Innodata (INOD) 10-Q 10 Aug 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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		28,298,701
Entity Central Index Key	0000903651
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 13,652	$ 9,792
Short term investments - other	14	507
Accounts receivable, net of allowance for doubtful accounts	8,359	9,528
Prepaid expenses and other current assets	3,839	3,858
Total current assets	25,864	23,685
Property and equipment, net	2,430	2,511
Right-of-use-asset, net	3,938	4,309
Other assets	2,229	1,498
Deferred income taxes, net	1,586	1,475
Intangibles, net	13,489	12,526
Goodwill	2,069	2,038
Total assets	51,605	48,042
Current liabilities:
Accounts payable	2,718	2,630
Accrued expenses and other	5,219	7,250
Accrued salaries, wages and related benefits	6,802	6,136
Income and withholding taxes	4,999	3,230
Long-term obligations - current portion	1,063	877
Operating lease liability - current portion	582	693
Total current liabilities	21,383	20,816
Deferred income taxes, net	17	65
Long-term obligations, net of current portion	6,450	5,079
Operating lease liability, net of current portion	3,828	4,036
Total liabilities	31,678	29,996
Commitments and contingencies
Non-controlling interests	(724)	(727)
STOCKHOLDERS' EQUITY:
Serial preferred stock; 4,998,000 shares authorized, none outstanding
Common stock, $.01 par value; 75,000,000 shares authorized; 31,483,000 shares issued and 28,299,000 outstanding at June 30, 2023 and 30,589,000 shares issued and 27,405,000 outstanding at December 31, 2022	315	306
Additional paid-in capital	39,966	35,815
Deficit	(11,706)	(8,775)
Accumulated other comprehensive loss	(1,459)	(2,108)
Stockholders' Equity before Treasury Stock, Total	27,116	25,238
Less: treasury stock, 3,184,000 shares at June 30, 2023 and December 31, 2022 at cost	(6,465)	(6,465)
Total stockholders' equity	20,651	18,773
Total liabilities, non-controlling interests and stockholders' equity	$ 51,605	$ 48,042

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
Serial preferred stock, shares authorized	4,998,000	4,998,000
Serial preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	31,483,000	30,589,000
Common stock, shares outstanding	28,299,000	27,405,000
Treasury stock, shares	3,184,000	3,184,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Revenues	$ 19,655	$ 19,987	$ 38,494	$ 41,179
Operating costs and expenses:
Direct operating costs	12,715	12,992	25,589	26,406
Selling and administrative expenses	7,574	10,277	15,371	20,467
Interest income, net	(7)	(1)	56	2
Total	20,282	23,268	41,016	46,875
Loss before provision for income taxes	(627)	(3,281)	(2,522)	(5,696)
Provision for income taxes	188	550	406	1,025
Consolidated net loss	(815)	(3,831)	(2,928)	(6,721)
Income attributable to non-controlling interests	0	2	3	(73)
Net loss attributable to Innodata Inc. and Subsidiaries	$ (815)	$ (3,833)	$ (2,931)	$ (6,648)
Loss per share attributable to Innodata Inc. and Subsidiaries:
Basic	$ (0.03)	$ (0.14)	$ (0.11)	$ (0.24)
Diluted	$ (0.03)	$ (0.14)	$ (0.11)	$ (0.24)
Weighted average shares outstanding:
Basic	27,860	27,226	27,661	27,192
Diluted	27,860	27,226	27,661	27,192
Other Comprehensive Loss:
Consolidated Net loss	$ (815)	$ (3,831)	$ (2,928)	$ (6,721)
Pension liability adjustment, net of taxes	(4)	38	(9)	78
Foreign currency translation adjustment	67	(600)	127	(626)
Change in fair value of derivatives, net of taxes	108	(541)	531	(536)
Other comprehensive income (loss)	171	(1,103)	649	(1,084)
Total Comprehensive loss	(644)	(4,934)	(2,279)	(7,805)
Less: Comprehensive income (loss) attributable to non-controlling interests	0	2	3	(73)
Comprehensive Loss attributable to Innodata Inc. and Subsidiaries	$ (644)	$ (4,936)	$ (2,282)	$ (7,732)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Consolidated net loss		$ (2,928)	$ (6,721)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:
Depreciation and amortization		2,242	1,824
Stock-based compensation		1,981	1,565
Deferred income taxes		(142)	167
Pension cost		538	303
Loss on lease termination		0	125
Changes in operating assets and liabilities:
Accounts receivable		1,270	274
Prepaid expenses and other current assets		634	(148)
Other assets		45	243
Accounts payable, accrued expenses and other		(1,856)	(1,647)
Accrued salaries, wages and related benefits		658	(35)
Income and withholding taxes	[1]	1,741	178
Net cash provided by (used in) operating activities		4,183	(3,872)
Cash flows from investing activities:
Capital expenditures		(3,012)	(3,638)
Proceeds from short term investments - other		493	0
Net cash used in investing activities		(2,519)	(3,638)
Cash flows from financing activities:
Proceeds from stock option exercises		2,179	180
Payment of long-term obligations		(192)	(477)
Net cash provided by (used in) financing activities		1,987	(297)
Effect of exchange rate changes on cash and cash equivalents		209	(614)
Net increase (decrease) in cash and cash equivalents		3,860	(8,421)
Cash and cash equivalents, beginning of period		9,792	18,902
Cash and cash equivalents, end of period		13,652	10,481
Supplemental disclosures of cash flow information:
Vendor financed software licenses acquired		1,162	0
Cash paid for income taxes		380	696
Cash paid for operating leases		799	974
Cash paid for interest		$ 132	$ 4
[1] includes withholding tax on stock option exercises of $1.5 million

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Withholding taxes on net settlement of stock-based compensation	$ 1.5

CONDENSED CONSOLIDATED STATEM_4

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 the beginning at Dec. 31, 2021	$ 303	$ 35,121	$ 3,160	$ (2,192)	$ (6,465)	$ 29,927
Balance at the beginning (in shares) at Dec. 31, 2021					(3,184,000)
Balance at the beginning (in shares) at Dec. 31, 2021	30,347,000
Net loss attributable to Innodata Inc. and subsidiaries			(2,815)			(2,815)
Stock-based compensation		537				537
Stock option exercises	$ 1	26				27
Stock option exercises (in shares)	23,000
Shares withheld for taxes on restricted shares vesting		(53)				(53)
Shares withheld for taxes on restricted shares vesting (in shares)	7,000
Redemption of non-controlling interest		(2,864)				(2,864)
Pension liability adjustment, net of taxes				40		40
Foreign currency translation adjustment				(26)		(26)
Change in fair value of derivatives, net of taxes				5		5
Balance at the end at Mar. 31, 2022	$ 304	32,767	345	(2,173)	$ (6,465)	24,778
Balance at the end (in shares) at Mar. 31, 2022					(3,184,000)
Balance at the end (in shares) at Mar. 31, 2022	30,363,000
Balance at the beginning at Dec. 31, 2021	$ 303	35,121	3,160	(2,192)	$ (6,465)	29,927
Balance at the beginning (in shares) at Dec. 31, 2021					(3,184,000)
Balance at the beginning (in shares) at Dec. 31, 2021	30,347,000
Pension liability adjustment, net of taxes						78
Foreign currency translation adjustment						(626)
Change in fair value of derivatives, net of taxes						(536)
Balance at the end at Jun. 30, 2022	$ 305	33,946	(3,488)	(3,276)	$ (6,465)	21,022
Balance at the end (in shares) at Jun. 30, 2022					(3,184,000)
Balance at the end (in shares) at Jun. 30, 2022	30,487,000
Balance at the beginning at Mar. 31, 2022	$ 304	32,767	345	(2,173)	$ (6,465)	24,778
Balance at the beginning (in shares) at Mar. 31, 2022					(3,184,000)
Balance at the beginning (in shares) at Mar. 31, 2022	30,363,000
Net loss attributable to Innodata Inc. and subsidiaries			(3,833)			(3,833)
Stock-based compensation		1,028				1,028
Stock option exercises	$ 1	152				153
Stock option exercises (in shares)	124,000
Redemption of non-controlling interest		(1)				(1)
Pension liability adjustment, net of taxes				38		38
Foreign currency translation adjustment				(600)		(600)
Change in fair value of derivatives, net of taxes				(541)		(541)
Balance at the end at Jun. 30, 2022	$ 305	33,946	(3,488)	(3,276)	$ (6,465)	21,022
Balance at the end (in shares) at Jun. 30, 2022					(3,184,000)
Balance at the end (in shares) at Jun. 30, 2022	30,487,000
Balance at the beginning at Dec. 31, 2022	$ 306	35,815	(8,775)	(2,108)	$ (6,465)	$ 18,773
Balance at the beginning (in shares) at Dec. 31, 2022					(3,184,000)	3,184,000
Balance at the beginning (in shares) at Dec. 31, 2022	30,589,000
Net loss attributable to Innodata Inc. and subsidiaries			(2,116)			$ (2,116)
Stock-based compensation		962				962
Stock option exercises	$ 1	320				321
Stock option exercises (in shares)	148,000
Shares withheld for exercise settlement and taxes (in shares)	(3,000)
Pension liability adjustment, net of taxes				(5)		(5)
Foreign currency translation adjustment				60		60
Change in fair value of derivatives, net of taxes				423		423
Balance at the end at Mar. 31, 2023	$ 307	37,097	(10,891)	(1,630)	$ (6,465)	18,418
Balance at the end (in shares) at Mar. 31, 2023					(3,184,000)
Balance at the end (in shares) at Mar. 31, 2023	30,734,000
Balance at the beginning at Dec. 31, 2022	$ 306	35,815	(8,775)	(2,108)	$ (6,465)	$ 18,773
Balance at the beginning (in shares) at Dec. 31, 2022					(3,184,000)	3,184,000
Balance at the beginning (in shares) at Dec. 31, 2022	30,589,000
Pension liability adjustment, net of taxes						$ (9)
Foreign currency translation adjustment						127
Change in fair value of derivatives, net of taxes						531
Balance at the end at Jun. 30, 2023	$ 315	39,966	(11,706)	(1,459)	$ (6,465)	$ 20,651
Balance at the end (in shares) at Jun. 30, 2023					(3,184,000)	3,184,000
Balance at the end (in shares) at Jun. 30, 2023	31,483,000
Balance at the beginning at Mar. 31, 2023	$ 307	37,097	(10,891)	(1,630)	$ (6,465)	$ 18,418
Balance at the beginning (in shares) at Mar. 31, 2023					(3,184,000)
Balance at the beginning (in shares) at Mar. 31, 2023	30,734,000
Net loss attributable to Innodata Inc. and subsidiaries			(815)			(815)
Stock-based compensation		1,019				1,019
Stock option exercises	$ 8	1,850				1,858
Stock option exercises (in shares)	749,000
Pension liability adjustment, net of taxes				(4)		(4)
Foreign currency translation adjustment				67		67
Change in fair value of derivatives, net of taxes				108		108
Balance at the end at Jun. 30, 2023	$ 315	$ 39,966	$ (11,706)	$ (1,459)	$ (6,465)	$ 20,651
Balance at the end (in shares) at Jun. 30, 2023					(3,184,000)	3,184,000
Balance at the end (in shares) at Jun. 30, 2023	31,483,000

