $ 43,000 | $ 43,184 |
Proforma | 15,104 | 45,632 | ||
Net loss attributable to Innodata Inc. and Subsidiaries: | ||||
As reported | $ 406 | (219) | $ (2,233) | (693) |
Proforma | $ (160) | $ (826) | ||
Basic and diluted net loss per share: | ||||
As reported | $ 0.02 | $ (0.01) | $ (0.09) | $ (0.03) |
Proforma | $ (0.01) | $ (0.03) |
Acquisition (Details Textual)
Acquisition (Details Textual) - USD ($) | 1 Months Ended | ||
Dec. 23, 2014 | Jul. 28, 2014 | Sep. 30, 2015 | |
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. | ||
Deferred Revenue | $ 160,000 | ||
Trademarks and Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||
Finite-lived Intangible Assets, Fair Value Disclosure | $ 320,000 | ||
MediaMiser [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred, Noncontingent Consideration | $ 5,200,000 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 4,600,000 | ||
Business Combination, Contingent Consideration, Liability | $ 500,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | ||
Business Acquisition, Description of Acquired Entity | Of the non-contingent portion of the purchase price, $4.1 million was paid by the Company in cash at closing; $0.5 million was paid by the Company on July 28, 2015 in shares of Innodata Inc.’s common stock; and $0.6 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. | ||
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 Asset37
Goodwill and Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Balance as of January 1, 2015 | $ 1,635 |
Foreign currency translation adjustment | (129) |
Balance as of September 30, 2015 | $ 1,506 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Gross carrying amounts: | ||||
Balance as of January 1, 2015 | $ 5,454 | |||
Foreign currency translation | (683) | |||
Balance as of September 30, 2015 | $ 4,771 | 4,771 | ||
Accumulated amortization: | ||||
Balance as of December 31, 2014 | 193 | |||
Amortization expense | 200 | $ 100 | 385 | $ 100 |
Foreign currency translation | (53) | |||
Balance as of June 30, 2015 | 525 | 525 | ||
Developed Technology Rights [Member] | ||||
Gross carrying amounts: | ||||
Balance as of January 1, 2015 | 2,369 | |||
Foreign currency translation | (317) | |||
Balance as of September 30, 2015 | 2,052 | 2,052 | ||
Accumulated amortization: | ||||
Balance as of December 31, 2014 | 98 | |||
Amortization expense | 168 | |||
Foreign currency translation | (27) | |||
Balance as of June 30, 2015 | 239 | 239 | ||
Customer Relationships [Member] | ||||
Gross carrying amounts: | ||||
Balance as of January 1, 2015 | 2,439 | |||
Foreign currency translation | (327) | |||
Balance as of September 30, 2015 | 2,112 | 2,112 | ||
Accumulated amortization: | ||||
Balance as of December 31, 2014 | 84 | |||
Amortization expense | 144 | |||
Foreign currency translation | (23) | |||
Balance as of June 30, 2015 | 205 | 205 | ||
Trademarks and TradeNames [Member] | ||||
Gross carrying amounts: | ||||
Balance as of January 1, 2015 | 596 | |||
Foreign currency translation | (32) | |||
Balance as of September 30, 2015 | 564 | 564 | ||
Accumulated amortization: | ||||
Balance as of December 31, 2014 | 11 | |||
Amortization expense | 69 | |||
Foreign currency translation | (3) | |||
Balance as of June 30, 2015 | 77 | 77 | ||
Patents [Member] | ||||
Gross carrying amounts: | ||||
Balance as of January 1, 2015 | 50 | |||
Foreign currency translation | (7) | |||
Balance as of September 30, 2015 | 43 | 43 | ||
Accumulated amortization: | ||||
Balance as of December 31, 2014 | 0 | |||
Amortization expense | 4 | |||
Foreign currency translation | 0 | |||
Balance as of June 30, 2015 | $ 4 | $ 4 |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets (Details 2) $ in Thousands | Sep. 30, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,016 | $ 474 |
2,017 | 474 |
2,018 | 474 |
2,019 | 474 |
2,020 | 427 |
Thereafter | 1,923 |
Finite-Lived Intangible Assets, Net | $ 4,246 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 200 | $ 100 | $ 385 | $ 100 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Income Tax Contingency [Line Items] | |
Balance - January 1, 2015 | $ 1,760 |
Decrease for tax position settled for prior years | (588) |
Increase for tax position in prior years | 27 |
