Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | INNODATA INC | |
Entity Central Index Key | 0000903651 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | INOD | |
Entity Common Stock, Shares Outstanding | 25,952,454 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 12,161 | $ 10,869 |
Accounts receivable, net of allowance for doubtful accounts of $900 and $1,000, respectively | 8,320 | 10,626 |
Prepaid expenses and other current assets | 5,247 | 5,778 |
Total current assets | 25,728 | 27,273 |
Property and equipment, net | 6,860 | 6,813 |
Right of use asset | 7,784 | 0 |
Other assets | 2,318 | 2,436 |
Deferred income taxes | 1,750 | 1,204 |
Intangibles, net | 6,151 | 6,275 |
Goodwill | 2,089 | 2,050 |
Total assets | 52,680 | 46,051 |
Current liabilities: | ||
Accounts payable | 1,990 | 1,834 |
Accrued expenses | 3,250 | 2,903 |
Accrued salaries, wages and related benefits | 3,463 | 4,494 |
Income and other taxes | 3,717 | 3,532 |
Long-term obligations - current portion | 1,033 | 1,529 |
Operating lease liability - current portion | 1,147 | 0 |
Total current liabilities | 14,600 | 14,292 |
Deferred income taxes | 383 | 571 |
Long-term obligations, net of current portion | 3,097 | 4,062 |
Operating lease liability, net of current portion | 7,568 | 0 |
Non-controlling interests | (3,439) | (3,440) |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY: | ||
Serial preferred stock; 5,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value; 75,000,000 shares authorized; 27,633,000 shares issued and 25,952,000 outstanding at March 31, 2019; 27,558,000 shares issued and 25,877,000 outstanding at December 31, 2018 | 276 | 275 |
Additional paid-in capital | 27,707 | 27,579 |
Retained earnings | 6,897 | 7,349 |
Accumulated other comprehensive income (loss) | 213 | (15) |
Stockholders' Equity before Treasury Stock, Total | 35,093 | 35,188 |
Less: treasury stock, 1,681,000 shares at cost | (4,622) | (4,622) |
Total stockholders' equity | 30,471 | 30,566 |
Total liabilities and stockholders' equity | $ 52,680 | $ 46,051 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, net of allowance for doubtful accounts | $ 900 | $ 1,000 |
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 | 27,633,000 | 27,558,000 |
Common stock, shares outstanding | 25,952,000 | 25,877,000 |
Treasury stock, shares | 1,681,000 | 1,681,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | $ 13,694 | $ 14,120 |
Operating costs and expenses: | ||
Direct operating costs | 9,560 | 9,894 |
Selling and administrative expenses | 4,602 | 3,916 |
Interest expense, net | 11 | 4 |
Totals | 14,173 | 13,814 |
Income (loss) before provision for income taxes | (479) | 306 |
Provision for income taxes | (28) | 582 |
Net loss | (451) | (276) |
Income (loss) attributable to non-controlling interests | 1 | (8) |
Net loss attributable to Innodata Inc. and Subsidiaries | $ (452) | $ (268) |
Loss per share attributable to Innodata Inc. and Subsidiaries: | ||
Basic and diluted | $ (0.02) | $ (0.01) |
Weighted average shares outstanding: | ||
Basic and diluted | 25,927 | 25,878 |
Comprehensive loss: | ||
Net loss | $ (451) | $ (276) |
Pension liability adjustments, net of taxes | (36) | (59) |
Change in fair value of derivatives, net of taxes | 0 | (531) |
Foreign currency translation adjustment | 264 | (28) |
Other comprehensive income (loss) | 228 | (618) |
Total comprehensive loss | (223) | (894) |
Comprehensive income (loss) attributed to non-controlling interest | 1 | (8) |
Comprehensive loss attributable to Innodata Inc. and Subsidiaries | $ (224) | $ (886) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (451) | $ (276) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 809 | 884 |
Stock-based compensation | 129 | 140 |
Deferred income taxes | (734) | 143 |
Pension cost | 113 | (1) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,543 | 952 |
Prepaid expenses and other current assets | 474 | 241 |
Other assets | 75 | 44 |
Accounts payable and accrued expenses | 20 | (371) |
Accrued salaries, wages and related benefits | (1,047) | (582) |
Income and other taxes | 170 | 478 |
Net cash provided by operating activities | 2,101 | 1,652 |
Cash flows from investing activities: | ||
Capital expenditures | (485) | (625) |
Net cash used in investing activities | (485) | (625) |
Cash flows from financing activities: | ||
Payment of long-term obligations | (387) | (301) |
Net cash used in financing activities | (387) | (301) |
Effect of exchange rate changes on cash and cash equivalents | 63 | 46 |
Net increase in cash and cash equivalents | 1,292 | 772 |
Cash and cash equivalents, beginning of period | 10,869 | 11,407 |
Cash and cash equivalents, end of period | 12,161 | 12,179 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 339 | 71 |
Cash paid for operating leases | $ 501 | $ 638 |
CONDENSED CONSOLIDATED STATEM_3
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, 2017 | $ 31,119 | $ 275 | $ 27,275 | $ 7,345 | $ 846 | $ (4,622) |
Balance (in shares) at Dec. 31, 2017 | 25,877 | |||||
Net loss attributable to Innodata Inc. and subsidiaries | (268) | $ 0 | 0 | (268) | 0 | 0 |
Stock-based compensation | 140 | 0 | 140 | 0 | 0 | 0 |
Pension liability adjustments, net of taxes | (59) | 0 | 0 | 0 | (59) | 0 |
Foreign currency translation adjustment | (28) | 0 | 0 | 0 | (28) | 0 |
Change in fair value of derivatives, net of taxes | (531) | 0 | 0 | 0 | (531) | 0 |
Balance at Mar. 31, 2018 | 30,373 | $ 275 | 27,415 | 7,077 | 228 | (4,622) |
Balance (in shares) at Mar. 31, 2018 | 25,877 | |||||
Balance at Dec. 31, 2018 | 30,566 | $ 275 | 27,579 | 7,349 | (15) | (4,622) |
Balance (in shares) at Dec. 31, 2018 | 25,877 | |||||
Net loss attributable to Innodata Inc. and subsidiaries | (452) | $ 0 | 0 | (452) | 0 | 0 |
Issuance of restricted stock | 6 | $ 1 | 5 | 0 | 0 | 0 |
Issuance of restricted stock (shares) | 75 | |||||
Stock-based compensation | 123 | $ 0 | 123 | 0 | 0 | 0 |
Pension liability adjustments, net of taxes | (36) | 0 | 0 | 0 | (36) | 0 |
Foreign currency translation adjustment | 264 | 0 | 0 | 0 | 264 | 0 |
Change in fair value of derivatives, net of taxes | 0 | |||||
Balance at Mar. 31, 2019 | $ 30,471 | $ 276 | $ 27,707 | $ 6,897 | $ 213 | $ (4,622) |
Balance (in shares) at Mar. 31, 2019 | 25,952 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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, founded in and headquartered in northern New Jersey, features a -strong global delivery and technology team spanning ten offices globally and a research and technology incubator, Innodata Labs, which focuses on applied machine learning and emerging artificial intelligence. The Company’s core services are (i) data acquisition, transformation, and enrichment at scale; (ii) digital operations management and analytics; and (iii) applications development. We report our core business as the Digital Data Solutions (DDS) segment. The Company also has venture businesses that leverage its core capabilities to provide specific industry solutions. The Company’s Synodex venture business delivers a software-as-a-service (SaaS) platform and managed services for digital transformation of medical data. The Company’s Agility PR Solutions (Agility) venture business delivers a SaaS platform and managed service for delivering news, information, and content to targeted journalists and influencers as well as monitoring and analyzing coverage across traditional and social media sources. Each venture business is reported as a separate segment. The Company’s DDS segment specializes in combining artificial neural networks human expertise digital product digital process transformation AI The Company also develops digital products for business information companies and digital systems which replace legacy systems and processes. In 2019, The Company continues to execute a strategy we initiated in 2017 focused on technology differentiation, increasingly taking an innovation-led approach to create value for clients while driving leaner, more cost-effective operations. The Company’s Synodex segment designs and develops new capabilities to enable clients in the insurance and healthcare sectors to transform medical records into useable digital data and to apply technologies to the digital data to augment decision support. The main focus of the Synodex business is the extraction and classification of data from unstructured medical records in an innovative way to provide improved data service capabilities for insurance underwriting, insurance claims, medical records management, life settlement claims, and clinical trial support services. The Company’s Synodex segment operates through the Company’s Innodata Synodex, LLC subsidiary. As of March 31, 2019, Innodata Inc. owned 92.5% of Innodata Synodex, LLC. The Company’s Agility segment provides public relations (PR) tools and related professional services that enable PR and communications professionals to discover influencers, amplify messages, monitor coverage, and measure the impact of campaigns. Agility’s software-as-a-service (SaaS) tools include: An influencer targeting solution to help PR professionals identify influencers. The Agility media database includes detailed contact information for over 840,000 unique influencers globally including journalists, outlets, and bloggers. Live social media streams to allow users to research influencers by tracking activity and keywords across multiple social media channels. An outreach and content amplification solution enabling PR professionals to distribute news, information, and content to targeted influencers. Integrated newswire services. A media monitoring solution to help PR professionals track what is being said about their brand, industry or competitors and track engagement. Users can monitor and report on coverage across print, broadcast, online and social media sources, including AI-powered image monitoring. The self-serve monitoring tool enables users to create alerts, compile and share coverage briefings and clipbooks. A media analysis solution to help PR professionals analyze coverage, determine PR campaign reach and effectiveness, and create and distribute reports. Agility’s professional services include: Media monitoring and PR measurement services delivered by a team of media analysts who use the Company’s SaaS monitoring solution to pull coverage and curate daily news briefs. This powerful media monitoring solution is for clients with complex monitoring or reporting requirements. Advanced PR reporting and measurement services including custom reports, PR measurement and social media / influencer analysis. Bulldog Reporter, a publisher of PR-related news and a popular e-newsletter, and the Bulldog Awards, a PR awards program that recognizes outstanding performance among PR and communications professionals and agencies, are properties of Agility. Basis of Presentation - The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company as of March 31, 2019, the results of its operations and comprehensive loss for the three months ended March 31, 2019 and 2018, cash flows for the three months ended March 31, 2019 and 2018, and stockholders’ equity for the three months ended March 31, 2019 and 2018. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2018, 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, 2018 consolidated financial statements. Principles of Consolidation - The consolidated financial statements include the accounts of Innodata Inc. and its wholly-owned subsidiaries, Agility PR Solutions Canada, a corporation in which the Company owns substantially all of the economic interest, and the Synodex and docGenix limited liability companies that are majority-owned by the Company. The non-controlling interests in the Synodex and docGenix limited liability companies are accounted for in accordance with Financial Accounting Standards Board (FASB) non-controlling interest guidance. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates - In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those related to allowance for doubtful accounts and billing adjustments, long-lived assets, intangible assets, goodwill, valuation of deferred tax assets, valuation of stock-based compensation, litigation accruals and estimated accruals for various tax exposures. Revenue Recognition – Commencing January 1, 2018, the Company’s revenue recognition is in accordance with ASU 2014-09, Revenue from Contracts with Customers . The Company’s revenue is recognized when control of the promised services is transferred to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those services as per the agreement with the customer. In case there are agreements with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the agreement at the agreement’s inception. Performance obligations that are not distinct at agreement inception are combined. We allocate the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation, if any, and then evaluate how the services are transferred to the customer to determine the timing of revenue recognition. For the DDS segment, revenue is recognized primarily based on the quantity delivered or resources utilized in the period in which services are performed and performance conditions are satisfied as per the agreement. Revenues for agreements billed on a time-and-materials basis are recognized as services are performed. Revenues under fixed-fee agreements, which are not significant to the overall revenues, are recognized based on the proportional performance method of accounting, as services are performed, or milestones are achieved. For the Synodex segment, revenue is recognized primarily based on the quantity delivered in the period in which services are performed and performance conditions are satisfied as per the agreement. A portion of our Synodex segment revenue is derived from licensing our functional software and providing access to our hosted software platform. Revenue from such services is recognized monthly when access to the service is provided to the end user; all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; and collection is probable. The Agility segment derives its revenue primarily from subscription arrangements and provision of enriched media analysis services. It also derives revenue as a reseller of corporate communication solutions. Revenue from subscriptions is recognized monthly when access to the service is provided to the end user; all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; and collection is probable. Revenue from enriched media analysis services is recognized when the services are performed, and performance conditions are satisfied. Revenues from the reseller agreements, which are not significant to the overall revenues, are recognized at gross with our functioning as a principal due to our meeting the following criteria. We act as the primary obligor in the sales transaction; assume the credit risk; set the price; can select suppliers; and are involved in the execution of the services, including after sales service. Revenues include reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. We consider U.S. GAAP criteria for determining whether to report revenue gross as a principal versus net as an agent. Factors considered include whether we are the primary obligor, have risks and rewards of ownership, and bear the risk that a customer may not pay for the services performed. If there are circumstances where the above criteria are not met and therefore, we are not the principal in providing services, amounts received from customers are presented net of payments in the condensed consolidated statements of operations and comprehensive loss. Contract acquisition cost for our Agility segment is amortized over the term of the subscription agreement which normally has a duration of 12 months or less. We review these costs on a periodic basis to determine the need to adjust the carrying values for pre-terminated contracts. Foreign Currency - The functional currency of the Company’s production operations located in the Philippines, India, Sri Lanka and Israel is the U.S. dollar. Transactions denominated in Philippine pesos, Indian and Sri Lankan rupees or Israeli shekels are translated to U.S. dollars at rates which approximate those in effect on the transaction dates. The functional currency for the Company’s subsidiaries in Germany, the United Kingdom and Canada are the Euro, the Pound Sterling and the Canadian dollar, respectively. The financial statements of these subsidiaries are prepared in these respective currencies. Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in the consolidated financial statements. Income, expenses and cash flows are translated at weighted average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive loss in stockholders' equity. Foreign exchange transaction gains or losses are included in direct operating costs in the accompanying condensed consolidated statements of operations and comprehensive loss. To the extent that the currencies of the Company’s production facilities located in the Philippines, India, Sri Lanka and Israel fluctuate, the Company is subject to risks of changing costs of production after pricing is established for certain client projects. In addition, the Company is exposed to the risk of foreign currency fluctuation on the non-U.S. dollar denominated revenues, and on the monetary assets and liabilities held by its foreign subsidiaries that are denominated in local currency. Income Taxes - Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities, using enacted tax rates, as well as any net operating loss or tax credit carryforwards expected to reduce taxes payable in future years. A valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax assets will not be realized. While the Company considers future taxable income in assessing the need for the valuation allowance, in the event that the Company determines that it would be able to realize the deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax assets would increase income in the period such determination was made. Similarly, in the event that the Company determines that it would not be able to realize the deferred tax assets in the future considering future taxable income, an adjustment to the deferred tax assets would decrease income in the period such determination was made. Changes in the valuation allowance from period to period are included in the Company’s tax provision in the period of change. The Company indefinitely reinvests the foreign earnings in its foreign subsidiaries. Unremitted earnings of foreign subsidiaries have been included in the consolidated financial statements without giving effect to the United States taxes that may be payable on distribution to the United States, because such earnings are not anticipated to be remitted to the United States. In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the U.S. and Canadian deferred tax assets will not be realizable. As the expectation of future taxable income resulting from the Synodex and Agility segments cannot be predicted with certainty, the Company maintains a valuation allowance against all the U.S. and Canadian deferred tax assets. The Company accounts for income taxes regarding uncertain tax positions, and recognizes interest and penalties related to uncertain tax positions in income tax expense in the consolidated statements of operations and comprehensive loss. Leases - In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842),” as modified (ASU 2016-02), which replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASU 2016-02 requires lessees to recognize most leases on their balance sheets as liabilities, with corresponding “right-of-use” assets and is effective for annual reporting periods beginning after December 15, 2018, subject to early adoption. The Company adopted ASU 2016-02 effective January 1, 2019. Upon adoption, the Company recognized a right-to-use asset and corresponding lease liability. Refer to Note 6, Operating Leases. The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date and requires an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset. A reassessment is made after inception of the lease only if one of the following applies: a. there is a change in contractual terms, other than a renewal or extension of the arrangement; b. a renewal option is exercised or extension granted, unless the term of the renewal or extension was initially included in the lease term; c. there is a change in the determination of whether fulfillment is dependent on a specified asset; or d. there is a substantial change to the asset. Whenever a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise to the reassessment for scenarios (a), (c) or (d) and at the date of renewal or extension period for scenario (b). Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Operating lease payments are recognized as an operating expense on a straight-line basis over the lease term. Deferred Revenue Recent Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (“Subtopic 825-10”): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The Company adopted this standard in the first quarter of 2019, and it did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefits Plans-General: Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”), that makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 for public entities; early adoption is permitted. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 2. Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the three months ended March 31, 2019 and 2018 were as follows (in thousands): Balance as of January 1, 2018 $ 2,832 Foreign currency translation adjustment 2 Balance as of March 31, 2018 $ 2,834 Balance as of January 1, 2019 $ 2,050 Foreign currency translation adjustment 39 Balance as of March 31, 2019 $ 2,089 Information regarding the Company’s acquisition-related intangible assets is as follows (in thousands): Developed technology Customer relationships Trademarks and tradenames Patents Media Contact Database Total Gross carrying amounts: Balance as of January 1, 2019 $ 2,999 $ 2,081 $ 855 $ 42 $ 3,546 $ 9,523 Foreign currency translation 61 47 10 1 59 178 Balance as of March 31, 2019 $ 3,060 $ 2,128 $ 865 $ 43 $ 3,605 $ 9,701 Developed technology Customer relationships Trademarks and tradenames Patents Media Contact Database Total Gross carrying amounts: Balance as of January 1, 2018 $ 3,204 $ 2,264 $ 884 $ 46 $ 3,647 $ 10,045 Foreign currency translation (33 ) (53 ) - (1 ) 67 (20 ) Balance as of March 31, 2018 $ 3,171 $ 2,211 $ 884 $ 45 $ 3,714 $ 10,025 Developed technology Customer relationships Trademarks and tradenames Patents Media Contact Database Total Accumulated amortization: Balance as of January 1, 2019 $ 1,137 $ 766 $ 440 $ 19 $ 886 $ 3,248 Amortization expense 77 45 30 1 89 242 Foreign currency translation 24 16 4 - 16 60 Balance as of March 31, 2019 $ 1,238 $ 827 $ 474 $ 20 $ 991 $ 3,550 Developed technology Customer relationships Trademarks and tradenames Patents Media Contact Database Total Accumulated amortization: Balance as of January 1, 2018 $ 902 $ 645 $ 330 $ 15 $ 547 $ 2,439 Amortization expense 80 47 31 1 90 249 Foreign currency translation (15 ) (17 ) (2 ) 1 12 (21 ) Balance as of March 31, 2018 $ 967 $ 675 $ 359 $ 17 $ 649 $ 2,667 Amortization expense relating to acquisition-related intangible assets was $0.2 million for each of the three months ended March 31, 2019 and 2018. Estimated amortization expense for intangible assets after March 31, 2019 is as follows (in thousands): Year Amortization 2019 $ 726 2020 903 2021 903 2022 903 2023 903 Thereafter 1,813 $ 6,151 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 3. Income Taxes The Company recorded a provision for income taxes of ($ 28,000 0.6 The reconciliation of the U.S. statutory rate with the Company’s effective tax rate for the three-month period ended March 31, 2019 is summarized as below: March 31, 2019 Federal income tax benefit at statutory rate 21.0 % Effect of: Tax effects of FX gains and losses 104.2 Increase in unrecognized tax benefits (FIN48) (36.8 ) Tax effects of foreign operations (34.0 ) Return to provision true up (28.0 ) Foreign rate differential (8.1 ) Change in valuation allowance (7.9 ) Other (4.6 ) Effective tax rate 5.8 % Pursuant to the Tax Cuts and Jobs Act of 2017, during the fourth quarter of 2017, the Company recorded a one-time deemed repatriation of foreign earnings and profits (“E&P”) amounting to $25.8 million. No toll charge liability was recorded due to the available net operating loss carryforwards. As of March 31, 2019, performed a calculation of the Global Intangible Low-Taxed Income (“GILTI”) provisions and concluded that it continues to have no impact on account of the net losses of our foreign subsidiaries. The following presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the three months ended March 31, 2019 (in thousands): Unrecognized tax benefits Balance - January 1, 2019 $ 2,424 Increase in tax position 91 Interest accrual 46 Foreign currency revaluation 49 Balance - March 31, 2019 $ 2,610 The Company had unrecognized tax benefits of approximately $2.6 million and $2.4 million as of March 31, 2019 and December 31, 2018, respectively. The portion of unrecognized tax benefits relating to an increase in tax positions was approximately $0.1 million while the portion of unrecognized tax benefits relating to interest and penalties was approximately $0.1 million for the three months ended March 31, 2019. The unrecognized tax benefits as of March 31, 2019 and December 31, 2018, if recognized, would have an impact on the Company’s effective tax rate. The Company is subject to Federal income tax, as well as income tax in various states and foreign jurisdictions. The Company has open periods for U.S. Federal and state taxes from 2015 through 2018. Various foreign subsidiaries currently have open tax years from 2003 through 2018. Tax Assessments In September 2015, the Company’s Indian subsidiary was subject to an inquiry by the Service Tax Department in India regarding the classification of services provided by this subsidiary, asserting that the services provided by this subsidiary fall under the category of online information and database access or retrieval services (OID Services), and not under the category of business support services (BS Services) that are exempt from service tax as historically indicated in the subsidiary’s service tax filings. Management disagrees with the Service Tax Department’s position and is vigorously contesting these assertions. In the event the Service Tax Department is successful in proving that the services fall under the category of OID Services, the revenues earned by the Company’s Indian subsidiary for the period July 2012 through November 2016 would be subject to a service tax of between 12.36% and 15%. The revenue of our Indian subsidiary during this period was approximately $67.0 million. In accordance with new rules promulgated by the Service Tax Department, as of December 1, 2016 service tax is no longer applicable to OID or BS Services. Based on the assessment of the Company’s counsel, the Company has not recorded any tax liability for this case. In October 2016, the Company’s Indian subsidiary received notices of appeal from the Indian Service Tax Department in India seeking to reverse service tax refunds of approximately $160,000 previously granted to our Indian subsidiary for three quarters in 2014, asserting that the services provided by this subsidiary fall under the category of OID Services and not BS Services. The appeal was determined in favor of the Service Tax Department. Management disagrees with the basis of this decision and is contesting it vigorously. The Company expects delays in its Indian subsidiary receiving further service tax refunds until this matter is adjudicated with finality, and currently has service tax credits of approximately $1.0 million recorded as a receivable. Based on the assessment of the Company’s counsel, the Company as not recorded any tax liability for this case. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 4. Commitments and Contingencies Litigation – In 2008, a judgment was rendered in the Philippines against a Philippines subsidiary of the Company that is no longer active and purportedly also against Innodata Inc., in favor of certain former employees of the Philippines subsidiary. The payment amount aggregates to approximately $6.2 million, plus legal interest that accrued at 12% per annum from August 13, 2008 to June 30, 2013, and thereafter accrued and continues to accrue at 6% per annum. The payment amount as expressed in U.S. dollars varies with the Philippine peso to U.S. dollar exchange rate. In December 2017, a group of 97 of the former employees of the Philippines subsidiary indicated that they proposed to record the judgment as to them in New Jersey. In January 2018, in response to an action initiated by Innodata Inc., the United States District Court for the District of New Jersey (the “USDC”) entered a preliminary injunction that enjoins these former employees from pursuing or seeking recognition or enforcement of the judgment against Innodata Inc. in the United States during the pendency of the action and until further order of the USDC. In June 2018, the USDC entered a consent order administratively closing the action subject to return of the action to the active docket upon the written request of Innodata Inc. or the former employees, with the USDC retaining jurisdiction over the matter and the preliminary injunction remaining in full force and effect. The Company is also subject to various other legal proceedings and claims 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 consolidated 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 referenced 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 $275,000 in the aggregate beyond recorded amounts are reasonably possible. If circumstances change, the Company may be required to record adjustments that could be material to its reported consolidated financial condition and results of operations. |
Stock Options
Stock Options | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 5. Stock Options The Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016, is referred to herein as the “Plan.” The number of shares of common stock of Innodata Inc. that may be delivered, purchased or used for reference purposes (with respect to stock appreciation rights or stock units) for awards granted under the Plan after June 7, 2016 is 5,858,892 (the “Share Reserve”). Shares subject to an option or stock appreciation right granted under the Plan after June 7, 2016 count against the Share Reserve as one share for every share granted, and shares subject to any other type of award granted under the Plan after June 7, 2016 count against the Share Reserve as two shares for every share granted. Any award, or portion of an award, under the Plan or under the Company’s 2009 Stock Plan (as amended and restated (the “Prior Plan”)) that expires or terminates unexercised, becomes unexercisable or is forfeited or otherwise terminated, surrendered or canceled as to any shares without delivery of shares or other consideration will be added back to the Share Reserve as one share for each such share that was subject to an option or stock appreciation right granted under the Plan or the Prior Plan, and two shares for each such share that was subject to an award other than an option or stock appreciation right granted under the Plan or the Prior Plan. If any shares are withheld, tendered or exchanged by a participant in the Plan as full or partial payment to Innodata of the exercise price under an option under the Plan or the Prior Plan or in satisfaction of a participant’s tax withholding obligations with respect to any award under the Plan or the Prior Plan, there will be added back to the Share Reserve one share for each such share that was withheld, tendered or exchanged in respect of an option or stock appreciation right granted under the Plan or the Prior Plan, and two shares for each such share that was withheld, tendered or exchanged in respect of an award other than an option or stock appreciation right granted under the Plan or the Prior Plan. A summary of option activity under the Plans as of March 31, 2019, and changes during the three months then ended, are presented below: Number of Options Weighted - Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2019 4,982,040 $ 2.14 Granted 220,000 1.38 Exercised - - Forfeited/Expired (174,237 ) 2.04 Outstanding at March 31, 2019 5,027,803 $ 2.11 6.52 $ 343,280 Exercisable at March 31, 2019 3,364,563 $ 2.55 5.17 $ 112,962 Vested and Expected to Vest at March 31, 2019 5,027,803 $ 2.11 6.52 $ 343,280 The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average fair value of the options granted, and weighted average assumptions are as follows: For the Three Months Ended March 31, 2019 2018 Weighted average fair value of options granted $ 0.64 $ - Risk-free interest rate 2.55 % - Expected life (years) 6 - Expected volatility factor 45 % - Expected dividends None - A summary of restricted shares under the Company’s stock option plans as of March 31, 2019, and changes during the period then ended, are presented below: Number of Shares Weighted-Average Grant Date Fair Value Granted 75,000 1.38 Vested - - Forfeited/Expired - - Unvested at March 31, 2019 75,000 $ 1.38 The compensation cost related to non-vested stock options and restricted stock awards not yet recognized as of March 31, 2019 totaled approximately $1.1 million. The weighted average period over which these costs will be recognized is 26 months. The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands): Three months ended March 31, 2019 2018 Direct operating costs $ 18 $ 54 Selling and administrative expenses 111 86 Total stock-based compensation $ 129 $ 140 |