Summary of Significant Accounti

Summary of Significant Accounting Policies and Estimates	6 Months Ended
	Jun. 30, 2023
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 - The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the consolidated financial position of Innodata Inc. (including its subsidiaries, the “Company”) as of June 30, 2023 and December 31, 2022, the results of its operations and comprehensive loss for the three and six months ended June 30, 2023 and 2022, cash flows for the six months ended June 30, 2023 and 2022, and stockholders’ equity for the three and six months ended June 30, 2023 and 2022. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. 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, 2022. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the notes to the consolidated financial statements for the year ended December 31, 2022. Principles of Consolidation - The condensed consolidated financial statements include the accounts of Innodata Inc. and its wholly owned subsidiaries, and docGenix, a limited liability company that is majority-owned by the Company. The non-controlling interest in the docGenix limited liability company has call and put options that can be settled in cash or stock. Accordingly, this is presented in temporary equity in accordance with the Financial Accounting Standards Board’s (the “FASB”) non-controlling interest guidance. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates - In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates and assumptions used in the preparation of the condensed consolidated financial statements are reasonable. Actual results could differ from those estimates. Significant estimates include those related to the allowance for doubtful accounts and billing adjustments, useful life of long-lived assets, useful life of intangible assets, impairment of goodwill and intangible assets, valuation of deferred tax assets, valuation of stock-based compensation, pension benefit plan assumptions, litigation accruals and estimated accruals for various tax exposures. Revenue Recognition - The Company’s revenue is recognized when services are rendered or goods are delivered to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those services or goods as per the agreement with the customer. In cases where there are agreements with multiple performance obligations, the Company identifies each performance obligation and evaluates whether the performance obligations are distinct within the context of the agreement at the agreement’s inception. Performance obligations that are not distinct at agreement inception are combined. For agreements with distinct performance obligations, the Company allocates the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation, if any, and then evaluates how the services are performed for the customer to determine the timing of 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 is 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. Revenue associated with the services provided in one period and billed in a subsequent period is commonly referred to as unbilled revenues and is included under Accounts receivable. 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. 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. Included in prepaid expenses and other current assets on the accompanying condensed consolidated balance sheets are contract acquisition costs amounting to $0.7 million and $0.8 million as of June 30, 2023 and December 31, 2022, respectively. These acquisition costs relate to our Agility segment and are amortized over the term of the subscription agreement which normally has a duration of 12 months or less. Foreign Currency Translation - The functional currency of the Company’s subsidiaries in the Philippines, India, Sri Lanka, Israel, Hong Kong, and Canada (other than the Agility subsidiary) is the U.S. dollar. Transactions denominated in Philippine pesos, Indian and Sri Lankan rupees, Israeli shekels, and Hong Kong and Canadian dollars are translated to U.S. dollars at rates which approximate those in effect on the transaction dates. Monetary assets and all liabilities denominated in foreign currencies on June 30, 2023 and December 31, 2022 are translated at the exchange rate in effect as of those dates. Non-monetary assets and stockholders’ equity are translated at the appropriate historical rates. Included in direct operating costs were foreign exchange losses (gains) resulting from such transactions of approximately $18,000 and ($747,000) for the three months ended June 30, 2023 and 2022, and $327,000 and ($1,166,000) for the six months ended June 30, 2023 and 2022, respectively. 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 their 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 loss. Derivative Instruments - The Company accounts for derivative transactions in accordance with the FASB’s Accounting Standards Codification (“ASC”) Topic 825, “Financial Instruments”. For derivative instruments that are designated and qualify as cash flow hedges, the entire change in fair value of the hedging instrument is recorded in Other comprehensive income (loss). When the amounts recorded in Other comprehensive income (loss) are reclassified to earnings, they are included as part of Direct operating costs. For derivative instruments that are not designated as hedges, any change in fair value is recorded directly in earnings as part of Direct operating costs. Capitalized Developed Software three Income Taxes - Estimated deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities, using enacted tax rates, as well as any net operating loss or tax credit carryforwards expected to reduce taxes payable in future years. A valuation allowance is provided when it is more likely than not that all or some portion of the estimated deferred tax assets will not be realized. While the Company considers future taxable income in assessing the need for the valuation allowance, in the event that the Company anticipates that it will be able to realize the estimated deferred tax assets in the future in excess of its net recorded amount, an adjustment to the provision for deferred tax assets would increase income in the period such determination was made. Similarly, in the event that the Company anticipates that it will not be able to realize the estimated deferred tax assets in the future considering future taxable income, an adjustment to the provision for deferred tax assets would decrease income in the period such determination was made. In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the United States, Canadian and European (principally Germany and the United Kingdom) deferred tax assets will not be realizable. As the expectation of future taxable income cannot be predicted with certainty, the Company maintains a valuation allowance against all the United States, Canadian and European (principally Germany and the United Kingdom) net deferred tax assets. Changes in the valuation allowance from period to period are included in the Company’s tax provision in the period of change. The Company indefinitely reinvests the foreign earnings in its foreign subsidiaries. If such earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, the Company would have to accrue as a liability the applicable amount of foreign jurisdiction withholding taxes associated with such remittances. 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 loss. Deferred Revenue - Deferred revenue represents advance billings made to customers where conditions for revenue recognition have not been met. These amounts are included in accrued expenses and other on the accompanying condensed consolidated balance sheets. We expect to recognize substantially all of these performance obligations over the next 12 months. The table below provides information about contract liabilities (deferred revenue) and the significant changes in the balance for the six months ended June 30, 2023 (in thousands): ​ ​ ​ ​ ​ ​ Amount Balance - December 31, 2022 ​ $ 4,366 Net deferred revenue in the period ​ 8,059 Revenue recognized ​ (9,500) Currency translations and other adjustments ​ 111 Balance - June 30, 2023 ​ $ 3,036 ​ ​ New Accounting Pronouncements -

Short Term Investments - other

Short Term Investments - other	6 Months Ended
	Jun. 30, 2023
Short Term Investments - other
Short Term Investments - other	2. Short Term Investments – other The Short-term investments include investments made by the Company in treasury bills and certificates of deposit which are considered as highly liquid investments having a maturity period of less than one year. ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2023 2022 Treasury bills ​ $ - ​ $ 494 Certificates of deposit ​ 14 ​ 13 Total ​ $ 14 ​ $ 507 ​

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2023
Accounts Receivable
Accounts Receivable	3. Accounts Receivable Accounts receivable consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 Gross Accounts receivable ​ $ 9,579 ​ $ 10,741 Allowance for doubtful accounts ​ (1,220) ​ (1,213) Accounts receivable, net ​ $ 8,359 ​ $ 9,528 ​ As of January 1, 2023, the Company has adopted ASU 2019-04 (Codification Improvements to Topic 326, Financial Instruments—Credit Losses), and based on its assessment there was no impact on the financial statements or other related disclosures. The basis of allowance for doubtful accounts remains similar to the earlier adopted estimation procedure which is further elaborated in the paragraph below. ​ We maintain an allowance for credit losses for estimated losses resulting from the failure of our customers to make the required payments and provisions for billing adjustments relating to quality issues on delivered services. The allowance for credit losses is based on a review of specifically identified accounts and an overall aging analysis applied to accounts pooled based on similar risk characteristics. Judgments are made with respect to the collectability of accounts receivable within each pool based on historical experience, current payment practices, and current economic trends based on our expectations over the expected life of the receivables, generally ninety days or less. Actual credit losses could differ from those estimates. Activity in the allowance for the credit losses for the three and six months ended June 30, 2023 was as follows (in thousands): ​ ​ ​ ​ ​ Amount Balance - January 1, 2023 ​ $ 1,213 Additions charged to expense ​ 180 Write-offs against allowance ​ (230) Foreign currency translation adjustment ​ 3 Balance - March 31, 2023 ​ $ 1,166 Additions charged to expense ​ ​ 152 Write-offs against allowance ​ ​ (101) Foreign currency translation adjustment ​ ​ 3 Balance - June 30, 2023 ​ $ 1,220 ​

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets
Goodwill and Intangible Assets	4. Goodwill and Intangible Assets The change in the carrying amount of goodwill for the six months ended June 30, 2023 was as follows (in thousands): ​ ​ ​ ​ ​ Balance - January 1, 2023 $ 2,038 Foreign currency translation adjustment ​ 31 Balance - June 30, 2023 ​ $ 2,069 ​ 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 using 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. The carrying value of Goodwill was $ 2.1 million as of June 30, 2023, and $ 2.0 million as of December 31, 2022. Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Currency ​ Net ​ ​ Carrying ​ Accumulated ​ Translation ​ Carrying ​ Value Amortization Adjustment Value Acquired Intangible Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Developed technology ​ $ 2,999 ​ $ (2,489) ​ $ 7 ​ $ 517 Customer relationships ​ 2,096 ​ (1,557) ​ 8 ​ 547 Trademarks and tradenames ​ 852 ​ (747) ​ 2 ​ 107 Patents ​ 43 ​ (38) ​ - ​ 5 Media Contact Database ​ ​ 3,492 ​ ​ (2,445) ​ ​ 17 ​ ​ 1,064 Total Acquired Intangible Assets ​ $ 9,482 ​ $ (7,276) ​ $ 34 ​ $ 2,240 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ $ 12,608 ​ $ (5,419) ​ $ 88 ​ $ 7,277 Capitalized Developed Software - in Progress ​ 3,979 ​ - ​ (7) ​ 3,972 Total Capitalized Developed Software ​ $ 16,587 ​ $ (5,419) ​ $ 81 ​ $ 11,249 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 26,069 ​ $ (12,695) ​ $ 115 ​ $ 13,489 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Currency ​ Net ​ Carrying Accumulated Translation ​ Carrying ​ Value Amortization Adjustment Value Acquired Intangible Assets ​ ​ ​ ​ Developed technology ​ $ 3,169 ​ $ (2,468) ​ $ (43) ​ $ 658 Customer relationships ​ ​ 2,228 ​ ​ (1,560) ​ ​ (42) ​ ​ 626 Trademarks and tradenames ​ ​ 880 ​ ​ (740) ​ ​ (8) ​ ​ 132 Patents ​ 45 ​ (38) ​ ​ 1 ​ ​ 8 Media Contact Database ​ ​ 3,648 ​ ​ (2,358) ​ ​ (68) ​ ​ 1,222 Total Acquired Intangible Assets ​ $ 9,970 ​ $ (7,164) ​ $ (160) ​ $ 2,646 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ $ 11,845 ​ $ (4,398) ​ $ (348) ​ $ 7,099 Capitalized Developed Software - in Progress ​ ​ 2,787 ​ ​ - ​ ​ (6) ​ ​ 2,781 Total Capitalized Developed Software ​ $ 14,632 ​ $ (4,398) ​ $ (354) ​ $ 9,880 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 24,602 ​ $ (11,562) ​ $ (514) ​ $ 12,526 ​ Amortization expense relating to acquired intangible assets was $ 0.2 million for each of the three-month periods ended June 30, 2023 and 2022. Amortization expense relating to acquired intangible assets was $ 0.4 million and $ 0.5 million for the six-month periods ended June 30, 2023 and 2022, respectively. Amortization expense relating to capitalized developed software was $0.6 million and $0.4 million for the three-month periods ended June 30, 2023 and 2022, respectively. Amortization expense relating to capitalized developed software was $1.2 million and $0.8 million for the six-month periods ended June 30, 2023 and 2022, respectively. As of June 30, 2023, estimated future amortization expense for intangible assets was as follows (in thousands): ​ ​ ​ ​ ​ Year Amortization 2023 ​ $ 3,049 2024 ​ ​ 4,378 2025 ​ ​ 3,451 2026 ​ ​ 940 2027 ​ ​ 460 Thereafter ​ ​ 1,211 ​ ​ $ 13,489 ​

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Taxes
Income Taxes	5. 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 United States, Canadian, German and the United Kingdom 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 months ended June 30, 2023 and 2022, respectively, are summarized in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months ​ ​ ​ Ended June 30, ​ ​ 2023 2022 ​ Federal income tax expense at statutory rate (21.0) % (21.0) % Effect of: ​ ​ ​ ​ Change in valuation allowance 51.3 ​ 40.3 ​ Foreign operations permanent difference - foreign exchange gains and losses ​ 4.7 ​ 2.1 ​ Tax effects of foreign operations ​ 3.8 ​ 1.2 ​ Increase in unrecognized tax benefits (ASC 740) ​ 2.6 ​ 1.2 ​ State income tax net of federal benefit ​ 0.4 ​ 0.2 ​ Return to provision true up ​ (0.6) ​ 2.0 ​ Foreign rate differential ​ (1.5) ​ (6.3) ​ Deemed interest ​ (7.1) ​ - ​ Effect of stock based compensation ​ (22.7) ​ (1.0) ​ Other ​ 6.2 ​ (0.7) ​ Effective tax rate ​ 16.1 % 18.0 % ​ The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the six months ended June 30, 2023 (in thousands): ​ ​ ​ ​ ​ ​ Unrecognized ​ tax benefits Balance - January 1, 2023 ​ $ 1,680 Increase for current period tax positions ​ 87 Decrease for prior period tax positions ​ ​ (68) Interest accrual ​ 46 Foreign currency remeasurement ​ 7 Balance - June 30, 2023 ​ $ 1,752 ​ The Company expects that unrecognized tax benefits as of June 30, 2023, 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 $57.0 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 $121,000 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 $0.8 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.

