Innodata (INOD) 10-Q 12 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 06, 2022
Cover
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-35774
Entity Registrant Name	INNODATA INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3475943
Entity Address, Address Line One	55 Challenger Road
Entity Address, City or Town	Ridgefield Park,
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07660
City Area Code	201
Local Phone Number	371-8000
Title of 12(b) Security	Common Stock
Trading Symbol	INOD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,302,843
Entity Central Index Key	0000903651
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 10,481	$ 18,902
Accounts receivable, net of allowance for doubtful accounts of $730 for each of these periods	10,956	11,379
Prepaid expenses and other current assets	3,786	3,681
Total current assets	25,223	33,962
Property and equipment, net	2,899	2,947
Right-of-use-asset, net	4,395	5,621
Other assets	2,005	2,247
Deferred income taxes, net	1,667	1,950
Intangibles, net	11,658	10,347
Goodwill	2,076	2,143
Total assets	49,923	59,217
Current liabilities:
Accounts payable	2,054	1,823
Accrued expenses and other	6,205	7,564
Accrued salaries, wages and related benefits	6,404	6,391
Income and other taxes	3,387	3,213
Long-term obligations - current portion	700	1,279
Operating lease liability - current portion	776	1,034
Total current liabilities	19,526	21,304
Deferred income taxes, net	20	15
Long-term obligations, net of current portion	5,998	6,217
Operating lease liability, net of current portion	4,087	5,276
Total liabilities	29,631	32,812
Commitments and contingencies
Non-controlling interests	(730)	(3,522)
STOCKHOLDERS' EQUITY:
Serial preferred stock; 4,998,000 shares authorized, none outstanding
Common stock, $.01 par value; 75,000,000 shares authorized; 30,487,000 shares issued and 27,303,000 outstanding at June 30, 2022 and 30,347,000 shares issued and 27,163,000 outstanding at December 31, 2021	305	303
Additional paid-in capital	33,946	35,121
Retained earnings (deficit)	(3,488)	3,160
Accumulated other comprehensive loss	(3,276)	(2,192)
Stockholders' Equity before Treasury Stock, Total	27,487	36,392
Less: treasury stock, 3,184,000 shares at June 30, 2022 and December 31, 2021 at cost	(6,465)	(6,465)
Total stockholders' equity	21,022	29,927
Total liabilities, non-controlling interests and stockholders' equity	$ 49,923	$ 59,217

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, net of allowance for doubtful accounts	$ 730
Series preferred stock, shares authorized	4,998,000	4,998,000
Series preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	30,487,000	30,347,000
Common stock, shares outstanding	27,303,000	27,163,000
Treasury stock, shares	3,184,000	3,184,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Revenues	$ 19,987	$ 17,049	$ 41,179	$ 33,016
Operating costs and expenses:
Direct operating costs	12,992	10,409	26,406	20,505
Selling and administrative expenses	10,277	6,980	20,467	12,505
Interest expense, net	(1)	4	2	14
Total	23,268	17,393	46,875	33,024
Loss from operations	(3,281)	(344)	(5,696)	(8)
Gain from loan forgiveness	0	580	0	580
Income (loss) before provision for income taxes	(3,281)	236	(5,696)	572
Provision for income taxes	550	366	1,025	293
Consolidated net loss	(3,831)	(130)	(6,721)	279
Income (loss) attributable to non-controlling interests	2	(27)	(73)	(16)
Net loss attributable to Innodata Inc. and Subsidiaries	$ (3,833)	$ (103)	$ (6,648)	$ 295
Loss per share attributable to Innodata Inc. and Subsidiaries:
Basic	$ (0.14)	$ 0	$ (0.24)	$ 0.01
Diluted	$ (0.14)	$ 0	$ (0.24)	$ 0.01
Weighted average shares outstanding:
Basic	27,226	26,522	27,192	26,199
Diluted	27,226	26,522	27,192	29,194
Comprehensive Loss:
Consolidated Net Loss	$ (3,831)	$ (130)	$ (6,721)	$ 279
Pension liability adjustment, net of taxes	38	11	78	22
Change in fair value of derivatives, net of taxes	(541)	(267)	(536)	(267)
Foreign currency translation adjustment	(600)	135	(626)	114
Other comprehensive loss	(1,103)	(121)	(1,084)	(131)
Total Comprehensive loss	(4,934)	(251)	(7,805)	148
Less: Comprehensive income (loss) attributable to non-controlling interest	2	(27)	(73)	(16)
Comprehensive Loss attributable to Innodata Inc. and Subsidiaries	$ (4,936)	$ (224)	$ (7,732)	$ 164

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Consolidated net income (loss)	$ (6,721)	$ 279
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,824	1,370
Gain on loan forgiveness	0	(580)
Stock-based compensation	1,565	614
Deferred income taxes	167	(61)
Pension cost	303	322
Loss on lease termination	125	0
Changes in operating assets and liabilities:
Accounts receivable	274	(140)
Prepaid expenses and other current assets	(148)	239
Other assets	243	168
Accounts payable and accrued expenses	(1,647)	4,658
Accrued salaries, wages and related benefits	(35)	0
Income and other taxes	178	(1,283)
Net cash provided by (used in) operating activities	(3,872)	5,586
Cash flows from investing activities:
Capital expenditures	(3,638)	(1,473)
Net cash used in investing activities	(3,638)	(1,473)
Cash flows from financing activities:
Proceeds from stock option exercises	180	1,750
Withholding taxes on net settlement of stock-based compensation	0	(763)
Payment of long-term obligations	(477)	(574)
Net cash provided by (used in) financing activities	(297)	413
Effect of exchange rate changes on cash and cash equivalents	(614)	(40)
Net increase (decrease) in cash and cash equivalents	(8,421)	4,486
Cash and cash equivalents, beginning of period	18,902	17,573
Cash and cash equivalents, end of period	10,481	22,059
Supplemental disclosures of cash flow information:
Cash paid for income taxes	696	724
Cash paid for operating leases	974	860
Cash paid for interest	$ 4	$ 17

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Total
Balance at Dec. 31, 2020	$ 289	$ 31,921	$ 4,833	$ (938)	$ (6,465)	$ 29,640
Balance (in shares) at Dec. 31, 2020	28,984,000
Balance (in shares) at Dec. 31, 2020					3,184,000
Net income (loss) attributable to Innodata Inc. and subsidiaries	$ 0	0	398	0	$ 0	398
Stock-based compensation	$ 0	278	0	0	0	278
Stock based compensation (in shares)	0
Stock option exercises	$ 4	605	0	0	0	609
Stock option exercises (in shares)	690,000
Shares withheld for exercise settlement and taxes	$ 1	(764)	0	0	0	(763)
Shares withheld for exercise settlement and taxes (in shares)	(193,000)
Pension liability adjustments, net of taxes	$ 0	0	0	11	0	11
Foreign currency translation adjustment	0	0	0	(21)	0	(21)
Change in fair value of derivatives, net of taxes	0	0	0	0	0	0
Balance at Mar. 31, 2021	$ 294	32,040	5,231	(948)	$ (6,465)	30,152
Balance (in shares) at Mar. 31, 2021	29,481,000
Balance (in shares) at Mar. 31, 2021					3,184,000
Balance at Dec. 31, 2020	$ 289	31,921	4,833	(938)	$ (6,465)	29,640
Balance (in shares) at Dec. 31, 2020	28,984,000
Balance (in shares) at Dec. 31, 2020					3,184,000
Pension liability adjustments, net of taxes						22
Foreign currency translation adjustment						114
Change in fair value of derivatives, net of taxes						(267)
Balance at Jun. 30, 2021	$ 299	33,512	5,128	(1,069)	$ (6,465)	31,405
Balance (in shares) at Jun. 30, 2021	30,037,000
Balance (in shares) at Jun. 30, 2021					3,184,000
Balance at Mar. 31, 2021	$ 294	32,040	5,231	(948)	$ (6,465)	30,152
Balance (in shares) at Mar. 31, 2021	29,481,000
Balance (in shares) at Mar. 31, 2021					3,184,000
Net income (loss) attributable to Innodata Inc. and subsidiaries	$ 0	0	(103)	0	$ 0	(103)
Stock-based compensation	$ 0	336	0	0	0	336
Stock based compensation (in shares)	0
Stock option exercises	$ 5	1,136	0	0	0	1,141
Stock option exercises (in shares)	556,000
Pension liability adjustments, net of taxes	$ 0	0	0	11	0	11
Foreign currency translation adjustment	0	0	0	135	0	135
Change in fair value of derivatives, net of taxes	0	0	0	(267)	0	(267)
Balance at Jun. 30, 2021	$ 299	33,512	5,128	(1,069)	$ (6,465)	31,405
Balance (in shares) at Jun. 30, 2021	30,037,000
Balance (in shares) at Jun. 30, 2021					3,184,000
Balance at Dec. 31, 2021	$ 303	35,121	3,160	(2,192)	$ (6,465)	$ 29,927
Balance (in shares) at Dec. 31, 2021	30,347,000
Balance (in shares) at Dec. 31, 2021					3,184,000	3,184,000
Net income (loss) attributable to Innodata Inc. and subsidiaries	$ 0	0	(2,815)	0	$ 0	$ (2,815)
Stock-based compensation	$ 0	537	0	0	0	537
Stock based compensation (in shares)	0
Stock option exercises	$ 1	26	0	0	0	27
Stock option exercises (in shares)	23,000
Shares withheld for exercise settlement and taxes	$ 0	(53)	0	0	0	(53)
Shares withheld for exercise settlement and taxes (in shares)	(7,000)
Redemption of non-controlling interest	$ 0	(2,864)	0	0	0	(2,864)
Pension liability adjustments, net of taxes	0	0	0	40	0	40
Foreign currency translation adjustment	0	0	0	(26)	0	(26)
Change in fair value of derivatives, net of taxes	0	0	0	5	0	5
Balance at Mar. 31, 2022	$ 304	32,767	345	(2,173)	$ (6,465)	24,778
Balance (in shares) at Mar. 31, 2022	30,363,000
Balance (in shares) at Mar. 31, 2022					3,184,000
Balance at Dec. 31, 2021	$ 303	35,121	3,160	(2,192)	$ (6,465)	$ 29,927
Balance (in shares) at Dec. 31, 2021	30,347,000
Balance (in shares) at Dec. 31, 2021					3,184,000	3,184,000
Pension liability adjustments, net of taxes						$ 78
Foreign currency translation adjustment						(626)
Change in fair value of derivatives, net of taxes						(536)
Balance at Jun. 30, 2022	$ 305	33,946	(3,488)	(3,276)	$ (6,465)	$ 21,022
Balance (in shares) at Jun. 30, 2022	30,487,000
Balance (in shares) at Jun. 30, 2022					3,184,000	3,184,000
Balance at Mar. 31, 2022	$ 304	32,767	345	(2,173)	$ (6,465)	$ 24,778
Balance (in shares) at Mar. 31, 2022	30,363,000
Balance (in shares) at Mar. 31, 2022					3,184,000
Net income (loss) attributable to Innodata Inc. and subsidiaries	$ 0	0	(3,833)	0	$ 0	(3,833)
Stock-based compensation	$ 0	1,028	0	0	0	1,028
Stock based compensation (in shares)	0
Stock option exercises	$ 1	152	0	0	0	153
Stock option exercises (in shares)	124,000
Shares withheld for exercise settlement and taxes (in shares)	0
Redemption of non-controlling interest	$ 0	(1)	0	0	0	(1)
Pension liability adjustments, net of taxes	0	0	0	38	0	38
Foreign currency translation adjustment	0	0	0	(600)	0	(600)
Change in fair value of derivatives, net of taxes	0	0	0	(541)	0	(541)
Balance at Jun. 30, 2022	$ 305	$ 33,946	$ (3,488)	$ (3,276)	$ (6,465)	$ 21,022
Balance (in shares) at Jun. 30, 2022	30,487,000
Balance (in shares) at Jun. 30, 2022					3,184,000	3,184,000