Operating Leases
Operating Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases, Operating [Abstract] | |
Lessee, Operating Leases [Text Block] | 6. Operating Leases The Company has various operating lease agreements for its offices and service delivery centers. The Company has determined that the risks and benefits related to the leased properties are retained by the lessors. Accordingly, these are accounted for as operating leases. These lease agreements are for terms ranging from two to 11 years and, in most cases, provide for rental escalations ranging from 1.75% to 10%. Most of these agreements are renewable at the mutual consent of the parties in the contract. The Company adopted the ASU Topic 842- Leases 1. Did not reassess whether any expired or existing contracts are or contain leases. 2. Did not reassess the lease classification for any expired or existing leases. 3. Did not reassess initial direct costs for any existing leases. In addition, the Company elected to retrospectively determine the lease term and assess impairment of right of use asset. At the date of transition, the Company recognized an operating lease liability and right of use asset. The amount of lease liability is equal to the present value of the remaining lease payments as of January 1, 2019 discounted using the incremental borrowing rate of each respective country. A right of use asset is measured at the amount of the lease liability adjusted for the amount of deferred straight-line rent, prepaid rent and lease incentive allowances previously recognized. The table below summarizes the amounts recognized in the financial statements related to operating leases: For the three months March 31, 2019 Rent expense for long-term operating leases $ 415 Rent expense for short-term leases 86 Total rent expense $ 501 The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of the these amounts to the remaining net present value of the operating lease liability reported in the consolidated balance sheet as of March 31, 2019. Year Amount 2019 $ 1,399 2020 1,769 2021 1,356 2022 1,269 2023 1,047 2024 and thereafter 5,686 Total lease payments 12,526 Less: Interest (3,811 ) Net present value of lease liabilities $ 8,715 Current portion $ 1,147 Long term portion 7,568 Total $ 8,715 The weighted average remaining lease terms and discount rates for all of our operating leases as of March 31, 2019 were as follows: Weighted average lease term 78 months Weighted average discount rate 8.96 % |
Long-term Obligations
Long-term Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 7. Long-term Obligations Total long-term obligations of the Company as of March 31, 2019 and December 31, 2018 consist of the following (in thousands): March 31, December 31, 2019 2018 Pension obligations - accrued pension liability $ 2,634 $ 2,591 Settlement agreement (1) 841 1,010 Capital lease obligations 432 574 Microsoft licenses (2) 223 355 Deferred lease payments - 489 Lease incentive liability - 572 4,130 5,591 Less: Current portion of long-term obligations 1,033 1,529 Totals $ 3,097 $ 4,062 (1) (2) |
Comprehensive loss
Comprehensive loss | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | 8. Comprehensive Loss Accumulated other comprehensive loss, as reflected in the condensed consolidated balance sheets, consists of pension liability adjustments, net of taxes, foreign currency translation adjustments, net of taxes and changes in fair value of derivatives, net of taxes. The components of accumulated other comprehensive loss as of March 31, 2019, and reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018, were as follows (net of tax) (in thousands): Pension Liability Adjustment Fair Value of Derivatives Foreign Currency Translation Adjustment Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2019 $ 1,451 $ - $ (1,466 ) $ (15 ) Other comprehensive loss before reclassifications, net of taxes - - 264 264 Total other comprehensive income (loss) before reclassifications, net of taxes 1,451 - (1,202 ) 249 Net amount reclassified to earnings (36 ) - - (36 ) Balance at March 31, 2019 $ 1,415 $ - $ (1,202 ) $ 213 Pension Liability Adjustment Fair Value of Derivatives Foreign Currency Translation Adjustment Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2018 $ 1,191 $ 342 $ (687 ) $ 846 Other comprehensive income before reclassifications, net of taxes - (536 ) (28 ) (564 ) Total other comprehensive income (loss) before reclassifications, net of taxes 1,191 (194 ) (715 ) 282 Net amount reclassified to earnings (59 ) 5 - (54 ) Balance at March 31, 2018 $ 1,132 $ (189 ) $ (715 ) $ 228 All reclassifications out of accumulated other comprehensive loss had an impact on direct operating costs in the condensed consolidated statements of operations and comprehensive loss. |
Segment Reporting and Concentra
Segment Reporting and Concentrations | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 9. Segment Reporting and Concentrations The Company’s operations are classified in three reporting segments: Digital Data Solutions (DDS), Synodex and Agility PR Solutions (Agility). The DDS segment specializes in combining deep neural networks and human expertise in multiple domains (including health, science, and law) to make “unstructured information” (sometimes referred to as “content”) useable. For business information companies, “useable” means that the content can be sold via subscription to a digital product . For enterprises, “useable” means that the content can drive digital process transformation and AI . The Company works with all classes of data, including sensitive and protected data. The Synodex segment enables clients in the insurance and healthcare sectors to transform medical records into useable digital data and to apply technologies to the digital data to augment decision support. The Agility segment provides tools and related professional services that enable PR and communications professionals to discover influencers, amplify messages, monitor coverage, and measure the impact of campaigns. Bulldog Reporter, a publisher of PR-related news and a popular e-newsletter, and the Bulldog Awards, a PR awards program that recognizes outstanding performance among PR and communications professionals and agencies, are properties of Agility. A significant portion of the Company’s revenues is generated from its production facilities in the Philippines, India, Sri Lanka, Canada, Germany, the United Kingdom and Israel. Revenues from external clients and segment operating profit (loss), and other reportable segment information are as follows (in thousands): Three Months Ended March 31, 2019 2018 Revenues: DDS $ 10,177 $ 10,477 Synodex 1,024 981 Agility 2,493 2,662 Total Consolidated $ 13,694 $ 14,120 Income (loss) before provision for income taxes (1) DDS $ 74 $ 656 Synodex 119 (35 ) Agility (672 ) (315 ) Total Consolidated $ (479 ) $ 306 Income (loss) before provision for income taxes (2) DDS $ 12 $ 590 Synodex 159 7 Agility (650 ) (291 ) Total Consolidated $ (479 ) $ 306 March 31, 2019 December 31, 2018 Total assets: DDS $ 26,480 $ 22,334 Synodex 382 787 Agility 25,818 22,930 Total Consolidated $ 52,680 $ 46,051 March 31, 2019 December 31, 2018 Goodwill: Agility $ 2,089 $ 2,050 (1) (2) The following table summarizes revenues by geographic region (determined and based upon customer’s domicile) (in thousands): Three months ended March 31, 2019 2018 United States $ 6,531 $ 5,979 United Kingdom 2,318 2,955 The Netherlands 1,722 1,762 Canada 1,484 1,469 Other - principally Europe 1,639 1,955 $ 13,694 $ 14,120 Long-lived assets of the Company as of March 31, 2019 and December 31, 2018, respectively, by geographic region, are comprised of the following (in thousands): March 31, December 31, 2019 2018 United States $ 4,981 $ 4,383 Foreign countries: Canada 8,329 7,023 United Kingdom 2,071 2,045 Philippines 5,683 900 India 946 475 Sri Lanka 846 280 Israel 27 30 Germany 1 2 Total foreign 17,903 10,755 $ 22,884 $ 15,138 Long lived assets include the unamortized balance of right of use assets amounting to $7,784 as of March 31, 2019. Two clients in the DDS segment generated approximately 26% of the Company’s total revenues for the three months ended March 31, 2019 and 32% of the Company’s total revenues for the three months ended March 31, 2018. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 52% and 58% of the Company’s total revenues for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, approximately 62% of the Company's accounts receivable was from foreign (principally European) clients and 43% of the Company’s accounts receivable was due from three clients. As of December 31, 2018, approximately 57% of the Company's accounts receivable was from foreign (principally European) clients and 48% of the Company’s accounts receivable was due from three clients. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 10. Loss Per Share Three months ended March 31, 2019 2018 (in thousands) Net loss attributable to Innodata Inc. and Subsidiaries $ (452 ) $ (268 ) Weighted average common shares outstanding 25,927 25,878 Dilutive effect of outstanding options - - Adjusted for dilutive effects 25,927 25,878 Basic income (loss) per share is computed using the weighted-average number of common shares outstanding during the year. Diluted income (loss) per share is computed by considering the impact of the potential issuance of common shares, using the treasury stock method, on the weighted average number of shares outstanding. For those securities that are not convertible into a class of common stock, the two-class method of computing income (loss) per share is used. Options to purchase 5.0 million and 4.2 million shares of common stock were outstanding as of March 31, 2019 and 2018, respectively, but not included in the computation of diluted loss per share. This was due to the net loss incurred for each of the three months ended March 31, 2019 and 2018, and the effect would have been antidilutive. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 11. Derivatives The effects of foreign currency forward contracts designated as cash flow hedges on the Company’s condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2019 and 2018, respectively, were as follows (in thousands): Three Months Ended March 31, 2019 2018 Net gain (loss) recognized in OCI (1) $ - $ (536 ) Net gain (loss) reclassified from accumulated OCI into income (2) $ - $ (5 ) Net gain recognized in income (3) $ - (1) (2) (3) |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Business Combinations Policy [Policy Text Block] | Description of Business The Company, founded in and headquartered in northern New Jersey, features a -strong global delivery and technology team spanning ten offices globally and a research and technology incubator, Innodata Labs, which focuses on applied machine learning and emerging artificial intelligence. The Company’s core services are (i) data acquisition, transformation, and enrichment at scale; (ii) digital operations management and analytics; and (iii) applications development. We report our core business as the Digital Data Solutions (DDS) segment. The Company also has venture businesses that leverage its core capabilities to provide specific industry solutions. The Company’s Synodex venture business delivers a software-as-a-service (SaaS) platform and managed services for digital transformation of medical data. The Company’s Agility PR Solutions (Agility) venture business delivers a SaaS platform and managed service for delivering news, information, and content to targeted journalists and influencers as well as monitoring and analyzing coverage across traditional and social media sources. Each venture business is reported as a separate segment. The Company’s DDS segment specializes in combining artificial neural networks human expertise digital product digital process transformation AI The Company also develops digital products for business information companies and digital systems which replace legacy systems and processes. In 2019, The Company continues to execute a strategy we initiated in 2017 focused on technology differentiation, increasingly taking an innovation-led approach to create value for clients while driving leaner, more cost-effective operations. The Company’s Synodex segment designs and develops new capabilities to enable clients in the insurance and healthcare sectors to transform medical records into useable digital data and to apply technologies to the digital data to augment decision support. The main focus of the Synodex business is the extraction and classification of data from unstructured medical records in an innovative way to provide improved data service capabilities for insurance underwriting, insurance claims, medical records management, life settlement claims, and clinical trial support services. The Company’s Synodex segment operates through the Company’s Innodata Synodex, LLC subsidiary. As of March 31, 2019, Innodata Inc. owned 92.5% of Innodata Synodex, LLC. The Company’s Agility segment provides public relations (PR) tools and related professional services that enable PR and communications professionals to discover influencers, amplify messages, monitor coverage, and measure the impact of campaigns. Agility’s software-as-a-service (SaaS) tools include: An influencer targeting solution to help PR professionals identify influencers. The Agility media database includes detailed contact information for over 840,000 unique influencers globally including journalists, outlets, and bloggers. Live social media streams to allow users to research influencers by tracking activity and keywords across multiple social media channels. An outreach and content amplification solution enabling PR professionals to distribute news, information, and content to targeted influencers. Integrated newswire services. A media monitoring solution to help PR professionals track what is being said about their brand, industry or competitors and track engagement. Users can monitor and report on coverage across print, broadcast, online and social media sources, including AI-powered image monitoring. The self-serve monitoring tool enables users to create alerts, compile and share coverage briefings and clipbooks. A media analysis solution to help PR professionals analyze coverage, determine PR campaign reach and effectiveness, and create and distribute reports. Agility’s professional services include: Media monitoring and PR measurement services delivered by a team of media analysts who use the Company’s SaaS monitoring solution to pull coverage and curate daily news briefs. This powerful media monitoring solution is for clients with complex monitoring or reporting requirements. Advanced PR reporting and measurement services including custom reports, PR measurement and social media / influencer analysis. Bulldog Reporter, a publisher of PR-related news and a popular e-newsletter, and the Bulldog Awards, a PR awards program that recognizes outstanding performance among PR and communications professionals and agencies, are properties of Agility. |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation - The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company as of March 31, 2019, the results of its operations and comprehensive loss for the three months ended March 31, 2019 and 2018, cash flows for the three months ended March 31, 2019 and 2018, and stockholders’ equity for the three months ended March 31, 2019 and 2018. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2018, 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, 2018 consolidated financial statements. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation - The consolidated financial statements include the accounts of Innodata Inc. and its wholly-owned subsidiaries, Agility PR Solutions Canada, a corporation in which the Company owns substantially all of the economic interest, and the Synodex and docGenix limited liability companies that are majority-owned by the Company. The non-controlling interests in the Synodex and docGenix limited liability companies are accounted for in accordance with Financial Accounting Standards Board (FASB) non-controlling interest guidance. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates - In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those related to allowance for doubtful accounts and billing adjustments, long-lived assets, intangible assets, goodwill, valuation of deferred tax assets, valuation of stock-based compensation, litigation accruals and estimated accruals for various tax exposures. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition – Commencing January 1, 2018, the Company’s revenue recognition is in accordance with ASU 2014-09, Revenue from Contracts with Customers . The Company’s revenue is recognized when control of the promised services is transferred to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those services as per the agreement with the customer. In case there are agreements with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the agreement at the agreement’s inception. Performance obligations that are not distinct at agreement inception are combined. We allocate the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation, if any, and then evaluate how the services are transferred to the customer to determine the timing of revenue recognition. For the DDS segment, revenue is recognized primarily based on the quantity delivered or resources utilized in the period in which services are performed and performance conditions are satisfied as per the agreement. Revenues for agreements billed on a time-and-materials basis are recognized as services are performed. Revenues under fixed-fee agreements, which are not significant to the overall revenues, are recognized based on the proportional performance method of accounting, as services are performed, or milestones are achieved. For the Synodex segment, revenue is recognized primarily based on the quantity delivered in the period in which services are performed and performance conditions are satisfied as per the agreement. A portion of our Synodex segment revenue is derived from licensing our functional software and providing access to our hosted software platform. Revenue from such services is recognized monthly when access to the service is provided to the end user; all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; and collection is probable. The Agility segment derives its revenue primarily from subscription arrangements and provision of enriched media analysis services. It also derives revenue as a reseller of corporate communication solutions. Revenue from subscriptions is recognized monthly when access to the service is provided to the end user; all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; and collection is probable. Revenue from enriched media analysis services is recognized when the services are performed, and performance conditions are satisfied. Revenues from the reseller agreements, which are not significant to the overall revenues, are recognized at gross with our functioning as a principal due to our meeting the following criteria. We act as the primary obligor in the sales transaction; assume the credit risk; set the price; can select suppliers; and are involved in the execution of the services, including after sales service. Revenues include reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. We consider U.S. GAAP criteria for determining whether to report revenue gross as a principal versus net as an agent. Factors considered include whether we are the primary obligor, have risks and rewards of ownership, and bear the risk that a customer may not pay for the services performed. If there are circumstances where the above criteria are not met and therefore, we are not the principal in providing services, amounts received from customers are presented net of payments in the condensed consolidated statements of operations and comprehensive loss. Contract acquisition cost for our Agility segment is amortized over the term of the subscription agreement which normally has a duration of 12 months or less. We review these costs on a periodic basis to determine the need to adjust the carrying values for pre-terminated contracts. |
