Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 27, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | 25,445,071 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 24,961 | $ 24,908 |
Accounts receivable, net | 9,702 | 9,249 |
Prepaid expenses and other current assets | 3,042 | 2,900 |
Deferred income taxes | 417 | 282 |
Total current assets | 38,122 | 37,339 |
Property and equipment, net | 4,756 | 4,723 |
Other assets | 2,310 | 2,330 |
Deferred income taxes | 1,333 | 1,382 |
Intangibles, net | 4,001 | 3,987 |
Goodwill | 1,531 | 1,476 |
Total assets | 52,053 | 51,237 |
Current liabilities: | ||
Accounts payable | 2,047 | 1,250 |
Accrued expenses | 3,975 | 3,312 |
Accrued salaries, wages and related benefits | 5,386 | 4,905 |
Income and other taxes | 1,236 | 1,255 |
Current portion of long term obligations | 1,307 | 1,582 |
Deferred income taxes | 0 | 76 |
Total current liabilities | 13,951 | 12,380 |
Deferred income taxes | 722 | 716 |
Long term obligations | 3,686 | 3,436 |
Commitments and contingencies | ||
Non-controlling interests | (3,451) | (3,507) |
STOCKHOLDERS’ EQUITY: | ||
Serial preferred stock; 5,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value; 75,000,000 shares authorized; 27,069,000 shares issued and 25,445,000 outstanding at June 30, 2016 and December 31, 2015 | 270 | 270 |
Additional paid-in capital | 24,852 | 24,590 |
Retained earnings | 16,149 | 17,924 |
Accumulated other comprehensive income (loss) | 362 | (84) |
Stockholders' Equity before Treasury Stock, Total | 41,633 | 42,700 |
Less: treasury stock, 1,624,000 shares at June 30, 2016 and December 31, 2015, at cost | (4,488) | (4,488) |
Total stockholders' equity | 37,145 | 38,212 |
Total liabilities and stockholders' equity | $ 52,053 | $ 51,237 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
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 | 27,069,000 | 27,069,000 |
Common stock, shares outstanding | 25,445,000 | 25,445,000 |
Treasury stock, shares | 1,624,000 | 1,624,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | $ 15,642 | $ 14,063 | $ 31,340 | $ 27,865 |
Operating costs and expenses: | ||||
Direct operating costs | 11,685 | 10,991 | 23,150 | 22,115 |
Selling and administrative expenses | 5,553 | 4,278 | 9,364 | 8,413 |
Interest expense (income), net | 16 | (19) | 29 | (45) |
Totals | 17,254 | 15,250 | 32,543 | 30,483 |
Loss before income taxes | (1,612) | (1,187) | (1,203) | (2,618) |
Provision for (benefit from) income taxes | 258 | (254) | 776 | 301 |
Net loss | (1,870) | (933) | (1,979) | (2,919) |
Loss attributable to non-controlling interests | 92 | 134 | 204 | 280 |
Net loss attributable to Innodata Inc. and Subsidiaries | $ (1,778) | $ (799) | $ (1,775) | $ (2,639) |
Loss per share attributable to Innodata Inc. and Subsidiaries: | ||||
Basic and diluted | $ (0.07) | $ (0.03) | $ (0.07) | $ (0.1) |
Weighted average shares outstanding: | ||||
Basic and diluted | 25,445 | 25,337 | 25,445 | 25,337 |
Comprehensive loss: | ||||
Net loss | $ (1,870) | $ (933) | $ (1,979) | $ (2,919) |
Pension liability adjustment, net of taxes | (82) | 10 | (164) | 20 |
Change in fair value of derivatives, net of taxes | (193) | (23) | 246 | 483 |
Foreign currency translation adjustment, net of taxes | 8 | 119 | 364 | (420) |
Other Comprehensive income (loss) | (267) | 106 | 446 | 83 |
Total Comprehensive loss | (2,137) | (827) | (1,533) | (2,836) |
Comprehensive loss attributed to non-controlling interest | 92 | 134 | 204 | 280 |
Comprehensive loss attributable to Innodata Inc. and Subsidiaries | $ (2,045) | $ (693) | $ (1,329) | $ (2,556) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flow from operating activities: | ||
Net loss | $ (1,979) | $ (2,919) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,324 | 1,436 |
Stock-based compensation | 522 | 559 |
Deferred income taxes | (232) | (211) |
Pension cost | 82 | 316 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (188) | 615 |
Prepaid expenses and other current assets | 17 | 74 |
Other assets | (139) | (111) |
Accounts payable and accrued expenses | 1,356 | 196 |
Accrued salaries, wages and related benefits | 479 | 544 |
Income and other taxes | (73) | (7) |
Net cash provided by operating activities | 1,169 | 492 |
Cash flow from investing activities: | ||
Capital expenditures | (871) | (298) |
Net cash used in investing activities | (871) | (298) |
Cash flow from financing activities: | ||
Payment of long term obligations | (340) | (583) |
Net cash used in financing activities | (340) | (583) |
Effect of exchange rate changes on cash and cash equivalents | 95 | (131) |
Net increase (decrease) in cash and cash equivalents | 53 | (520) |
Cash and cash equivalents, beginning of period | 24,908 | 24,216 |
Cash and cash equivalents, end of period | 24,961 | 23,696 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | $ 688 | $ 412 |
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, 2014 | $ 39,223 | $ 268 | $ 22,780 | $ 20,750 | $ (287) | $ (4,288) |
Balance (in shares) at Dec. 31, 2014 | 25,337 | |||||
Net loss | (2,639) | $ 0 | 0 | (2,639) | 0 | 0 |
Stock-based compensation | 559 | 0 | 559 | 0 | 0 | 0 |
Pension liability adjustments, net of taxes | 20 | 0 | 0 | 0 | 20 | 0 |
Foreign currency translation adjustment, net of taxes | (420) | 0 | 0 | 0 | 483 | 0 |
Change in fair value of derivatives, net of taxes | 483 | 0 | 0 | 0 | (420) | 0 |
Balance at Jun. 30, 2015 | 37,226 | $ 268 | 23,339 | 18,111 | (204) | (4,288) |
Balance (in shares) at Jun. 30, 2015 | 25,337 | |||||
Balance at Dec. 31, 2015 | 38,212 | $ 270 | 24,590 | 17,924 | (84) | (4,488) |
Balance (in shares) at Dec. 31, 2015 | 25,445 | |||||
Net loss | (1,775) | $ 0 | 0 | (1,775) | 0 | 0 |
Stock-based compensation | 522 | 0 | 522 | 0 | 0 | 0 |
Acquisition of non-controlling interest | (260) | 0 | (260) | 0 | 0 | 0 |
Pension liability adjustments, net of taxes | (164) | 0 | 0 | 0 | (164) | 0 |
Foreign currency translation adjustment, net of taxes | 364 | 0 | 0 | 0 | 364 | 0 |
Change in fair value of derivatives, net of taxes | 246 | 0 | 0 | 0 | 246 | 0 |
Balance at Jun. 30, 2016 | $ 37,145 | $ 270 | $ 24,852 | $ 16,149 | $ 362 | $ (4,488) |
