Innodata (INOD) 10-Q 8 Aug 24 2024 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Aug. 01, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
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		28,988,841
Entity Central Index Key	0000903651
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 16,509	$ 13,806
Short term investments - other	14	14
Accounts receivable, net of allowance for credit losses	18,162	14,288
Prepaid expenses and other current assets	3,652	3,969
Total current assets	38,337	32,077
Property and equipment, net	3,271	2,281
Right-of-use-asset, net	4,627	5,054
Other assets	2,048	2,445
Deferred income taxes, net	1,736	1,741
Intangibles, net	13,910	13,758
Goodwill	2,044	2,075
Total assets	65,973	59,431
Current liabilities:
Accounts payable	3,725	2,662
Accrued expenses	5,354	3,060
Accrued salaries, wages and related benefits	6,642	7,799
Deferred revenues	4,770	3,523
Income and other taxes	3,906	3,848
Long-term obligations - current portion	1,149	1,261
Operating lease liability - current portion	828	782
Total current liabilities	26,374	22,935
Deferred income taxes, net	86	22
Long-term obligations, net of current portion	6,995	6,778
Operating lease liability, net of current portion	4,247	4,701
Total liabilities	37,702	34,436
Commitments and contingencies
Non-controlling interests	(702)	(708)
STOCKHOLDERS' EQUITY:
Serial preferred stock; 4,998,000 shares authorized, none outstanding
Common stock, $.01 par value; 75,000,000 shares authorized; 32,172,000 shares issued and 28,988,000 outstanding at June 30, 2024 and 31,937,000 shares issued and 28,753,000 outstanding at December 31, 2023	322	320
Additional paid-in capital	45,862	43,152
Deficit	(8,708)	(9,683)
Accumulated other comprehensive loss	(2,038)	(1,621)
Stockholders' Equity before Treasury Stock, Total	35,438	32,168
Less: treasury stock, 3,184,000 shares at June 30, 2024 and December 31, 2023, at cost	(6,465)	(6,465)
Total stockholders' equity	28,973	25,703
Total liabilities, non-controlling interests and stockholders' equity	$ 65,973	$ 59,431

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
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	32,172,000	31,937,000
Common stock, shares outstanding	28,988,000	28,753,000
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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Revenues	$ 32,553	$ 19,655	$ 59,057	$ 38,494
Operating costs and expenses:
Direct operating costs	23,202	12,715	40,071	25,589
Selling and administrative expenses	9,020	7,574	17,325	15,371
Interest (income) expense, net	55	(7)	(29)	56
Total	32,277	20,282	57,367	41,016
Income (loss) before provision for income taxes	276	(627)	1,690	(2,522)
Provision for income taxes	285	188	709	406
Consolidated net loss	(9)	(815)	981	(2,928)
Income attributable to non-controlling interests	5		6	3
Net loss attributable to Innodata Inc. and Subsidiaries	$ (14)	$ (815)	$ 975	$ (2,931)
Loss per share attributable to Innodata Inc. and Subsidiaries:
Basic (in dollars per share)	$ 0	$ (0.03)	$ 0.03	$ (0.11)
Diluted (in dollars per share)	$ 0	$ (0.03)	$ 0.03	$ (0.11)
Weighted average shares outstanding:
Basic (in shares)	28,878	27,860	28,819	27,661
Diluted (in shares)	28,878	27,860	32,691	27,661
Comprehensive Loss:
Consolidated net loss	$ (9)	$ (815)	$ 981	$ (2,928)
Pension liability adjustment, net of taxes		(4)	(1)	(9)
Foreign currency translation adjustment	(78)	67	(208)	127
Change in fair value of derivatives, net of taxes	(174)	108	(208)	531
Other comprehensive income (loss)	(252)	171	(417)	649
Total comprehensive loss	(261)	(644)	564	(2,279)
Comprehensive income attributed to non-controlling interest	5		6	3
Comprehensive loss attributable to Innodata Inc. and Subsidiaries	$ (266)	$ (644)	$ 558	$ (2,282)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Consolidated net income (loss)	$ 981	$ (2,928)
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,684	2,242
Stock-based compensation	2,026	1,981
Deferred income taxes	41	(142)
Pension cost	395	538
Changes in operating assets and liabilities:
Accounts receivable	(3,976)	1,270
Prepaid expenses and other current assets	246	634
Other assets	396	45
Accounts payable and accrued expenses	3,348	(526)
Deferred revenues	1,247	(1,330)
Accrued salaries, wages and related benefits	(1,149)	658
Income and other taxes	74	1,741
Net cash provided by operating activities	6,313	4,183
Cash flows from investing activities:
Capital expenditures	(4,067)	(3,012)
Proceeds from sale of short term investments - others		493
Net cash used in investing activities	(4,067)	(2,519)
Cash flows from financing activities:
Proceeds from exercise of stock options	783	2,179
Withholding taxes on net settlement of restricted stock units	(97)
Payment of long-term obligations	(294)	(192)
Net cash provided by financing activities	392	1,987
Effect of exchange rate changes on cash and cash equivalents	65	209
Net increase in cash and cash equivalents	2,703	3,860
Cash and cash equivalents, beginning of period	13,806	9,792
Cash and cash equivalents, end of period	16,509	13,652
Supplemental disclosures of cash flow information:
Shares withheld for withholding taxes on net settlement for restricted stock	97
Cash paid for income taxes	459	380
Cash paid for operating leases	719	799
Cash paid for interest	$ 169	$ 132