Operating Leases

Operating Leases	6 Months Ended
	Jun. 30, 2023
Operating Leases
Operating Leases	6. Operating Leases The Company has various lease agreements for its offices and service delivery centers. These lease agreements are for terms ranging from two Most of the lease agreements are renewable at the mutual consent of the parties to the contract. 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, ​ 2023 2022 2023 2022 Rent expense for long-term operating leases ​ $ 312 ​ $ 337 ​ $ 621 ​ $ 713 Rent expense for short-term operating leases ​ 83 ​ 144 ​ ​ 178 ​ ​ 261 Total rent expense ​ $ 395 ​ $ 481 ​ $ 799 ​ $ 974 ​ 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, 2023 (in thousands): ​ ​ ​ ​ ​ Year Amount 2023 ​ $ 513 2024 ​ 932 2025 ​ 956 2026 ​ 970 2027 ​ 926 2028 and thereafter ​ 1,553 Total lease payments ​ 5,850 Less: Interest ​ (1,440) Net present value of lease liabilities ​ $ 4,410 ​ ​ ​ Current portion ​ $ 582 Long-term portion ​ 3,828 Total ​ $ 4,410 ​ The weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of June 30, 2023 were as follows: ​ ​ ​ ​ ​ Weighted-average lease term remaining (in months) 47 ​ Weighted-average discount rate 9.13 % ​

Long-term obligations

Long-term obligations	6 Months Ended
	Jun. 30, 2023
Long-term obligations
Long-term obligations	7. Long-term obligations Total long-term obligations as of June 30, 2023 and December 31, 2022 consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2023 2022 Pension obligations - accrued pension liability ​ $ 6,431 ​ $ 5,906 Settlement agreement ​ - ​ 50 Microsoft licenses (1) ​ 1,082 ​ - ​ ​ ​ 7,513 ​ ​ 5,956 Less: Current portion of long-term obligations ​ 1,063 ​ 877 Totals ​ $ 6,450 ​ $ 5,079 ​ (1)

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies
Commitments and Contingencies	8. 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 $450,000 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, 2023
Stock Options and Restricted Stock Units
Stock Options and Restricted Stock Units	9. Stock Options and Restricted Stock Units The stock-based compensation expense related to the Company’s Equity Plans (as defined below) was allocated as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 2023 2022 Direct operating costs ​ $ 62 ​ $ 56 ​ $ 126 ​ $ 107 Selling and administrative expenses ​ 957 ​ 972 ​ 1,855 ​ 1,458 Total stock-based compensation ​ $ 1,019 ​ $ 1,028 ​ $ 1,981 ​ $ 1,565 ​ ​ Stock Options 2013 Plan 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, 2023 and 2022 are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted - Average ​ ​ ​ Number of Weighted - Average Remaining Contractual ​ Aggregate ​ Options Exercise Price Term (years) Intrinsic Value Outstanding at January 1, 2023 6,690,490 ​ $ 3.09 ​ Granted* 25,000 ​ 3.31 ​ Exercised (871,884) ​ 2.34 ​ Forfeited/Expired (75,766) ​ 6.96 ​ Outstanding at June 30, 2023 5,767,840 ​ $ 3.16 6.84 ​ $ 47,137,674 ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2023 3,600,261 ​ $ 1.91 ​ 5.73 ​ $ 33,897,858 ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2023 5,767,840 ​ $ 3.16 6.84 ​ $ 47,137,674 ​ *Granted to a non-employee member of the Company’s advisory board. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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) ​ 1.17 ​ 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 ​ *Includes 110,000 stock options granted to a non-employee director of the Company. 2021 Plan A summary of option activity under the Innodata Inc. 2021 Equity Compensation Plan, as amended and restated effective as of April 11, 2022 (the “2021 Plan”) and changes during each of the six-month periods ended June 30, 2023 and 2022 are presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted - Average ​ ​ ​ ​ Number of ​ Weighted - Average ​ Remaining Contractual ​ Aggregate ​ Options Exercise Price Term (years) Intrinsic Value Outstanding at January 1, 2023 1,027,500 ​ $ 3.46 ​ Granted - ​ - ​ Exercised (25,000) ​ 6.40 ​ Forfeited/Expired (42,000) ​ 3.41 ​ Outstanding at June 30, 2023 960,500 ​ $ 3.38 9.27 ​ $ 7,634,060 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2023 18,750 ​ $ 3.39 9.21 ​ $ 148,875 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2023 960,500 ​ $ 3.38 9.27 ​ $ 7,634,060 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted - Average ​ ​ ​ ​ Number of ​ Weighted - Average ​ Remaining Contractual ​ Aggregate ​ ​ Options ​ Exercise Price ​ Term (years) ​ Intrinsic 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 ​ $ - ​ *Granted to a non-employee member of the Company’s advisory board. During the six months ended June 30, 2023, a total of 896,884 options were exercised at an average price of $2.50. 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, ​ ​ 2023 2022 ​ Weighted average fair value of options granted ​ $ 1.79 ​ $ 3.10 ​ Risk-free interest rate ​ ​ 3.88 % ​ 1.94%-2.75 % Expected term (years) ​ ​ 3.0 ​ ​ 3.0-6.42 ​ Expected volatility factor ​ ​ 79.95 % ​ 62%-76.48 % Expected dividends ​ ​ - ​ ​ - ​ ​ The compensation cost related to non-vested stock options not yet recognized as of June 30, 2023 totaled approximately $5.4 million. The weighted-average period over which these costs will be recognized is 20 months. Restricted Stock Awards There were no outstanding awards of restricted stock under the 2013 Plan or the 2021 Plan (collectively, the “Equity Plans”) during each of the six-month periods ended June 30, 2023 and 2022. Restricted Stock Units Restricted stock unit activity under the Equity Plans during each of the six-month periods ended June 30, 2023 and 2022 are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted-Average ​ ​ Restricted Stock ​ Grant Date ​ Units Fair Value Unvested at January 1, 2023 ​ 700,000 ​ $ 5.59 Granted 28,804 ​ 8.29 Vested - ​ - Forfeited/Expired - ​ - Unvested at June 30, 2023 728,804 ​ $ 5.70 ​ For the six months ended June 30, 2023, a total of 28,804 restricted stock units (“RSUs”) were granted under the 2013 Plan. Vesting of the RSUs is contingent on continuous employment by the employee for a 12-month period from the date of grant. 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. The stock-based compensation expense is recognized on a straight-line basis over a period of 12 months. The fair value of restricted stock units is based on the closing price of the stock at the time of the grant. ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ For the six months ended June 30, 2022, 200,000 performance-based RSUs were granted under the 2013 Plan and 500,000 performance-based RSUs were granted under the 2021 plan. The 700,000 performance based RSUs remain outstanding and unvested at June 30, 2023. Vesting of the performance based RSUs is contingent on the achievement of certain financial performance goals and continuation of employment for a defined period. Each RSU vests pursuant to the vesting schedule found in the respective RSU agreement. The fair value of restricted stock units is estimated on the date of grant using the Binomial option pricing model. The compensation cost related to non-vested restricted stock units not yet recognized as of June 30, 2023 totaled approximately $3.0 million. The weighted-average period over which these costs will be recognized is 20 months.

Comprehensive loss

Comprehensive loss	6 Months Ended
	Jun. 30, 2023
Comprehensive loss
Comprehensive loss	10. 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, 2023 and 2022, and reclassifications from accumulated other comprehensive loss for the three and six months then ended, are presented below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ Pension Liability Fair Value of Translation Accumulated Other ​ Adjustment Derivatives Adjustment Comprehensive Loss Balance at April 1, 2023 ​ $ (91) ​ $ 58 ​ $ (1,597) ​ $ (1,630) Other comprehensive income before reclassifications, net of taxes ​ - ​ 2 ​ 67 ​ 69 Total other comprehensive income (loss) before reclassifications, net of taxes ​ (91) ​ 60 ​ (1,530) ​ (1,561) Net amount reclassified to earnings ​ (4) ​ 106 ​ - ​ 102 Balance at June 30, 2023 ​ $ (95) ​ $ 166 ​ $ (1,530) ​ $ (1,459) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ ​ Pension Liability Fair Value of Translation Accumulated Other ​ Adjustment Derivatives Adjustment Comprehensive Loss Balance at January 1, 2023 ​ $ (86) ​ $ (365) ​ $ (1,657) ​ $ (2,108) Other comprehensive income before reclassifications, net of taxes ​ - ​ 244 ​ 127 ​ 371 Total other comprehensive loss before reclassifications, net of taxes ​ (86) ​ (121) ​ (1,530) ​ (1,737) Net amount reclassified to earnings ​ (9) ​ 287 ​ - ​ 278 Balance at June 30, 2023 ​ $ (95) ​ $ 166 ​ $ (1,530) ​ $ (1,459) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ Pension Liability Fair Value of Translation Accumulated Other ​ Adjustment Derivatives 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) ​ Taxes related to each component of other comprehensive loss were not material for each of the three and six-month periods presented and therefore are not disclosed separately. All reclassifications from accumulated other comprehensive loss had an impact on direct operating costs in the condensed consolidated statements of operations and comprehensive loss.