Balance (in shares) at Jun. 30, 2016 | 25,445 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | Description of Business and Summary of Significant Accounting Policies The Company operates in three reporting segments: Digital Data Solutions (DDS), Innodata Advanced Data Solutions (IADS) and Media Intelligence Solutions (MIS). DDS was formerly known as Content Services. The Company’s DDS 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 June 30, 2016 Innodata owned 91 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. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2015, 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, 2015 consolidated financial statements. 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 condensed consolidated statements of operations and comprehensive loss. 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. A portion of our IADS segment revenue is derived from licensing our software and providing access to our hosted software platform. Revenue from such services 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. The MIS segment derives its revenues primarily from subscription arrangements and provision of enriched media analysis services. 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 from enriched media analysis services are recognized when the services are performed and delivered to the clients. Revenues include reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. In November 2015, the FASB issued guidance related to balance sheet classification of deferred taxes. This new guidance requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not anticipate that adoption of this standard will have a material impact on its condensed consolidated financial statements. In February 2016, the FASB issued guidance related to leases. This new guidance requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. This new guidance is effective for annual periods beginning after December 15, 2018. Early application is permitted. The Company has not yet determined the potential effects of the adoption of this standard on its condensed consolidated financial statements. In March 2016, the FASB issued guidance relating to share based compensation. This new guidance is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2016. Early application is permitted. The Company does not anticipate that adoption of this standard will have a material impact on its condensed consolidated financial statements. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 2. Property and Equipment June 30, December 31, 2016 2015 Equipment $ 13,725 $ 13,437 Software 5,311 5,089 Furniture and equipment 2,120 2,313 Leasehold improvements 4,907 4,956 Total 26,063 25,795 Less: accumulated depreciation and amortization (21,307) (21,072) $ 4,756 $ 4,723 Depreciation and amortization expense of property and equipment was approximately $ 0.5 0.9 1.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 3. Goodwill and Intangible Assets Balance as of January 1, 2016 $ 1,476 Foreign currency translation adjustment 55 Balance as of June 30, 2016 $ 1,531 Balance as of January 1, 2015 $ 1,635 Foreign currency translation adjustment (62) Balance as of June 30, 2015 $ 1,573 Developed Customer Trademarks Patents Total Gross carrying amounts: Balance as of January 1, 2016 $ 1,978 $ 2,036 $ 555 $ 41 $ 4,610 Foreign currency translation 137 141 17 3 298 Balance as of June 30, 2016 $ 2,115 $ 2,177 $ 572 $ 44 $ 4,908 Developed Customer Trademarks Patents Total Gross carrying amounts: Balance as of January 1, 2015 $ 2,369 $ 2,439 $ 596 $ 50 $ 5,454 Foreign currency translation (151) (157) (13) (4) (325) Balance as of June 30, 2015 $ 2,218 $ 2,282 $ 583 $ 46 $ 5,129 Developed Customer Trademarks Patents Total Accumulated amortization: Balance as of January 1, 2015 $ 98 $ 84 $ 11 $ - $ 193 Amortization expense 113 97 46 4 260 Foreign currency translation (8) (7) (1) - (16) Balance as of June 30, 2015 $ 203 $ 174 $ 56 $ 4 $ 437 Amortization expense relating to acquisition-related intangible assets was $ 0.1 0.2 Amortization expense relating to acquisition-related intangible assets was $ 0.2 0.3 Year Amortization 2016 $ 244 2017 487 2018 487 2019 454 2020 422 Thereafter 1,907 $ 4,001 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 4. Income Taxes The Company had unrecognized tax benefits of approximately $ 1.2 0.5 Unrecognized tax Balance - January 1, 2016 $ 1,207 Decrease for tax position settled for prior years (108) Increase for tax provision 40 Interest accrual 32 Foreign currency revaluation (14) Balance - June 30, 2016 $ 1,157 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 2015. Pursuant to an income tax audit by the Indian Bureau of Taxation in 2009, the Company’s Indian subsidiaries received a tax assessment approximating $ 303,000 1.0 482,000 0.3 482,000 155,000 In 2015 the Company’s Indian subsidiary was subject to an inquiry by the Service Tax Bureau in India regarding the classification of services provided by this subsidiary, asserting that the services provided by this subsidiary fall under the category of online information and database access or retrieval services (OID Services), and not under the category of business support services (BS Services) that are exempt from service tax as historically indicated in the subsidiary’s service tax filings. In the event the Service Tax Bureau is successful in proving that the services fall under the category of OID Services the revenues earned by the Company’s Indian subsidiary would be subject to a service tax of approximately 14.5 8.5 In 2016 the Company’s Indian subsidiary received notices of appeal from the Commissioner, Service Tax, seeking to reverse service tax refunds previously granted to our Indian subsidiary for certain quarters in 2014 and 2015, asserting that the services provided by this subsidiary fall under the category of OID Services and not BS Services. The Company disagrees with the basis of these appeals and is contesting them vigorously. The Company expects delays in receiving service tax refunds until such time as the appeals are adjudicated with finality. From time to time the Company is also subject to various other tax proceedings and claims for its India and Philippines subsidiaries. The Company has recorded a tax provision amounting to $ 217,000 The Company projects that during the period from 2016 through 2018 the U.S. entity may not have sufficient cash to pay in full amounts that will be payable by it to the Company’s Asian operating subsidiaries and that the cash deficit will amount to approximately $ 6.0 2.3 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 5. 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 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 0.4 |
Stock Options