Summary of Significant Accounti

Summary of Significant Accounting Policies and Estimates	6 Months Ended
	Jun. 30, 2022
Summary of Significant Accounting Policies and Estimates
Summary of Significant Accounting Policies and Estimates	1. Summary of Significant Accounting Policies and Estimates Basis of Presentation - Certain information and note disclosures normally included in or with financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted from these condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those in the notes to the consolidated financial statements for the year ended December 31, 2021. Principles of Consolidation Use of Estimates Revenue Recognition For the Digital Data Solutions (DDS) segment, revenue is recognized primarily based on the quantity delivered or resources utilized in the period in which services are performed and performance conditions are satisfied as per the agreement. Revenue from agreements billed on a time-and-materials basis is recognized as services are performed. Revenue from fixed-fee agreements, which are not significant to overall revenues, is 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 the Synodex segment revenue is derived from licensing the Company’s functional software and providing access to the Company’s hosted software platform. Revenue from such services is recognized monthly when all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; access to the service is provided to the end user; and collection is probable. The Agility segment derives its revenue primarily from subscription arrangements and provision of enriched media analysis services. It also derives revenue as a reseller of corporate communication solutions. Revenue from subscriptions is recognized monthly when access to the service is provided to the end user; all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; and collection is probable. Revenue from enriched media analysis services is recognized when the services are performed, and performance conditions are satisfied. Revenue from the reseller agreements is recognized at the gross amount received for the goods in accordance with the Company functioning as a principal due to the Company meeting the following criteria: the Company acts as the primary obligor in the sales transaction; assumes the credit risk; sets the price; can select suppliers; and is involved in the execution of the services, including after sales service. Revenue includes reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. The Company considers U.S. GAAP criteria for determining whether to report gross revenue as a principal versus net revenue as an agent. The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement. Revenue is recognized on a gross basis if the Company is in the capacity of principal and on a net basis if it falls in the capacity of an agent. Contract acquisition costs, which are included in prepaid expenses and other current assets, are amortized over the term of a subscription agreement or contract that normally has a duration of 12 months or less. The Company reviews these prepaid acquisition costs on a periodic basis to determine the need to adjust the carrying values for early-terminated contracts. Foreign Currency Translation The functional currency for the Company’s subsidiaries in Germany, the United Kingdom and for the Company’s Agility subsidiary in 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 Company’s condensed consolidated financial statements. Income, expenses and cash flows are translated at weighted-average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive loss in stockholders’ equity. Foreign exchange transaction gains or losses are included in direct operating costs in the accompanying condensed consolidated statements of operations and comprehensive income (loss). Included in direct operating costs were foreign exchange gains resulting from such transactions of approximately $747,000 and $16,000 for the three months ended June 30, 2022 and 2021 respectively and $1,166,000 and $155,000 for the six months ended June 30, 2022 and 2021 respectively. Derivative Instruments - Capitalized Developed Software three Income Taxes In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the U.S. and Canadian deferred tax assets will not be realizable. As the expectation of future taxable income resulting from the U.S. and Canadian entities is not probable at this time, the Company maintains a valuation allowance against all the U.S. and Canadian net deferred tax assets. The Company accounts for income taxes regarding uncertain tax positions, and recognizes interest and penalties related to uncertain tax positions in income tax expense in the condensed consolidated statements of operations and comprehensive income (loss). Deferred Revenue Recent Accounting Pronouncements

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets
Goodwill and Intangible Assets	2. Goodwill and Intangible Assets The change in the carrying amount of goodwill for the six months ended June 30, 2022 was as follows (in thousands): ​ ​ ​ ​ ​ Balance as of January 1, 2022 $ 2,143 Foreign currency translation adjustment ​ (67) Balance as of June 30, 2022 ​ $ 2,076 ​ The fair value measurement of goodwill for the Agility segment was classified within Level 3 of the fair value hierarchy because the Company used the income approach, which utilizes significant inputs that are unobservable in the market and the market multiple approach which utilizes comparable entities to further validate the carrying values. The Company believes it made reasonable estimates and assumptions to calculate the fair value of the reporting unit as of the impairment test measurement date. Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Company Acquired Intangible Assets ​ Capitalized Developed Software ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trademarks ​ ​ ​ ​ Media ​ Capitalized ​ Developed ​ ​ ​ ​ Developed Customer and ​ ​ ​ ​ Contact ​ Developed ​ Software - in ​ ​ ​ ​ technology relationships tradenames Patents Database Software Progress Total Gross carrying amounts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of January 1, 2022 ​ $ 3,169 ​ $ 2,228 ​ $ 880 ​ $ 45 ​ $ 3,648 ​ $ 8,576 ​ $ 635 ​ $ 19,181 Additions ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ 2,770 ​ ​ 2,770 Transfers ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ 1,475 ​ ​ (1,475) ​ ​ - Foreign currency translation ​ (76) ​ (34) ​ (17) ​ - ​ (156) ​ ​ (128) ​ ​ (9) ​ (420) Balance as of June 30, 2022 ​ $ 3,093 ​ $ 2,194 ​ $ 863 ​ $ 45 ​ $ 3,492 ​ $ 9,923 ​ $ 1,921 ​ $ 21,531 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of January 1, 2022 ​ $ 2,158 ​ $ 1,377 ​ $ 685 ​ $ 34 ​ $ 2,005 ​ $ 2,575 ​ $ - ​ $ 8,834 Amortization expense ​ ​ 158 ​ ​ 93 ​ ​ 28 ​ ​ 2 ​ ​ 180 ​ ​ 799 ​ ​ - ​ ​ 1,260 Foreign currency translation ​ ​ (51) ​ ​ (23) ​ ​ (11) ​ ​ (1) ​ ​ (90) ​ ​ (45) ​ ​ - ​ ​ (221) Balance as of June 30, 2022 ​ $ 2,265 ​ $ 1,447 ​ $ 702 ​ $ 35 ​ $ 2,095 ​ $ 3,329 ​ $ - ​ $ 9,873 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net carrying values - June 30, 2022 ​ $ 828 ​ $ 747 ​ $ 161 ​ $ 10 ​ $ 1,397 ​ $ 6,594 ​ $ 1,921 ​ $ 11,658 ​ Amortization expense relating to acquired intangible assets was $0.2 million and $0.5 million for the three and six months ended June 30, 2022. Amortization expense relating to capitalized developed software was $0.4 million and $0.8 million for the three and six months ended June 30, 2022. As of June 30, 2022, estimated future amortization expense for intangible assets was as follows (in thousands): ​ ​ ​ ​ ​ Year Amortization 2022 ​ $ 627 2023 ​ $ 1,641 2024 ​ $ 1,540 2025 ​ $ 1,277 2026 ​ $ 437 Thereafter ​ $ 6,136 ​ ​ $ 11,658 ​

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Taxes
Income Taxes	3. Income Taxes Taxes primarily consist of a provision for foreign taxes recorded by the Company’s foreign subsidiaries in accordance with local tax regulations. Effective income tax rates are disproportionate due to the losses incurred by the Company’s U.S. and Canadian subsidiaries and a valuation allowance recorded on deferred taxes of these entities and tax effects of foreign operations, including foreign exchange gains and losses. ​ The reconciliations of the U.S. statutory rate with the Company’s effective tax rate for the six-month periods ended June 30, 2022 and 2021 are summarized in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months ​ ​ ​ Ended June 30, ​ ​ 2022 2021 ​ Federal income tax expense at statutory rate (21.0) % 21.0 % Effect of: ​ ​ ​ ​ Change in valuation allowance ​ 40.3 ​ 101.1 ​ Foreign operations permanent difference - foreign exchange gains and losses 2.1 ​ 9.1 ​ Return to provision true up ​ 2.0 ​ 3.2 ​ Tax effects of foreign operations ​ 1.2 ​ 35.4 ​ Increase (decrease) in unrecognized tax benefits (ASC 740) ​ 1.2 ​ (64.4) ​ State income tax net of federal benefit ​ 0.2 ​ 1.5 ​ Change in tax rates ​ - ​ 20.6 ​ Withholding tax ​ - ​ - ​ Effect of stock based compensation ​ (1.0) ​ (62.1) ​ Foreign rate differential ​ (6.3) ​ (19.6) ​ Other ​ (0.7) ​ 5.4 ​ Effective tax rate ​ 18.0 % 51.2 % ​ The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the six months ended June 30, 2022 (in thousands): ​ ​ ​ ​ ​ ​ Unrecognized ​ tax benefits Balance - January 1, 2022 ​ $ 1,753 Increase for current period tax positions ​ 58 Decrease for prior period tax positions ​ ​ (29) Interest accrual ​ 52 Foreign currency remeasurement ​ (100) Balance - June 30, 2022 ​ $ 1,734 ​ The Company expects that unrecognized tax benefits as of June 30, 2022, if recognized, would have a material impact on the Company’s effective tax rate. Tax Assessments In September 2015, the Company’s Indian subsidiary was subject to an inquiry by the Service Tax Department in India regarding the classification of services provided by this subsidiary, asserting that the services provided by this subsidiary fall under the category of online information and database access or retrieval services (OID Services), and not under the category of business support services (BS Services) that are exempt from service tax as historically indicated in the subsidiary’s service tax filings. The Company disagrees with the Service Tax Department’s position. In November 2019, the Commissioner of Central Tax, GST & Central Excise issued an order confirming the Service Tax Department’s position. The Company is contesting this order in an appeal to the Customs, Excise and Service Tax Appellate Tribunal. In the event the Service Tax Department is ultimately successful in proving that the services fall under the category of OID Services, the revenues earned by the Company’s Indian subsidiary for the period July 2012 through November 2016 would be subject to a service tax of between 12.36% and 15%, and this subsidiary may also be liable for interest and penalties. The revenue of the Company’s Indian subsidiary during this period was approximately $63.0 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 Company’s assessment in consultation with the Company’s tax counsel, the Company has not recorded any tax liability for this case. In a separate action relating to service tax refunds, in October 2016, the Company’s Indian subsidiary received notices from the Indian Service Tax Department in India seeking to reverse service tax refunds of approximately $160,000 previously granted to the Company’s Indian subsidiary for three quarters in 2014, asserting that the services provided by this subsidiary fall under the category of OID Services and not BS Services. The appeal was determined in favor of the Service Tax Department. The Company disagrees with the basis of this decision and is contesting it. The Company expects delays in its Indian subsidiary receiving further service tax refunds until this matter is adjudicated with finality, and currently has service tax credits of approximately $1.0 million recorded as a receivable. Based on the Company’s assessment in consultation with the Company’s tax counsel, the Company has not recorded any tax liability for this case. Substantial recovery against the Company in the above referenced 2015 Service Tax Department case could have a material adverse impact on the Company, and unfavorable rulings or recoveries in other tax proceedings could have a material adverse impact on the consolidated operating results of the period (and subsequent periods) in which the rulings or recovery occurs.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies
Commitments and Contingencies	4. Commitments and Contingencies Litigation – The Company is also subject to various other legal proceedings and claims that have arisen in the ordinary course of business. While management currently believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s consolidated financial position or overall trends in consolidated results of operations, litigation is subject to inherent uncertainties. Substantial recovery against the Company in the above-referenced Philippine action could have a material adverse impact on the Company, and unfavorable rulings or recoveries in the other proceedings could have a material adverse impact on the consolidated operating results in the period in which the ruling or recovery occurs. In addition, the Company’s estimate of the potential impact on the Company’s consolidated financial position or overall consolidated results of operations for the above referenced legal proceedings could change in the future. The Company’s legal accruals related to legal proceedings and claims are based on the Company’s determination of whether or not a loss is probable. The Company reviews outstanding proceedings and claims with external counsel to assess probability and estimates of loss. The accruals are adjusted if necessary. While the Company intends to defend these matters vigorously, adverse outcomes that it estimates could reach approximately $350,000 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 and Restricted St