Segment reporting and concentra

Segment reporting and concentrations	6 Months Ended
	Jun. 30, 2023
Segment reporting and concentrations
Segment reporting and concentrations	11 . 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 data preparation services, collecting or creating training data, annotating training data, and training AI algorithms for its customers, and AI model deployment and integration. The DDS segment also provides a range of data engineering support services including data transformation, data curation, data hygiene, data consolidation, data extraction, 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, ​ 2023 2022 2023 2022 Revenues: ​ ​ ​ ​ ​ DDS ​ $ 13,180 ​ $ 14,181 ​ $ 25,927 ​ $ 30,092 Synodex ​ 2,112 ​ 1,945 ​ 3,976 ​ 3,614 Agility ​ 4,363 ​ 3,861 ​ 8,591 ​ 7,473 Total Consolidated ​ $ 19,655 ​ $ 19,987 ​ $ 38,494 ​ $ 41,179 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (1) ​ ​ ​ ​ ​ ​ ​ ​ DDS ​ $ (216) ​ $ (72) ​ $ (497) ​ $ 1,381 Synodex ​ (22) ​ (831) ​ (133) ​ (1,819) Agility ​ (389) ​ (2,378) ​ (1,892) ​ (5,258) Total Consolidated ​ $ (627) ​ $ (3,281) ​ $ (2,522) ​ $ (5,696) ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (2) ​ ​ ​ ​ ​ ​ ​ ​ DDS ​ $ (368) ​ $ (250) ​ $ (792) ​ $ 1,046 Synodex ​ 121 ​ (680) ​ 135 ​ (1,540) Agility ​ (380) ​ (2,351) ​ (1,865) ​ (5,202) Total Consolidated ​ $ (627) ​ $ (3,281) ​ $ (2,522) ​ $ (5,696) ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 December 31, 2022 Total assets: ​ ​ DDS ​ $ 29,012 ​ $ 25,758 Synodex ​ 3,438 ​ 3,270 Agility ​ 19,155 ​ 19,014 Total Consolidated ​ $ 51,605 ​ $ 48,042 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 December 31, 2022 Goodwill: ​ ​ Agility ​ $ 2,069 ​ $ 2,038 Total ​ $ 2,069 ​ $ 2,038 ​ (1) Before elimination of any inter-segment profits (2) After elimination of any inter-segment profits The table below shows intersegment revenues which are eliminated in consolidation (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, For the Six Months Ended June 30, ​ 2023 2022 2023 2022 Revenues of DDS Segment from: ​ ​ ​ ​ Synodex $ 488 ​ $ 487 ​ $ 935 ​ $ 943 Agility ​ 31 ​ 38 ​ 63 ​ 72 Totals $ 519 ​ $ 525 ​ $ 998 ​ $ 1,015 ​ Revenues for the three and six-month periods ended June 30, 2023 and 2022 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, ​ 2023 2022 2023 2022 United States ​ $ 10,960 ​ $ 12,385 ​ $ 22,196 ​ $ 25,777 United Kingdom ​ 2,898 ​ 2,558 ​ 5,453 ​ 5,640 Canada ​ 2,193 ​ 1,439 ​ 3,805 ​ 2,816 The Netherlands ​ 1,762 ​ 1,717 ​ 3,485 ​ 3,369 Others - principally Europe ​ 1,842 ​ 1,888 ​ 3,555 ​ 3,577 Totals ​ $ 19,655 ​ $ 19,987 ​ $ 38,494 ​ $ 41,179 ​ Long lived assets by geographic region Long-lived assets as of June 30, 2023 and December 31, 2022 by geographic region were comprised of (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2023 2022 United States ​ $ 8,422 ​ $ 7,205 ​ ​ ​ ​ ​ Foreign countries: ​ ​ ​ ​ Canada ​ 7,612 ​ 7,675 Philippines ​ 3,550 ​ 3,682 United Kingdom ​ 1,136 ​ 1,198 India ​ 788 ​ 1,195 Sri Lanka ​ 416 ​ 426 Israel ​ 2 ​ 3 Total foreign ​ 13,504 ​ 14,179 Totals ​ $ 21,926 ​ $ 21,384 ​ Long-lived assets include the unamortized balance of right-of-use assets amounting to $3.9 million and $4.3 million as of June 30, 2023 and December 31, 2022, respectively. One customer in the DDS segment generated approximately 10% of the Company’s total revenues for each of the three- month periods ended June 30, 2023 and 2022. Another customer in the DDS segment generated approximately 13% of the Company’s total revenues for the three months ended June 30, 2022. No other customer accounted for 10% or more of total revenues during these periods. Further, for the three months ended June 30, 2023 and 2022, revenues from non-U.S. customers accounted for 44% and 38% , respectively, of the Company’s total revenues. Two customers in the DDS segment generated approximately 10.7% and 10.6% , respectively, of the Company’s total revenues for the six months ended June 30, 2023. Another customer in the DDS segment generated approximately 17% of the Company’s total revenues for the six months ended June 30, 2022. No other customer accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. customers accounted for 42% and 38% of the Company’s total revenues for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, approximately 49% of the Company’s accounts receivable was due from foreign (principally European) customers and 25% of the Company’s accounts receivable was due from two customers. As of December 31, 2022, approximately 44% of the Company’s accounts receivable was due from foreign (principally European) customers and 45% of the Company’s accounts receivable was due from four customers. No other customer accounted for 10% or more of the accounts receivable as of June 30, 2023 and December 31, 2022 .

Loss Per Share

Loss Per Share	6 Months Ended
	Jun. 30, 2023
Loss Per Share
Loss Per Share	12. Loss Per Share ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 2023 2022 Net loss attributable to Innodata Inc. and Subsidiaries ​ $ 815 ​ $ 3,833 ​ $ 2,931 ​ $ 6,648 Weighted average common shares outstanding ​ 27,860 ​ 27,226 ​ 27,661 ​ 27,192 Dilutive effect of outstanding options ​ - ​ - ​ - ​ - Adjusted for dilutive computation ​ 27,860 ​ 27,226 ​ 27,661 ​ 27,192 ​ 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 6.7 million shares of common stock for each of the three and six-month periods ended June 30, 2023 and 2022, were outstanding but not included in the computation of diluted loss per share because the effect would have been anti-dilutive.

Derivatives

Derivatives	6 Months Ended
	Jun. 30, 2023
Derivatives
Derivatives	13. Derivatives The Company conducts a large portion of its operations in international markets, which subjects 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 of 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) is reclassified to earnings and included as part of Direct operating costs. For derivative instruments that are not designated as hedges, any change in fair value is recorded directly in earnings 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 $10.9 million and $14.2 million as of June 30, 2023 and December 31, 2022, respectively. The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet Location ​ Fair Value ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2023 2022 Derivatives designated as hedging instruments: ​ ​ Foreign currency forward contracts Prepaid expenses and other current assets ​ $ 166 ​ $ - Foreign currency forward contracts Accrued expenses and other ​ $ - ​ $ 365 ​ 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, 2023 and 2022 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ June 30, ​ June 30, ​ 2023 2022 2023 2022 Net gain (loss) recognized in OCI (1) ​ $ 2 ​ $ (744) ​ $ 244 ​ $ (822) Net loss reclassified from accumulated OCI into income (2) ​ $ 106 ​ $ 203 ​ $ 287 ​ $ 286 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.

Line of Credit

Line of Credit	6 Months Ended
	Jun. 30, 2023
Line of Credit
Line of Credit	14. Line of Credit On April 4, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as lender, and Innodata Inc., Innodata Synodex, LLC, Innodata docGenix, LLC and Agility PR Solutions LLC as co-borrowers. The Credit Agreement provides for a secured revolving line of credit (the “Revolving Credit Facility”) up to an amount equal to the lesser of the borrowing base and $10.0 million with a maturity date of April 4, 2026. The Revolving Credit Facility’s borrowing base is calculated in accordance with the terms of the Credit Agreement and on the basis of 85% of eligible accounts, 85% of eligible foreign accounts up to $2.0 million and certain other reserves and adjustments. As of June 30, 2023, such borrowing base calculation equaled approximately $2.9 million. The Credit Agreement contains a financial covenant that will require the Borrowers, on a consolidated basis, to maintain a fixed charge coverage ratio of not less than 1.10 to 1.00 by December 31, 2023. Except as set forth in the Credit Agreement, borrowings under the Revolving Credit Facility bear interest at a rate equal to the daily simple secured overnight financing rate (“SOFR”) plus 2.25%. The Company did not utilize the Revolving Credit Facility during the three-month period ended June 30, 2023 and through the date of filing of this Report. ​

Summary of Significant Accoun_2

Summary of Significant Accounting Policies and Estimates (Policies)	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies and Estimates
Basis of Presentation	Basis of Presentation - The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the consolidated financial position of Innodata Inc. (including its subsidiaries, the “Company”) as of June 30, 2023 and December 31, 2022, the results of its operations and comprehensive loss for the three and six months ended June 30, 2023 and 2022, cash flows for the six months ended June 30, 2023 and 2022, and stockholders’ equity for the three and six months ended June 30, 2023 and 2022. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. 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, 2022. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the notes to the consolidated financial statements for the year ended December 31, 2022.
Principles of Consolidation	Principles of Consolidation - The condensed consolidated financial statements include the accounts of Innodata Inc. and its wholly owned subsidiaries, and docGenix, a limited liability company that is majority-owned by the Company. The non-controlling interest in the docGenix limited liability company has call and put options that can be settled in cash or stock. Accordingly, this is presented in temporary equity in accordance with the Financial Accounting Standards Board’s (the “FASB”) non-controlling interest guidance. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates - In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates and assumptions used in the preparation of the condensed consolidated financial statements are reasonable. Actual results could differ from those estimates. Significant estimates include those related to the allowance for doubtful accounts and billing adjustments, useful life of long-lived assets, useful life of intangible assets, impairment of goodwill and intangible assets, valuation of deferred tax assets, valuation of stock-based compensation, pension benefit plan assumptions, litigation accruals and estimated accruals for various tax exposures.
Revenue Recognition	Revenue Recognition - The Company’s revenue is recognized when services are rendered or goods are delivered to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those services or goods as per the agreement with the customer. In cases where there are agreements with multiple performance obligations, the Company identifies each performance obligation and evaluates whether the performance obligations are distinct within the context of the agreement at the agreement’s inception. Performance obligations that are not distinct at agreement inception are combined. For agreements with distinct performance obligations, the Company allocates the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation, if any, and then evaluates how the services are performed for the customer to determine the timing of 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 is 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. Revenue associated with the services provided in one period and billed in a subsequent period is commonly referred to as unbilled revenues and is included under Accounts receivable. 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. 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. Included in prepaid expenses and other current assets on the accompanying condensed consolidated balance sheets are contract acquisition costs amounting to $0.7 million and $0.8 million as of June 30, 2023 and December 31, 2022, respectively. These acquisition costs relate to our Agility segment and are amortized over the term of the subscription agreement which normally has a duration of 12 months or less.
Foreign Currency Translation	Foreign Currency Translation - The functional currency of the Company’s subsidiaries in the Philippines, India, Sri Lanka, Israel, Hong Kong, and Canada (other than the Agility subsidiary) is the U.S. dollar. Transactions denominated in Philippine pesos, Indian and Sri Lankan rupees, Israeli shekels, and Hong Kong and Canadian dollars are translated to U.S. dollars at rates which approximate those in effect on the transaction dates. Monetary assets and all liabilities denominated in foreign currencies on June 30, 2023 and December 31, 2022 are translated at the exchange rate in effect as of those dates. Non-monetary assets and stockholders’ equity are translated at the appropriate historical rates. Included in direct operating costs were foreign exchange losses (gains) resulting from such transactions of approximately $18,000 and ($747,000) for the three months ended June 30, 2023 and 2022, and $327,000 and ($1,166,000) for the six months ended June 30, 2023 and 2022, respectively. 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 their 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 loss.
Derivative Instruments	Derivative Instruments - The Company accounts for derivative transactions in accordance with the FASB’s Accounting Standards Codification (“ASC”) Topic 825, “Financial Instruments”. For derivative instruments that are designated and qualify as cash flow hedges, the entire change in fair value of the hedging instrument is recorded in Other comprehensive income (loss). When the amounts recorded in Other comprehensive income (loss) are reclassified to earnings, they are included as part of Direct operating costs. For derivative instruments that are not designated as hedges, any change in fair value is recorded directly in earnings as part of Direct operating costs.
Capitalized Developed Software	Capitalized Developed Software three
Income Taxes	Income Taxes - Estimated deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities, using enacted tax rates, as well as any net operating loss or tax credit carryforwards expected to reduce taxes payable in future years. A valuation allowance is provided when it is more likely than not that all or some portion of the estimated deferred tax assets will not be realized. While the Company considers future taxable income in assessing the need for the valuation allowance, in the event that the Company anticipates that it will be able to realize the estimated deferred tax assets in the future in excess of its net recorded amount, an adjustment to the provision for deferred tax assets would increase income in the period such determination was made. Similarly, in the event that the Company anticipates that it will not be able to realize the estimated deferred tax assets in the future considering future taxable income, an adjustment to the provision for deferred tax assets would decrease income in the period such determination was made. In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the United States, Canadian and European (principally Germany and the United Kingdom) deferred tax assets will not be realizable. As the expectation of future taxable income cannot be predicted with certainty, the Company maintains a valuation allowance against all the United States, Canadian and European (principally Germany and the United Kingdom) net deferred tax assets. Changes in the valuation allowance from period to period are included in the Company’s tax provision in the period of change. The Company indefinitely reinvests the foreign earnings in its foreign subsidiaries. If such earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, the Company would have to accrue as a liability the applicable amount of foreign jurisdiction withholding taxes associated with such remittances. 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 loss.
Deferred Revenue	Deferred Revenue - Deferred revenue represents advance billings made to customers where conditions for revenue recognition have not been met. These amounts are included in accrued expenses and other on the accompanying condensed consolidated balance sheets. We expect to recognize substantially all of these performance obligations over the next 12 months. The table below provides information about contract liabilities (deferred revenue) and the significant changes in the balance for the six months ended June 30, 2023 (in thousands): ​ ​ ​ ​ ​ ​ Amount Balance - December 31, 2022 ​ $ 4,366 Net deferred revenue in the period ​ 8,059 Revenue recognized ​ (9,500) Currency translations and other adjustments ​ 111 Balance - June 30, 2023 ​ $ 3,036
New Accounting Pronouncements	New Accounting Pronouncements -