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Total
Balance at 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)
Balance at the beginning (in shares) at Dec. 31, 2022	30,589,000
Net Income (Loss)			(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 net settlement (in shares)	(3,000)
Pension liability adjustments, 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)
Balance at the beginning (in shares) at Dec. 31, 2022	30,589,000
Pension liability adjustments, 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)
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 Income (Loss)			(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 adjustments, 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)
Balance at the end (in shares) at Jun. 30, 2023	31,483,000
Balance at the beginning at Dec. 31, 2023	$ 320	43,152	(9,683)	(1,621)	$ (6,465)	$ 25,703
Balance at the beginning (in shares) at Dec. 31, 2023					(3,184,000)	3,184,000
Balance at the beginning (in shares) at Dec. 31, 2023	31,937,000
Net Income (Loss)			989			$ 989
Stock-based compensation		1,034				1,034
Pension liability adjustments, net of taxes				(1)		(1)
Foreign currency translation adjustment				(130)		(130)
Change in fair value of derivatives, net of taxes				(34)		(34)
Balance at the end at Mar. 31, 2024	$ 320	44,186	(8,694)	(1,786)	$ (6,465)	27,561
Balance at the end (in shares) at Mar. 31, 2024					(3,184,000)
Balance at the end (in shares) at Mar. 31, 2024	31,937,000
Balance at the beginning at Dec. 31, 2023	$ 320	43,152	(9,683)	(1,621)	$ (6,465)	$ 25,703
Balance at the beginning (in shares) at Dec. 31, 2023					(3,184,000)	3,184,000
Balance at the beginning (in shares) at Dec. 31, 2023	31,937,000
Stock option exercises (in shares)						202,329
Pension liability adjustments, net of taxes						$ (1)
Foreign currency translation adjustment						(208)
Change in fair value of derivatives, net of taxes						(208)
Balance at the end at Jun. 30, 2024	$ 322	45,862	(8,708)	(2,038)	$ (6,465)	$ 28,973
Balance at the end (in shares) at Jun. 30, 2024					(3,184,000)	3,184,000
Balance at the end (in shares) at Jun. 30, 2024	32,172,000
Balance at the beginning at Mar. 31, 2024	$ 320	44,186	(8,694)	(1,786)	$ (6,465)	$ 27,561
Balance at the beginning (in shares) at Mar. 31, 2024					(3,184,000)
Balance at the beginning (in shares) at Mar. 31, 2024	31,937,000
Net Income (Loss)			(14)			(14)
Stock-based compensation		992				992
Stock option exercises	$ 2	781				783
Stock option exercises (in shares)	235,000
Shares withheld for restricted stock unit net settlement		(97)				(97)
Foreign currency translation adjustment				(78)		(78)
Change in fair value of derivatives, net of taxes				(174)		(174)
Balance at the end at Jun. 30, 2024	$ 322	$ 45,862	$ (8,708)	$ (2,038)	$ (6,465)	$ 28,973
Balance at the end (in shares) at Jun. 30, 2024					(3,184,000)	3,184,000
Balance at the end (in shares) at Jun. 30, 2024	32,172,000

Summary of Significant Accounti

Summary of Significant Accounting Policies and Estimates	6 Months Ended
	Jun. 30, 2024
Summary of Significant Accounting Policies and Estimates
Summary of Significant Accounting Policies and Estimates	1. Summary of Significant Accounting Policies and Estimates Basis of Presentation Certain information and note disclosures normally included in or with financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted from these condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. 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, 2023. Principles of Consolidation Use of Estimates Accounts Receivable We record 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. 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 $0.8 million as of June 30, 2024 and December 31, 2023. 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 for the Company’s subsidiary in Germany is the Euro. The functional currencies for the Company’s Agility subsidiaries in the United Kingdom and Canada are 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 income or 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 - Capitalized Developed Software - The Company incurs development costs related to software it develops for its internal use. Qualifying costs incurred during the application development stage are capitalized. These costs primarily consist of internal labor and third-party development costs and are amortized using the straight-line method over the estimated useful life of the capitalized developed software, which generally ranges from three to ten years . All other research and maintenance costs are expensed as incurred. Capitalized developed software in progress as of June 30, 2024 and December 31, 2023 were $2.8 million and $3.5 million, respectively. The cumulative completed capitalized developed software as of June 30, 2024 and December 31, 2023 were $18.5 million and $15.2 million, respectively. Income Taxes - In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the U.S. and Canadian deferred tax assets will not be realizable. As the expectation of future taxable income resulting from the Synodex and Agility segments 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. The Company accounts for income taxes regarding uncertain tax positions, and recognizes interest and penalties related to uncertain tax positions in income tax expense in the condensed consolidated statements of operations and comprehensive income (loss). Deferred Revenue - The table below provides information about contract liabilities (deferred revenue) and the significant changes in the balances for the three and six months ended as of June 30, 2024 and 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ 2024 2023 2024 2023 Balance at the beginning of period ​ $ 6,668 ​ $ 4,189 ​ $ 3,523 ​ $ 4,366 Net deferred revenue in the period ​ 580 ​ ​ 5,474 ​ 15,328 ​ 8,059 Revenue recognized ​ (2,467) ​ ​ (6,756) ​ (13,990) ​ (9,500) Currency translations and other adjustments ​ (11) ​ ​ 129 ​ (91) ​ 111 Balance at the end of period ​ $ 4,770 ​ $ 3,036 ​ $ 4,770 ​ $ 3,036 ​ Recent Accounting Pronouncements ​ On December 14, 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). The effective date of ASU 2023-09 is for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-09 will enhance quantitative and qualitative disclosures related to rate reconciliation of significant components and income tax paid. The Company does not expect any significant impact from the adoption of this standard.