Foreign currency revaluation | 6 |
Balance - September 30, 2015 | $ 1,205 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2015 | Apr. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2008 | Mar. 31, 2006 | Mar. 31, 2005 | Dec. 31, 2003 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||||||||||
Unrecognized Tax Benefits | $ 1,205,000 | $ 1,205,000 | $ 1,760,000 | ||||||||
Income Tax Examination, Penalties and Interest Accrued | 400,000 | 400,000 | $ 600,000 | ||||||||
Income Tax Expense (Benefit) | $ 462,000 | $ 306,000 | 763,000 | $ 513,000 | |||||||
Indian Bureau Of Taxation [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Foreign Income Tax Expense (Benefit), Continuing Operations | $ 300,000 | 260,000 | $ 1,000,000 | $ 300,000 | $ 284,000 | ||||||
Tax Adjustments, Settlements, and Unusual Provisions | 481,000 | ||||||||||
Deferred Foreign Income Tax Expense (Benefit) | 151,000 | ||||||||||
Income Tax Expense (Benefit) | $ 284,000 | 481,000 | $ 260,000 | ||||||||
Philippine Bureau Of Taxation [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Income Tax Expense (Benefit) | $ 273,000 |
Commitments and contingencies (
Commitments and contingencies (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies [Line Items] | ||
Estimated Litigation Liability | $ 8,000,000 | |
Litigation Settlement, Expense | 100,000 | |
Property, Plant and Equipment, Net, Total | 4,941,000 | $ 5,915,000 |
Liens Under Foreign Tax Authority [Member] | ||
Commitments and Contingencies [Line Items] | ||
Property, Plant and Equipment, Net, Total | $ 500,000 |
Stock Options (Details)
Stock Options (Details) - Employee Stock Option [Member] | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Outstanding at January 1, 2015 (in shares) | shares | 3,641,857 |
Number of Options, Granted (in shares) | shares | 0 |
Number of Options, Exercised (in shares) | shares | 0 |
Number of Options, Forfeited/Expired (in shares) | shares | (251,711) |
Number of Options, Outstanding at September 30, 2015 (in shares) | shares | 3,390,146 |
Number of Options, Exercisable at September 30, 2015 (in shares) | shares | 1,299,732 |
Number of Options, Vested and Expected to Vest at September 30, 2015 (in shares) | shares | 1,299,732 |
Weighted - Average Exercise Price, Outstanding at January 1, 2015 (in dollars per share) | $ 3.05 |
Weighted - Average Exercise Price, Granted (in dollars per shares) | 0 |
Weighted - Average Exercise Price, Exercised (in dollars per share) | 0 |
Weighted - Average Exercise Price, Forfeited/Expired (in dollars per share) | 2.71 |
Weighted - Average Exercise Price, Outstanding at September 30, 2015 (in dollars per share) | 3.08 |
Weighted - Average Exercise Price, Exercisable at September 30, 2015 (in dollars per share) | 3.18 |
Weighted - Average Exercise Price, Vested and Expected to Vest at September 30, 2015 (in dollars per share) | $ 3.18 |
Weighted - Average Remaining Contractual Term, Outstanding at September 30, 2015 (in years) | 4 years 29 days |
Weighted - Average Remaining Contractual Term, Exercisable at September 30, 2015 (in years) | 2 years 7 months 28 days |
Weighted - Average Remaining Contractual Term, Vested and Expected to Vest at September 30, 2015 (in years) | 2 years 7 months 28 days |
Aggregate Intrinsic Value, Outstanding at September 30, 2015 | $ | $ 0 |
Aggregate Intrinsic Value, Exercisable at September 30, 2015 | $ | 0 |
Aggregate Intrinsic Value, Vested and Expected to Vest at September 30, 2015 | $ | $ 0 |
Stock Options (Details 1)
Stock Options (Details 1) - Employee Stock Option [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of options granted (in dollars per share) | $ 0 | $ 1.35 |
Risk-free interest rate | 0.00% | |
Expected life (years) | 0 years | 5 years |
Expected volatility factor | 0.00% | 54.96% |
Expected dividends | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.53% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.68% |
Stock Options (Details 2)
Stock Options (Details 2) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Unvested at January 1, 2015 (in shares) | shares | 7,500 |
Number of Shares, Granted (in shares) | shares | 0 |
Number of Shares, Vested (in shares) | shares | (7,500) |