Stock Options and Restricted Stock Units	6 Months Ended
	Jun. 30, 2022
Stock Options and Restricted Stock Units
Stock Options and Restricted Stock Units	5. Stock Options and Restricted Stock Units A summary of option activity under the Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016 (the “2013 Plan”) and changes during each of the six-month periods ended June 30, 2022 and 2021 are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted - Weighted-Average ​ ​ ​ Number of Average Exercise Remaining Contractual ​ Aggregate ​ Options Price Term (years) Intrinsic Value Outstanding at January 1, 2021 5,906,884 ​ $ 1.61 ​ Granted 360,000 ​ 6.40 ​ Exercised (1,245,182) ​ 2.12 ​ Forfeited/Expired (20,000) ​ 1.38 ​ Outstanding at June 30, 2021 5,001,702 ​ $ 1.83 7.60 ​ $ 25,837,675 ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2021 3,425,983 ​ $ 1.62 ​ 7.12 ​ $ 18,426,406 ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2021 5,001,702 ​ $ 1.83 7.60 ​ $ 25,837,675 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Number of ​ Weighted - Average ​ Remaining Contractual ​ Aggregate ​ ​ Options ​ Exercise Price ​ Term (years) ​ Intrinsic Value Outstanding at January 1, 2022 ​ 5,536,896 ​ $ 2.66 ​ ​ ​ Granted 1,479,558 ​ 5.21 ​ Exercised (146,705) ​ 1.22 ​ Forfeited/Expired (36,000) ​ 5.13 ​ Outstanding at June 30, 2022 6,833,749 ​ $ 3.24 7.62 ​ $ 13,923,020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2022 3,578,045 ​ $ 1.81 6.40 ​ $ 11,195,079 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2022 6,833,749 ​ $ 3.24 7.62 ​ $ 13,923,020 ​ A summary of option activity under the Innodata Inc. 2021 Stock Plan and changes during the six-month period ended June 30, 2022 are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Number of ​ Weighted - Average ​ Remaining Contractual ​ Aggregate Intrinsic ​ ​ Options ​ Exercise Price ​ Term (years) ​ Value Outstanding at January 1, 2022 - ​ $ - ​ Granted 25,000 ​ 6.40 ​ Exercised - ​ - ​ Forfeited/Expired - ​ - ​ Outstanding at June 30, 2022 25,000 ​ $ 6.40 5.00 ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2022 - ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2022 25,000 ​ $ 6.40 5.00 ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During the six months ended June 30, 2022, a total of 146,705 options were exercised at an average price of $1.22. ​ The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average fair value of the options granted, and weighted-average assumptions were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended June 30, ​ 2022 2021 Weighted average fair value of options granted ​ $ 3.10 ​ $ 3.33 Risk-free interest rate ​ ​ 1.94%-2.75% ​ ​ 0.22%-0.82% Expected term (years) ​ ​ 3.0 - 6.42 ​ ​ 3 - 6 Expected volatility factor ​ ​ 62% - 76.48% ​ ​ 59.62% Expected dividends ​ ​ - ​ ​ - ​ A summary of restricted stock units issued under the 2013 Plan and the 2021 Plan (collectively, the “Equity Plans”) is presented below: In March 2022, the Company granted restricted stock units (“RSU”) to key executives, pursuant to the Equity Plans. Each RSU has vesting conditions based on both the achievement of performance-based metrics and the continuation of employment over a defined period. The level of performance determines the number of RSUs that performance-vest, and performance vested RSUs must also time-vest in order to be fully vested. Each fully-vested RSU represents the right to receive one share of the Company’s common stock or the fair market value of one share of common stock, at the Company’s discretion, and is classified as an equity award. Each RSU vests pursuant to the vesting schedule found in the respective RSU agreement. RSUs are generally subject to graduated vesting schedules and stock-based compensation expense is computed by tranche and recognized on a straight-line basis over the tranches’ applicable vesting period based on the expected achievement level. The fair value of restricted stock units is estimated on the date of grant using the Binomial option pricing model. Restricted stock unit activity during the six months ended June 30, 2022 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Restricted Weighted-Average Grant ​ Stock Awards Date Fair Value Unvested at January 1, 2022 ​ 25,000 ​ $ 1.38 Granted - ​ - Vested (25,000) ​ 1.38 Forfeited/Expired - ​ - Unvested at June 30, 2022 - ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted-Average ​ ​ Restricted Stock ​ Grant Date ​ ​ Units ​ Fair Value Unvested at January 1, 2022 - $ - Granted* 700,000 ​ ​ 5.59 Vested - ​ - Forfeited/Expired - ​ ​ Unvested at June 30, 2022 700,000 ​ $ 5.59 ​ * 200,000 RSUs were issued under the 2013 Plan and 500,000 RSUs were issued under the 2021 Plan The compensation cost related to non-vested stock options not yet recognized as of June 30, 2022 totaled approximately $7.1 million. The weighted-average period over which these costs will be recognized is 27 months. During the six months ended June 30, 2022, 700,000 performance-based restricted stock units were granted and remain non-vested at June 30, 2022. Vesting of the performance-based restricted stock units is contingent on the achievement of certain financial performance goals and service vesting conditions. There were no restricted stock units granted during the three months ended June 30, 2022. The compensation cost related to non-vested restricted stock units not yet recognized as of June 30, 2022 totaled approximately $3.0 million. The weighted-average period over which these costs will be recognized is 24 months. The stock-based compensation expense related to the Equity Plans were allocated as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 Direct operating costs ​ $ 56 ​ $ 37 ​ $ 107 ​ $ 75 Selling and administrative expenses ​ 972 ​ 299 ​ 1,458 ​ 539 Total stock-based compensation ​ $ 1,028 ​ $ 336 ​ $ 1,565 ​ $ 614 ​

Operating Leases

Operating Leases	6 Months Ended
	Jun. 30, 2022
Operating Leases
Operating Leases	6. Operating Leases The Company has various 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 The table below summarizes the amounts recognized in the condensed consolidated financial statements related to operating leases for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 Rent expense for long-term operating leases ​ $ 337 ​ $ 388 ​ $ 713 ​ $ 776 Rent expense for short-term leases ​ 144 ​ 34 ​ ​ 261 ​ ​ 84 Total rent expense ​ $ 482 ​ $ 422 ​ $ 974 ​ $ 860 ​ The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of these amounts to the remaining net present value of the operating lease liability reported in the condensed consolidated balance sheet as of June 30, 2022 (in thousands): ​ ​ ​ ​ ​ Year Amount 2022 ​ $ 1,160 2023 ​ 865 2024 ​ 825 2025 ​ 840 2026 ​ 855 2027 and thereafter ​ 1,953 Total lease payments ​ 6,498 Less: Interest ​ (1,635) Net present value of lease liabilities ​ $ 4,863 ​ ​ ​ Current portion ​ $ 776 Long-term portion ​ 4,087 Total ​ $ 4,863 ​ The weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of June 30, 2022 were as follows: ​ ​ ​ ​ ​ Weighted-average lease term remaining 48 months ​ Weighted-average discount rate 8.68 % ​

Long-term obligations

Long-term obligations	6 Months Ended
	Jun. 30, 2022
Long-term obligations
Long-term obligations	7. Long-term obligations Total long-term obligations as of June 30, 2022 and December 31, 2021 consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2022 2021 Pension obligations - accrued pension liability ​ $ 6,547 ​ $ 6,839 Settlement agreement ​ 151 ​ 272 Microsoft licenses ​ - ​ 385 ​ ​ ​ 6,698 ​ ​ 7,496 Less: Current portion of long-term obligations ​ 700 ​ 1,279 Totals ​ $ 5,998 ​ $ 6,217 ​

Redemption of non-controlling i

Redemption of non-controlling interest	6 Months Ended
	Jun. 30, 2022
Redemption of non-controlling interest
Redemption of non-controlling interest	8. Redemption of non-controlling interest The Condensed Consolidated Balance Sheets for the six-month period ending June 30, 2022 includes a $2.9 million charge against additional paid-in-capital representing the carrying value of the non-controlling interest in Innodata Synodex, LLC which was redeemed by the Company on March 31, 2022. The Company accounted for the transaction in accordance with ASC Topic 810, “Consolidation,” which discusses the proper accounting treatment of the carrying value for the non-controlling interest. Under the standard, any change in ownership that does not result in a loss of control must be accounted for as an equity transaction.