Stock Options | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 6. Stock Options On June 7, 2016 stockholders of the Company approved amendments to the Innodata Inc. 2013 Stock Plan. The Innodata Inc. 2013 Stock Plan as amended and restated effective June 7, 2016 is referred to herein as the “Plan.” The number of shares of common stock of Innodata Inc. (“Stock”) that may be delivered, purchased or used for reference purposes (with respect to stock appreciation rights or stock units) for awards granted under the Plan after June 7, 2016 is 5,858,892 Number of Weighted - Weighted- Aggregate Outstanding at January 1, 2016 3,970,146 $ 3.02 Granted 710,000 2.67 Exercised - - Forfeited/Expired (124,033) 3.19 Outstanding at June 30, 2016 4,556,113 $ 2.96 5.56 $ 28,800 Exercisable at June 30, 2016 2,343,062 $ 3.14 4.04 $ 2,376 Vested and Expected to Vest at June 30, 2016 4,556,113 $ 2.96 5.56 $ 28,800 Six Months Ended June 30, 2016 2015 Weighted average fair value of options granted $ 1.09 $ - Risk-free interest rate 1.38% - 1.73% - Expected life (years) 5-6 - Expected volatility factor 49 % - Expected dividends - - The total compensation cost related to non-vested stock awards not yet recognized as of June 30, 2016 totaled approximately $ 1.7 Three months ended Six months ended 2016 2015 2016 2015 Direct operating costs $ 74 $ 104 $ 164 $ 195 Selling and administrative expenses 169 170 358 364 Total stock-based compensation $ 243 $ 274 $ 522 $ 559 There were no options exercised in the six months ended June 30, 2016. |
Long term obligations
Long term obligations | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 7. Long term obligations June 30, December 31, 2016 2015 Vendor obligations Capital lease obligations (1) $ 372 $ 423 Deferred lease payments (2) 708 707 Microsoft licenses (3) 170 360 Acquisition related liability (4) 1,062 993 Pension obligations Accrued pension liability 2,681 2,535 4,993 5,018 Less: Current portion of long term obligations 1,307 1,582 Totals $ 3,686 $ 3,436 (1) 0.9 36 6 0.8 (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 portion of the purchase price consideration for the acquisition of MediaMiser as follows: $ 0.6 4.6 0.5 |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | 8. 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. Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at April 1, 2016 $ 1,441 $ 274 $ (1,086) $ 629 Other comprehensive income (loss) before reclassifications, net of taxes - (152) 8 (144) Total other comprehensive income (loss) before reclassifications, net of taxes 1,441 122 (1,078) 485 Net amount reclassified to earnings (82) (41) - (123) Balance at June 30, 2016 $ 1,359 $ 81 $ (1,078) $ 362 Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at April 1, 2015 $ 507 $ 169 $ (986) $ (310) Other comprehensive income (loss) before reclassifications, net of taxes - (69) 119 50 Total other comprehensive income (loss) before reclassifications, net of taxes 507 100 (867) (260) Net amount reclassified to earnings 10 46 56 Balance at June 30, 2015 $ 517 $ 146 $ (867) $ (204) Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at January 1, 2016 $ 1,523 $ (165) $ (1,442) $ (84) Other comprehensive income before reclassifications, net of taxes - 234 364 598 Total other comprehensive income (loss) before reclassifications, net of taxes 1,523 69 (1,078) 514 Net amount reclassified to earnings (164) 12 - (152) Balance at June 30, 2016 $ 1,359 $ 81 $ (1,078) $ 362 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 - 405 (420) (15) Total other comprehensive income (loss) before reclassifications, net of taxes 497 68 (867) (302) Net amount reclassified to earnings 20 78 - 98 Balance at June 30, 2015 $ 517 $ 146 $ (867) $ (204) 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 loss. |
Segment Reporting and Concentra
Segment Reporting and Concentrations | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 9. Segment Reporting and Concentrations The Company’s operations are classified into three reportable segments: Digital Data Solutions (DDS), Innodata Advanced Data Solutions (IADS) and Media Intelligence Solutions (MIS). The DDS 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. Both these businesses constitute the Company’s MIS segment. A significant portion of the Company’s revenues is generated from its production facilities in the Philippines, India, Sri Lanka, Canada, Germany and Israel. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues: DDS $ 13,232 $ 12,370 $ 26,876 $ 24,561 IADS 1,165 545 2,062 950 MediaMiser 1,245 1,148 2,402 2,354 Total Consolidated $ 15,642 $ 14,063 $ 31,340 $ 27,865 Loss before provision for income taxes (1) DDS $ 81 $ 701 $ 2,327 $ 1,064 IADS (1,089) (1,500) (2,458) (3,095) MediaMiser (604) (388) (1,072) (587) Total Consolidated $ (1,612) $ (1,187) $ (1,203) $ (2,618) Loss before provision for income taxes (2) DDS $ (640) $ 98 $ 902 $ (120) IADS (374) (898) (1,045) (1,912) MediaMiser (598) (387) (1,060) (586) Total Consolidated $ (1,612) $ (1,187) $ (1,203) $ (2,618) June 30, 2016 December 31, 2015 Total assets: DDS $ 41,513 $ 41,842 IADS 1,242 1,026 MediaMiser 9,298 8,369 Total Consolidated $ 52,053 $ 51,237 (1) (2) Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 United States $ 8,079 $ 6,615 $ 16,351 $ 13,203 The Netherlands 2,529 2,648 5,090 4,760 United Kingdom 1,999 2,050 3,980 4,251 Canada 1,498 1,456 2,974 2,827 Other - principally Europe 1,537 1,294 2,945 2,824 $ 15,642 $ 14,063 $ 31,340 $ 27,865 June 30, December 31, 2016 2015 United States $ 1,292 $ 1,104 Foreign countries: Philippines 1,537 5,223 India 1,657 1,611 Sri Lanka 518 1,580 Canada 5,252 635 Israel 30 31 Germany 2 2 Total foreign 8,996 9,082 $ 10,288 $ 10,186 Two clients in the DDS Segment generated approximately 33 36 48 53 Two clients in the DDS Segment generated approximately 32 35 10 10 48 53 As of June 30, 2016, approximately 57 59 62 68 |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 10. Loss Per Share Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Net loss attributable to Innodata Inc. and Subsidiaries $ (1,778) $ (799) $ (1,775) $ (2,639) Weighted average common shares outstanding 25,445 25,337 25,445 25,337 Dilutive effect of outstanding options - - - - Adjusted for dilutive computation 25,445 25,337 25,445 25,337 Basic net 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 4.6 2.6 1.0 Options to purchase 4.3 2.6 0.3 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 11. Derivatives The Company conducts a large portion of its operations in international markets that subject it to foreign currency fluctuations. The most significant foreign currency exposures occur when revenue and associated accounts receivable are collected in one currency and expenses to generate that revenue are incurred in another currency. The Company’s primary exchange rate exposure relates to payroll, other payroll costs and operating expenses in the Philippines, India, Sri Lanka and Israel. In