Short Term Investments - other

Short Term Investments - other	6 Months Ended
	Jun. 30, 2024
Short Term Investments - other
Short Term Investments - other	2. Short-term investments include investments made by the Company in certificates of deposit which are considered as highly liquid investments having an original maturity period of more than three months but less than one year from the balance sheet date (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2024 2023 Certificates of deposit ​ $ 14 ​ $ 14 Total ​ $ 14 ​ $ 14 ​

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2024
Accounts Receivable
Accounts Receivable	3. Accounts receivable consists of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2024 ​ 2023 Gross Accounts receivable ​ $ 19,595 ​ $ 15,505 Allowance for credit losses ​ (1,433) ​ (1,217) Accounts receivable, net ​ $ 18,162 ​ $ 14,288 ​ Activity in the allowance for the credit losses for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ 2024 2023 ​ 2024 2023 Balance at beginning of period ​ $ 1,225 ​ $ 1,166 ​ $ 1,217 ​ $ 1,213 Additions charged to expense ​ ​ 219 ​ ​ 152 ​ ​ 234 ​ 332 Write-offs against allowance ​ ​ (10) ​ ​ (101) ​ ​ (17) ​ (331) Foreign currency translation adjustment ​ ​ (1) ​ ​ 3 ​ ​ (1) ​ 6 Balance at end of period ​ $ 1,433 ​ $ 1,220 ​ $ 1,433 ​ $ 1,220 ​

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets
Goodwill and Intangible Assets	4. ​ The change in the carrying amount of goodwill for the six months ended June 30, 2024 was as follows (in thousands): ​ ​ ​ ​ ​ Balance - January 1, 2024 $ 2,075 Foreign currency translation adjustment ​ (31) Balance - June 30, 2024 ​ $ 2,044 ​ 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 $2.0 million and $2.1 million as of June 30, 2024 and December 31, 2023, respectively. Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Currency ​ Net ​ ​ Carrying ​ Accumulated ​ Translation ​ Carrying ​ Value Amortization Adjustment Value Acquired Intangible Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Developed technology ​ $ 3,060 ​ $ (2,845) ​ $ (3) ​ $ 212 Customer relationships ​ 2,144 ​ (1,770) ​ (16) ​ 358 Trademarks and tradenames ​ 862 ​ (809) ​ - ​ 53 Patents ​ 44 ​ (43) ​ - ​ 1 Media Contact Database ​ ​ 3,546 ​ ​ (2,837) ​ ​ - ​ ​ 709 Total Acquired Intangible Assets ​ $ 9,656 ​ $ (8,304) ​ $ (19) ​ $ 1,333 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ $ 18,504 ​ $ (8,557) ​ $ (206) ​ $ 9,741 Capitalized Developed Software - in Progress ​ 2,840 ​ - ​ (4) ​ 2,836 Total Capitalized Developed Software ​ $ 21,344 ​ $ (8,557) ​ $ (210) ​ $ 12,577 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 31,000 ​ $ (16,861) ​ $ (229) ​ $ 13,910 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Currency ​ Net ​ Carrying Accumulated Translation ​ Carrying ​ Value Amortization Adjustment Value Acquired Intangible Assets ​ ​ ​ ​ Developed technology ​ $ 2,999 ​ $ (2,640) ​ $ 7 ​ $ 366 Customer relationships ​ ​ 2,096 ​ ​ (1,645) ​ ​ 10 ​ ​ 461 Trademarks and tradenames ​ ​ 852 ​ ​ (774) ​ ​ 2 ​ ​ 80 Patents ​ 43 ​ (40) ​ ​ - ​ ​ 3 Media Contact Database ​ ​ 3,492 ​ ​ (2,621) ​ ​ 16 ​ ​ 887 Total Acquired Intangible Assets ​ $ 9,482 ​ $ (7,720) ​ $ 35 ​ $ 1,797 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ $ 15,216 ​ $ (6,862) ​ $ 138 ​ $ 8,492 Capitalized Developed Software - in Progress ​ ​ 3,480 ​ ​ - ​ ​ (11) ​ ​ 3,469 Total Capitalized Developed Software ​ $ 18,696 ​ $ (6,862) ​ $ 127 ​ $ 11,961 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 28,178 ​ $ (14,582) ​ $ 162 ​ $ 13,758 ​ Amortization expense relating to acquired intangible assets was $0.2 million for each of the three-month periods ended June 30, 2024 and 2023. Amortization expense relating to acquired intangible assets was $0.4 million for each of the six-month periods ended June 30, 2024 and 2023. Amortization expense relating to capitalized developed software was $0.8 million and $0.6 million for the three-month periods ended June 30, 2024 and 2023. Amortization expense relating to capitalized developed software was $1.6 million and $1.2 million for the six-month periods ended June 30, 2024 and 2023. As of June 30, 2024, estimated future amortization expense for intangible assets was as follows (in thousands): ​ ​ ​ ​ ​ Year Amortization 2024 ​ $ 3,222 2025 ​ ​ 4,714 2026 ​ ​ 3,446 2027 ​ ​ 1,168 2028 ​ ​ 688 Thereafter ​ ​ 672 ​ ​ $ 13,910 ​