Comprehensive loss

Comprehensive loss	6 Months Ended
	Jun. 30, 2022
Comprehensive loss
Comprehensive loss	9. 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 adjustment and changes in fair value of derivatives, net of taxes. The components of accumulated other comprehensive loss as of June 30, 2022 and 2021, and reclassifications from accumulated other comprehensive loss for the three and six months then ended, are presented below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Liability ​ Fair Value of ​ Foreign Currency ​ Accumulated Other ​ Adjustment Derivatives Translation Adjustment Comprehensive Loss Balance at April 1, 2022 ​ $ (818) ​ $ (348) ​ $ (1,007) ​ $ (2,173) Other comprehensive loss before reclassifications, net of taxes ​ - ​ (744) ​ (600) ​ (1,344) Total other comprehensive loss before reclassifications, net of taxes ​ (818) ​ (1,092) ​ (1,607) ​ (3,517) Net amount reclassified to earnings ​ 38 ​ 203 ​ - ​ 241 Balance at June 30, 2022 ​ $ (780) ​ $ (889) ​ $ (1,607) ​ $ (3,276) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ ​ ​ Pension Liability ​ Fair Value of ​ Translation ​ Accumulated Other ​ ​ Adjustment ​ Derivatives ​ Adjustment ​ Comprehensive Loss Balance at January 1, 2022 ​ $ (858) ​ $ (353) ​ $ (981) ​ $ (2,192) Other comprehensive loss before reclassifications, net of taxes - ​ (822) ​ (626) ​ (1,448) Total other comprehensive loss before reclassifications, net of taxes (858) ​ (1,175) ​ (1,607) ​ (3,640) Net amount reclassified to earnings 78 ​ 286 ​ - ​ 364 Balance at June 30, 2022 ​ $ (780) ​ $ (889) ​ $ (1,607) ​ $ (3,276) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Liability ​ Fair Value of ​ Foreign Currency ​ Accumulated Other ​ Adjustment Derivatives Translation Adjustment Comprehensive Loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at April 1, 2021 ​ $ (433) ​ $ - ​ $ (515) ​ $ (948) Other comprehensive income (loss) before reclassifications, net of taxes ​ - ​ (301) ​ 135 ​ (166) Total other comprehensive loss before reclassifications, net of taxes ​ (433) ​ (301) ​ (380) ​ (1,114) Net amount reclassified to earnings ​ 11 ​ 34 ​ - ​ 45 Balance at June 30, 2021 ​ $ (422) ​ $ (267) ​ $ (380) ​ $ (1,069) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ ​ ​ ​ Pension Liability ​ Fair Value of ​ Translation ​ Accumulated Other ​ Adjustment Derivatives Adjustment Comprehensive Loss Balance at January 1, 2021 ​ $ (444) ​ $ - ​ $ (494) ​ $ (938) Other comprehensive income (loss) before reclassifications, net of taxes ​ ​ - ​ (301) ​ 114 ​ (187) Total other comprehensive loss before reclassifications, net of taxes ​ ​ (444) ​ (301) ​ (380) ​ (1,125) Net amount reclassified to earnings ​ ​ 22 ​ 34 ​ - ​ 56 Balance at June 30, 2021 ​ $ (422) ​ $ (267) ​ $ (380) ​ $ (1,069) ​ All reclassifications from accumulated other comprehensive loss had an impact on direct operating costs in the condensed consolidated statements of operations and comprehensive income (loss).

Segment reporting and concentra

Segment reporting and concentrations	6 Months Ended
	Jun. 30, 2022
Segment reporting and concentrations.
Segment reporting and concentrations	10. Segment reporting and concentrations The Company’s operations are classified in three reporting segments: Digital Data Solutions (DDS), Synodex and Agility. The DDS segment provides AI-enabled software platforms and managed services to companies that require high-quality data for training AI and machine learning (ML) algorithms, and AI digital transformation solutions to help companies apply AI/ML to real-world problems relating to analyzing and deriving insights from documents. In conjunction with AI digital transformation, the Company often provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data compliance, and master data management. The Synodex segment provides an industry platform that transforms medical records into useable digital data organized in accordance with its proprietary data models or customer data models. The Agility segment provides an industry platform that provides marketing communications and public relations professionals with the ability to target and distribute content to journalists and social media influencers world-wide and to monitor and analyze global news channels (print, web, radio and TV) and social media channels. A significant portion of the Company’s revenue is generated from its locations in the Philippines, India, Sri Lanka, Canada, Germany, the United Kingdom and Israel. Revenues from external customers, segment operating profit (loss), and other reportable segment information are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2022 2021 2022 2021 Revenues: ​ ​ ​ ​ ​ DDS ​ $ 14,181 ​ $ 12,997 ​ $ 30,092 ​ $ 24,760 Synodex ​ 1,945 ​ 886 ​ 3,614 ​ 1,905 Agility ​ 3,861 ​ 3,166 ​ 7,473 ​ 6,351 Total Consolidated ​ $ 19,987 ​ $ 17,049 ​ $ 41,179 ​ $ 33,016 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (1) ​ ​ ​ ​ ​ ​ ​ ​ DDS ​ $ (72) ​ $ 1,726 ​ $ 1,381 ​ $ 2,379 Synodex ​ (831) ​ (329) ​ (1,819) ​ (221) Agility ​ (2,378) ​ (1,161) ​ (5,258) ​ (1,586) Total Consolidated ​ $ (3,281) ​ $ 236 ​ $ (5,696) ​ $ 572 ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (2) ​ ​ ​ ​ ​ ​ DDS ​ $ (250) ​ $ 1,646 ​ $ 1,046 ​ $ 2,230 Synodex ​ (680) ​ (278) ​ (1,540) ​ (126) Agility ​ (2,351) ​ (1,132) ​ (5,202) ​ (1,532) Total Consolidated ​ $ (3,281) ​ $ 236 ​ $ (5,696) ​ $ 572 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Total assets: ​ ​ DDS ​ $ 29,723 ​ $ 40,100 Synodex ​ 2,702 ​ 1,753 Agility ​ 17,498 ​ 17,364 Total Consolidated ​ $ 49,923 ​ $ 59,217 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Goodwill: ​ ​ Agility ​ $ 2,076 ​ $ 2,143 Total ​ $ 2,076 ​ $ 2,143 ​ (1) Before elimination of any inter-segment profits (2) After elimination of any inter-segment profits Revenues for the period ended June 30, 2022 and 2021 by geographic region (determined based upon customer’s domicile), were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 United States ​ $ 12,385 ​ $ 9,074 ​ $ 25,777 ​ $ 17,294 United Kingdom ​ 2,558 ​ 2,995 ​ 5,640 ​ 5,797 The Netherlands ​ 1,717 ​ 1,608 ​ 3,369 ​ 3,262 Canada ​ 1,439 ​ 1,492 ​ 2,816 ​ 3,087 Others - principally Europe ​ 1,888 ​ 1,880 ​ 3,577 ​ 3,576 Totals ​ $ 19,987 ​ $ 17,049 ​ $ 41,179 ​ $ 33,016 ​ Long-lived assets as of June 30, 2022 and December 31, 2021 by geographic region were comprised of (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2022 2021 United States ​ $ 6,042 ​ $ 4,578 ​ ​ ​ ​ ​ Foreign countries: ​ ​ ​ ​ Canada ​ 8,156 ​ 9,280 United Kingdom ​ 1,292 ​ 1,538 Philippines ​ 3,858 ​ 4,027 India ​ 1,522 ​ 1,481 Sri Lanka ​ 156 ​ 154 Israel ​ 2 ​ - Germany ​ ​ - ​ ​ - Total foreign ​ 14,986 ​ 16,480 Totals ​ $ 21,028 ​ $ 21,058 ​ Long-lived assets include the unamortized balance of right-of-use assets amounting to $4.4 million and $5.6 million as of June 30, 2022 and December 31, 2021, respectively. One customer in the DDS segment generated approximately 13% of the Company’s total revenues for the three months ended June 30, 2022. A second customer in the DDS segment generated approximately 10% and 11% 11% 38% and 47% One customer in the DDS segment generated approximately 17% of the Company’s total revenues for the six months ended June 30, 2022. Two other customers in the DDS segment generated approximately 22% of the Company’s total revenues for the six months ended June 30, 2021. No other customer accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. customers accounted for 38% and 48% of the Company’s total revenues for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, approximately 33% of the Company’s accounts receivable was from foreign (principally European) customers and 44% of the Company’s accounts receivable was due from three customers. As of December 31, 2021, approximately 37% of the Company’s accounts receivable was from foreign (principally European) customers and 19% of the Company’s accounts receivable was due from one customer. No other customer accounted for 10% or more of the accounts receivable as of June 30, 2022 and December 31, 2021.

Income (Loss) per Share

Income (Loss) per Share	6 Months Ended
	Jun. 30, 2022
Income (Loss) Per Share.
Income (Loss) Per Share	11. Income (Loss) Per Share ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 Net income (loss) attributable to Innodata Inc. and Subsidiaries ​ $ (3,833) ​ $ (103) ​ $ (6,648) ​ $ 295 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding ​ 27,226 ​ 26,522 ​ 27,192 ​ 26,199 Dilutive effect of outstanding options ​ - ​ - ​ - ​ 2,995 Adjusted for dilutive computation ​ 27,226 ​ 26,522 ​ 27,192 ​ 29,194 ​ 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 6.9 million and 5.0 million shares of common stock for the three months ended June 30, 2022 and June 30, 2021 were outstanding but not included in the computation of diluted loss per share because the effect would have been anti-dilutive. Options to purchase 6.9 million shares of common stock for the six months ended June 30, 2022 were outstanding but not included in the computation of diluted loss per share because the effect would have been anti-dilutive. All options outstanding for the six months ended June 30, 2021 were included in the computation of diluted income per share.

Derivatives

Derivatives	6 Months Ended
	Jun. 30, 2022
Derivatives
Derivatives.	12. Derivatives The Company conducts a large portion of its operations in international markets, which subject it to foreign currency fluctuations. The most significant foreign currency exposures occur when revenue and associated accounts receivable are collected in one currency and expenses to generate that revenue are incurred in another currency. The Company is also subject to wage inflation and other government mandated increases and operating expenses in Asian countries where the Company has the majority of its operations. The Company’s primary inflation and exchange rate exposure relates to payroll, other payroll costs and operating expenses in the Philippines, India, Sri Lanka and Israel. In addition, although most of the Company’s revenue is denominated in U.S. dollars, a significant portion of total revenues is denominated in Canadian dollars, Pound Sterling and Euros. The Company’s policy is to enter derivative instrument contracts with terms that coincide with the underlying exposure being hedged for a period up to 12 months. As such, the Company’s derivative instruments are expected to be highly effective. For derivative instruments that are designated and qualify as cash flow hedges, the entire change in fair value of the hedging instrument is recorded to Other comprehensive income (loss). Upon settlement of these contracts, the change in the fair value recorded in Other comprehensive income (loss) are reclassified to earnings and included as part of Direct operating costs The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company does not hold or issue derivatives for trading purposes. All derivatives are recognized at their fair value and classified based on the instrument’s maturity date. The total notional amount for outstanding derivatives designated as hedges was $19.9 million as of June 30, 2022. The total notional amount for outstanding derivatives designated as hedges was $19.7 million as of December 31, 2021. The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet Location ​ Fair Value ​ ​ 2022 2021 Derivatives designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts Accrued expenses ​ $ 889 ​ $ 353 ​ The effect of foreign currency forward contracts designated as cash flow hedges on the condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 Net gain (loss) recognized in OCI (1) ​ $ (744) ​ $ (301) ​ $ (822) ​ $ (301) Net (gain) loss reclassified from accumulated OCI into income (2) ​ $ 203 ​ $ 34 ​ $ 286 ​ $ 34 Net gain recognized in income (3) ​ ​ ​ ​ $ - ​ ​ ​ ​ $ - ​ (1) Net change in fair value of the effective portion classified into other comprehensive income (“OCI”) (2) Effective portion classified within direct operating costs. (3) There were no ineffective portions for the period presented.