addition, although 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 June 30, 2016 and December 31, 2015 was $18.6 million and $ 15.8 Balance Sheet Location Fair Value 2016 2015 Derivatives designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other current assets $ 81 $ - Foreign currency forward contracts Accrued expenses $ - $ 165 Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net gain (loss) recognized in OCI (1) $ (152) $ (69) $ 234 $ 405 Net gain (loss) reclassified from accumulated OCI into income (2) $ 41 $ (46) $ (12) $ (78) Net gain recognized in income (3) $ - $ - $ - $ - (1) (2) (3) |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments Disclosure [Text Block] | Financial Instruments The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of June 30, 2016 and December 31, 2015, 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: June 30, 2016 Level 1 Level 2 Level 3 Assets Derivatives $ - $ 81 $ - Liabilities Contingent Considerations $ - $ - $ 477 December 31, 2015 Level 1 Level 2 Level 3 Liabilities Derivatives $ - $ 165 $ - Contingent Considerations $ - $ - $ 453 Balance at January 1, 2016 $ 453 Effect of foreign currency translation adjustment 24 Balance at June 30, 2016 $ 477 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 June 30, 2016 is included in prepaid and other current assets in the accompanying condensed consolidated balance sheets. The fair value of these contracts as of December 31, 2015 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 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 June 30, 2016 and December 31, 2015 was $ 0.5 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 13. Subsequent Events On July 14, 2016, the Company’s MediaMiser subsidiary acquired the Agility business from PR Newswire. Agility is a leading global media contact database and media monitoring platform that helps customers target key influencers, amplify content and measure impact. The consideration given after working capital adjustments consisted of $ 4.3 The acquisition brought to MediaMiser more than 1,500 Agility customers and approximately 50 employees in the US and the UK. Agility had approximately $5 million in revenues in 2015. For additional information see the Company's Report on Form 8-K dated July 14, 2016. The information in the financial statements of this Report on Form 10-Q is for the quarterly period ended June 30, 2016, and does not reflect any aspect of the Agility transaction. |
Description of Business and S20
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Business Combinations Policy [Policy Text Block] | Description of Business- The Company operates in three reporting segments: Digital Data Solutions (DDS), Innodata Advanced Data Solutions (IADS) and Media Intelligence Solutions (MIS). DDS was formerly known as Content Services. The Company’s DDS 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 June 30, 2016 Innodata owned 91 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, 2015, 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, 2015 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 condensed consolidated statements of operations and comprehensive 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. A portion of our IADS segment revenue is derived from licensing our software and providing access to our hosted software platform. Revenue from such services 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. The MIS segment derives its revenues primarily from subscription arrangements and provision of enriched media analysis services. 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 from enriched media analysis services are recognized when the services are performed and delivered to the clients. 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 November 2015, the FASB issued guidance related to balance sheet classification of deferred taxes. This new guidance requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not anticipate that adoption of this standard will have a material impact on its condensed consolidated financial statements. In February 2016, the FASB issued guidance related to leases. This new guidance requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. This new guidance is effective for annual periods beginning after December 15, 2018. Early application is permitted. The Company has not yet determined the potential effects of the adoption of this standard on its condensed consolidated financial statements. In March 2016, the FASB issued guidance relating to share based compensation. This new guidance is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2016. Early application is permitted. The Company does not anticipate that adoption of this standard will have a material impact on its condensed consolidated financial statements. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at costs less accumulated depreciation and amortization (in thousands), and consist of the following: June 30, December 31, 2016 2015 Equipment $ 13,725 $ 13,437 Software 5,311 5,089 Furniture and equipment 2,120 2,313 Leasehold improvements 4,907 4,956 Total 26,063 25,795 Less: accumulated depreciation and amortization (21,307) (21,072) $ 4,756 $ 4,723 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the six months ended June 30, 2016 and June 30, 2015 were as follows (in thousands): Balance as of January 1, 2016 $ 1,476 Foreign currency translation adjustment 55 Balance as of June 30, 2016 $ 1,531 Balance as of January 1, 2015 $ 1,635 Foreign currency translation adjustment (62) Balance as of June 30, 2015 $ 1,573 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Developed Customer Trademarks Patents Total Gross carrying amounts: Balance as of January 1, 2016 $ 1,978 $ 2,036 $ 555 $ 41 $ 4,610 Foreign currency translation 137 141 17 3 298 Balance as of June 30, 2016 $ 2,115 $ 2,177 $ 572 $ 44 $ 4,908 Developed Customer Trademarks Patents Total Gross carrying amounts: Balance as of January 1, 2015 $ 2,369 $ 2,439 $ 596 $ 50 $ 5,454 Foreign currency translation (151) (157) (13) (4) (325) Balance as of June 30, 2015 $ 2,218 $ 2,282 $ 583 $ 46 $ 5,129 Developed Customer Trademarks Patents Total Accumulated amortization: Balance as of January 1, 2015 $ 98 $ 84 $ 11 $ - $ 193 Amortization expense 113 97 46 4 260 Foreign currency translation (8) (7) (1) - (16) Balance as of June 30, 2015 $ 203 $ 174 $ 56 $ 4 $ 437 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated amortization expense for intangible assets subsequent to June 30, 2016 is as follows (in thousands): Year Amortization 2016 $ 244 2017 487 2018 487 2019 454 2020 422 Thereafter 1,907 $ 4,001 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 six months ended June 30, 2016 (amounts in thousands): Unrecognized tax Balance - January 1, 2016 $ 1,207 Decrease for tax position settled for prior years (108) Increase for tax provision 40 Interest accrual 32 Foreign currency revaluation (14) Balance - June 30, 2016 $ 1,157 |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 3,970,146 $ 3.02 Granted 710,000 2.67 Exercised - - Forfeited/Expired (124,033) 3.19 Outstanding at June 30, 2016 4,556,113 $ 2.96 5.56 $ 28,800 Exercisable at June 30, 2016 2,343,062 $ 3.14 4.04 $ 2,376 Vested and Expected to Vest at June 30, 2016 4,556,113 $ 2.96 5.56 $ 28,800 |