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Taxes
Income Taxes	5. Income taxes primarily consist of a provision for foreign taxes recorded by the Company’s foreign subsidiaries in accordance with local tax regulations. The estimated annual effective tax rate applied to the six-month period ended June 30, 2024, differs from the U.S. federal statutory rate of 21% principally due to income earned outside the United States which is subject to the U.S. tax on global intangible low taxed income (“GILTI”), tax effects of foreign operations, changes in valuation allowance, provision on uncertain tax positions, and other net increases; offset in part by a reduction in foreign exchange gains and losses, deemed interest and true up adjustment on prior year tax provision. ​ The reconciliations of the U.S. federal statutory rate with the Company’s effective tax rate for the six months ended June 30, 2024 and 2023, respectively, are summarized in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months ​ ​ ​ Ended June 30, ​ ​ 2024 2023 ​ Federal income tax expense (benefit) at statutory rate 21.0 % (21.0) % Effect of: ​ ​ ​ ​ GILTI provisions ​ 17.6 ​ - ​ Tax effects of foreign operations ​ 7.1 ​ 3.8 ​ Change in valuation allowance ​ 6.4 ​ 51.3 ​ Increase in unrecognized tax benefits (ASC 740) ​ 5.5 ​ 2.6 ​ State income tax net of federal benefit ​ 0.8 ​ 0.4 ​ Foreign rate differential ​ (1.4) ​ (1.5) ​ Effect of stock - based compensation ​ (2.9) ​ (22.7) ​ Return to provision true up ​ (3.2) ​ (0.6) ​ Deemed interest ​ (5.2) ​ (7.1) ​ Foreign operations permanent differences - foreign exchange gains and losses ​ (7.9) ​ 4.7 ​ Other ​ 4.2 ​ 6.2 ​ Effective tax rate ​ 42.0 % 16.1 % ​ The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the six months ended June 30, 2024 (in thousands): ​ ​ ​ ​ ​ ​ Unrecognized ​ Tax Benefits Balance at January 1, 2024 ​ $ 1,942 Increase for current period tax positions ​ 115 Decrease for prior year tax positions ​ ​ (81) Interest accrual ​ 59 Foreign currency remeasurement ​ (22) Balance at June 30, 2024 ​ $ 2,013 ​ The Company expects that unrecognized tax benefits as of June 30, 2024, if recognized, would have a material impact on the Company’s effective tax rate.

Operating Leases

Operating Leases	6 Months Ended
	Jun. 30, 2024
Operating Leases
Operating Leases	6. The Company has various lease agreements for its offices and service delivery centers and has determined that the risks and benefits related to these leased properties are retained by the lessors. Accordingly, these are accounted for as operating leases. Lease agreements with a term of less than one year are treated as short-term leases and are accounted for separately as shown in the table below. Most of these lease agreements are renewable at the mutual consent of the parties to the contract. These lease agreements are for terms ranging from three to eleven years and, in most cases, provide for rent escalations ranging from 1.75% to 15% . 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, ​ 2024 2023 2024 2023 Rent expense for long-term operating leases ​ $ 314 ​ $ 312 ​ $ 628 ​ $ 621 Rent expense for short-term leases ​ 44 ​ 83 ​ ​ 91 ​ ​ 178 Total rent expense ​ $ 358 ​ $ 395 ​ $ 719 ​ $ 799 ​ 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, 2024 (in thousands): ​ ​ ​ ​ ​ Year Amount 2024 ​ $ 644 2025 ​ 1,305 2026 ​ 1,336 2027 ​ 1,334 2028 ​ 964 2029 and thereafter ​ 870 Total lease payments ​ 6,453 Less: Interest ​ (1,378) Net present value of lease liabilities ​ $ 5,075 ​ ​ ​ Current portion ​ $ 828 Long-term portion ​ 4,247 Total ​ $ 5,075 ​ The weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of June 30, 2024 were as follows: ​ ​ ​ ​ ​ Weighted-average lease term remaining 57 months ​ Weighted-average discount rate 9.39 % ​

Long-term obligations

Long-term obligations	6 Months Ended
	Jun. 30, 2024
Long-term obligations
Long-term obligations	7. Total long-term obligations as of June 30, 2024 and December 31, 2023 consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2024 2023 Pension obligations - accrued pension liability ​ $ 7,412 ​ $ 7,128 Microsoft licenses (1) ​ 732 ​ 911 ​ ​ ​ 8,144 ​ ​ 8,039 Less: Current portion of long-term obligations ​ 1,149 ​ 1,261 Totals ​ $ 6,995 ​ $ 6,778 ​ (1)