Summary of Significant Accoun_2

Summary of Significant Accounting Estimates and Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Summary of Significant Accounting Policies and Estimates
Basis of Presentation	Basis of Presentation - Certain information and note disclosures normally included in or with financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted from these condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those in the notes to the consolidated financial statements for the year ended December 31, 2021.
Principles of Consolidation	Principles of Consolidation
Use of Estimates	Use of Estimates
Revenue Recognition	Revenue Recognition For the Digital Data Solutions (DDS) segment, revenue is recognized primarily based on the quantity delivered or resources utilized in the period in which services are performed and performance conditions are satisfied as per the agreement. Revenue from agreements billed on a time-and-materials basis is recognized as services are performed. Revenue from fixed-fee agreements, which are not significant to overall revenues, is 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 the Synodex segment revenue is derived from licensing the Company’s functional software and providing access to the Company’s hosted software platform. Revenue from such services is recognized monthly when all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; access to the service is provided to the end user; and collection is probable. The Agility segment derives its revenue primarily from subscription arrangements and provision of enriched media analysis services. It also derives revenue as a reseller of corporate communication solutions. Revenue from subscriptions is recognized monthly when access to the service is provided to the end user; all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; and collection is probable. Revenue from enriched media analysis services is recognized when the services are performed, and performance conditions are satisfied. Revenue from the reseller agreements is recognized at the gross amount received for the goods in accordance with the Company functioning as a principal due to the Company meeting the following criteria: the Company acts as the primary obligor in the sales transaction; assumes the credit risk; sets the price; can select suppliers; and is involved in the execution of the services, including after sales service. Revenue includes reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. The Company considers U.S. GAAP criteria for determining whether to report gross revenue as a principal versus net revenue as an agent. The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement. Revenue is recognized on a gross basis if the Company is in the capacity of principal and on a net basis if it falls in the capacity of an agent. Contract acquisition costs, which are included in prepaid expenses and other current assets, are amortized over the term of a subscription agreement or contract that normally has a duration of 12 months or less. The Company reviews these prepaid acquisition costs on a periodic basis to determine the need to adjust the carrying values for early-terminated contracts.
Foreign Currency Translation	Foreign Currency Translation The functional currency for the Company’s subsidiaries in Germany, the United Kingdom and for the Company’s Agility subsidiary in 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 Company’s condensed consolidated financial statements. Income, expenses and cash flows are translated at weighted-average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive loss in stockholders’ equity. Foreign exchange transaction gains or losses are included in direct operating costs in the accompanying condensed consolidated statements of operations and comprehensive income (loss). Included in direct operating costs were foreign exchange gains resulting from such transactions of approximately $747,000 and $16,000 for the three months ended June 30, 2022 and 2021 respectively and $1,166,000 and $155,000 for the six months ended June 30, 2022 and 2021 respectively.
Derivative Instruments	Derivative Instruments -
Capitalized Developed Software	Capitalized Developed Software three
Income Taxes	Income Taxes In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the U.S. and Canadian deferred tax assets will not be realizable. As the expectation of future taxable income resulting from the U.S. and Canadian entities is not probable at this time, the Company maintains a valuation allowance against all the U.S. and Canadian net deferred tax assets. The Company accounts for income taxes regarding uncertain tax positions, and recognizes interest and penalties related to uncertain tax positions in income tax expense in the condensed consolidated statements of operations and comprehensive income (loss).
Deferred Revenue	Deferred Revenue
Recent Accounting Pronouncements	Recent Accounting Pronouncements

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets
Schedule of carrying amount of goodwill	The change in the carrying amount of goodwill for the six months ended June 30, 2022 was as follows (in thousands): ​ ​ ​ ​ ​ Balance as of January 1, 2022 $ 2,143 Foreign currency translation adjustment ​ (67) Balance as of June 30, 2022 ​ $ 2,076
Schedule of company's acquisition-related intangible assets	Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Company Acquired Intangible Assets ​ Capitalized Developed Software ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trademarks ​ ​ ​ ​ Media ​ Capitalized ​ Developed ​ ​ ​ ​ Developed Customer and ​ ​ ​ ​ Contact ​ Developed ​ Software - in ​ ​ ​ ​ technology relationships tradenames Patents Database Software Progress Total Gross carrying amounts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of January 1, 2022 ​ $ 3,169 ​ $ 2,228 ​ $ 880 ​ $ 45 ​ $ 3,648 ​ $ 8,576 ​ $ 635 ​ $ 19,181 Additions ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ 2,770 ​ ​ 2,770 Transfers ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ 1,475 ​ ​ (1,475) ​ ​ - Foreign currency translation ​ (76) ​ (34) ​ (17) ​ - ​ (156) ​ ​ (128) ​ ​ (9) ​ (420) Balance as of June 30, 2022 ​ $ 3,093 ​ $ 2,194 ​ $ 863 ​ $ 45 ​ $ 3,492 ​ $ 9,923 ​ $ 1,921 ​ $ 21,531 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of January 1, 2022 ​ $ 2,158 ​ $ 1,377 ​ $ 685 ​ $ 34 ​ $ 2,005 ​ $ 2,575 ​ $ - ​ $ 8,834 Amortization expense ​ ​ 158 ​ ​ 93 ​ ​ 28 ​ ​ 2 ​ ​ 180 ​ ​ 799 ​ ​ - ​ ​ 1,260 Foreign currency translation ​ ​ (51) ​ ​ (23) ​ ​ (11) ​ ​ (1) ​ ​ (90) ​ ​ (45) ​ ​ - ​ ​ (221) Balance as of June 30, 2022 ​ $ 2,265 ​ $ 1,447 ​ $ 702 ​ $ 35 ​ $ 2,095 ​ $ 3,329 ​ $ - ​ $ 9,873 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net carrying values - June 30, 2022 ​ $ 828 ​ $ 747 ​ $ 161 ​ $ 10 ​ $ 1,397 ​ $ 6,594 ​ $ 1,921 ​ $ 11,658
Schedule of estimated amortization expense for intangible assets	As of June 30, 2022, estimated future amortization expense for intangible assets was as follows (in thousands): ​ ​ ​ ​ ​ Year Amortization 2022 ​ $ 627 2023 ​ $ 1,641 2024 ​ $ 1,540 2025 ​ $ 1,277 2026 ​ $ 437 Thereafter ​ $ 6,136 ​ ​ $ 11,658

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2022
Income Taxes
Schedule of effective income tax rate reconciliation	The reconciliations of the U.S. statutory rate with the Company’s effective tax rate for the six-month periods ended June 30, 2022 and 2021 are summarized in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months ​ ​ ​ Ended June 30, ​ ​ 2022 2021 ​ Federal income tax expense at statutory rate (21.0) % 21.0 % Effect of: ​ ​ ​ ​ Change in valuation allowance ​ 40.3 ​ 101.1 ​ Foreign operations permanent difference - foreign exchange gains and losses 2.1 ​ 9.1 ​ Return to provision true up ​ 2.0 ​ 3.2 ​ Tax effects of foreign operations ​ 1.2 ​ 35.4 ​ Increase (decrease) in unrecognized tax benefits (ASC 740) ​ 1.2 ​ (64.4) ​ State income tax net of federal benefit ​ 0.2 ​ 1.5 ​ Change in tax rates ​ - ​ 20.6 ​ Withholding tax ​ - ​ - ​ Effect of stock based compensation ​ (1.0) ​ (62.1) ​ Foreign rate differential ​ (6.3) ​ (19.6) ​ Other ​ (0.7) ​ 5.4 ​ Effective tax rate ​ 18.0 % 51.2 %
Schedule of unrecognized Tax Benefits	The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the six months ended June 30, 2022 (in thousands): ​ ​ ​ ​ ​ ​ Unrecognized ​ tax benefits Balance - January 1, 2022 ​ $ 1,753 Increase for current period tax positions ​ 58 Decrease for prior period tax positions ​ ​ (29) Interest accrual ​ 52 Foreign currency remeasurement ​ (100) Balance - June 30, 2022 ​ $ 1,734 ​