Number of Shares, Forfeited/Expired (in shares) | shares | 0 |
Number of Shares, Unvested at September 30, 2015 (in shares) | shares | 0 |
Weighted-Average Grant Date Fair Value, Unvested at January 1, 2015 (in dollars per share) | $ 2.59 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | 0 |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | 2.59 |
Weighted-Average Grant Date Fair Value, Forfeited/Expired (in dollars per share) | 0 |
Weighted-Average Grant Date Fair Value, Unvested at September 30, 2015 (in dollars per share) | $ 0 |
Stock Options (Details 3)
Stock Options (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 241 | $ 302 | $ 800 | $ 846 |
Direct Operating Costs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 98 | 107 | 293 | 283 |
Selling and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 143 | $ 195 | $ 507 | $ 563 |
Stock Options (Details Textual)
Stock Options (Details Textual) $ in Millions | Sep. 30, 2015USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized | $ | $ 1 |
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 |
Long term obligations (Details)
Long term obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Vendor obligations | |||
Capital lease obligations | [1] | $ 464 | $ 656 |
Deferred lease payments | [2] | 710 | 792 |
Microsoft licenses | [3] | 348 | 759 |
Acquisition related liability | [4] | 1,030 | 1,735 |
Pension obligations | |||
Accrued pension liability | 3,513 | 3,204 | |
Long-term Debt | 6,065 | 7,146 | |
Less: Current portion of long-term obligations | 1,527 | 1,606 | |
Total | $ 4,538 | $ 5,540 | |
[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 for 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 September 30, 2015, the Company had made $0.5 million in lease payments under the sale leaseback agreement. | ||
[2] | Deferred lease payments represent 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. | ||
[4] | Amount represents a $0.6 million portion of the purchase price consideration for the acquisition of MediaMiser to be paid by the Company on July 28, 2016 in shares of 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 $4.6 million of contingent consideration based on MediaMiser’s 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 September 30, 2015 was $0.5 million. |
Long term obligations (Details
Long term obligations (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 1,205 |
Prepaid expenses and other current assets [Member] | |
Debt Instrument [Line Items] | |
Finite-lived Intangible Assets Acquired | 356 |
Other assets [Member] | |
Debt Instrument [Line Items] | |
Finite-lived Intangible Assets Acquired | 713 |
Property and equipment [Member] | |
Debt Instrument [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 136 |
Long term obligations (Detail51
Long term obligations (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Jul. 28, 2016 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | |||||
Proceeds from Long-term Capital Lease Obligations | $ 0 | $ 859 | |||
MediaMiser [Member] | |||||
Debt Instrument [Line Items] | |||||
Business Combination, Contingent Consideration, Liability, Current | 500 | ||||
MediaMiser [Member] | Scenario, Forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 600 | ||||
Business Combination, Contingent Consideration, Liability, Current | $ 4,600 | ||||
Vendor Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
License Costs | 400 | ||||
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 | ||||
Sale Leaseback Transaction, Rent Expense | $ 500 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Liability Adjustment, Other comprehensive income (loss): | ||||
Pension Liability Adjustment, Balance at Beginning of the Period | $ 517 | $ (96) | $ 497 | $ (116) |
Pension Liability Adjustment, Other comprehensive income (loss) before reclassifications, net of taxes | 0 | 0 | 0 | 0 |
Pension Liability Adjustment, Total other comprehensive loss before reclassifications, net of taxes | 517 | (96) | 497 | (116) |
Pension Liability Adjustment, Net amount reclassified to earnings | 10 | 9 | 30 | 29 |
Pension Liability Adjustment, Balance at End of the Period | 527 | (87) | 527 | (87) |
Fair Value of Derivatives, Other comprehensive income (loss): | ||||