Foreign Currency, Policy [Policy Text Block] | Foreign Currency - The functional currency of the Company’s production operations located in the Philippines, India, Sri Lanka and Israel is the U.S. dollar. Transactions denominated in Philippine pesos, Indian and Sri Lankan rupees or Israeli shekels are translated to U.S. dollars at rates which approximate those in effect on the transaction dates. The functional currency for the Company’s subsidiaries in Germany, the United Kingdom and Canada are the Euro, the Pound Sterling and the Canadian dollar, respectively. The financial statements of these subsidiaries are prepared in these respective currencies. Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in the consolidated financial statements. Income, expenses and cash flows are translated at weighted average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive loss in stockholders' equity. Foreign exchange transaction gains or losses are included in direct operating costs in the accompanying condensed consolidated statements of operations and comprehensive loss. To the extent that the currencies of the Company’s production facilities located in the Philippines, India, Sri Lanka and Israel fluctuate, the Company is subject to risks of changing costs of production after pricing is established for certain client projects. In addition, the Company is exposed to the risk of foreign currency fluctuation on the non-U.S. dollar denominated revenues, and on the monetary assets and liabilities held by its foreign subsidiaries that are denominated in local currency. |
Income Tax, Policy [Policy Text Block] | Income Taxes - Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities, using enacted tax rates, as well as any net operating loss or tax credit carryforwards expected to reduce taxes payable in future years. A valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax assets will not be realized. While the Company considers future taxable income in assessing the need for the valuation allowance, in the event that the Company determines that it would be able to realize the deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax assets would increase income in the period such determination was made. Similarly, in the event that the Company determines that it would not be able to realize the deferred tax assets in the future considering future taxable income, an adjustment to the deferred tax assets would decrease income in the period such determination was made. Changes in the valuation allowance from period to period are included in the Company’s tax provision in the period of change. The Company indefinitely reinvests the foreign earnings in its foreign subsidiaries. Unremitted earnings of foreign subsidiaries have been included in the consolidated financial statements without giving effect to the United States taxes that may be payable on distribution to the United States, because such earnings are not anticipated to be remitted to the United States. In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the U.S. and Canadian deferred tax assets will not be realizable. As the expectation of future taxable income resulting from the Synodex and Agility segments cannot be predicted with certainty, the Company maintains a valuation allowance against all the U.S. and Canadian deferred tax assets. The Company accounts for income taxes regarding uncertain tax positions, and recognizes interest and penalties related to uncertain tax positions in income tax expense in the consolidated statements of operations and comprehensive loss. |
Lessor, Leases [Policy Text Block] | Leases - In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842),” as modified (ASU 2016-02), which replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASU 2016-02 requires lessees to recognize most leases on their balance sheets as liabilities, with corresponding “right-of-use” assets and is effective for annual reporting periods beginning after December 15, 2018, subject to early adoption. The Company adopted ASU 2016-02 effective January 1, 2019. Upon adoption, the Company recognized a right-to-use asset and corresponding lease liability. Refer to Note 6, Operating Leases. The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date and requires an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset. A reassessment is made after inception of the lease only if one of the following applies: a. there is a change in contractual terms, other than a renewal or extension of the arrangement; b. a renewal option is exercised or extension granted, unless the term of the renewal or extension was initially included in the lease term; c. there is a change in the determination of whether fulfillment is dependent on a specified asset; or d. there is a substantial change to the asset. Whenever a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise to the reassessment for scenarios (a), (c) or (d) and at the date of renewal or extension period for scenario (b). Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Operating lease payments are recognized as an operating expense on a straight-line basis over the lease term. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred Revenue |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (“Subtopic 825-10”): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The Company adopted this standard in the first quarter of 2019, and it did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefits Plans-General: Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”), that makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 for public entities; early adoption is permitted. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the three months ended March 31, 2019 and 2018 were as follows (in thousands): Balance as of January 1, 2018 $ 2,832 Foreign currency translation adjustment 2 Balance as of March 31, 2018 $ 2,834 Balance as of January 1, 2019 $ 2,050 Foreign currency translation adjustment 39 Balance as of March 31, 2019 $ 2,089 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Information regarding the Company’s acquisition-related intangible assets is as follows (in thousands): Developed technology Customer relationships Trademarks and tradenames Patents Media Contact Database Total Gross carrying amounts: Balance as of January 1, 2019 $ 2,999 $ 2,081 $ 855 $ 42 $ 3,546 $ 9,523 Foreign currency translation 61 47 10 1 59 178 Balance as of March 31, 2019 $ 3,060 $ 2,128 $ 865 $ 43 $ 3,605 $ 9,701 Developed technology Customer relationships Trademarks and tradenames Patents Media Contact Database Total Gross carrying amounts: Balance as of January 1, 2018 $ 3,204 $ 2,264 $ 884 $ 46 $ 3,647 $ 10,045 Foreign currency translation (33 ) (53 ) - (1 ) 67 (20 ) Balance as of March 31, 2018 $ 3,171 $ 2,211 $ 884 $ 45 $ 3,714 $ 10,025 Developed technology Customer relationships Trademarks and tradenames Patents Media Contact Database Total Accumulated amortization: Balance as of January 1, 2019 $ 1,137 $ 766 $ 440 $ 19 $ 886 $ 3,248 Amortization expense 77 45 30 1 89 242 Foreign currency translation 24 16 4 - 16 60 Balance as of March 31, 2019 $ 1,238 $ 827 $ 474 $ 20 $ 991 $ 3,550 Developed technology Customer relationships Trademarks and tradenames Patents Media Contact Database Total Accumulated amortization: Balance as of January 1, 2018 $ 902 $ 645 $ 330 $ 15 $ 547 $ 2,439 Amortization expense 80 47 31 1 90 249 Foreign currency translation (15 ) (17 ) (2 ) 1 12 (21 ) Balance as of March 31, 2018 $ 967 $ 675 $ 359 $ 17 $ 649 $ 2,667 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated amortization expense for intangible assets after March 31, 2019 is as follows (in thousands): Year Amortization 2019 $ 726 2020 903 2021 903 2022 903 2023 903 Thereafter 1,813 $ 6,151 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation of the U.S. statutory rate with the Company’s effective tax rate for the three-month period ended March 31, 2019 is summarized as below: March 31, 2019 Federal income tax benefit at statutory rate 21.0 % Effect of: Tax effects of FX gains and losses 104.2 Increase in unrecognized tax benefits (FIN48) (36.8 ) Tax effects of foreign operations (34.0 ) Return to provision true up (28.0 ) Foreign rate differential (8.1 ) Change in valuation allowance (7.9 ) Other (4.6 ) Effective tax rate 5.8 % |
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 three months ended March 31, 2019 (in thousands): Unrecognized tax benefits Balance - January 1, 2019 $ 2,424 Increase in tax position 91 Interest accrual 46 Foreign currency revaluation 49 Balance - March 31, 2019 $ 2,610 |
Stock Options (Tables)
Stock Options (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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 value of the options granted, and weighted average assumptions are as follows: For the Three Months Ended March 31, 2019 2018 Weighted average fair value of options granted $ 0.64 $ - Risk-free interest rate 2.55 % - Expected life (years) 6 - Expected volatility factor 45 % - Expected dividends None - |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of option activity under the Plans as of March 31, 2019, and changes during the three months then ended, are presented below: Number of Options Weighted - Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2019 4,982,040 $ 2.14 Granted 220,000 1.38 Exercised - - Forfeited/Expired (174,237 ) 2.04 Outstanding at March 31, 2019 5,027,803 $ 2.11 6.52 $ 343,280 Exercisable at March 31, 2019 3,364,563 $ 2.55 5.17 $ 112,962 Vested and Expected to Vest at March 31, 2019 5,027,803 $ 2.11 6.52 $ 343,280 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands): Three months ended March 31, 2019 2018 Direct operating costs $ 18 $ 54 Selling and administrative expenses 111 86 Total stock-based compensation $ 129 $ 140 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | A summary of restricted shares under the Company’s stock option plans as of March 31, 2019, and changes during the period then ended, are presented below: Number of Shares Weighted-Average Grant Date Fair Value Granted 75,000 1.38 Vested - - Forfeited/Expired - - Unvested at March 31, 2019 75,000 $ 1.38 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases, Operating [Abstract] | |
Schedule of Operating lease expense recognized in Financial Statements [Table Text Block] | The table below summarizes the amounts recognized in the financial statements related to operating leases: For the three months March 31, 2019 Rent expense for long-term operating leases $ 415 Rent expense for short-term leases 86 Total rent expense $ 501 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of the these amounts to the remaining net present value of the operating lease liability reported in the consolidated balance sheet as of March 31, 2019. Year Amount 2019 $ 1,399 2020 1,769 2021 1,356 2022 1,269 2023 1,047 2024 and thereafter 5,686 Total lease payments 12,526 Less: Interest (3,811 ) Net present value of lease liabilities $ 8,715 Current portion $ 1,147 Long term portion 7,568 Total $ 8,715 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates [Table Text Block] | The weighted average remaining lease terms and discount rates for all of our operating leases as of March 31, 2019 were as follows: Weighted average lease term 78 months Weighted average discount rate 8.96 % |
Long-term Obligations (Tables)
Long-term Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Total long-term obligations of the Company as of March 31, 2019 and December 31, 2018 consist of the following (in thousands): March 31, December 31, 2019 2018 Pension obligations - accrued pension liability $ 2,634 $ 2,591 Settlement agreement (1) 841 1,010 Capital lease obligations 432 574 Microsoft licenses (2) 223 355 Deferred lease payments - 489 Lease incentive liability - 572 4,130 5,591 Less: Current portion of long-term obligations 1,033 1,529 Totals $ 3,097 $ 4,062 |