Stock Options and Restricted _2

Stock Options and Restricted Stock Units (Tables)	6 Months Ended
	Jun. 30, 2022
Schedule of stock option activity	A summary of option activity under the Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016 (the “2013 Plan”) and changes during each of the six-month periods ended June 30, 2022 and 2021 are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted - Weighted-Average ​ ​ ​ Number of Average Exercise Remaining Contractual ​ Aggregate ​ Options Price Term (years) Intrinsic Value Outstanding at January 1, 2021 5,906,884 ​ $ 1.61 ​ Granted 360,000 ​ 6.40 ​ Exercised (1,245,182) ​ 2.12 ​ Forfeited/Expired (20,000) ​ 1.38 ​ Outstanding at June 30, 2021 5,001,702 ​ $ 1.83 7.60 ​ $ 25,837,675 ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2021 3,425,983 ​ $ 1.62 ​ 7.12 ​ $ 18,426,406 ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2021 5,001,702 ​ $ 1.83 7.60 ​ $ 25,837,675 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Number of ​ Weighted - Average ​ Remaining Contractual ​ Aggregate ​ ​ Options ​ Exercise Price ​ Term (years) ​ Intrinsic Value Outstanding at January 1, 2022 ​ 5,536,896 ​ $ 2.66 ​ ​ ​ Granted 1,479,558 ​ 5.21 ​ Exercised (146,705) ​ 1.22 ​ Forfeited/Expired (36,000) ​ 5.13 ​ Outstanding at June 30, 2022 6,833,749 ​ $ 3.24 7.62 ​ $ 13,923,020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2022 3,578,045 ​ $ 1.81 6.40 ​ $ 11,195,079 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2022 6,833,749 ​ $ 3.24 7.62 ​ $ 13,923,020 ​ A summary of option activity under the Innodata Inc. 2021 Stock Plan and changes during the six-month period ended June 30, 2022 are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Number of ​ Weighted - Average ​ Remaining Contractual ​ Aggregate Intrinsic ​ ​ Options ​ Exercise Price ​ Term (years) ​ Value Outstanding at January 1, 2022 - ​ $ - ​ Granted 25,000 ​ 6.40 ​ Exercised - ​ - ​ Forfeited/Expired - ​ - ​ Outstanding at June 30, 2022 25,000 ​ $ 6.40 5.00 ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2022 - ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2022 25,000 ​ $ 6.40 5.00 ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of weighted average assumptions	The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average fair value of the options granted, and weighted-average assumptions were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended June 30, ​ 2022 2021 Weighted average fair value of options granted ​ $ 3.10 ​ $ 3.33 Risk-free interest rate ​ ​ 1.94%-2.75% ​ ​ 0.22%-0.82% Expected term (years) ​ ​ 3.0 - 6.42 ​ ​ 3 - 6 Expected volatility factor ​ ​ 62% - 76.48% ​ ​ 59.62% Expected dividends ​ ​ - ​ ​ -
Schedule of stock-based compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 Direct operating costs ​ $ 56 ​ $ 37 ​ $ 107 ​ $ 75 Selling and administrative expenses ​ 972 ​ 299 ​ 1,458 ​ 539 Total stock-based compensation ​ $ 1,028 ​ $ 336 ​ $ 1,565 ​ $ 614
Restricted Stock Units
Summary of restricted shares under the Company's Plan	​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Restricted Weighted-Average Grant ​ Stock Awards Date Fair Value Unvested at January 1, 2022 ​ 25,000 ​ $ 1.38 Granted - ​ - Vested (25,000) ​ 1.38 Forfeited/Expired - ​ - Unvested at June 30, 2022 - ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted-Average ​ ​ Restricted Stock ​ Grant Date ​ ​ Units ​ Fair Value Unvested at January 1, 2022 - $ - Granted* 700,000 ​ ​ 5.59 Vested - ​ - Forfeited/Expired - ​ ​ Unvested at June 30, 2022 700,000 ​ $ 5.59 ​ * 200,000 RSUs were issued under the 2013 Plan and 500,000 RSUs were issued under the 2021 Plan

Operating Leases (Tables)

Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Operating Leases
Schedule of operating lease expense recognized in financial statements	The table below summarizes the amounts recognized in the condensed consolidated financial statements related to operating leases for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 Rent expense for long-term operating leases ​ $ 337 ​ $ 388 ​ $ 713 ​ $ 776 Rent expense for short-term leases ​ 144 ​ 34 ​ ​ 261 ​ ​ 84 Total rent expense ​ $ 482 ​ $ 422 ​ $ 974 ​ $ 860 ​
Schedule of net present value of operating lease liability	The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of these amounts to the remaining net present value of the operating lease liability reported in the condensed consolidated balance sheet as of June 30, 2022 (in thousands): ​ ​ ​ ​ ​ Year Amount 2022 ​ $ 1,160 2023 ​ 865 2024 ​ 825 2025 ​ 840 2026 ​ 855 2027 and thereafter ​ 1,953 Total lease payments ​ 6,498 Less: Interest ​ (1,635) Net present value of lease liabilities ​ $ 4,863 ​ ​ ​ Current portion ​ $ 776 Long-term portion ​ 4,087 Total ​ $ 4,863 ​
Schedule of weighted average remaining lease terms and discount rates	The weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of June 30, 2022 were as follows: ​ ​ ​ ​ ​ Weighted-average lease term remaining 48 months ​ Weighted-average discount rate 8.68 %

Long-term obligations (Tables)

Long-term obligations (Tables)	6 Months Ended
	Jun. 30, 2022
Long-term obligations
Schedule of total long-term obligations	Total long-term obligations as of June 30, 2022 and December 31, 2021 consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2022 2021 Pension obligations - accrued pension liability ​ $ 6,547 ​ $ 6,839 Settlement agreement ​ 151 ​ 272 Microsoft licenses ​ - ​ 385 ​ ​ ​ 6,698 ​ ​ 7,496 Less: Current portion of long-term obligations ​ 700 ​ 1,279 Totals ​ $ 5,998 ​ $ 6,217

Comprehensive loss (Tables)

Comprehensive loss (Tables)	6 Months Ended
	Jun. 30, 2022
Comprehensive loss
Schedule of accumulated other comprehensive loss	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Liability ​ Fair Value of ​ Foreign Currency ​ Accumulated Other ​ Adjustment Derivatives Translation Adjustment Comprehensive Loss Balance at April 1, 2022 ​ $ (818) ​ $ (348) ​ $ (1,007) ​ $ (2,173) Other comprehensive loss before reclassifications, net of taxes ​ - ​ (744) ​ (600) ​ (1,344) Total other comprehensive loss before reclassifications, net of taxes ​ (818) ​ (1,092) ​ (1,607) ​ (3,517) Net amount reclassified to earnings ​ 38 ​ 203 ​ - ​ 241 Balance at June 30, 2022 ​ $ (780) ​ $ (889) ​ $ (1,607) ​ $ (3,276) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ ​ ​ Pension Liability ​ Fair Value of ​ Translation ​ Accumulated Other ​ ​ Adjustment ​ Derivatives ​ Adjustment ​ Comprehensive Loss Balance at January 1, 2022 ​ $ (858) ​ $ (353) ​ $ (981) ​ $ (2,192) Other comprehensive loss before reclassifications, net of taxes - ​ (822) ​ (626) ​ (1,448) Total other comprehensive loss before reclassifications, net of taxes (858) ​ (1,175) ​ (1,607) ​ (3,640) Net amount reclassified to earnings 78 ​ 286 ​ - ​ 364 Balance at June 30, 2022 ​ $ (780) ​ $ (889) ​ $ (1,607) ​ $ (3,276) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Liability ​ Fair Value of ​ Foreign Currency ​ Accumulated Other ​ Adjustment Derivatives Translation Adjustment Comprehensive Loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at April 1, 2021 ​ $ (433) ​ $ - ​ $ (515) ​ $ (948) Other comprehensive income (loss) before reclassifications, net of taxes ​ - ​ (301) ​ 135 ​ (166) Total other comprehensive loss before reclassifications, net of taxes ​ (433) ​ (301) ​ (380) ​ (1,114) Net amount reclassified to earnings ​ 11 ​ 34 ​ - ​ 45 Balance at June 30, 2021 ​ $ (422) ​ $ (267) ​ $ (380) ​ $ (1,069) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ ​ ​ ​ Pension Liability ​ Fair Value of ​ Translation ​ Accumulated Other ​ Adjustment Derivatives Adjustment Comprehensive Loss Balance at January 1, 2021 ​ $ (444) ​ $ - ​ $ (494) ​ $ (938) Other comprehensive income (loss) before reclassifications, net of taxes ​ ​ - ​ (301) ​ 114 ​ (187) Total other comprehensive loss before reclassifications, net of taxes ​ ​ (444) ​ (301) ​ (380) ​ (1,125) Net amount reclassified to earnings ​ ​ 22 ​ 34 ​ - ​ 56 Balance at June 30, 2021 ​ $ (422) ​ $ (267) ​ $ (380) ​ $ (1,069)

Segment reporting and concent_2

Segment reporting and concentrations (Tables)	6 Months Ended
	Jun. 30, 2022
Segment reporting and concentrations.
Schedule of Segment Reporting Information, by Segment	Revenues from external customers, segment operating profit (loss), and other reportable segment information are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2022 2021 2022 2021 Revenues: ​ ​ ​ ​ ​ DDS ​ $ 14,181 ​ $ 12,997 ​ $ 30,092 ​ $ 24,760 Synodex ​ 1,945 ​ 886 ​ 3,614 ​ 1,905 Agility ​ 3,861 ​ 3,166 ​ 7,473 ​ 6,351 Total Consolidated ​ $ 19,987 ​ $ 17,049 ​ $ 41,179 ​ $ 33,016 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (1) ​ ​ ​ ​ ​ ​ ​ ​ DDS ​ $ (72) ​ $ 1,726 ​ $ 1,381 ​ $ 2,379 Synodex ​ (831) ​ (329) ​ (1,819) ​ (221) Agility ​ (2,378) ​ (1,161) ​ (5,258) ​ (1,586) Total Consolidated ​ $ (3,281) ​ $ 236 ​ $ (5,696) ​ $ 572 ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (2) ​ ​ ​ ​ ​ ​ DDS ​ $ (250) ​ $ 1,646 ​ $ 1,046 ​ $ 2,230 Synodex ​ (680) ​ (278) ​ (1,540) ​ (126) Agility ​ (2,351) ​ (1,132) ​ (5,202) ​ (1,532) Total Consolidated ​ $ (3,281) ​ $ 236 ​ $ (5,696) ​ $ 572 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Total assets: ​ ​ DDS ​ $ 29,723 ​ $ 40,100 Synodex ​ 2,702 ​ 1,753 Agility ​ 17,498 ​ 17,364 Total Consolidated ​ $ 49,923 ​ $ 59,217 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Goodwill: ​ ​ Agility ​ $ 2,076 ​ $ 2,143 Total ​ $ 2,076 ​ $ 2,143 ​ (1) Before elimination of any inter-segment profits (2) After elimination of any inter-segment profits
Schedule of Revenue from External Customers and Long-Lived Assets	Revenues for the period ended June 30, 2022 and 2021 by geographic region (determined based upon customer’s domicile), were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 United States ​ $ 12,385 ​ $ 9,074 ​ $ 25,777 ​ $ 17,294 United Kingdom ​ 2,558 ​ 2,995 ​ 5,640 ​ 5,797 The Netherlands ​ 1,717 ​ 1,608 ​ 3,369 ​ 3,262 Canada ​ 1,439 ​ 1,492 ​ 2,816 ​ 3,087 Others - principally Europe ​ 1,888 ​ 1,880 ​ 3,577 ​ 3,576 Totals ​ $ 19,987 ​ $ 17,049 ​ $ 41,179 ​ $ 33,016 ​
Schedule of Revenue from External Customers based on Client domicile	Long-lived assets as of June 30, 2022 and December 31, 2021 by geographic region were comprised of (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2022 2021 United States ​ $ 6,042 ​ $ 4,578 ​ ​ ​ ​ ​ Foreign countries: ​ ​ ​ ​ Canada ​ 8,156 ​ 9,280 United Kingdom ​ 1,292 ​ 1,538 Philippines ​ 3,858 ​ 4,027 India ​ 1,522 ​ 1,481 Sri Lanka ​ 156 ​ 154 Israel ​ 2 ​ - Germany ​ ​ - ​ ​ - Total foreign ​ 14,986 ​ 16,480 Totals ​ $ 21,028 ​ $ 21,058 ​

Income (Loss) Per Share (Tables

Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2022
Income (Loss) Per Share.
Schedule of Earnings Per Share, Basic and Diluted	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 Net income (loss) attributable to Innodata Inc. and Subsidiaries ​ $ (3,833) ​ $ (103) ​ $ (6,648) ​ $ 295 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding ​ 27,226 ​ 26,522 ​ 27,192 ​ 26,199 Dilutive effect of outstanding options ​ - ​ - ​ - ​ 2,995 Adjusted for dilutive computation ​ 27,226 ​ 26,522 ​ 27,192 ​ 29,194

Derivatives (Tables)

Derivatives (Tables)	6 Months Ended
	Jun. 30, 2022
Derivatives
Schedule of fair value of derivative instruments	The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet Location ​ Fair Value ​ ​ 2022 2021 Derivatives designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts Accrued expenses ​ $ 889 ​ $ 353
Schedule of effects of foreign currency forward contracts designated as cash flow hedges	The effect of foreign currency forward contracts designated as cash flow hedges on the condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 Net gain (loss) recognized in OCI (1) ​ $ (744) ​ $ (301) ​ $ (822) ​ $ (301) Net (gain) loss reclassified from accumulated OCI into income (2) ​ $ 203 ​ $ 34 ​ $ 286 ​ $ 34 Net gain recognized in income (3) ​ ​ ​ ​ $ - ​ ​ ​ ​ $ - ​ (1) Net change in fair value of the effective portion classified into other comprehensive income (“OCI”) (2) Effective portion classified within direct operating costs. (3) There were no ineffective portions for the period presented.