Fair Value of Derivatives, Balance at Beginning of the Period | 146 | 334 | (337) | (576) |
Fair Value of Derivatives, Other comprehensive income (loss) before reclassifications, net of taxes | (486) | (327) | (81) | 202 |
Fair Value of Derivatives, Total other comprehensive loss before reclassifications, net of taxes | (340) | 7 | (418) | (374) |
Fair Value of Derivatives, Net amount reclassified to earnings | 60 | (232) | 138 | 149 |
Fair Value of Derivatives, Balance at End of the Period | (280) | (225) | (280) | (225) |
Foreign Currency Translation Adjustment, Other comprehensive income (loss): | ||||
Foreign Currency Translation Adjustment, Balance at Beginning of the Period | (867) | 0 | (447) | 0 |
Foreign Currency Translation Adjustment, Other comprehensive income (loss) before reclassifications, net of taxes | (393) | (191) | (813) | (191) |
Foreign Currency Translation Adjustment, Total other comprehensive loss before reclassifications, net of taxes | $ (1,260) | (191) | (1,260) | (191) |
Foreign Currency Translation Adjustment, Net amount reclassified to earnings | 0 | 0 | 0 | |
Foreign Currency Translation Adjustment, Balance at End of the period | $ (1,260) | (191) | (1,260) | (191) |
Accumulated Other Comprehensive Income (loss), Other comprehensive income (loss): | ||||
Accumulated Other Comprehensive Income (loss), Balance at Beginning of the period | (204) | 238 | (287) | (692) |
Accumulated Other Comprehensive Income (loss), Other comprehensive income (loss) before reclassifications, net of taxes | (879) | (518) | (894) | 11 |
Accumulated Other Comprehensive Income (loss), Total other comprehensive loss before reclassifications, net of taxes | (1,083) | (280) | (1,181) | (681) |
Accumulated Other Comprehensive Income (loss), Net amount reclassified to earnings | 70 | (223) | 168 | 178 |
Accumulated Other Comprehensive Income (loss), Balance at End of the period | $ (1,013) | $ (503) | $ (1,013) | $ (503) |
Segment Reporting and Concent53
Segment Reporting and Concentrations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 15,135 | $ 14,804 | $ 43,000 | $ 43,184 | ||
Assets | 51,762 | 51,762 | $ 54,861 | |||
Before Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Loss before provision for income taxes | [1] | 736 | (120) | (1,883) | (970) | |
After Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Loss before provision for income taxes | [2] | 736 | (120) | (1,883) | (970) | |
Content Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 13,474 | 14,032 | 38,035 | 42,162 | ||
Assets | 42,815 | 42,815 | 46,681 | |||
Content Services [Member] | Before Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Loss before provision for income taxes | [1] | 2,534 | 1,950 | 3,596 | 4,821 | |
Content Services [Member] | After Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Loss before provision for income taxes | [2] | 1,892 | 1,436 | 1,755 | 3,369 | |
IADS [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 484 | 115 | 1,434 | 365 | ||
Assets | 623 | 623 | 540 | |||
IADS [Member] | Before Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Loss before provision for income taxes | [1] | (1,496) | (1,961) | (4,590) | (5,682) | |
IADS [Member] | After Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Loss before provision for income taxes | [2] | (861) | (1,447) | (2,773) | (4,230) | |
MediaMiser [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,177 | 657 | 3,531 | 657 | ||
Assets | 8,324 | 8,324 | $ 7,640 | |||
MediaMiser [Member] | Before Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Loss before provision for income taxes | [1] | (302) | (109) | (889) | (109) | |
MediaMiser [Member] | After Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Loss before provision for income taxes | [2] | $ (295) | $ (109) | $ (865) | $ (109) | |
[1] | Before elimination of any inter-segment profits | |||||
[2] | After elimination of any inter-segment profits |
Segment Reporting and Concent54
Segment Reporting and Concentrations (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 15,135 | $ 14,804 | $ 43,000 | $ 43,184 |
Other - principally Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,354 | 1,452 | 4,179 | 3,977 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,275 | 7,424 | 20,478 | 23,169 |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,520 | 2,540 | 6,771 | 7,824 |