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies
Commitments and Contingencies	8. Litigation – In 2008, a judgment was rendered in the Philippines against a Philippine subsidiary of the Company that is no longer active and purportedly also against Innodata Inc., in favor of certain former employees of the Philippine subsidiary. The potential payment amount aggregates to approximately $5.6 million, plus legal interest that accrued at 12% per annum from August 13, 2008 to June 30, 2013, and thereafter accrued and continues to accrue at 6% per annum . The potential payment amount as expressed in U.S. dollars varies with the Philippine peso to U.S. dollar exchange rate. In December 2017, a group of 97 of the former employees of the Philippine subsidiary indicated that they proposed to record the judgment as to themselves in New Jersey. In January 2018, in response to an action initiated by Innodata Inc., the United States District Court for the District of New Jersey (“USDC”) entered a preliminary injunction that enjoins these former employees from pursuing or seeking recognition or enforcement of the judgment against Innodata Inc. in the United States during the pendency of the action and until further order of the USDC. In June 2018, the USDC entered a consent order administratively closing the action subject to return of the action to the active docket upon the written request of Innodata Inc. or the former employees, with the USDC retaining jurisdiction over the matter and the preliminary injunction remaining in full force and effect. On February 21, 2024, David D’Agostino filed a putative class action captioned D’Agostino v. Innodata Inc., et al. 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, 2024
Stock Options and Restricted Stock Units
Stock Options and Restricted Stock Units	9. The stock-based compensation expense related to the Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016 (the “2013 Plan”) and the Innodata Inc. 2021 Equity Compensation Plan, as amended and restated effective as of April 11, 2022 (the “2021 Plan”, and together with the 2013 Plan, collectively, the “Equity Plans”) were allocated as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2024 2023 2024 2023 Direct operating costs ​ $ 73 ​ $ 62 ​ $ 157 ​ $ 126 Selling and administrative expenses ​ 919 ​ 957 ​ 1,869 ​ 1,855 Total stock-based compensation ​ $ 992 ​ $ 1,019 ​ $ 2,026 ​ $ 1,981 ​ Stock Options ​ 2013 Plan A summary of option activity under 2013 Plan and changes during each of the six-month periods ended June 30, 2024 and 2023 are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ Number of Weighted - Average Remaining Contractual ​ Aggregate ​ Options Exercise Price Term (years) Intrinsic Value Outstanding at January 1, 2024 5,339,162 ​ $ 3.22 6.38 $ 28,640,009 Granted - ​ - - ​ - Exercised (155,899) ​ 4.00 - ​ - Forfeited/Expired (4,001) ​ 6.96 - ​ - Outstanding at June 30, 2024 5,179,262 ​ $ 3.19 5.87 ​ $ 60,291,271 ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2024 3,402,382 ​ $ 2.20 ​ 4.92 ​ $ 42,967,259 ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2024 5,179,262 ​ $ 3.19 5.87 ​ $ 60,291,271 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 7.19 ​ $ 5,989,709 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. 2021 Plan A summary of option activity under the 2021 Plan and changes during the six-month periods ended June 30, 2024 and 2023 are presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Number of ​ Weighted - Average ​ Remaining Contractual ​ Aggregate ​ Options Exercise Price Term (years) Intrinsic Value Outstanding at January 1, 2024 923,571 ​ $ 3.41 8.76 $ 4,786,252 Granted - ​ - - ​ - Exercised (46,430) ​ 3.41 - ​ - Forfeited/Expired (7,668) ​ 3.41 - ​ - Outstanding at June 30, 2024 869,473 ​ $ 3.41 8.27 ​ $ 9,927,362 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2024 339,779 ​ $ 3.33 8.24 ​ $ 3,907,176 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2024 869,473 ​ $ 3.41 8.27 ​ $ 9,927,362 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 9.75 $ - 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 ​ There were no options granted during the six months ended June 30, 2024. During the six months ended June 30, 2024, a total of 202,329 options were exercised at an average exercise price of $3.87. 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, ​ ​ 2024 2023 ​ Weighted average fair value of options granted ​ $ - ​ $ 1.79 ​ Risk-free interest rate ​ ​ - ​ ​ 3.88 % Expected term (years) ​ ​ - ​ ​ 3.0 ​ Expected volatility factor ​ ​ - ​ ​ 79.95 % Expected dividends ​ ​ - ​ ​ - ​ ​ The compensation cost related to non-vested stock options not yet recognized as of June 30, 2024 totaled approximately $1.9 million. The weighted-average period over which these costs will be recognized is 11 months . Restricted Stock Awards There were no outstanding awards of restricted stock under the Equity Plans during each of the six-month periods ended June 30, 2024 and 2023. Restricted Stock Units Restricted stock unit activity under the Equity Plans during each of the six-month periods ended June 30, 2024 and 2023 are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted-Average ​ ​ Restricted Stock ​ Grant Date ​ Units Fair Value Unvested at January 1, 2024 ​ 749,756 ​ $ 5.77 Granted 28,973 ​ 15.10 Vested (48,761) ​ 8.42 Forfeited/Expired (995) ​ 8.29 Unvested at June 30, 2024 728,973 ​ $ 5.96 ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ There were a total of 28,973 restricted stock units granted to non-employee directors during the six months ended June 30, 2024. There were 200,000 and 528,973 outstanding restricted stock unit awards under the 2013 Plan and 2021 Plan, respectively, as of June 30, 2024. The compensation cost related to non-vested restricted stock units not yet recognized as of June 30, 2024 totaled approximately $2.8 million. The weighted-average period over which these costs will be recognized is 8 months .

Comprehensive income (loss)

Comprehensive income (loss)	6 Months Ended
	Jun. 30, 2024
Comprehensive income (loss)
Comprehensive income (loss)	10. Comprehensive income (loss) Accumulated other comprehensive loss, as reflected in the condensed consolidated balance sheets, consists of pension liability adjustments, net of taxes, foreign currency translation adjustment and changes in fair value of derivatives, net of taxes. The components of accumulated other comprehensive loss as of June 30, 2024 and 2023, and reclassifications from accumulated other comprehensive loss for the three and six-month periods, are presented below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ ​ ​ Pension Liability ​ Fair Value of ​ Translation ​ Accumulated Other ​ ​ Adjustment ​ Derivatives ​ Adjustment ​ Comprehensive Loss Balance at April 1, 2024 ​ $ (413) ​ $ 7 ​ $ (1,380) ​ $ (1,786) Other comprehensive loss before reclassifications, net of taxes ​ - ​ (193) ​ (78) ​ (271) Total other comprehensive loss before reclassifications, net of taxes ​ (413) ​ (186) ​ (1,458) ​ (2,057) Net amount reclassified to earnings ​ - ​ 19 ​ - ​ 19 Balance at June 30, 2024 ​ $ (413) ​ $ (167) ​ $ (1,458) ​ $ (2,038) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ Pension Liability Fair Value of Translation Accumulated Other ​ Adjustment Derivatives Adjustment Comprehensive Loss Balance at January 1, 2024 ​ $ (412) ​ $ 41 ​ $ (1,250) ​ $ (1,621) Other comprehensive loss before reclassifications, net of taxes ​ - ​ (206) ​ (208) ​ (414) Total other comprehensive loss before reclassifications, net of taxes ​ (412) ​ (165) ​ (1,458) ​ (2,035) Net amount reclassified to earnings ​ (1) ​ (2) ​ - ​ (3) Balance at June 30, 2024 ​ $ (413) ​ $ (167) ​ $ (1,458) ​ $ (2,038) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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) ​ Taxes related to each component of other comprehensive loss were not material for each of the three and six-month periods presented and therefore not disclosed separately. All reclassifications from accumulated other comprehensive income (loss) had an impact on direct operating costs in the condensed consolidated statements of operations and comprehensive income (loss).