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: Six Months Ended June 30, 2016 2015 Weighted average fair value of options granted $ 1.09 $ - Risk-free interest rate 1.38% - 1.73% - Expected life (years) 5-6 - Expected volatility factor 49 % - Expected dividends - - |
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 Six months ended 2016 2015 2016 2015 Direct operating costs $ 74 $ 104 $ 164 $ 195 Selling and administrative expenses 169 170 358 364 Total stock-based compensation $ 243 $ 274 $ 522 $ 559 |
Long term obligations (Tables)
Long term obligations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Total long-term obligations as of June 30, 2016 and December 31, 2015 consist of the following (in thousands): June 30, December 31, 2016 2015 Vendor obligations Capital lease obligations (1) $ 372 $ 423 Deferred lease payments (2) 708 707 Microsoft licenses (3) 170 360 Acquisition related liability (4) 1,062 993 Pension obligations Accrued pension liability 2,681 2,535 4,993 5,018 Less: Current portion of long term obligations 1,307 1,582 Totals $ 3,686 $ 3,436 (1) 0.9 36 6 0.8 (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 portion of the purchase price consideration for the acquisition of MediaMiser as follows: $ 0.6 4.6 0.5 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive loss as of June 30, 2016, and reclassifications out of accumulated other comprehensive income (loss) for the six months ended June 30, 2016 and 2015, were as follows (net of tax): Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at April 1, 2016 $ 1,441 $ 274 $ (1,086) $ 629 Other comprehensive income (loss) before reclassifications, net of taxes - (152) 8 (144) Total other comprehensive income (loss) before reclassifications, net of taxes 1,441 122 (1,078) 485 Net amount reclassified to earnings (82) (41) - (123) Balance at June 30, 2016 $ 1,359 $ 81 $ (1,078) $ 362 Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at April 1, 2015 $ 507 $ 169 $ (986) $ (310) Other comprehensive income (loss) before reclassifications, net of taxes - (69) 119 50 Total other comprehensive income (loss) before reclassifications, net of taxes 507 100 (867) (260) Net amount reclassified to earnings 10 46 56 Balance at June 30, 2015 $ 517 $ 146 $ (867) $ (204) Pension Liability Fair Value of Foreign Currency Accumulated Other Balance at January 1, 2016 $ 1,523 $ (165) $ (1,442) $ (84) Other comprehensive income before reclassifications, net of taxes - 234 364 598 Total other comprehensive income (loss) before reclassifications, net of taxes 1,523 69 (1,078) 514 Net amount reclassified to earnings (164) 12 - (152) Balance at June 30, 2016 $ 1,359 $ 81 $ (1,078) $ 362 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 - 405 (420) (15) Total other comprehensive income (loss) before reclassifications, net of taxes 497 68 (867) (302) Net amount reclassified to earnings 20 78 - 98 Balance at June 30, 2015 $ 517 $ 146 $ (867) $ (204) |
Segment Reporting and Concent27
Segment Reporting and Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues: DDS $ 13,232 $ 12,370 $ 26,876 $ 24,561 IADS 1,165 545 2,062 950 MediaMiser 1,245 1,148 2,402 2,354 Total Consolidated $ 15,642 $ 14,063 $ 31,340 $ 27,865 Loss before provision for income taxes (1) DDS $ 81 $ 701 $ 2,327 $ 1,064 IADS (1,089) (1,500) (2,458) (3,095) MediaMiser (604) (388) (1,072) (587) Total Consolidated $ (1,612) $ (1,187) $ (1,203) $ (2,618) Loss before provision for income taxes (2) DDS $ (640) $ 98 $ 902 $ (120) IADS (374) (898) (1,045) (1,912) MediaMiser (598) (387) (1,060) (586) Total Consolidated $ (1,612) $ (1,187) $ (1,203) $ (2,618) June 30, 2016 December 31, 2015 Total assets: DDS $ 41,513 $ 41,842 IADS 1,242 1,026 MediaMiser 9,298 8,369 Total Consolidated $ 52,053 $ 51,237 (1) (2) |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | The following table summarizes revenues by geographic region (determined based upon customer’s domicile) (in thousands): Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 United States $ 8,079 $ 6,615 $ 16,351 $ 13,203 The Netherlands 2,529 2,648 5,090 4,760 United Kingdom 1,999 2,050 3,980 4,251 Canada 1,498 1,456 2,974 2,827 Other - principally Europe 1,537 1,294 2,945 2,824 $ 15,642 $ 14,063 $ 31,340 $ 27,865 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Long-lived assets as of June 30, 2016 and December 31, 2015, respectively, by geographic region, are comprised of (in thousands): June 30, December 31, 2016 2015 United States $ 1,292 $ 1,104 Foreign countries: Philippines 1,537 5,223 India 1,657 1,611 Sri Lanka 518 1,580 Canada 5,252 635 Israel 30 31 Germany 2 2 Total foreign 8,996 9,082 $ 10,288 $ 10,186 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Net loss attributable to Innodata Inc. and Subsidiaries $ (1,778) $ (799) $ (1,775) $ (2,639) Weighted average common shares outstanding 25,445 25,337 25,445 25,337 Dilutive effect of outstanding options - - - - Adjusted for dilutive computation 25,445 25,337 25,445 25,337 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 (in thousands): Balance Sheet Location Fair Value 2016 2015 Derivatives designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other current assets $ 81 $ - Foreign currency forward contracts Accrued expenses $ - $ 165 |
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 loss for the three and six months ended June 30, 2016 and 2015, respectively, were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net gain (loss) recognized in OCI (1) $ (152) $ (69) $ 234 $ 405 Net gain (loss) reclassified from accumulated OCI into income (2) $ 41 $ (46) $ (12) $ (78) Net gain recognized in income (3) $ - $ - $ - $ - (1) (2) (3) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 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. June 30, 2016 Level 1 Level 2 Level 3 Assets Derivatives $ - $ 81 $ - Liabilities Contingent Considerations $ - $ - $ 477 December 31, 2015 Level 1 Level 2 Level 3 Liabilities Derivatives $ - $ 165 $ - Contingent Considerations $ - $ - $ 453 |