Comprehensive loss (Tables)
Comprehensive loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive loss, as reflected in the condensed consolidated balance sheets, consists of pension liability adjustments, net of taxes, foreign currency translation adjustments, net of taxes and changes in fair value of derivatives, net of taxes. The components of accumulated other comprehensive loss as of March 31, 2019, and reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018, were as follows (net of tax) (in thousands): Pension Liability Adjustment Fair Value of Derivatives Foreign Currency Translation Adjustment Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2019 $ 1,451 $ - $ (1,466 ) $ (15 ) Other comprehensive loss before reclassifications, net of taxes - - 264 264 Total other comprehensive income (loss) before reclassifications, net of taxes 1,451 - (1,202 ) 249 Net amount reclassified to earnings (36 ) - - (36 ) Balance at March 31, 2019 $ 1,415 $ - $ (1,202 ) $ 213 Pension Liability Adjustment Fair Value of Derivatives Foreign Currency Translation Adjustment Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2018 $ 1,191 $ 342 $ (687 ) $ 846 Other comprehensive income before reclassifications, net of taxes - (536 ) (28 ) (564 ) Total other comprehensive income (loss) before reclassifications, net of taxes 1,191 (194 ) (715 ) 282 Net amount reclassified to earnings (59 ) 5 - (54 ) Balance at March 31, 2018 $ 1,132 $ (189 ) $ (715 ) $ 228 |
Segment Reporting and Concent_2
Segment Reporting and Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Revenues: DDS $ 10,177 $ 10,477 Synodex 1,024 981 Agility 2,493 2,662 Total Consolidated $ 13,694 $ 14,120 Income (loss) before provision for income taxes (1) DDS $ 74 $ 656 Synodex 119 (35 ) Agility (672 ) (315 ) Total Consolidated $ (479 ) $ 306 Income (loss) before provision for income taxes (2) DDS $ 12 $ 590 Synodex 159 7 Agility (650 ) (291 ) Total Consolidated $ (479 ) $ 306 March 31, 2019 December 31, 2018 Total assets: DDS $ 26,480 $ 22,334 Synodex 382 787 Agility 25,818 22,930 Total Consolidated $ 52,680 $ 46,051 March 31, 2019 December 31, 2018 Goodwill: Agility $ 2,089 $ 2,050 (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 and based upon customer’s domicile) (in thousands): Three months ended March 31, 2019 2018 United States $ 6,531 $ 5,979 United Kingdom 2,318 2,955 The Netherlands 1,722 1,762 Canada 1,484 1,469 Other - principally Europe 1,639 1,955 $ 13,694 $ 14,120 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Long-lived assets of the Company as of March 31, 2019 and December 31, 2018, respectively, by geographic region, are comprised of the following (in thousands): March 31, December 31, 2019 2018 United States $ 4,981 $ 4,383 Foreign countries: Canada 8,329 7,023 United Kingdom 2,071 2,045 Philippines 5,683 900 India 946 475 Sri Lanka 846 280 Israel 27 30 Germany 1 2 Total foreign 17,903 10,755 $ 22,884 $ 15,138 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended March 31, 2019 2018 (in thousands) Net loss attributable to Innodata Inc. and Subsidiaries $ (452 ) $ (268 ) Weighted average common shares outstanding 25,927 25,878 Dilutive effect of outstanding options - - Adjusted for dilutive effects 25,927 25,878 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 months ended March 31, 2019 and 2018, respectively, were as follows (in thousands): Three Months Ended March 31, 2019 2018 Net gain (loss) recognized in OCI (1) $ - $ (536 ) Net gain (loss) reclassified from accumulated OCI into income (2) $ - $ (5 ) Net gain recognized in income (3) $ - (1) (2) (3) |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||
Deferred Revenue | $ 1.3 | $ 1.1 |
Synodex [Member] | ||
Description of Business and Summary of Significant Accounting Policies [Line Items] | ||
Noncontrolling Interest Increase in Ownership Percentage by Parent | 92.50% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill [Line Items] | ||
Balance | $ 2,050 | $ 2,832 |
Foreign currency translation adjustment | 39 | 2 |
Balance | $ 2,089 | $ 2,834 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Gross carrying amounts: | ||
Balance | $ 9,523 | $ 10,045 |
Foreign currency translation | 178 | (20) |
Balance | 9,701 | 10,025 |
Accumulated amortization: | ||
Balance | 3,248 | 2,439 |
Amortization expense | 242 | 249 |
Foreign currency translation | 60 | (21) |
Balance | 3,550 | 2,667 |
Developed Technology Rights [Member] | ||
Gross carrying amounts: | ||
Balance | 2,999 | 3,204 |
Foreign currency translation | 61 | (33) |
Balance | 3,060 | 3,171 |
Accumulated amortization: | ||
Balance | 1,137 | 902 |
Amortization expense | 77 | 80 |
Foreign currency translation | 24 | (15) |
Balance | 1,238 | 967 |
Customer Relationships [Member] | ||
Gross carrying amounts: | ||
Balance | 2,081 | 2,264 |
Foreign currency translation | 47 | (53) |
Balance | 2,128 | 2,211 |
Accumulated amortization: | ||
Balance | 766 | 645 |
Amortization expense | 45 | 47 |
Foreign currency translation | 16 | (17) |
Balance | 827 | 675 |
Trademarks and trade names [Member] | ||
Gross carrying amounts: | ||
Balance | 855 | 884 |
Foreign currency translation | 10 | 0 |
Balance | 865 | 884 |
Accumulated amortization: | ||
Balance | 440 | 330 |
Amortization expense | 30 | 31 |
Foreign currency translation | 4 | (2) |
Balance | 474 | 359 |
Patents [Member] | ||
Gross carrying amounts: | ||
Balance | 42 | 46 |
Foreign currency translation | 1 | (1) |
Balance | 43 | 45 |
Accumulated amortization: | ||
Balance | 19 | 15 |
Amortization expense | 1 | 1 |
Foreign currency translation | 0 | 1 |
Balance | 20 | 17 |
Media Contact Database [Member] | ||
Gross carrying amounts: | ||
Balance | 3,546 | 3,647 |
Foreign currency translation | 59 | 67 |
Balance | 3,605 | 3,714 |
Accumulated amortization: | ||
Balance | 886 | 547 |
Amortization expense | 89 | 90 |
Foreign currency translation | 16 | 12 |
Balance | $ 991 | $ 649 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details 2) $ in Thousands | Mar. 31, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2019 | $ 726 |
2020 | 903 |
2021 | 903 |
2022 | 903 |
2023 | 903 |
Thereafter | 1,813 |
Finite-Lived Intangible Assets, Net | $ 6,151 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 242 | $ 249 |
Intangible Assets, Amortization Period [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 200 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Line Items] | |
Federal income tax benefit at statutory rate | 21.00% |
Effect of: | |
Tax effects of FX gains and losses | 104.20% |
Increase in unrecognized tax benefits (FIN48) | (36.80%) |
Tax effects of foreign operations | (34.00%) |
Return to provision true up | (28.00%) |
Foreign rate differential | (8.10%) |
Change in valuation allowance | (7.90%) |
Other | (4.60%) |
Effective tax rate | 5.80% |
Income Taxes (Details 1)
Income Taxes (Details 1) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Income Taxes [Line Items] | |
Balance - January 1, 2019 | $ 2,424 |
Increase in tax position | 91 |
Interest accrual | 46 |
Foreign currency revaluation | 49 |
Balance - March 31, 2019 | $ 2,610 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Oct. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 25,800,000 | ||||
Unrecognized Tax Benefits | 2,610,000 | $ 2,424,000 | |||
Income Tax Examination, Penalties and Interest Accrued | 100,000 | ||||
Subsidiary Revenue | $ 67,000,000 | ||||
Reversal of Service Tax Refund | $ 160,000 | ||||
Service Tax Credit Receivable | $ 1,000,000 | ||||
Income Tax Expense (Benefit) | (28,000) | $ 582,000 | |||
Income Tax Examination, Increase (Decrease) in Liability from Prior Year | $ 100,000 | ||||
Maximum [Member] | |||||
Income Taxes [Line Items] | |||||
Percentage for Subsidiary Service Tax | 15.00% | ||||
Minimum [Member] | |||||
Income Taxes [Line Items] | |||||
Percentage for Subsidiary Service Tax | 12.36% |
Commitments and contingencies (
Commitments and contingencies (Details Textual) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Commitments and Contingencies [Line Items] | |
Estimated Litigation Liability | $ 6,200,000 |
Litigation Settlement, Expense | $ 275,000 |
Interest Rate Description Litigation | plus legal interest that accrued at 12% per annum from August 13, 2008 to June 30, 2013, and thereafter accrued and continues to accrue at 6% per annum |
Stock Options (Details)
Stock Options (Details) - Employee Stock Option [Member] | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Outstanding at January 1, 2018 (in shares) | shares | 4,982,040 |
Number of Options, Granted (in shares) | shares | 220,000 |
Number of Options, Exercised (in shares) | shares | 0 |
Number of Options, Forfeited/Expired (in shares) | shares | (174,237) |
Number of Options, Outstanding at December 31, 2018 (in shares) | shares | 5,027,803 |
Number of Options Exercisable at December 31, 2018 (in shares) | shares | 3,364,563 |
Number of Options, Vested and Expected to Vest at December 31, 2018 (in shares) | shares | 5,027,803 |
Weighted Average Exercise Price Outstanding at January 1, 2018 (in dollars per shares) | $ / shares | $ 2.14 |
Weighted Average Exercise Price Granted (in dollars per shares) | $ / shares | 1.38 |
Weighted Average Exercise Price Exercised (in dollars per shares) | $ / shares | 0 |
Weighted Average Exercise Price Forfeited/Expired (in dollars per shares) | $ / shares | 2.04 |
Weighted Average Exercise Price Outstanding at December 31, 2018 (in dollars per shares) | $ / shares | 2.11 |
Weighted Average Exercise Price Exercisable at December 31, 2018 (in dollars per shares) | $ / shares | 2.55 |
Weighted Average Exercise Price Vested and Expected to Vest at September 30, 2018 (in dollars per shares) | $ / shares | $ 2.11 |
Weighted Average Remaining Contractual Term Outstanding at December 31, 2018 (in years) | 6 years 6 months 7 days |
Weighted Average Remaining Contractual Term Exercisable at December 31, 2018 (in years) | 5 years 2 months 1 day |
Weighted Average Remaining Contractual Term Vested and Expected to Vest at September 30, 2018 (in years) | 6 years 6 months 7 days |
Aggregate Intrinsic Value, Outstanding at December 31, 2018 | $ | $ 343,280 |
Aggregate Intrinsic Value, Exercisable at December 31, 2018 | $ | 112,962 |
Aggregate Intrinsic Value, Vested and Expected to Vest at December 31, 2018 | $ | $ 343,280 |
Stock Options (Details 1)
Stock Options (Details 1) - Employee Stock Option [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of options granted (in dollars per share) | $ 0.64 | $ 0 |
Risk-free interest rate | 2.55% | 0.00% |
Expected life (years) | 0 years | |
Expected volatility factor | 0.00% | |
Expected dividends | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 6 years | |
Expected volatility factor | 45.00% |
Stock Options (Details 2)