Segment reporting and concentra

Segment reporting and concentrations	6 Months Ended
	Jun. 30, 2024
Segment reporting and concentrations
Segment reporting and concentrations	11. 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 revenues is generated from its locations in the Philippines, India, Sri Lanka, Canada, Germany, Israel, United States and the United Kingdom. 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, ​ 2024 2023 2024 2023 Revenues: ​ ​ ​ ​ ​ DDS ​ $ 25,410 ​ $ 13,180 ​ $ 45,116 ​ $ 25,927 Synodex ​ 1,986 ​ 2,112 ​ 3,857 ​ 3,976 Agility ​ 5,157 ​ 4,363 ​ 10,084 ​ 8,591 Total Consolidated ​ $ 32,553 ​ $ 19,655 ​ $ 59,057 ​ $ 38,494 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (1) ​ ​ ​ ​ ​ ​ ​ ​ DDS ​ $ (27) ​ $ (216) ​ $ 972 ​ $ (497) Synodex ​ 195 ​ (22) ​ 345 ​ (133) Agility ​ 108 ​ (389) ​ 373 ​ (1,892) Total Consolidated ​ $ 276 ​ $ (627) ​ $ 1,690 ​ $ (2,522) ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (2) ​ ​ ​ ​ ​ ​ ​ ​ DDS ​ $ (172) ​ $ (368) ​ $ 676 ​ $ (792) Synodex ​ 316 ​ 121 ​ 592 ​ 135 Agility ​ 132 ​ (380) ​ 422 ​ (1,865) Total Consolidated ​ $ 276 ​ $ (627) ​ $ 1,690 ​ $ (2,522) ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 December 31, 2023 Total assets: ​ ​ DDS ​ $ 42,925 ​ $ 37,232 Synodex ​ 3,759 ​ 3,379 Agility ​ 19,289 ​ 18,820 Total Consolidated ​ $ 65,973 ​ $ 59,431 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 December 31, 2023 Goodwill: ​ ​ Agility ​ $ 2,044 ​ $ 2,075 Total ​ $ 2,044 ​ $ 2,075 ​ (1) Before elimination of any inter-segment profits (2) After elimination of any inter-segment profits Revenues for the three and six-month periods ended June 30, 2024, and 2023 by geographic region (determined based upon customer’s domicile), were as follows (in thousands): ​ Revenues by geographic region ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2024 2023 2024 2023 United States ​ $ 23,804 ​ $ 10,960 ​ $ 41,673 ​ $ 22,196 United Kingdom ​ 2,364 ​ 2,898 ​ 4,614 ​ 5,453 Canada ​ 2,284 ​ 1,762 ​ 4,510 ​ 3,485 The Netherlands ​ 2,005 ​ 2,193 ​ 4,044 ​ 3,805 Others - principally other European countries ​ 2,096 ​ 1,842 ​ 4,216 ​ 3,555 Totals ​ $ 32,553 ​ $ 19,655 ​ $ 59,057 ​ $ 38,494 ​ Long-lived assets as of June 30, 2024 and December 31, 2023 by geographic region were comprised of (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2024 2023 United States ​ $ 10,222 ​ $ 9,101 ​ ​ ​ ​ ​ Foreign countries: ​ ​ ​ ​ Canada ​ 6,806 ​ 7,328 United Kingdom ​ 922 ​ 1,028 Philippines ​ 3,591 ​ 3,484 India ​ 1,717 ​ 1,791 Sri Lanka ​ 548 ​ 423 Israel ​ 46 ​ 13 Total foreign ​ 13,630 ​ 14,067 Totals ​ $ 23,852 ​ $ 23,168 ​ Long-lived assets include the unamortized balance of right-of-use assets amounting to $4.6 million and $5.1 million as of June 30, 2024 and December 31, 2023, respectively. One customer in the DDS segment generated approximately 38% of the Company’s total revenues for the three months ended June 30, 2024. Another customer in the DDS segment generated approximately 10% of the Company’s total revenues for the three months ended June 30, 2023. No other customer accounted for 10% or more of total revenues during these periods. Further, for the three months ended June 30, 2024 and 2023, revenues from non-U.S. customers accounted for 27% and 44% respectively, of the Company’s total revenues. One customer in the DDS segment generated approximately 31% of the Company’s total revenues for the six months ended June 30, 2024. Two other customers in the DDS segment generated approximately 10.7% and 10.6% of the Company’s total revenues for the six months ended June 30, 2023, respectively. No other customer accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. customers accounted for 29% and 42% of the Company’s total revenues for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, approximately 22% of the Company’s accounts receivable was due from foreign (principally European) customers and 47% of the Company’s accounts receivable was due from two customers. As of December 31, 2023, approximately 31% of the Company’s accounts receivable was due from foreign (principally European) customers and 53% of the Company’s accounts receivable was due from three customers. No other customer accounted for 10% or more of the accounts receivable as of June 30, 2024 and December 31, 2023.