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 six months ended June 30, 2016: Balance at January 1, 2016 $ 453 Effect of foreign currency translation adjustment 24 Balance at June 30, 2016 $ 477 |
Description of Business and S31
Description of Business and Summary of Significant Accounting Policies (Details Textual) | Jun. 30, 2016 |
Synodex [Member] | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |
Noncontrolling Interest, Ownership Percentage By Parent | 91.00% |
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 | Jun. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 26,063 | $ 25,795 |
Less: accumulated depreciation and amortization | (21,307) | (21,072) |
Property, Plant and Equipment, Net | 4,756 | 4,723 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 13,725 | 13,437 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 5,311 | 5,089 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,120 | 2,313 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 4,907 | $ 4,956 |
Property and Equipment (Detai33
Property and Equipment (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation, Depletion and Amortization | $ 1,324 | $ 1,436 | ||
Property, Plant and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation, Depletion and Amortization | $ 500 | $ 500 | $ 900 | $ 1,000 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill [Line Items] | ||
Balance | $ 1,476 | $ 1,635 |
Foreign currency translation adjustment | 55 | (62) |
Balance | $ 1,531 | $ 1,573 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Gross carrying amounts: | ||||
Balance | $ 4,610 | $ 5,454 | ||
Foreign currency translation | 298 | (325) | ||
Balance | $ 4,908 | $ 5,129 | 4,908 | 5,129 |
Accumulated amortization: | ||||
Balance | 193 | |||
Amortization expense | 100 | 200 | 260 | 300 |
Foreign currency translation | (16) | |||
Balance | 437 | 437 | ||
Developed Technology Rights [Member] | ||||
Gross carrying amounts: | ||||
Balance | 1,978 | 2,369 | ||
Foreign currency translation | 137 | (151) | ||
Balance | 2,115 | 2,218 | 2,115 | 2,218 |
Accumulated amortization: | ||||
Balance | 98 | |||
Amortization expense | 113 | |||
Foreign currency translation | (8) | |||
Balance | 203 | 203 | ||
Customer Relationships [Member] | ||||
Gross carrying amounts: | ||||
Balance | 2,036 | 2,439 | ||
Foreign currency translation | 141 | (157) | ||
Balance | 2,177 | 2,282 | 2,177 | 2,282 |
Accumulated amortization: | ||||
Balance | 84 | |||
Amortization expense | 97 | |||
Foreign currency translation | (7) | |||
Balance | 174 | 174 | ||
Trademarks and TradeNames [Member] | ||||
Gross carrying amounts: | ||||
Balance | 555 | 596 | ||
Foreign currency translation | 17 | (13) | ||
Balance | 572 | 583 | 572 | 583 |
Accumulated amortization: | ||||
Balance | 11 | |||
Amortization expense | 46 | |||
Foreign currency translation | (1) | |||
Balance | 56 | 56 | ||
Patents [Member] | ||||
Gross carrying amounts: | ||||
Balance | 41 | 50 | ||
Foreign currency translation | 3 | (4) | ||
Balance | 44 | $ 46 | 44 | $ 46 |
Accumulated amortization: | ||||
Balance | 0 | |||
Amortization expense | 4 | |||
Foreign currency translation | 0 | |||
Balance | $ 4 | $ 4 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets (Details 2) $ in Thousands | Jun. 30, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,016 | $ 244 |
2,017 | 487 |
2,018 | 487 |
2,019 | 454 |
2,020 | 422 |
Thereafter | 1,907 |
Finite-Lived Intangible Assets, Net | $ 4,001 |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 100 | $ 200 | $ 260 | $ 300 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Income Tax Contingency [Line Items] | |
Balance - January 1, 2016 | $ 1,207 |
Decrease for tax position settled for prior years | (108) |
Increase for tax provision | 40 |
Interest accrual | 32 |
Foreign currency revaluation | (14) |
Balance - June 30, 2016 | $ 1,157 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2008 | |
Income Taxes [Line Items] | |||||||
Unrecognized Tax Benefits | $ 1,157,000 | $ 1,157,000 | $ 1,207,000 | ||||
Income Tax Examination, Penalties and Interest Accrued | 500,000 | 500,000 | $ 500,000 | ||||
Foreign Income Tax Expense (Benefit), Continuing Operations | $ 300,000 | ||||||
Income Tax Expense (Benefit) | $ 258,000 | $ (254,000) | 776,000 | $ 301,000 | |||
Percentage for Subsidiary Service Tax | 14.50% | ||||||
Subsidiary Revenue | 8,500,000 | ||||||
Deferred Income Tax Expense (Benefit) | (232,000) | $ (211,000) | |||||
Indian Bureau Of Taxation [Member] | |||||||
Income Taxes [Line Items] | |||||||
Foreign Income Tax Expense (Benefit), Continuing Operations | 303,000 | $ 1,000,000 | |||||
Tax Adjustments, Settlements, and Unusual Provisions | 482,000 | ||||||
Deferred Foreign Income Tax Expense (Benefit) | 155,000 | ||||||
Income Tax Expense (Benefit) | 482,000 | ||||||
Philippine Bureau Of Taxation [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income Tax Expense (Benefit) | 217,000 | ||||||
Asian Operating Subsidiaries [Member] | |||||||
Income Taxes [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 6,000,000 | ||||||
Deferred Income Tax Expense (Benefit) | $ 2,300,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Line Items] | ||
Estimated Litigation Liability | $ 8,000,000 | |
Litigation Settlement, Expense | 100,000 | |
Property, Plant and Equipment, Net, Total | 4,756,000 | $ 4,723,000 |
Liens Under Foreign Tax Authority [Member] | ||
Commitments and Contingencies [Line Items] | ||
Property, Plant and Equipment, Net, Total | $ 400,000 |
Stock Options (Details)
Stock Options (Details) - Employee Stock Option [Member] | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Outstanding at January 1, 2016 (in shares) | shares | 3,970,146 |
Number of Options, Granted (in shares) | shares | 710,000 |
Number of Options, Exercised (in shares) | shares | 0 |
Number of Options, Forfeited/Expired (in shares) | shares | (124,033) |
Number of Options, Outstanding at June 30, 2016 (in shares) | shares | 4,556,113 |
Number of Options, Exercisable at June 30, 2016 (in shares) | shares | 2,343,062 |
Number of Options, Vested and Expected to Vest at June 30, 2016 (in shares) | shares | 4,556,113 |
Weighted - Average Exercise Price, Outstanding at January 1, 2016 (in dollars per share) | $ / shares | $ 3.02 |
Weighted - Average Exercise Price, Granted (in dollars per shares) | $ / shares | 2.67 |
Weighted - Average Exercise Price, Exercised (in dollars per share) | $ / shares | 0 |
Weighted - Average Exercise Price, Forfeited/Expired (in dollars per share) | $ / shares | 3.19 |