Summary of Significant Accoun_3

Summary of Significant Accounting Policies and Estimates (Tables)	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies and Estimates
Schedule of information about contract liabilities (deferred revenue)	​ ​ ​ ​ ​ ​ Amount Balance - December 31, 2022 ​ $ 4,366 Net deferred revenue in the period ​ 8,059 Revenue recognized ​ (9,500) Currency translations and other adjustments ​ 111 Balance - June 30, 2023 ​ $ 3,036

Short Term Investments - other

Short Term Investments - other (Tables)	6 Months Ended
	Jun. 30, 2023
Short Term Investments - other
Schedule of other short term investments	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2023 2022 Treasury bills ​ $ - ​ $ 494 Certificates of deposit ​ 14 ​ 13 Total ​ $ 14 ​ $ 507

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2023
Accounts Receivable
Schedule of accounts receivable	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 Gross Accounts receivable ​ $ 9,579 ​ $ 10,741 Allowance for doubtful accounts ​ (1,220) ​ (1,213) Accounts receivable, net ​ $ 8,359 ​ $ 9,528
Schedule of allowance for credit losses	Activity in the allowance for the credit losses for the three and six months ended June 30, 2023 was as follows (in thousands): ​ ​ ​ ​ ​ Amount Balance - January 1, 2023 ​ $ 1,213 Additions charged to expense ​ 180 Write-offs against allowance ​ (230) Foreign currency translation adjustment ​ 3 Balance - March 31, 2023 ​ $ 1,166 Additions charged to expense ​ ​ 152 Write-offs against allowance ​ ​ (101) Foreign currency translation adjustment ​ ​ 3 Balance - June 30, 2023 ​ $ 1,220

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2023
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, 2023 was as follows (in thousands): ​ ​ ​ ​ ​ Balance - January 1, 2023 $ 2,038 Foreign currency translation adjustment ​ 31 Balance - June 30, 2023 ​ $ 2,069
Schedule of company's acquisition-related intangible assets and capitalized developed software	Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Currency ​ Net ​ ​ Carrying ​ Accumulated ​ Translation ​ Carrying ​ Value Amortization Adjustment Value Acquired Intangible Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Developed technology ​ $ 2,999 ​ $ (2,489) ​ $ 7 ​ $ 517 Customer relationships ​ 2,096 ​ (1,557) ​ 8 ​ 547 Trademarks and tradenames ​ 852 ​ (747) ​ 2 ​ 107 Patents ​ 43 ​ (38) ​ - ​ 5 Media Contact Database ​ ​ 3,492 ​ ​ (2,445) ​ ​ 17 ​ ​ 1,064 Total Acquired Intangible Assets ​ $ 9,482 ​ $ (7,276) ​ $ 34 ​ $ 2,240 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ $ 12,608 ​ $ (5,419) ​ $ 88 ​ $ 7,277 Capitalized Developed Software - in Progress ​ 3,979 ​ - ​ (7) ​ 3,972 Total Capitalized Developed Software ​ $ 16,587 ​ $ (5,419) ​ $ 81 ​ $ 11,249 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 26,069 ​ $ (12,695) ​ $ 115 ​ $ 13,489 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Currency ​ Net ​ Carrying Accumulated Translation ​ Carrying ​ Value Amortization Adjustment Value Acquired Intangible Assets ​ ​ ​ ​ Developed technology ​ $ 3,169 ​ $ (2,468) ​ $ (43) ​ $ 658 Customer relationships ​ ​ 2,228 ​ ​ (1,560) ​ ​ (42) ​ ​ 626 Trademarks and tradenames ​ ​ 880 ​ ​ (740) ​ ​ (8) ​ ​ 132 Patents ​ 45 ​ (38) ​ ​ 1 ​ ​ 8 Media Contact Database ​ ​ 3,648 ​ ​ (2,358) ​ ​ (68) ​ ​ 1,222 Total Acquired Intangible Assets ​ $ 9,970 ​ $ (7,164) ​ $ (160) ​ $ 2,646 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ $ 11,845 ​ $ (4,398) ​ $ (348) ​ $ 7,099 Capitalized Developed Software - in Progress ​ ​ 2,787 ​ ​ - ​ ​ (6) ​ ​ 2,781 Total Capitalized Developed Software ​ $ 14,632 ​ $ (4,398) ​ $ (354) ​ $ 9,880 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 24,602 ​ $ (11,562) ​ $ (514) ​ $ 12,526
Schedule of estimated amortization expense for intangible assets	As of June 30, 2023, estimated future amortization expense for intangible assets was as follows (in thousands): ​ ​ ​ ​ ​ Year Amortization 2023 ​ $ 3,049 2024 ​ ​ 4,378 2025 ​ ​ 3,451 2026 ​ ​ 940 2027 ​ ​ 460 Thereafter ​ ​ 1,211 ​ ​ $ 13,489

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2023
Income Taxes
Schedule of effective income tax rate reconciliation	​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months ​ ​ ​ Ended June 30, ​ ​ 2023 2022 ​ Federal income tax expense at statutory rate (21.0) % (21.0) % Effect of: ​ ​ ​ ​ Change in valuation allowance 51.3 ​ 40.3 ​ Foreign operations permanent difference - foreign exchange gains and losses ​ 4.7 ​ 2.1 ​ Tax effects of foreign operations ​ 3.8 ​ 1.2 ​ Increase in unrecognized tax benefits (ASC 740) ​ 2.6 ​ 1.2 ​ State income tax net of federal benefit ​ 0.4 ​ 0.2 ​ Return to provision true up ​ (0.6) ​ 2.0 ​ Foreign rate differential ​ (1.5) ​ (6.3) ​ Deemed interest ​ (7.1) ​ - ​ Effect of stock based compensation ​ (22.7) ​ (1.0) ​ Other ​ 6.2 ​ (0.7) ​ Effective tax rate ​ 16.1 % 18.0 %
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, 2023 (in thousands): ​ ​ ​ ​ ​ ​ Unrecognized ​ tax benefits Balance - January 1, 2023 ​ $ 1,680 Increase for current period tax positions ​ 87 Decrease for prior period tax positions ​ ​ (68) Interest accrual ​ 46 Foreign currency remeasurement ​ 7 Balance - June 30, 2023 ​ $ 1,752 ​

Operating Leases (Tables)

Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2023
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, ​ 2023 2022 2023 2022 Rent expense for long-term operating leases ​ $ 312 ​ $ 337 ​ $ 621 ​ $ 713 Rent expense for short-term operating leases ​ 83 ​ 144 ​ ​ 178 ​ ​ 261 Total rent expense ​ $ 395 ​ $ 481 ​ $ 799 ​ $ 974 ​
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, 2023 (in thousands): ​ ​ ​ ​ ​ Year Amount 2023 ​ $ 513 2024 ​ 932 2025 ​ 956 2026 ​ 970 2027 ​ 926 2028 and thereafter ​ 1,553 Total lease payments ​ 5,850 Less: Interest ​ (1,440) Net present value of lease liabilities ​ $ 4,410 ​ ​ ​ Current portion ​ $ 582 Long-term portion ​ 3,828 Total ​ $ 4,410 ​
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, 2023 were as follows: ​ ​ ​ ​ ​ Weighted-average lease term remaining (in months) 47 ​ Weighted-average discount rate 9.13 %

Long-term obligations (Tables)

Long-term obligations (Tables)	6 Months Ended
	Jun. 30, 2023
Long-term obligations
Schedule of total long-term obligations	Total long-term obligations as of June 30, 2023 and December 31, 2022 consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2023 2022 Pension obligations - accrued pension liability ​ $ 6,431 ​ $ 5,906 Settlement agreement ​ - ​ 50 Microsoft licenses (1) ​ 1,082 ​ - ​ ​ ​ 7,513 ​ ​ 5,956 Less: Current portion of long-term obligations ​ 1,063 ​ 877 Totals ​ $ 6,450 ​ $ 5,079 ​ (1)