Income (Loss) Per Share

Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2024
Income (Loss) Per Share
Income (Loss) Per Share	12. ​ The calculation of the dilutive effect of outstanding options is shown in the table below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2024 2023 2024 2023 Net income (loss) attributable to Innodata Inc. and Subsidiaries ​ $ (14) ​ $ (815) ​ $ 975 ​ $ (2,931) Weighted average common shares outstanding ​ 28,878 ​ 27,860 ​ 28,819 ​ 27,661 Dilutive effect of outstanding options ​ - ​ - ​ 3,872 ​ - Adjusted for dilutive computation ​ 28,878 ​ 27,860 ​ 32,691 ​ 27,661 ​ 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 6.0 million shares of common stock for the three months ended June 30, 2024 were outstanding but not included in the computation of diluted loss per share because the effect would have been anti-dilutive. Options to purchase 3,000 shares of common stock for the six months ended June 30, 2024 were outstanding but not included in the computation of diluted income per share because the exercise price of the options was greater than the average market price of the common shares. Options to purchase 6.7 million shares of common stock for each of the three and six-month periods ended June 30, 2023, 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, 2024
Derivatives
Derivatives	13. 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 $10.2 million and $10.5 million as of June 30, 2024 and December 31, 2023, respectively. The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet Location ​ Fair Value ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2024 2023 Derivatives designated as hedging instruments: ​ ​ Foreign currency forward contracts Accrued expenses ​ $ 167 ​ $ - Foreign currency forward contracts Prepaid expenses and other current assets ​ $ - ​ $ 41 ​ 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, 2024 and 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ June 30, ​ June 30, ​ 2024 2023 2024 2023 Net gain (loss) recognized in OCI (1) ​ $ (193) ​ $ 2 ​ $ (206) ​ $ 244 Net (gain) loss reclassified from accumulated OCI into income (2) ​ $ 19 ​ $ 106 ​ $ (2) ​ $ 287 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, 2024
Line of Credit
Line of Credit	14. 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. On July 21, 2023, Innodata Services LLC signed a Joinder Agreement to join the Credit Agreement as a co-borrower. 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, 2024, such borrowing base calculation equaled approximately $10.0 million. The Credit Agreement contains a financial covenant that requires 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, 2024. 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 has not utilized the Revolving Credit Facility during the six months ended June 30, 2024 and through the date of filing of this Report.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2024
Subsequent Event
Subsequent Event	15. Subsequent Event On August 5, 2024 the Company entered into a second amendment (the “Amended Credit Agreement”) to the Credit Agreement. The Amended Credit Agreement provides for an increased Revolving Credit Facility up to an amount equal to the lesser of the borrowing base and $30.0 million (the “Maximum Credit”) and provides that a Borrower may request an increase to the Revolving Credit Facility’s Maximum Credit of up to, but not to exceed $50.0 million, subject to the approval of the Lender. The Revolving Credit Facility’s borrowing base is calculated in accordance with the terms of the Amended Credit Agreement and on the basis of (i) 85% of eligible accounts (other than eligible foreign accounts and unbilled accounts), plus (ii) the lesser of (a) 80% of eligible accounts that are unbilled accounts and (b) 30% of all eligible accounts, plus (iii) the lesser of (a) 85% of eligible foreign accounts, (b) 20% of all eligible accounts and (c) $4.0 million, minus (iv) certain other reserves and adjustments. As of June 30, 2024, such borrowing base calculation would equal approximately $12.4 million.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (14)	$ 989	$ (815)	$ (2,116)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies and Estimates (Policies)	6 Months Ended
	Jun. 30, 2024
Summary of Significant Accounting Policies and Estimates
Basis of Presentation	Basis of Presentation Certain information and note disclosures normally included in or with financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted from these condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. 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, 2023.
Principles of Consolidation	Principles of Consolidation
Use of Estimates	Use of Estimates
Accounts Receivable	Accounts Receivable We record 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.
Revenue Recognition	Revenue Recognition For the Digital Data Solutions (DDS) segment, revenue is recognized primarily based on the quantity delivered or resources utilized in the period in which services are performed and performance conditions are satisfied as per the agreement. Revenue from agreements billed on a time-and-materials basis is recognized as services are performed. Revenue from fixed-fee agreements, which 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 $0.8 million as of June 30, 2024 and December 31, 2023. 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 for the Company’s subsidiary in Germany is the Euro. The functional currencies for the Company’s Agility subsidiaries in the United Kingdom and Canada are 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 income or 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 -
Capitalized Developed Software	Capitalized Developed Software - The Company incurs development costs related to software it develops for its internal use. Qualifying costs incurred during the application development stage are capitalized. These costs primarily consist of internal labor and third-party development costs and are amortized using the straight-line method over the estimated useful life of the capitalized developed software, which generally ranges from three to ten years . All other research and maintenance costs are expensed as incurred. Capitalized developed software in progress as of June 30, 2024 and December 31, 2023 were $2.8 million and $3.5 million, respectively. The cumulative completed capitalized developed software as of June 30, 2024 and December 31, 2023 were $18.5 million and $15.2 million, respectively.
Income Taxes	Income Taxes - In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the U.S. and Canadian deferred tax assets will not be realizable. As the expectation of future taxable income resulting from the Synodex and Agility segments 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. The Company accounts for income taxes regarding uncertain tax positions, and recognizes interest and penalties related to uncertain tax positions in income tax expense in the condensed consolidated statements of operations and comprehensive income (loss).
Deferred Revenue	Deferred Revenue - The table below provides information about contract liabilities (deferred revenue) and the significant changes in the balances for the three and six months ended as of June 30, 2024 and 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ 2024 2023 2024 2023 Balance at the beginning of period ​ $ 6,668 ​ $ 4,189 ​ $ 3,523 ​ $ 4,366 Net deferred revenue in the period ​ 580 ​ ​ 5,474 ​ 15,328 ​ 8,059 Revenue recognized ​ (2,467) ​ ​ (6,756) ​ (13,990) ​ (9,500) Currency translations and other adjustments ​ (11) ​ ​ 129 ​ (91) ​ 111 Balance at the end of period ​ $ 4,770 ​ $ 3,036 ​ $ 4,770 ​ $ 3,036
Recent Accounting Pronouncements	Recent Accounting Pronouncements ​ On December 14, 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). The effective date of ASU 2023-09 is for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-09 will enhance quantitative and qualitative disclosures related to rate reconciliation of significant components and income tax paid. The Company does not expect any significant impact from the adoption of this standard.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies and Estimates (Tables)	6 Months Ended
	Jun. 30, 2024
Summary of Significant Accounting Policies and Estimates
Schedule of information about contract liabilities (deferred revenue)	The table below provides information about contract liabilities (deferred revenue) and the significant changes in the balances for the three and six months ended as of June 30, 2024 and 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ 2024 2023 2024 2023 Balance at the beginning of period ​ $ 6,668 ​ $ 4,189 ​ $ 3,523 ​ $ 4,366 Net deferred revenue in the period ​ 580 ​ ​ 5,474 ​ 15,328 ​ 8,059 Revenue recognized ​ (2,467) ​ ​ (6,756) ​ (13,990) ​ (9,500) Currency translations and other adjustments ​ (11) ​ ​ 129 ​ (91) ​ 111 Balance at the end of period ​ $ 4,770 ​ $ 3,036 ​ $ 4,770 ​ $ 3,036