Weighted - Average Exercise Price, Outstanding at June 30, 2016 (in dollars per share) | $ / shares | 2.96 |
Weighted - Average Exercise Price, Exercisable at June 30, 2016 (in dollars per share) | $ / shares | 3.14 |
Weighted - Average Exercise Price, Vested and Expected to Vest at June 30, 2016 (in dollars per share) | $ / shares | $ 2.96 |
Weighted - Average Remaining Contractual Term, Outstanding at June 30, 2016 (in years) | 5 years 6 months 22 days |
Weighted - Average Remaining Contractual Term, Exercisable at June 30, 2016 (in years) | 4 years 14 days |
Weighted - Average Remaining Contractual Term, Vested and Expected to Vest at June 30, 2016 (in years) | 5 years 6 months 22 days |
Aggregate Intrinsic Value, Outstanding at June 30, 2016 | $ | $ 28,800 |
Aggregate Intrinsic Value, Exercisable at June 30, 2016 | $ | 2,376 |
Aggregate Intrinsic Value, Vested and Expected to Vest at June 30, 2016 | $ | $ 28,800 |
Stock Options (Details 1)
Stock Options (Details 1) - Employee Stock Option [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of options granted (in dollars per share) | $ 1.09 | $ 0 |
Risk-free interest rate | 0.00% | |
Expected life (years) | 0 years | |
Expected volatility factor | 49.00% | 0.00% |
Expected dividends | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.38% | |
Expected life (years) | 5 years | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.73% | |
Expected life (years) | 6 years |
Stock Options (Details 2)
Stock Options (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 243 | $ 274 | $ 522 | $ 559 |
Direct Operating Costs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 74 | 104 | 164 | 195 |
Selling and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 169 | $ 170 | $ 358 | $ 364 |
Stock Options (Details Textual)
Stock Options (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 07, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized | $ 1.7 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 26 months | |
2013 Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 5,858,892 |
Long term obligations (Details)
Long term obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Vendor obligations | |||
Capital lease obligations | [1] | $ 372 | $ 423 |
Deferred lease payments | [2] | 708 | 707 |
Microsoft licenses | [3] | 170 | 360 |
Acquisition related liability | [4] | 1,062 | 993 |
Pension obligations | |||
Accrued pension liability | 2,681 | 2,535 | |
Long-term Debt | 4,993 | 5,018 | |
Less: Current portion of long-term obligations | 1,307 | 1,582 | |
Totals | $ 3,686 | $ 3,436 | |
[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 June 30, 2016, the Company had made $0.8 million in lease payments under the sale leaseback agreement. | ||
[2] | Deferred lease payments represent the effect of straight-lining operating 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 portion of the purchase price consideration for the acquisition of MediaMiser as follows: $0.6 million paid by the Company on July 28, 2016 in shares of Innodata Inc.’s common stock. 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 June 30, 2016 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 (Detail47
Long term obligations (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Jul. 28, 2016 | Mar. 31, 2014 | Jun. 30, 2016 | Mar. 31, 2017 | |
MediaMiser [Member] | ||||
Debt Instrument [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 0.5 | |||
MediaMiser [Member] | Scenario, Forecast [Member] | ||||
Debt Instrument [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Current | $ 4.6 | |||
Vendor Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
License Costs | $ 0.4 | |||
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 | $ 0.9 | |||
Sale Leaseback Transaction, Rent Expense | $ 0.8 | |||
Subsequent Event [Member] | MediaMiser [Member] | ||||
Debt Instrument [Line Items] | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 0.6 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Liability Adjustment, Other comprehensive income (loss): | ||||
Pension Liability Adjustment, Balance at Beginning of the Period | $ 1,441 | $ 507 | $ 1,523 | $ 497 |
Pension Liability Adjustment, Other comprehensive income (loss) before reclassifications, net of taxes | 0 | 0 | 0 | 0 |
Pension Liability Adjustment, Total other comprehensive income (loss) before reclassifications, net of taxes | 1,441 | 507 | 1,523 | 497 |
Pension Liability Adjustment, Net amount reclassified to earnings | (82) | 10 | (164) | 20 |
Pension Liability Adjustment, Balance at End of the Period | 1,359 | 517 | 1,359 | 517 |
Fair Value of Derivatives, Other comprehensive income (loss): | ||||
Fair Value of Derivatives, Balance at Beginning of the Period | 274 | 169 | (165) | (337) |
Fair Value of Derivatives, Other comprehensive income (loss) before reclassifications, net of taxes | (152) | (69) | 234 | 405 |
Fair Value of Derivatives, Total other comprehensive income (loss) before reclassifications, net of taxes | 122 | 100 | 69 | 68 |
Fair Value of Derivatives, Net amount reclassified to earnings | (41) | 46 | 12 | 78 |
Fair Value of Derivatives, Balance at End of the Period | 81 | 146 | 81 | 146 |
Foreign Currency Translation Adjustment, Other comprehensive income (loss): | ||||
Foreign Currency Translation Adjustment, Balance at Beginning of the Period | (1,086) | (986) | (1,442) | (447) |
Foreign Currency Translation Adjustment, Other comprehensive income (loss) before reclassifications, net of taxes | 8 | 119 | 364 | (420) |
Foreign Currency Translation Adjustment, Total other comprehensive income (loss) before reclassifications, net of taxes | (1,078) | (867) | (1,078) | (867) |
Foreign Currency Translation Adjustment, Net amount reclassified to earnings | 0 | 0 | 0 | 0 |
Foreign Currency Translation Adjustment, Balance at End of the period | (1,078) | (867) | (1,078) | (867) |
Accumulated Other Comprehensive Income (loss), Other comprehensive income (loss): | ||||
Accumulated Other Comprehensive Income (loss), Balance at Beginning of the period | 629 | (310) | (84) | (287) |
Accumulated Other Comprehensive Income (loss), Other comprehensive income (loss) before reclassifications, net of taxes | (144) | 50 | 598 | (15) |
Accumulated Other Comprehensive Income (loss), Total other comprehensive income (loss) before reclassifications, net of taxes | 485 | (260) | 514 | (302) |
Accumulated Other Comprehensive Income (loss), Net amount reclassified to earnings | (123) | 56 | (152) | 98 |
Accumulated Other Comprehensive Income (loss), Balance at End of the period | $ 362 | $ (204) | $ 362 | $ (204) |
Segment Reporting and Concent49