Stock Options and Restricted _2

Stock Options and Restricted Stock Units (Tables)	6 Months Ended
	Jun. 30, 2023
Stock Options and Restricted Stock Units
Schedule of stock-based compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 2023 2022 Direct operating costs ​ $ 62 ​ $ 56 ​ $ 126 ​ $ 107 Selling and administrative expenses ​ 957 ​ 972 ​ 1,855 ​ 1,458 Total stock-based compensation ​ $ 1,019 ​ $ 1,028 ​ $ 1,981 ​ $ 1,565
Schedule of weighted average assumptions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended June 30, ​ ​ 2023 2022 ​ Weighted average fair value of options granted ​ $ 1.79 ​ $ 3.10 ​ Risk-free interest rate ​ ​ 3.88 % ​ 1.94%-2.75 % Expected term (years) ​ ​ 3.0 ​ ​ 3.0-6.42 ​ Expected volatility factor ​ ​ 79.95 % ​ 62%-76.48 % Expected dividends ​ ​ - ​ ​ - ​
Equity Plans
Stock Options and Restricted Stock Units
Schedule of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted - Average ​ ​ ​ Number of Weighted - Average Remaining Contractual ​ Aggregate ​ Options Exercise Price Term (years) Intrinsic Value Outstanding at January 1, 2023 6,690,490 ​ $ 3.09 ​ Granted* 25,000 ​ 3.31 ​ Exercised (871,884) ​ 2.34 ​ Forfeited/Expired (75,766) ​ 6.96 ​ Outstanding at June 30, 2023 5,767,840 ​ $ 3.16 6.84 ​ $ 47,137,674 ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2023 3,600,261 ​ $ 1.91 ​ 5.73 ​ $ 33,897,858 ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2023 5,767,840 ​ $ 3.16 6.84 ​ $ 47,137,674 ​ *Granted to a non-employee member of the Company’s advisory board. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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) ​ 1.17 ​ 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 ​ *Includes 110,000 stock options granted to a non-employee director of the Company. 2021 Plan A summary of option activity under the Innodata Inc. 2021 Equity Compensation Plan, as amended and restated effective as of April 11, 2022 (the “2021 Plan”) and changes during each of the six-month periods ended June 30, 2023 and 2022 are presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted - Average ​ ​ ​ ​ Number of ​ Weighted - Average ​ Remaining Contractual ​ Aggregate ​ Options Exercise Price Term (years) Intrinsic Value Outstanding at January 1, 2023 1,027,500 ​ $ 3.46 ​ Granted - ​ - ​ Exercised (25,000) ​ 6.40 ​ Forfeited/Expired (42,000) ​ 3.41 ​ Outstanding at June 30, 2023 960,500 ​ $ 3.38 9.27 ​ $ 7,634,060 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2023 18,750 ​ $ 3.39 9.21 ​ $ 148,875 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2023 960,500 ​ $ 3.38 9.27 ​ $ 7,634,060 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted - Average ​ ​ ​ ​ Number of ​ Weighted - Average ​ Remaining Contractual ​ Aggregate ​ ​ Options ​ Exercise Price ​ Term (years) ​ Intrinsic 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 ​ $ - ​ *Granted to a non-employee member of the Company’s advisory board.
Restricted Stock Units
Stock Options and Restricted Stock Units
Summary of restricted stock under the company's plan	​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted-Average ​ ​ Restricted Stock ​ Grant Date ​ Units Fair Value Unvested at January 1, 2023 ​ 700,000 ​ $ 5.59 Granted 28,804 ​ 8.29 Vested - ​ - Forfeited/Expired - ​ - Unvested at June 30, 2023 728,804 ​ $ 5.70 ​ For the six months ended June 30, 2023, a total of 28,804 restricted stock units (“RSUs”) were granted under the 2013 Plan. Vesting of the RSUs is contingent on continuous employment by the employee for a 12-month period from the date of grant. 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. The stock-based compensation expense is recognized on a straight-line basis over a period of 12 months. The fair value of restricted stock units is based on the closing price of the stock at the time of the grant. ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ For the six months ended June 30, 2022, 200,000 performance-based RSUs were granted under the 2013 Plan and 500,000 performance-based RSUs were granted under the 2021 plan. The 700,000 performance based RSUs remain outstanding and unvested at June 30, 2023. Vesting of the performance based RSUs is contingent on the achievement of certain financial performance goals and continuation of employment for a defined period. Each RSU vests pursuant to the vesting schedule found in the respective RSU agreement. The fair value of restricted stock units is estimated on the date of grant using the Binomial option pricing model.

Comprehensive loss (Tables)

Comprehensive loss (Tables)	6 Months Ended
	Jun. 30, 2023
Comprehensive loss
Schedule of components of accumulated other comprehensive loss and reclassifications from accumulated other comprehensive loss	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ Pension Liability Fair Value of Translation Accumulated Other ​ Adjustment Derivatives Adjustment Comprehensive Loss Balance at April 1, 2023 ​ $ (91) ​ $ 58 ​ $ (1,597) ​ $ (1,630) Other comprehensive income before reclassifications, net of taxes ​ - ​ 2 ​ 67 ​ 69 Total other comprehensive income (loss) before reclassifications, net of taxes ​ (91) ​ 60 ​ (1,530) ​ (1,561) Net amount reclassified to earnings ​ (4) ​ 106 ​ - ​ 102 Balance at June 30, 2023 ​ $ (95) ​ $ 166 ​ $ (1,530) ​ $ (1,459) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ ​ Pension Liability Fair Value of Translation Accumulated Other ​ Adjustment Derivatives Adjustment Comprehensive Loss Balance at January 1, 2023 ​ $ (86) ​ $ (365) ​ $ (1,657) ​ $ (2,108) Other comprehensive income before reclassifications, net of taxes ​ - ​ 244 ​ 127 ​ 371 Total other comprehensive loss before reclassifications, net of taxes ​ (86) ​ (121) ​ (1,530) ​ (1,737) Net amount reclassified to earnings ​ (9) ​ 287 ​ - ​ 278 Balance at June 30, 2023 ​ $ (95) ​ $ 166 ​ $ (1,530) ​ $ (1,459) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ Pension Liability Fair Value of Translation Accumulated Other ​ Adjustment Derivatives 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)

Segment reporting and concent_2

Segment reporting and concentrations (Tables)	6 Months Ended
	Jun. 30, 2023
Segment reporting and concentrations
Schedule of segment reporting information, by segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2023 2022 2023 2022 Revenues: ​ ​ ​ ​ ​ DDS ​ $ 13,180 ​ $ 14,181 ​ $ 25,927 ​ $ 30,092 Synodex ​ 2,112 ​ 1,945 ​ 3,976 ​ 3,614 Agility ​ 4,363 ​ 3,861 ​ 8,591 ​ 7,473 Total Consolidated ​ $ 19,655 ​ $ 19,987 ​ $ 38,494 ​ $ 41,179 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (1) ​ ​ ​ ​ ​ ​ ​ ​ DDS ​ $ (216) ​ $ (72) ​ $ (497) ​ $ 1,381 Synodex ​ (22) ​ (831) ​ (133) ​ (1,819) Agility ​ (389) ​ (2,378) ​ (1,892) ​ (5,258) Total Consolidated ​ $ (627) ​ $ (3,281) ​ $ (2,522) ​ $ (5,696) ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (2) ​ ​ ​ ​ ​ ​ ​ ​ DDS ​ $ (368) ​ $ (250) ​ $ (792) ​ $ 1,046 Synodex ​ 121 ​ (680) ​ 135 ​ (1,540) Agility ​ (380) ​ (2,351) ​ (1,865) ​ (5,202) Total Consolidated ​ $ (627) ​ $ (3,281) ​ $ (2,522) ​ $ (5,696) ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 December 31, 2022 Total assets: ​ ​ DDS ​ $ 29,012 ​ $ 25,758 Synodex ​ 3,438 ​ 3,270 Agility ​ 19,155 ​ 19,014 Total Consolidated ​ $ 51,605 ​ $ 48,042 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 December 31, 2022 Goodwill: ​ ​ Agility ​ $ 2,069 ​ $ 2,038 Total ​ $ 2,069 ​ $ 2,038 ​ (1) Before elimination of any inter-segment profits (2) After elimination of any inter-segment profits ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, For the Six Months Ended June 30, ​ 2023 2022 2023 2022 Revenues of DDS Segment from: ​ ​ ​ ​ Synodex $ 488 ​ $ 487 ​ $ 935 ​ $ 943 Agility ​ 31 ​ 38 ​ 63 ​ 72 Totals $ 519 ​ $ 525 ​ $ 998 ​ $ 1,015
Schedule of revenue from external customers and long-lived assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2023 2022 2023 2022 United States ​ $ 10,960 ​ $ 12,385 ​ $ 22,196 ​ $ 25,777 United Kingdom ​ 2,898 ​ 2,558 ​ 5,453 ​ 5,640 Canada ​ 2,193 ​ 1,439 ​ 3,805 ​ 2,816 The Netherlands ​ 1,762 ​ 1,717 ​ 3,485 ​ 3,369 Others - principally Europe ​ 1,842 ​ 1,888 ​ 3,555 ​ 3,577 Totals ​ $ 19,655 ​ $ 19,987 ​ $ 38,494 ​ $ 41,179
Schedule of revenue from external customers based on client domicile	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2023 2022 United States ​ $ 8,422 ​ $ 7,205 ​ ​ ​ ​ ​ Foreign countries: ​ ​ ​ ​ Canada ​ 7,612 ​ 7,675 Philippines ​ 3,550 ​ 3,682 United Kingdom ​ 1,136 ​ 1,198 India ​ 788 ​ 1,195 Sri Lanka ​ 416 ​ 426 Israel ​ 2 ​ 3 Total foreign ​ 13,504 ​ 14,179 Totals ​ $ 21,926 ​ $ 21,384

Loss Per Share (Tables)

Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
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, ​ 2023 2022 2023 2022 Net loss attributable to Innodata Inc. and Subsidiaries ​ $ 815 ​ $ 3,833 ​ $ 2,931 ​ $ 6,648 Weighted average common shares outstanding ​ 27,860 ​ 27,226 ​ 27,661 ​ 27,192 Dilutive effect of outstanding options ​ - ​ - ​ - ​ - Adjusted for dilutive computation ​ 27,860 ​ 27,226 ​ 27,661 ​ 27,192

Derivatives (Tables)

Derivatives (Tables)	6 Months Ended
	Jun. 30, 2023
Derivatives
Schedule of fair value of derivative instruments included within the condensed consolidated balance sheets	The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet Location ​ Fair Value ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2023 2022 Derivatives designated as hedging instruments: ​ ​ Foreign currency forward contracts Prepaid expenses and other current assets ​ $ 166 ​ $ - Foreign currency forward contracts Accrued expenses and other ​ $ - ​ $ 365
Schedule of effect of foreign currency forward contracts designated as cash flow hedges on the condensed consolidated statements of operations	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, 2023 and 2022 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ June 30, ​ June 30, ​ 2023 2022 2023 2022 Net gain (loss) recognized in OCI (1) ​ $ 2 ​ $ (744) ​ $ 244 ​ $ (822) Net loss reclassified from accumulated OCI into income (2) ​ $ 106 ​ $ 203 ​ $ 287 ​ $ 286 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_4

Summary of Significant Accounting Policies and Estimates (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Summary of Significant Accounting Policies and Estimates
Amortization period	12 months		12 months
Foreign currency transaction gain (loss), before tax	$ 18,000	$ (747,000)	$ 327,000	$ (1,166,000)
Prepaid expenses and other current assets on contract acquisition costs	$ 700		$ 700		$ 800
Minimum | Capitalized software development
Summary of Significant Accounting Policies and Estimates
Estimated useful life of intangibles	3 years		3 years
Maximum | Capitalized software development
Summary of Significant Accounting Policies and Estimates
Estimated useful life of intangibles	10 years		10 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies and Estimates - Deferred revenue (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Summary of Significant Accounting Policies and Estimates
Balance - December 31, 2022	$ 4,366
Net deferred revenue in the period	8,059
Revenue recognized	(9,500)
Currency translations and other adjustments	111
Balance - June 30, 2023	$ 3,036

Short Term Investments - othe_2

Short Term Investments - other (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Short Term Investments - other
Treasury bills		$ 494
Certificates of deposit	$ 14	13
Total	$ 14	$ 507

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts Receivable
Gross Accounts receivable	$ 9,579		$ 10,741
Allowance for doubtful accounts	(1,220)	$ (1,166)	(1,213)
Accounts receivable, net	$ 8,359		$ 9,528

Accounts Receivable - Activity

Accounts Receivable - Activity in the allowance for the credit losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023
Accounts Receivable
Balance at the beginning	$ 1,166	$ 1,213
Additions charged to expense	152	180
Write-offs against allowance	(101)	(230)
Foreign currency translation adjustment	3	3
Balance at the end	$ 1,220	$ 1,166

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Capitalized Developed software
Goodwill and Intangible Assets
Amortization expense	$ 0.6	$ 0.4	$ 1.2	$ 0.8
Acquired Intangible Assets
Goodwill and Intangible Assets
Amortization expense	$ 0.2	$ 0.2	$ 0.4	$ 0.5

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Carrying amount of goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill and Intangible Assets
Balance - January 1, 2023	$ 2,038
Foreign currency translation adjustment	31
Balance - June 30, 2023	2,069
Goodwill	$ 2,069