Summary of Significant Accoun_3

Summary of Significant Accounting Estimates and Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Description of Business and Summary of Significant Accounting Policies [Line Items]
Amortization period	12 months		12 months
Foreign Currency Transaction Gain (Loss), before Tax	$ 747,000	$ 16,000	$ 1,166,000	$ 155,000
Outstanding foreign currency forward contracts	$ 2,300,000		$ 2,300,000		$ 4,500,000
Minimum | Computer software
Description of Business and Summary of Significant Accounting Policies [Line Items]
Property and equipment useful lives			3 years
Maximum | Computer software
Description of Business and Summary of Significant Accounting Policies [Line Items]
Property and equipment useful lives			10 years

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Carrying Amount of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill and Intangible Assets
Balance	$ 2,143
Foreign currency translation adjustment	(67)
Balance	$ 2,076

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Acquisition-Related Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Gross carrying amounts:
Balance		$ 19,181
Additions		2,770
Foreign currency translation		(420)
Balance	$ 21,531	21,531
Accumulated amortization:
Balance		8,834
Amortization expense		1,260
Foreign currency translation		(221)
Net carrying values	11,658	11,658	$ 10,347
Accumulated amortization	9,873	9,873	8,834
Balance	9,873	9,873
Goodwill	2,076	2,076	2,143
Developed technology
Gross carrying amounts:
Balance		3,169
Foreign currency translation		(76)
Balance	3,093	3,093
Accumulated amortization:
Balance		2,158
Amortization expense		158
Foreign currency translation		(51)
Net carrying values	828	828
Accumulated amortization	2,265	2,265	2,158
Balance	2,265	2,265
Customer relationships
Gross carrying amounts:
Balance		2,228
Foreign currency translation		(34)
Balance	2,194	2,194
Accumulated amortization:
Balance		1,377
Amortization expense		93
Foreign currency translation		(23)
Net carrying values	747	747
Accumulated amortization	1,447	1,447	1,377
Balance	1,447	1,447
Trademarks and trade names
Gross carrying amounts:
Balance		880
Foreign currency translation		(17)
Balance	863	863
Accumulated amortization:
Balance		685
Amortization expense		28
Foreign currency translation		(11)
Net carrying values	161	161
Accumulated amortization	702	702	685
Balance	702	702
Patents
Gross carrying amounts:
Balance		45
Balance	45	45
Accumulated amortization:
Balance		34
Amortization expense		2
Foreign currency translation		(1)
Net carrying values	10	10
Accumulated amortization	35	35	34
Balance	35	35
Media Contact Database
Gross carrying amounts:
Balance		3,648
Foreign currency translation		(156)
Balance	3,492	3,492
Accumulated amortization:
Balance		2,005
Amortization expense		180
Foreign currency translation		(90)
Net carrying values	1,397	1,397
Accumulated amortization	2,095	2,095	2,005
Balance	2,095	2,095
Developed software
Accumulated amortization:
Amortization expense	400	800
Capitalized Software Development Cost
Gross carrying amounts:
Balance		8,576
Transfers		1,475
Foreign currency translation		(128)
Balance	9,923	9,923
Accumulated amortization:
Balance		2,575
Amortization expense		799
Foreign currency translation		(45)
Net carrying values	6,594	6,594
Accumulated amortization	3,329	3,329	$ 2,575
Balance	3,329	3,329
Capitalized Software Development Cost - Work in Progress
Gross carrying amounts:
Balance		635
Additions		2,770
Transfers		(1,475)
Foreign currency translation		(9)
Balance	1,921	1,921
Accumulated amortization:
Net carrying values	$ 1,921	$ 1,921

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Goodwill and Intangible Assets
2022	$ 627
2023	1,641
2024	1,540
2025	1,277
2026	437
Thereafter	6,136
Finite-Lived Intangible Assets, Net	$ 11,658

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Goodwill and Intangible Assets
Amortization expense		$ 1,260
Developed software
Goodwill and Intangible Assets
Amortization expense	$ 400	800
Capitalized Software Development Cost
Goodwill and Intangible Assets
Amortization expense		799
Intangible Assets, Amortization Period
Goodwill and Intangible Assets
Amortization expense	$ 200	$ 500

Income Taxes - Tax Rate Reconci

Income Taxes - Tax Rate Reconciliation (Details)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Income Taxes
Federal income tax expense at statutory rate	(21.00%)	21%
Effect of:
Change in valuation allowance	40.30%	101.10%
Foreign operations permanent difference - foreign exchange gains and losses	2.10%	9.10%
Return to provision true up	2%	3.20%
Tax effects of foreign operations	1.20%	35.40%
Increase (decrease) in unrecognized tax benefits (ASC 740)	1.20%	(64.40%)
State income tax net of federal benefit	0.20%	1.50%
Change in tax rates		20.60%
Effect of stock-based compensation	(1.00%)	(62.10%)
Foreign rate differential	(6.30%)	(19.60%)
Other	(0.70%)	5.40%
Effective tax rate	18%	51.20%

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Income Taxes
Balance - January 1, 2022	$ 1,753
Increase for current period tax positions	58
Decrease for prior period tax positions	(29)
Interest accrual	52
Foreign currency remeasurement	(100)
Balance - June 30, 2022	$ 1,734

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	1 Months Ended
	Oct. 31, 2016	Sep. 30, 2015
Income Taxes [Line Items]
Subsidiary Revenue		$ 63,000,000
Reversal of Service Tax Refund	$ 160,000
Service Tax Credit Receivable	$ 1,000,000
Maximum
Income Taxes [Line Items]
Percentage for Subsidiary Service Tax		15%
Minimum
Income Taxes [Line Items]
Percentage for Subsidiary Service Tax		12.36%

Commitments and Contingencies (

Commitments and Contingencies (Details)	6 Months Ended
	Jun. 30, 2022 USD ($)
Commitments and Contingencies
Estimated litigation liability	$ 6,800,000
Interest rate description litigation	plus legal interest that accrued at 12% per annum from August 13, 2008 to June 30, 2013, and thereafter accrued and continues to accrue at 6% per annum
Litigation settlement expense	$ 350,000

Stock Options and Restricted _3

Stock Options and Restricted Stock Units - Summary of Stock Option Activity (Details) - Employee Stock Option - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options, Exercised (in shares)	(146,705)
Weighted Average Exercise Price Exercised (in dollars per shares)	$ 1.22
2013 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options, Outstanding - Beginning balance (in shares)	5,536,896	5,906,884
Number of Options, Granted (in shares)	1,479,558	360,000
Number of Options, Exercised (in shares)	(146,705)	(1,245,182)
Number of Options, Forfeited/Expired (in shares)	(36,000)	(20,000)
Number of Options, Outstanding - Ending balance (in shares)	6,833,749	5,001,702
Number of Options Exercisable (in shares)	3,578,045	3,425,983
Number of Options, Vested and Expected to Vest (in shares)	6,833,749	5,001,702
Weighted Average Exercise Price Outstanding (in dollars per shares)	$ 2.66	$ 1.61
Weighted Average Exercise Price Granted (in dollars per shares)	5.21	6.40
Weighted Average Exercise Price Exercised (in dollars per shares)	1.22	2.12
Weighted Average Exercise Price Forfeited/Expired (in dollars per shares)	5.13	1.38
Weighted Average Exercise Price Outstanding (in dollars per shares)	3.24	1.83
Weighted Average Exercise Price Exercisable (in dollars per shares)	1.81	1.62
Weighted Average Exercise Price Vested and Expected to Vest (in dollars per shares)	$ 3.24	$ 1.83
Weighted Average Remaining Contractual Term Outstanding (in years)	7 years 7 months 13 days	7 years 7 months 6 days
Weighted Average Remaining Contractual Term Exercisable (in years)	6 years 4 months 24 days	7 years 1 month 13 days
Weighted Average Remaining Contractual Term Vested and Expected to Vest (in years)	7 years 7 months 13 days	7 years 7 months 6 days
Aggregate Intrinsic Value, Outstanding	$ 13,923,020	$ 25,837,675
Aggregate Intrinsic Value, Exercisable	11,195,079	18,426,406
Aggregate Intrinsic Value, Vested and Expected to Vest	$ 13,923,020	$ 25,837,675
2021 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options, Granted (in shares)	25,000
Number of Options, Outstanding - Ending balance (in shares)	25,000
Number of Options, Vested and Expected to Vest (in shares)	25,000
Weighted Average Exercise Price Granted (in dollars per shares)	$ 6.40
Weighted Average Exercise Price Outstanding (in dollars per shares)	6.40
Weighted Average Exercise Price Vested and Expected to Vest (in dollars per shares)	$ 6.40
Weighted Average Remaining Contractual Term Outstanding (in years)	5 years
Weighted Average Remaining Contractual Term Vested and Expected to Vest (in years)	5 years

Stock Options and Restricted _4

Stock Options and Restricted Stock Units - Weighted Average Fair Values and Assumptions (Details) - $ / shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of options granted (in dollars per share)	$ 3.10	$ 3.33
Expected volatility factor		59.62%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.94%	0.22%
Expected life (years)	3 years	3 years
Expected volatility factor	62%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.75%	0.82%
Expected life (years)	6 years 5 months 1 day	6 years
Expected volatility factor	76.48%