Segment Reporting and Concentrations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 15,642 | $ 14,063 | $ 31,340 | $ 27,865 | ||
Total assets | 52,053 | 52,053 | $ 51,237 | |||
Before Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (loss) before provision for income taxes | [1] | (1,612) | (1,187) | (1,203) | (2,618) | |
After Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (loss) before provision for income taxes | [2] | (1,612) | (1,187) | (1,203) | (2,618) | |
DDS [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 13,232 | 12,370 | 26,876 | 24,561 | ||
Total assets | 41,513 | 41,513 | 41,842 | |||
DDS [Member] | Before Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (loss) before provision for income taxes | [1] | 81 | 701 | 2,327 | 1,064 | |
DDS [Member] | After Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (loss) before provision for income taxes | [2] | (640) | 98 | 902 | (120) | |
IADS [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,165 | 545 | 2,062 | 950 | ||
Total assets | 1,242 | 1,242 | 1,026 | |||
IADS [Member] | Before Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (loss) before provision for income taxes | [1] | (1,089) | (1,500) | (2,458) | (3,095) | |
IADS [Member] | After Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (loss) before provision for income taxes | [2] | (374) | (898) | (1,045) | (1,912) | |
MediaMiser [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,245 | 1,148 | 2,402 | 2,354 | ||
Total assets | 9,298 | 9,298 | $ 8,369 | |||
MediaMiser [Member] | Before Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (loss) before provision for income taxes | [1] | (604) | (388) | (1,072) | (587) | |
MediaMiser [Member] | After Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (loss) before provision for income taxes | [2] | $ (598) | $ (387) | $ (1,060) | $ (586) | |
[1] | Before elimination of any inter-segment profits | |||||
[2] | After elimination of any inter-segment profits |
Segment Reporting and Concent50
Segment Reporting and Concentrations (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 15,642 | $ 14,063 | $ 31,340 | $ 27,865 |
Other - principally Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,537 | 1,294 | 2,945 | 2,824 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,079 | 6,615 | 16,351 | 13,203 |
The Netherlands | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,529 | 2,648 | 5,090 | 4,760 |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,999 | 2,050 | 3,980 | 4,251 |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,498 | $ 1,456 | $ 2,974 | $ 2,827 |
Segment Reporting and Concent51
Segment Reporting and Concentrations (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | $ 10,288 | $ 10,186 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1,292 | 1,104 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1,537 | 5,223 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1,657 | 1,611 |
Sri Lanka | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 518 | 1,580 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 5,252 | 635 |
Israel | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 30 | 31 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 2 | 2 |
Foreign Countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | $ 8,996 | $ 9,082 |
Segment Reporting and Concent52
Segment Reporting and Concentrations (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Sales Revenue, Net [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 48.00% | 53.00% | 48.00% | 53.00% | |
Foreign Customer [Member] | Accounts Receivable [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 57.00% | 62.00% | |||
Two clients [Member] | Sales Revenue, Net [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 33.00% | 36.00% | 32.00% | 35.00% | |
Four Clients [Member] | Accounts Receivable [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 59.00% | 68.00% | |||
One Other Client [Member] | Sales Revenue, Net [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 10.00% |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share Basic and Diluted [Line Items] | ||||
Net loss attributable to Innodata Inc. and Subsidiaries | $ (1,778) | $ (799) | $ (1,775) | $ (2,639) |
Weighted average common shares outstanding | 25,445 | 25,337 | 25,445 | 25,337 |
Dilutive effect of outstanding options | 0 | 0 | 0 | 0 |
Adjusted for dilutive computation | 25,445 | 25,337 | 25,445 | 25,337 |
Loss Per Share (Details Textual
Loss Per Share (Details Textual) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 1 | 0.3 | 1 | |
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 | 4.6 | 2.6 | 4.3 | 2.6 |
Derivatives (Details)
Derivatives (Details) - Foreign currency forward contracts [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Liabilities | $ 81 | $ 0 |
Accrued expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Liabilities | $ 0 | $ 165 |
Derivatives (Details 1)
Derivatives (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain (loss) recognized in OCI | [1] | $ (152) | $ (69) | $ 234 | $ 405 |
Net gain (loss) reclassified from accumulated OCI into income | [2] | 41 | (46) | (12) | (78) |
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 | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 18.6 | $ 15.8 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Derivatives | $ 0 | |
Liabilities | ||
Derivatives | $ 0 | |
Contingent Considerations | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Derivatives | 81 | |
Liabilities | ||
Derivatives | 165 | |
Contingent Considerations | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Derivatives | 0 | |
Liabilities | ||
Derivatives | 0 | |
Contingent Considerations | $ 477 | $ 453 |
Financial Instruments (Details
Financial Instruments (Details 1) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Balance at January 1, 2016 | $ 453 |
Effect of foreign currency translation adjustment | 24 |
Balance at June 30, 2016 | $ 477 |
Financial Instruments (Detail60
Financial Instruments (Details Textual) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
MediaMiser [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Combination, Contingent Consideration, Liability | $ 0.5 | $ 0.5 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - Agility [Member] - Subsequent Event [Member] $ in Millions | Jul. 14, 2016USD ($) |
Payments to Acquire Businesses, Gross | $ 4.3 |
Business Acquisition, Description of Acquired Entity | The acquisition brought to MediaMiser more than 1,500 Agility customers and approximately 50 employees in the US and the UK. Agility had approximately $5 million in revenues in 2015. |