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Acquisition-related intangible assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets
Gross Carrying Value	$ 26,069	$ 24,602
Accumulated Amortization	(12,695)	(11,562)
Foreign Currency Translation Adjustment	115	(514)
Net Carrying Value	13,489	12,526
Acquired Intangible Assets
Goodwill and Intangible Assets
Gross Carrying Value	9,482	9,970
Accumulated Amortization	(7,276)	(7,164)
Foreign Currency Translation Adjustment	34	(160)
Net Carrying Value	2,240	2,646
Developed technology
Goodwill and Intangible Assets
Gross Carrying Value	2,999	3,169
Accumulated Amortization	(2,489)	(2,468)
Foreign Currency Translation Adjustment	7	(43)
Net Carrying Value	517	658
Customer relationships
Goodwill and Intangible Assets
Gross Carrying Value	2,096	2,228
Accumulated Amortization	(1,557)	(1,560)
Foreign Currency Translation Adjustment	8	(42)
Net Carrying Value	547	626
Trademarks and tradenames
Goodwill and Intangible Assets
Gross Carrying Value	852	880
Accumulated Amortization	(747)	(740)
Foreign Currency Translation Adjustment	2	(8)
Net Carrying Value	107	132
Patents
Goodwill and Intangible Assets
Gross Carrying Value	43	45
Accumulated Amortization	(38)	(38)
Foreign Currency Translation Adjustment		1
Net Carrying Value	5	8
Media Contact Database
Goodwill and Intangible Assets
Gross Carrying Value	3,492	3,648
Accumulated Amortization	(2,445)	(2,358)
Foreign Currency Translation Adjustment	17	(68)
Net Carrying Value	1,064	1,222
Capitalized Developed software
Goodwill and Intangible Assets
Gross Carrying Value	16,587	14,632
Accumulated Amortization	(5,419)	(4,398)
Foreign Currency Translation Adjustment	81	(354)
Net Carrying Value	11,249	9,880
Capitalized Developed Software
Goodwill and Intangible Assets
Gross Carrying Value	12,608	11,845
Accumulated Amortization	(5,419)	(4,398)
Foreign Currency Translation Adjustment	88	(348)
Net Carrying Value	7,277	7,099
Capitalized Developed Software - in Progress
Goodwill and Intangible Assets
Gross Carrying Value	3,979	2,787
Foreign Currency Translation Adjustment	(7)	(6)
Net Carrying Value	$ 3,972	$ 2,781

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Estimated amortization expense (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets
2023	$ 3,049
2024	4,378
2025	3,451
2026	940
2027	460
Thereafter	1,211
Net Carrying Value	$ 13,489	$ 12,526

Income Taxes (Details)

Income Taxes (Details) - USD ($)	1 Months Ended
	Oct. 31, 2016	Sep. 30, 2015
Income Taxes
Subsidiary revenue		$ 57,000,000
Reversal of service tax refund	$ 121,000
Service tax credit receivable	$ 800,000
Maximum
Income Taxes
Percentage for subsidiary service tax		15%
Minimum
Income Taxes
Percentage for subsidiary service tax		12.36%

Income Taxes - Tax rate reconci

Income Taxes - Tax rate reconciliation (Details)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Income Taxes
Federal income tax expense at statutory rate	(21.00%)	(21.00%)
Effect of:
Change in valuation allowance	51.30%	40.30%
Foreign operations permanent difference - foreign exchange gains and losses	4.70%	2.10%
Tax effects of foreign operations	3.80%	1.20%
Increase in unrecognized tax benefits (ASC 740)	2.60%	1.20%
State income tax net of federal benefit	0.40%	0.20%
Return to provision true up	(0.60%)	2%
Foreign rate differential	(1.50%)	(6.30%)
Deemed interest	(7.10%)
Effect of stock based compensation	(22.70%)	(1.00%)
Other	6.20%	(0.70%)
Effective tax rate	16.10%	18%

Income Taxes - Unrecognized tax

Income Taxes - Unrecognized tax benefits (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Income Taxes
Balance at the beginning	$ 1,680
Increase for current period tax positions	87
Decrease for prior period tax positions	(68)
Interest accrual	46
Foreign currency remeasurement	7
Balance at the end	$ 1,752

Operating Leases (Details)

Operating Leases (Details)	6 Months Ended
	Jun. 30, 2023
Minimum
Operating Leases
Lease agreements term	2 years
Percentage of rental escalations	1.75%
Maximum
Operating Leases
Lease agreements term	11 years
Percentage of rental escalations	10%

Operating Leases - Financial st

Operating Leases - Financial statements related to operating leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating Leases
Total rent expense	$ 395	$ 481	$ 799	$ 974
Long-term operating leases
Operating Leases
Total rent expense	312	337	621	713
Short-term operating leases
Operating Leases
Total rent expense	$ 83	$ 144	$ 178	$ 261

Operating Leases - Net present

Operating Leases - Net present value of the operating lease liability (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Operating Leases
2023	$ 513
2024	932
2025	956
2026	970
2027	926
2028 and thereafter	1,553
Total lease payments	5,850
Less: Interest	(1,440)
Net present value of lease liabilities	4,410
Current portion	582	$ 693
Long-term portion	3,828	$ 4,036
Total	$ 4,410

Operating Leases - Weighted ave

Operating Leases - Weighted average remaining lease terms (Details)	Jun. 30, 2023
Operating Leases
Weighted-average lease term remaining (in months)	47 months
Weighted-average discount rate	9.13%

Long-term obligations (Details)

Long-term obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Long-term obligations
Pension obligations - accrued pension liability	$ 6,431	$ 5,906
Settlement agreement		50
Microsoft licenses	1,082
Total long-term obligations	7,513	5,956
Less: Current portion of long-term obligations	1,063	877
Totals	6,450	$ 5,079
Microsoft licenses, Amount payable annually over the term of the agreement	$ 400

Commitments and Contingencies (

Commitments and Contingencies (Details)	6 Months Ended
	Jun. 30, 2023 USD ($)
Commitments and Contingencies
Estimated litigation liability	$ 5,900,000
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	$ 450,000

Stock Options and Restricted _3

Stock Options and Restricted Stock Units - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivatives, Fair Value
Total stock-based compensation			$ 1,981	$ 1,565
Equity Plans
Derivatives, Fair Value
Direct operating costs	$ 62	$ 56	126	107
Selling and administrative expenses	957	972	1,855	1,458
Total stock-based compensation	$ 1,019	$ 1,028	$ 1,981	$ 1,565

Stock Options and Restricted _4

Stock Options and Restricted Stock Units - Summary of Stock Option Activity (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
2013 Stock Plan
Stock Options and Restricted Stock Units
Stock options vesting period	12 months
Employee stock option
Stock Options and Restricted Stock Units
Number of Options, Exercised (in shares)	(896,884)
Weighted Average Exercise Price Exercised (in dollars per shares)	$ 2.50
Employee stock option | 2013 Stock Plan
Stock Options and Restricted Stock Units
Number of Options, Outstanding - Beginning balance (in shares)	6,690,490	5,536,896
Number of options, Granted (in shares)	25,000	1,479,558
Number of Options, Exercised (in shares)	(871,884)	(146,705)
Number of Options, Forfeited/Expired (in shares)	(75,766)	(36,000)
Number of Options, Outstanding - Ending balance (in shares)	5,767,840	6,833,749
Number of Options Exercisable (in shares)	3,600,261	3,578,045
Number of Options, Vested and Expected to Vest (in shares)	5,767,840	6,833,749
Weighted Average Exercise Price Outstanding beginning balance (in dollars per shares)	$ 3.09	$ 2.66
Weighted Average Exercise Price Granted (in dollars per shares)	3.31	5.21
Weighted Average Exercise Price Exercised (in dollars per shares)	2.34	1.17
Weighted Average Exercise Price Forfeited/Expired (in dollars per shares)	6.96	5.13
Weighted Average Exercise Price Outstanding Ending balance (in dollars per shares)	3.16	3.24
Weighted Average Exercise Price Exercisable (in dollars per shares)	1.91	1.81
Weighted Average Exercise Price Vested and Expected to Vest (in dollars per shares)	$ 3.16	$ 3.24
Weighted Average Remaining Contractual Term Outstanding (in years)	6 years 10 months 2 days	7 years 7 months 13 days
Weighted Average Remaining Contractual Term Exercisable (in years)	5 years 8 months 23 days	6 years 4 months 24 days
Weighted Average Remaining Contractual Term Vested and Expected to Vest (in years)	6 years 10 months 2 days	7 years 7 months 13 days
Aggregate Intrinsic Value, Outstanding	$ 47,137,674	$ 13,923,020
Aggregate Intrinsic Value, Exercisable	33,897,858	11,195,079
Aggregate Intrinsic Value, Vested and Expected to Vest	$ 47,137,674	$ 13,923,020
Employee stock option | 2021 Stock Plan
Stock Options and Restricted Stock Units
Number of Options, Outstanding - Beginning balance (in shares)	1,027,500
Number of options, Granted (in shares)		25,000
Number of Options, Exercised (in shares)	(25,000)
Number of Options, Forfeited/Expired (in shares)	(42,000)
Number of Options, Outstanding - Ending balance (in shares)	960,500	25,000
Number of Options Exercisable (in shares)	18,750
Number of Options, Vested and Expected to Vest (in shares)	960,500	25,000
Weighted Average Exercise Price Outstanding beginning balance (in dollars per shares)	$ 3.46
Weighted Average Exercise Price Granted (in dollars per shares)		$ 6.40
Weighted Average Exercise Price Exercised (in dollars per shares)	6.40
Weighted Average Exercise Price Forfeited/Expired (in dollars per shares)	3.41
Weighted Average Exercise Price Outstanding Ending balance (in dollars per shares)	3.38	6.40
Weighted Average Exercise Price Exercisable (in dollars per shares)	3.39
Weighted Average Exercise Price Vested and Expected to Vest (in dollars per shares)	$ 3.38	$ 6.40
Weighted Average Remaining Contractual Term Outstanding (in years)	9 years 3 months 7 days	5 years
Weighted Average Remaining Contractual Term Exercisable (in years)	9 years 2 months 15 days
Weighted Average Remaining Contractual Term Vested and Expected to Vest (in years)	9 years 3 months 7 days	5 years
Aggregate Intrinsic Value, Outstanding	$ 7,634,060
Aggregate Intrinsic Value, Exercisable	148,875
Aggregate Intrinsic Value, Vested and Expected to Vest	$ 7,634,060
Employee stock option | Non employee director | 2013 Stock Plan
Stock Options and Restricted Stock Units
Number of options, Granted (in shares)	110,000

Stock Options and Restricted _5

Stock Options and Restricted Stock Units - Weighted Average Fair Values and Assumptions (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Stock Options and Restricted Stock Units
Weighted average fair value of options granted (in dollars per share)	$ 1.79	$ 3.10
Risk-free interest rate	3.88%
Expected term (years)	3 years
Expected volatility factor	79.95%
Minimum
Stock Options and Restricted Stock Units
Risk-free interest rate		1.94%
Expected term (years)		3 years
Expected volatility factor		62%
Maximum
Stock Options and Restricted Stock Units
Risk-free interest rate		2.75%
Expected term (years)		6 years 5 months 1 day
Expected volatility factor		76.48%

Stock Options and Restricted _6

Stock Options and Restricted Stock Units - Summary of stock option and Restricted Stock option activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Restricted Stock Units | 2013 Stock Plan
Stock Options and Restricted Stock Units
Number of shares, granted	28,804
Number of Shares, Forfeited/Expired	0
Weighted-Average Grant Date Fair Value, Granted	$ 8.29
Weighted-Average Grant Date Fair Value, Forfeited/Expired	$ 0
Restricted Stock Units | Equity Plans
Stock Options and Restricted Stock Units
Number of Shares, Outstanding at Beginning of the year	700,000	0
Number of shares, granted		700,000
Number of Shares, Unvested at End of the year	728,804	700,000
Weighted-Average Grant Date Fair Value, Outstanding	$ 5.59
Weighted-Average Grant Date Fair Value, Granted		$ 5.59
Weighted-Average Grant Date Fair Value, Outstanding	$ 5.70	$ 5.59
Performance Shares | 2013 Stock Plan
Stock Options and Restricted Stock Units
Number of shares, granted		200,000
Performance Shares | 2021 Stock Plan
Stock Options and Restricted Stock Units
Number of shares, granted		500,000
Performance Shares | Equity Plans
Stock Options and Restricted Stock Units
Number of Shares, Unvested at End of the year	700,000