The Netherlands | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,514 | 2,404 | 7,274 | 6,520 |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,472 | $ 984 | $ 4,298 | $ 1,694 |
Segment Reporting and Concent55
Segment Reporting and Concentrations (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | $ 10,693 | $ 12,811 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1,171 | 1,600 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1,685 | 2,081 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1,740 | 2,136 |
Sri Lanka | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 701 | 890 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 5,360 | 6,061 |
Israel | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 34 | 29 |
Foreign Countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 9,522 | 11,211 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | $ 2 | $ 14 |
Segment Reporting and Concent56
Segment Reporting and Concentrations (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Foreign Customer [Member] | Sales Revenue, Net [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 52.00% | 50.00% | 52.00% | 46.00% | |
Foreign Customer [Member] | Accounts Receivable [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 59.00% | 49.00% | |||
Two clients [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | ||||
Two clients [Member] | Sales Revenue, Net [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 34.00% | 32.00% | |||
Three Clients [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | ||||
Three Clients [Member] | Sales Revenue, Net [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 44.00% | 42.00% | |||
Four Clients [Member] | Accounts Receivable [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 62.00% | 58.00% |
Income (Loss) Per Share (Detail
Income (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share Basic and Diluted [Line Items] | ||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries | $ 406 | $ (219) | $ (2,233) | $ (693) |
Weighted average common shares outstanding | 25,455 | 25,294 | 25,377 | 25,197 |
Dilutive effect of outstanding options | 0 | 0 | 0 | 0 |
Adjusted for dilutive computation | 25,455 | 25,294 | 25,377 | 25,197 |
Income (Loss) Per Share (Deta58
Income (Loss) Per Share (Details Textual) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 2.2 | 0.8 | 2.2 | |
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 | 3.4 | 1.4 | 2.6 | 1.4 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accrued expenses [Member] | Foreign currency forward contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Liabilities | $ 280 | $ 337 |
Derivatives (Details 1)
Derivatives (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain (loss) recognized in OCI | [1] | $ (486) | $ (327) | $ (81) | $ 202 |
Net gain (loss) reclassified from accumulated OCI into income | [2] | (60) | 232 | (138) | (149) |
Net gain recognized in income | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
[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 effective portions for the period presented. |
Derivatives (Details Textual)
Derivatives (Details Textual) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 18.6 | $ 19.4 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | ||
Liabilities | ||
Derivatives | $ 0 | $ 0 |
Contingent Considerations | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Liabilities | ||
Derivatives | 280 | 337 |
Contingent Considerations | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Liabilities | ||
Derivatives | 0 | 0 |
Contingent Considerations | $ 470 | $ 553 |
Financial Instruments (Details
Financial Instruments (Details 1) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Balance at December 31, 2014 | $ 553 |
Effect of foreign currency translation adjustment | (83) |
Balance at June 30, 2015 | $ 470 |
Financial Instruments (Detail64
Financial Instruments (Details Textual) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
MediaMiser [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Combination, Contingent Consideration, Liability | $ 0.5 | $ 0.5 |