Stock Options and Restricted _5

Stock Options and Restricted Stock Units - Summary of Restricted Shares (Details) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Restricted Stock | 2013 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Unvested at Beginning of the year		25,000
Number of Shares, Vested		(25,000)
Number of Shares, Forfeited/Expired		0
Weighted-Average Grant Date Fair Value, Outstanding		$ 1.38
Weighted-Average Grant Date Fair Value, Vested		1.38
Weighted-Average Grant Date Fair Value, Forfeited/Expired		0
Restricted Stock | Equity Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-Average Grant Date Fair Value, Outstanding	$ 5.59	$ 5.59
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	0	700,000
Number of RSUs issued	0	700,000
Restricted Stock Units | 2013 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted		200,000
Number of RSUs issued		200,000
Restricted Stock Units | Equity Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Unvested at Beginning of the year		0
Number of Shares, Granted		700,000
Number of Shares, Unvested at End of the year	700,000	700,000
Weighted-Average Grant Date Fair Value, Granted		$ 5.59
Number of RSUs issued		700,000
Performance Shares | 2021 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted		500,000
Number of RSUs issued		500,000

Stock Options and Restricted _6

Stock Options and Restricted Stock Units - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivatives, Fair Value [Line Items]
Total stock-based compensation			$ 1,565	$ 614
Equity Plans
Derivatives, Fair Value [Line Items]
Direct operating costs	$ 56	$ 37	107	75
Selling and administrative expenses	972	299	1,458	539
Total stock-based compensation	$ 1,028	$ 336	$ 1,565	$ 614

Stock Options and Restricted _7

Stock Options and Restricted Stock Units - Additional Information (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($) shares	Jun. 30, 2022 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost related to non-vested stock options and restricted stock awards not yet recognized | $	$ 7.1	$ 7.1
Weighted-average period over which compensation cost recognized		27 months
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	0	700,000
Compensation cost related to non-vested stock options and restricted stock awards not yet recognized | $	$ 3	$ 3
Weighted-average period over which compensation cost recognized		24 months
Number of shares eligible to receive for each fully vested RSU		1
2013 Stock Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted		200,000
2021 Stock Plan | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted		500,000
Equity Plans | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted		700,000

Operating Leases - Operating Le

Operating Leases - Operating Leases Amount Recognized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating Leases, Rent Expense	$ 482	$ 422	$ 974	$ 860
Long Term Operating Lease
Operating Leases, Rent Expense	337	388	713	776
Short Term Operating Lease
Operating Leases, Rent Expense	$ 144	$ 34	$ 261	$ 84

Operating Leases - Net Present

Operating Leases - Net Present Value of Operating Lease Liability (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Operating Leases
2022	$ 1,160
2023	865
2024	825
2025	840
2026	855
2027 and thereafter	1,953
Total lease payments	6,498
Less: Interest	(1,635)
Net present value of lease liabilities	4,863
Current portion	776	$ 1,034
Long- term portion	4,087	$ 5,276
Total	$ 4,863

Operating Leases - Weighted Ave

Operating Leases - Weighted Average Remaining Lease Terms (Details)	Jun. 30, 2022
Operating Leases
Weighted-average lease term remaining	48 months
Weighted-average discount rate	8.68%

Operating Leases - Additional I

Operating Leases - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022
Minimum
Lessee, Operating Lease, Term of Contract	2 years
Percentage of Rental Escalations	1.75%
Maximum
Lessee, Operating Lease, Term of Contract	11 years
Percentage of Rental Escalations	10%

Long-term obligations (Details)

Long-term obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Pension obligations
Pension obligations - accrued pension liability	$ 6,547	$ 6,839
Settlement agreement	151	272
Microsoft licenses		385
Long-term Debt	6,698	7,496
Less: Current portion of long-term obligations	700	1,279
Totals	$ 5,998	$ 6,217

Redemption of non-controlling_2

Redemption of non-controlling interest (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Redeemable Noncontrolling Interest [Line Items]
Non-controlling interests	$ (730)	$ (3,522)
Additional Paid-in Capital
Redeemable Noncontrolling Interest [Line Items]
Non-controlling interests	$ 2,900

Comprehensive loss - Reclassifi

Comprehensive loss - Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 24,778	$ 30,152	$ 29,927	$ 29,640
Balance	21,022	31,405	21,022	31,405
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(2,173)	(948)	(2,192)	(938)
Other comprehensive income (loss) before reclassifications, net of taxes	(1,344)	(166)	(1,448)	(187)
Total other comprehensive loss before reclassifications, net of taxes	(3,517)	(1,114)	(3,640)	(1,125)
Net amount reclassified to earnings	241	45	364	56
Balance	(3,276)	(1,069)	(3,276)	(1,069)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(818)	(433)	(858)	(444)
Total other comprehensive loss before reclassifications, net of taxes	(818)	(433)	(858)	(444)
Net amount reclassified to earnings	38	11	78	22
Balance	(780)	(422)	(780)	(422)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(348)		(353)
Other comprehensive income (loss) before reclassifications, net of taxes	(744)	(301)	(822)	(301)
Total other comprehensive loss before reclassifications, net of taxes	(1,092)	(301)	(1,175)	(301)
Net amount reclassified to earnings	203	34	286	34
Balance	(889)	(267)	(889)	(267)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(1,007)	(515)	(981)	(494)
Other comprehensive income (loss) before reclassifications, net of taxes	(600)	135	(626)	114
Total other comprehensive loss before reclassifications, net of taxes	(1,607)	(380)	(1,607)	(380)
Balance	$ (1,607)	$ (380)	$ (1,607)	$ (380)

Segment reporting and concent_3

Segment reporting and concentrations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Segment reporting information
Revenues	$ 19,987	$ 17,049	$ 41,179	$ 33,016
Income (loss) before provision for income taxes	(3,281)	236	(5,696)	572
Total assets	49,923		49,923		$ 59,217
Goodwill	2,076		2,076		2,143
Before Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	(3,281)	236	(5,696)	572
After Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	(3,281)	236	(5,696)	572
DDS [Member]
Segment reporting information
Revenues	14,181	12,997	30,092	24,760
Total assets	29,723		29,723		40,100
DDS [Member] | Before Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	(72)	1,726	1,381	2,379
DDS [Member] | After Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	(250)	1,646	1,046	2,230
Synodex [Member]
Segment reporting information
Revenues	1,945	886	3,614	1,905
Total assets	2,702		2,702		1,753
Synodex [Member] | Before Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	(831)	(329)	(1,819)	(221)
Synodex [Member] | After Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	(680)	(278)	(1,540)	(126)
Agility [Member]
Segment reporting information
Revenues	3,861	3,166	7,473	6,351
Total assets	17,498		17,498		17,364
Goodwill	2,076		2,076		$ 2,143
Agility [Member] | Before Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	(2,378)	(1,161)	(5,258)	(1,586)
Agility [Member] | After Intersegment Eliminations [Member]
Segment reporting information
Income (loss) before provision for income taxes	$ (2,351)	$ (1,132)	$ (5,202)	$ (1,532)

Segment reporting and concent_4

Segment reporting and concentrations - Revenues by geographic region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Revenues	$ 19,987	$ 17,049	$ 41,179	$ 33,016
US
Segment Reporting Information [Line Items]
Revenues	12,385	9,074	25,777	17,294
United Kingdom
Segment Reporting Information [Line Items]
Revenues	2,558	2,995	5,640	5,797
The Netherlands
Segment Reporting Information [Line Items]
Revenues	1,717	1,608	3,369	3,262
Canada
Segment Reporting Information [Line Items]
Revenues	1,439	1,492	2,816	3,087
Other - principally Europe
Segment Reporting Information [Line Items]
Revenues	$ 1,888	$ 1,880	$ 3,577	$ 3,576

Segment reporting and concent_5

Segment reporting and concentrations - Long-lived assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	$ 21,028	$ 21,058
US
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	6,042	4,578
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	8,156	9,280
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	1,292	1,538
Philippines
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	3,858	4,027
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	1,522	1,481
Sri Lanka
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	156	154
Israel
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	2
Total Foreign
Revenues from External Customers and Long-Lived Assets [Line Items]
Long - lived assets	$ 14,986	$ 16,480

Segment reporting and concent_6

Segment reporting and concentrations - Additional information (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($) client	Jun. 30, 2021	Jun. 30, 2022 USD ($) client segment	Jun. 30, 2021 client	Dec. 31, 2021 USD ($) client
Segment Reporting Information [Line Items]
Number of reportable segments | segment			3
Right-of-use-asset, net | $	$ 4,395		$ 4,395		$ 5,621
Classification of segment assets | $	$ 49,923		$ 49,923		$ 59,217
Foreign Customer [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk | Non-US
Segment Reporting Information [Line Items]
Concentration risk, percentage	38%	47%	38%	48%
Foreign Customer [Member] | Accounts receivable | Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage			33%		37%
One Client [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk | US
Segment Reporting Information [Line Items]
Number of clients			1
Concentration risk, percentage	13%		17%
One Client [Member] | Accounts receivable | Customer Concentration Risk
Segment Reporting Information [Line Items]
Number of clients					1
Concentration risk, percentage					19%
Another client [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk | US
Segment Reporting Information [Line Items]
Number of clients				2
Concentration risk, percentage	10%	11%		22%
Three Clients [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk | US
Segment Reporting Information [Line Items]
Concentration risk, percentage		11%
Three Clients [Member] | Accounts receivable | Customer Concentration Risk
Segment Reporting Information [Line Items]
Number of clients			3
Concentration risk, percentage			44%
Client [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk | US
Segment Reporting Information [Line Items]
Number of clients	0		0
Concentration risk, percentage	10%		10%
Client [Member] | Accounts receivable | Customer Concentration Risk
Segment Reporting Information [Line Items]
Number of clients			0		0
Concentration risk, percentage			10%		10%

Income (Loss) Per Share (Detail

Income (Loss) Per Share (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income (Loss) Per Share.
Net income (loss) attributable to Innodata Inc. and Subsidiaries	$ (3,833)	$ (103)	$ (6,648)	$ 295
Weighted average common shares outstanding	27,226	26,522	27,192	26,199
Dilutive effect of outstanding options				2,995
Adjusted for dilutive computation	27,226	26,522	27,192	29,194

Income (Loss) Per Share - Addit

Income (Loss) Per Share - Additional information (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount	6.9	5	6.9

Derivatives - Additional Inform

Derivatives - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Designated as Hedging Instrument
Derivative [Line Items]
Derivative notional amount	$ 19.9	$ 19.7

Derivatives - fair value of der

Derivatives - fair value of derivative instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accrued expenses | Foreign currency forward contracts | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivatives designated as hedging instruments	$ 889	$ 353

Derivatives - Contracts designa

Derivatives - Contracts designated as cash flow hedges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivatives
Net gain (loss) recognized in OCI	$ (744)	$ (301)	$ (822)	$ (301)
Net (gain) loss reclassified from accumulated OCI into income	$ 203	$ 34	$ 286	$ 34