Stock Options (Details 2) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Granted | shares | 75,000 |
Number of Shares, Vested | shares | 0 |
Number of Shares, Forfeited/Expired | shares | 0 |
Number of Shares, Unvested at March 31, 2019 | shares | 75,000 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | $ 1.38 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Forfeited/Expired | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Unvested at March 31, 2019 | $ / shares | $ 1.38 |
Stock Options (Details 3)
Stock Options (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Direct operating costs | $ 18 | $ 54 |
Selling and administrative expenses | 111 | 86 |
Total stock-based compensation | $ 129 | $ 140 |
Stock Options (Details Textual)
Stock Options (Details Textual) - USD ($) $ in Millions | Mar. 31, 2019 | 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 | $ 1.1 | |
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 | 5,858,892 |
Operating Leases - summarizes t
Operating Leases - summarizes the amounts recognized in the financial statements related to operating leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Operating Leases, Rent Expense | $ 501 |
Long Term Operating Lease [Member] | |
Operating Leases, Rent Expense | 415 |
Short Term Operating Lease [Member] | |
Operating Leases, Rent Expense | $ 86 |
Operating Leases - presents the
Operating Leases - presents the maturity profile of the Company's operating lease liabilities based on the contractual undiscounted payments (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Leases, Operating [Abstract] | ||
2019 | $ 1,399 | |
2020 | 1,769 | |
2021 | 1,356 | |
2022 | 1,269 | |
2023 | 1,047 | |
2024 and thereafter | 5,686 | |
Total lease payments | 12,526 | |
Net present value of lease liabilities | (3,811) | |
Operating Lease, Liability | 8,715 | |
Current portion | 1,147 | $ 0 |
Long term portion | 7,568 | $ 0 |
Total | $ 8,715 |
Operating Leases - weighted ave
Operating Leases - weighted average remaining lease (Details 2) | Mar. 31, 2019 |
Leases, Operating [Abstract] | |
Weighted average lease term | 78 months |
Weighted average discount rate | 8.96% |
Operating Leases (Details Textu
Operating Leases (Details Textual) | 3 Months Ended |
Mar. 31, 2019 | |
Maximum [Member] | |
Percentage of Rental Escalations | 10.00% |
Lessee, Operating Lease, Term of Contract | 2 years |
Minimum [Member] | |
Percentage of Rental Escalations | 1.75% |
Lessee, Operating Lease, Term of Contract | 11 years |
Long-term Obligations (Details)
Long-term Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Pension obligations | |||
Pension obligations - accrued pension liability | $ 2,634 | $ 2,591 | |
Settlement agreement | [1] | 841 | 1,010 |
Vendor obligations | |||
Capital lease obligations | 432 | 574 | |
Microsoft licenses | [2] | 223 | 355 |
Deferred lease payments | 0 | 489 | |
Lease incentive liability | 0 | 572 | |
Long-term Debt | 4,130 | 5,591 | |
Less: Current portion of long-term obligations | 1,033 | 1,529 | |
Totals | $ 3,097 | $ 4,062 | |
[1] | Represents payment to be made pursuant to a settlement agreement entered into between a subsidiary of the Company and 19 former employees of such subsidiary in December of 2018. $168,000 was paid in January 2019 and $841,000 will be paid in 48 monthly installments commencing April 2019. | ||
[2] | In March 2017, 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 2020. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. |
Long-term Obligations (Details
Long-term Obligations (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended |
Jan. 31, 2019 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Payments to Employees | $ 168,000 | |
Amount to be paid to employees in installments | $ 841,000 | |
Vendor Agreement [Member] | License [Member] | ||
Debt Instrument [Line Items] | ||
Cost of Goods and Services Sold | $ 400,000 |
Comprehensive Loss (Details)
Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Liability Adjustment, Other comprehensive income (loss): | ||
Pension Liability Adjustment, Balance at Beginning of the Period | $ 1,451 | $ 1,191 |
Pension Liability Adjustment, Other comprehensive income (loss) before reclassifications, net of taxes | 0 | 0 |
Pension Liability Adjustment, Total other comprehensive income (loss) before reclassifications, net of taxes | 1,451 | 1,191 |
Pension Liability Adjustment, Net amount reclassified to earnings | (36) | (59) |
Pension Liability Adjustment, Balance at End of the Period | 1,415 | 1,132 |
Fair Value of Derivatives, Other comprehensive income (loss): | ||
Fair Value of Derivatives, Balance at Beginning of the Period | 0 | 342 |
Fair Value of Derivatives, Other comprehensive income (loss) before reclassifications, net of taxes | 0 | (536) |
Fair Value of Derivatives, Total other comprehensive income (loss) before reclassifications, net of taxes | 0 | (194) |
Fair Value of Derivatives, Net amount reclassified to earnings | 0 | 5 |
Fair Value of Derivatives, Balance at End of the Period | 0 | (189) |
Foreign Currency Translation Adjustment, Other comprehensive income (loss): | ||
Foreign Currency Translation Adjustment, Balance at Beginning of the Period | (1,466) | (687) |
Foreign Currency Translation Adjustment, Other comprehensive income (loss) before reclassifications, net of taxes | 264 | (28) |
Foreign Currency Translation Adjustment, Total other comprehensive income (loss) before reclassifications, net of taxes | (1,202) | (715) |
Foreign Currency Translation Adjustment, Net amount reclassified to earnings | 0 | 0 |
Foreign Currency Translation Adjustment, Balance at End of the period | (1,202) | (715) |
Accumulated Other Comprehensive Income (Loss), Other comprehensive income (loss): | ||
Accumulated Other Comprehensive Income (Loss), Balance at Beginning of the period | (15) | 846 |
Accumulated Other Comprehensive Income (Loss), Other comprehensive income (loss) before reclassifications, net of taxes | 264 | (564) |
Accumulated Other Comprehensive Income (Loss), Total other comprehensive income (loss) before reclassifications, net of taxes | 249 | 282 |
Accumulated Other Comprehensive Income (Loss), Net amount reclassified to earnings | (36) | (54) |
Accumulated Other Comprehensive Income (Loss), Balance at End of the period | $ 213 | $ 228 |
Segment Reporting and Concent_3
Segment Reporting and Concentrations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 13,694 | $ 14,120 | |||
Income (loss) before provision for income taxes | (479) | 306 | |||
Total assets | 52,680 | $ 46,051 | |||
Goodwill | 2,089 | 2,834 | 2,050 | $ 2,832 | |
Before Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before provision for income taxes | [1] | (479) | 306 | ||
After Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before provision for income taxes | [2] | (479) | 306 | ||
DDS [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 10,177 | 10,477 | |||
Total assets | 26,480 | 22,334 | |||
DDS [Member] | Before Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before provision for income taxes | [1] | 74 | 656 | ||
DDS [Member] | After Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before provision for income taxes | [2] | 12 | 590 | ||
Synodex [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,024 | 981 | |||
Total assets | 382 | 787 | |||
Synodex [Member] | Before Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before provision for income taxes | [1] | 119 | (35) | ||
Synodex [Member] | After Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before provision for income taxes | [2] | 159 | 7 | ||
Agility [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,493 | 2,662 | |||
Total assets | 25,818 | 22,930 | |||
Goodwill | 2,089 | $ 2,050 | |||
Agility [Member] | Before Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before provision for income taxes | [1] | (672) | (315) | ||
Agility [Member] | After Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before provision for income taxes | [2] | $ (650) | $ (291) | ||
[1] | Before elimination of inter-segment profits | ||||
[2] | After elimination of inter-segment profits |
Segment Reporting and Concent_4
Segment Reporting and Concentrations (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 13,694 | $ 14,120 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,531 | 5,979 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,318 | 2,955 |
The Netherlands | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,722 | 1,762 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,484 | 1,469 |
Other - principally Europe | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,639 | $ 1,955 |
Segment Reporting and Concent_5
Segment Reporting and Concentrations (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | $ 22,884 | $ 15,138 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 4,981 | 4,383 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 8,329 | 7,023 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 2,071 | 2,045 |
Philippines [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 5,683 | 900 |
India [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 946 | 475 |
Sri Lanka [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 846 | 280 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 27 | 30 |
Germany [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1 | 2 |
Foreign Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | $ 17,903 | $ 10,755 |
Segment Reporting and Concent_6
Segment Reporting and Concentrations (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 7,784 | $ 0 | |
Foreign Customer [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 52.00% | 58.00% | |
Foreign Customer [Member] | Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 62.00% | 57.00% | |
Two clients [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 26.00% | 32.00% | |
Three Clients [Member] | Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 43.00% | 48.00% | |
Client [Member] | Accounts Receivable [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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share Basic and Diluted [Line Items] | ||
Net loss attributable to Innodata Inc. and Subsidiaries | $ (452) | $ (268) |
Weighted average common shares outstanding | 25,927 | 25,878 |
Dilutive effect of outstanding options | 0 | 0 |
Adjusted for dilutive effects | 25,927 | 25,878 |
Loss Per Share (Details Textual
Loss Per Share (Details Textual) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | 5 | 4.2 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) recognized in OCI | [1] | $ 0 | $ (536) |
Net gain (loss) reclassified from accumulated OCI into income | [2] | $ 0 | (5) |
Net gain recognized in income | [3] | $ 0 | |
[1] | Net change in fair value of the effective portion classified into other comprehensive income ("OCI") | ||
[2] | Effective portion classified within direct operating costs | ||
[3] | There were no ineffective portions for the period presented. |