Stock Options and Restricted _7

Stock Options and Restricted Stock Units- Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Restricted Stock Units
Stock Options and Restricted Stock Units
Compensation cost related to non-vested stock options and restricted stock awards not yet recognized	$ 3
Weighted-average period over which compensation cost recognized	20 months
Number of shares eligible to receive for each fully vested RSU	1
Employee stock option
Stock Options and Restricted Stock Units
Compensation cost related to non-vested stock options and restricted stock awards not yet recognized	$ 5.4
Weighted-average period over which compensation cost recognized	20 months
2013 Stock Plan
Stock Options and Restricted Stock Units
Stock options vesting period	12 months
2013 Stock Plan | Performance Shares
Stock Options and Restricted Stock Units
Number of shares, granted		200,000
2013 Stock Plan | Restricted Stock Units
Stock Options and Restricted Stock Units
Number of shares, granted	28,804
2013 Stock Plan | Employee stock option
Stock Options and Restricted Stock Units
Number of options, Granted (in shares)	25,000	1,479,558
2021 Stock Plan | Performance Shares
Stock Options and Restricted Stock Units
Number of shares, granted		500,000
2021 Stock Plan | Employee stock option
Stock Options and Restricted Stock Units
Number of options, Granted (in shares)		25,000
Equity Plans | Performance Shares
Stock Options and Restricted Stock Units
Number of shares outstanding and unvested	700,000
Equity Plans | Restricted Stock Units
Stock Options and Restricted Stock Units
Number of shares, granted		700,000
Number of shares outstanding and unvested	728,804	700,000	700,000	0
Non employee director | 2013 Stock Plan | Employee stock option
Stock Options and Restricted Stock Units
Number of options, Granted (in shares)	110,000

Comprehensive loss - Reclassifi

Comprehensive loss - Reclassifications from accumulated other comprehensive loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Comprehensive loss
Balance at the beginning	$ 18,418	$ 24,778	$ 18,773	$ 29,927
Balance at the end	20,651	21,022	20,651	21,022
Pension Liability Adjustment
Comprehensive loss
Balance at the beginning	(91)	(818)	(86)	(858)
Total other comprehensive income (loss) before reclassifications, net of taxes	(91)	(818)	(86)	(858)
Net amount reclassified to earnings	(4)	38	(9)	78
Balance at the end	(95)	(780)	(95)	(780)
Fair Value of Derivatives
Comprehensive loss
Balance at the beginning	58	(348)	(365)	(353)
Other comprehensive income before reclassifications, net of taxes	2	(744)	244	(822)
Total other comprehensive income (loss) before reclassifications, net of taxes	60	(1,092)	(121)	(1,175)
Net amount reclassified to earnings	106	203	287	286
Balance at the end	166	(889)	166	(889)
Foreign Currency Translation Adjustment
Comprehensive loss
Balance at the beginning	(1,597)	(1,007)	(1,657)	(981)
Other comprehensive income before reclassifications, net of taxes	67	(600)	127	(626)
Total other comprehensive income (loss) before reclassifications, net of taxes	(1,530)	(1,607)	(1,530)	(1,607)
Balance at the end	(1,530)	(1,607)	(1,530)	(1,607)
Accumulated Other Comprehensive Loss
Comprehensive loss
Balance at the beginning	(1,630)	(2,173)	(2,108)	(2,192)
Other comprehensive income before reclassifications, net of taxes	69	(1,344)	371	(1,448)
Total other comprehensive income (loss) before reclassifications, net of taxes	(1,561)	(3,517)	(1,737)	(3,640)
Net amount reclassified to earnings	102	241	278	364
Balance at the end	$ (1,459)	$ (3,276)	$ (1,459)	$ (3,276)

Segment reporting and concent_3

Segment reporting and concentrations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Segment reporting information
Revenues	$ 19,655	$ 19,987	$ 38,494	$ 41,179
Income (loss) before provision for income taxes	(627)	(3,281)	(2,522)	(5,696)
Total assets	51,605		51,605		$ 48,042
Goodwill	2,069		2,069		2,038
Intersegment eliminations
Segment reporting information
Revenues	519	525	998	1,015
Before intersegment eliminations
Segment reporting information
Income (loss) before provision for income taxes	(627)	(3,281)	(2,522)	(5,696)
After intersegment eliminations
Segment reporting information
Income (loss) before provision for income taxes	(627)	(3,281)	(2,522)	(5,696)
DDS
Segment reporting information
Total assets	29,012		29,012		25,758
DDS | Operating Segments
Segment reporting information
Revenues	13,180	14,181	25,927	30,092
DDS | Before intersegment eliminations
Segment reporting information
Income (loss) before provision for income taxes	(216)	(72)	(497)	1,381
DDS | After intersegment eliminations
Segment reporting information
Income (loss) before provision for income taxes	(368)	(250)	(792)	1,046
Synodex
Segment reporting information
Total assets	3,438		3,438		3,270
Synodex | Operating Segments
Segment reporting information
Revenues	2,112	1,945	3,976	3,614
Synodex | Intersegment eliminations
Segment reporting information
Revenues	488	487	935	943
Synodex | Before intersegment eliminations
Segment reporting information
Income (loss) before provision for income taxes	(22)	(831)	(133)	(1,819)
Synodex | After intersegment eliminations
Segment reporting information
Income (loss) before provision for income taxes	121	(680)	135	(1,540)
Agility
Segment reporting information
Total assets	19,155		19,155		19,014
Goodwill	2,069		2,069		$ 2,038
Agility | Operating Segments
Segment reporting information
Revenues	4,363	3,861	8,591	7,473
Agility | Intersegment eliminations
Segment reporting information
Revenues	31	38	63	72
Agility | Before intersegment eliminations
Segment reporting information
Income (loss) before provision for income taxes	(389)	(2,378)	(1,892)	(5,258)
Agility | After intersegment eliminations
Segment reporting information
Income (loss) before provision for income taxes	$ (380)	$ (2,351)	$ (1,865)	$ (5,202)

Segment reporting and concent_4

Segment reporting and concentrations - Long-lived assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Revenues from external customers and long-lived assets
Long - lived assets	$ 21,926	$ 21,384
United States
Revenues from external customers and long-lived assets
Long - lived assets	8,422	7,205
Canada
Revenues from external customers and long-lived assets
Long - lived assets	7,612	7,675
Philippines
Revenues from external customers and long-lived assets
Long - lived assets	3,550	3,682
United Kingdom
Revenues from external customers and long-lived assets
Long - lived assets	1,136	1,198
India
Revenues from external customers and long-lived assets
Long - lived assets	788	1,195
Sri Lanka
Revenues from external customers and long-lived assets
Long - lived assets	416	426
Israel
Revenues from external customers and long-lived assets
Long - lived assets	2	3
Total foreign
Revenues from external customers and long-lived assets
Long - lived assets	$ 13,504	$ 14,179

Segment reporting and concent_5

Segment reporting and concentrations - Revenues by geographic region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment reporting information
Revenues	$ 19,655	$ 19,987	$ 38,494	$ 41,179
United States
Segment reporting information
Revenues	10,960	12,385	22,196	25,777
United Kingdom
Segment reporting information
Revenues	2,898	2,558	5,453	5,640
Canada
Segment reporting information
Revenues	2,193	1,439	3,805	2,816
The Netherlands
Segment reporting information
Revenues	1,762	1,717	3,485	3,369
Others - principally Europe
Segment reporting information
Revenues	$ 1,842	$ 1,888	$ 3,555	$ 3,577

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, 2023 USD ($)	Jun. 30, 2022	Jun. 30, 2023 USD ($) customer segment	Jun. 30, 2022	Dec. 31, 2022 USD ($) customer
Segment reporting information
Number of reportable segments | segment			3
Right-of-use-asset, net | $	$ 3,938		$ 3,938		$ 4,309
Classification of segment assets | $	$ 51,605		$ 51,605		$ 48,042
Sales revenue, net | Customer concentration risk
Segment reporting information
Number of clients			2
Sales revenue, net | Customer concentration risk | Non-US
Segment reporting information
Concentration risk, percentage	44%	38%	42%	38%
Foreign customer | Accounts receivable | Customer concentration risk
Segment reporting information
Concentration risk, percentage			49%		44%
One client | Sales revenue, net | Customer concentration risk
Segment reporting information
Number of clients			1
Concentration risk, percentage	10%	10%	10.70%
Another client | Sales revenue, net | Customer concentration risk
Segment reporting information
Concentration risk, percentage		13%	10.60%	17%
Another client | Accounts receivable | Customer concentration risk
Segment reporting information
Number of clients			2
Concentration risk, percentage			25%
Four clients | Accounts receivable | Customer concentration risk
Segment reporting information
Number of clients					4
Concentration risk, percentage					45%
Client | Sales revenue, net | Customer concentration risk
Segment reporting information
Number of clients			0
Client | Sales revenue, net | Customer concentration risk | United States
Segment reporting information
Number of clients			0
Client | Accounts receivable | Customer concentration risk
Segment reporting information
Number of clients			0
Client | Minimum | Sales revenue, net | Customer concentration risk
Segment reporting information
Concentration risk, percentage			10%
Client | Minimum | Accounts receivable | Customer concentration risk
Segment reporting information
Concentration risk, percentage					10%

Loss Per Share (Details)

Loss Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Loss Per Share
Net Loss attributable to Innodata Inc. and Subsidiaries	$ 815	$ 3,833	$ 2,931	$ 6,648
Weighted average common shares outstanding	27,860	27,226	27,661	27,192
Adjusted for dilutive computation	27,860	27,226	27,661	27,192

Loss Per Share - Additional inf

Loss Per Share - Additional information (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee stock option
Antidilutive securities excluded from computation of earnings per share
Computation of diluted loss per share	6.7	6.7	6.7	6.7

Derivatives - Additional Inform

Derivatives - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivatives
Derivative notional amount	$ 10.9	$ 14.2

Derivatives - Fair value of der

Derivatives - Fair value of derivative instruments (Details) - Foreign currency forward contracts - Designated as hedging instrument - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accrued expenses and other
Derivatives, Fair Value
Derivatives designated as hedging instruments		$ 365
Prepaid expenses and other current assets
Derivatives, Fair Value
Derivatives designated as hedging instruments	$ 166

Derivatives - Contracts designa

Derivatives - Contracts designated as cash flow hedges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivatives
Net gain (loss) recognized in OCI	$ 2	$ (744)	$ 244	$ (822)
Net loss reclassified from accumulated OCI into income	$ 106	$ 203	$ 287	$ 286

Line Of Credit (Details)

Line Of Credit (Details) - Revolving Credit Facility $ in Millions	Apr. 04, 2023 USD ($)	Jun. 30, 2023 USD ($)
Line of Credit
Maximum borrowing capacity	$ 10
Percentage of eligible accounts considered for determination of borrowing base	85%
Percentage of eligible foreign accounts considered for determination of borrowing base	85%
Maximum amount of eligible foreign accounts considered for determination of borrowing base	$ 2
Borrowing base calculation		$ 2.9
Threshold minimum fixed charge coverage ratio required to be maintained by December 31, 2023	1.10
SOFR
Line of Credit
Interest rate	2.25%