Short Term Investments - other

Short Term Investments - other (Tables)	6 Months Ended
	Jun. 30, 2024
Short Term Investments - other
Schedule of other short term investments	Short-term investments include investments made by the Company in certificates of deposit which are considered as highly liquid investments having an original maturity period of more than three months but less than one year from the balance sheet date (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2024 2023 Certificates of deposit ​ $ 14 ​ $ 14 Total ​ $ 14 ​ $ 14 ​

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2024
Accounts Receivable
Schedule of accounts receivable	Accounts receivable consists of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2024 ​ 2023 Gross Accounts receivable ​ $ 19,595 ​ $ 15,505 Allowance for credit losses ​ (1,433) ​ (1,217) Accounts receivable, net ​ $ 18,162 ​ $ 14,288
Schedule of activity in allowance for credit losses	Activity in the allowance for the credit losses for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ 2024 2023 ​ 2024 2023 Balance at beginning of period ​ $ 1,225 ​ $ 1,166 ​ $ 1,217 ​ $ 1,213 Additions charged to expense ​ ​ 219 ​ ​ 152 ​ ​ 234 ​ 332 Write-offs against allowance ​ ​ (10) ​ ​ (101) ​ ​ (17) ​ (331) Foreign currency translation adjustment ​ ​ (1) ​ ​ 3 ​ ​ (1) ​ 6 Balance at end of period ​ $ 1,433 ​ $ 1,220 ​ $ 1,433 ​ $ 1,220 ​

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets
Schedule of changes in carrying amount of goodwill	The change in the carrying amount of goodwill for the six months ended June 30, 2024 was as follows (in thousands): ​ ​ ​ ​ ​ Balance - January 1, 2024 $ 2,075 Foreign currency translation adjustment ​ (31) Balance - June 30, 2024 ​ $ 2,044
Schedule of Company's acquired intangible assets and capitalized developed software	Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Currency ​ Net ​ ​ Carrying ​ Accumulated ​ Translation ​ Carrying ​ Value Amortization Adjustment Value Acquired Intangible Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Developed technology ​ $ 3,060 ​ $ (2,845) ​ $ (3) ​ $ 212 Customer relationships ​ 2,144 ​ (1,770) ​ (16) ​ 358 Trademarks and tradenames ​ 862 ​ (809) ​ - ​ 53 Patents ​ 44 ​ (43) ​ - ​ 1 Media Contact Database ​ ​ 3,546 ​ ​ (2,837) ​ ​ - ​ ​ 709 Total Acquired Intangible Assets ​ $ 9,656 ​ $ (8,304) ​ $ (19) ​ $ 1,333 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ $ 18,504 ​ $ (8,557) ​ $ (206) ​ $ 9,741 Capitalized Developed Software - in Progress ​ 2,840 ​ - ​ (4) ​ 2,836 Total Capitalized Developed Software ​ $ 21,344 ​ $ (8,557) ​ $ (210) ​ $ 12,577 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 31,000 ​ $ (16,861) ​ $ (229) ​ $ 13,910 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Currency ​ Net ​ Carrying Accumulated Translation ​ Carrying ​ Value Amortization Adjustment Value Acquired Intangible Assets ​ ​ ​ ​ Developed technology ​ $ 2,999 ​ $ (2,640) ​ $ 7 ​ $ 366 Customer relationships ​ ​ 2,096 ​ ​ (1,645) ​ ​ 10 ​ ​ 461 Trademarks and tradenames ​ ​ 852 ​ ​ (774) ​ ​ 2 ​ ​ 80 Patents ​ 43 ​ (40) ​ ​ - ​ ​ 3 Media Contact Database ​ ​ 3,492 ​ ​ (2,621) ​ ​ 16 ​ ​ 887 Total Acquired Intangible Assets ​ $ 9,482 ​ $ (7,720) ​ $ 35 ​ $ 1,797 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Developed Software ​ $ 15,216 ​ $ (6,862) ​ $ 138 ​ $ 8,492 Capitalized Developed Software - in Progress ​ ​ 3,480 ​ ​ - ​ ​ (11) ​ ​ 3,469 Total Capitalized Developed Software ​ $ 18,696 ​ $ (6,862) ​ $ 127 ​ $ 11,961 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 28,178 ​ $ (14,582) ​ $ 162 ​ $ 13,758
Schedule of estimated amortization expense for intangible assets	As of June 30, 2024, estimated future amortization expense for intangible assets was as follows (in thousands): ​ ​ ​ ​ ​ Year Amortization 2024 ​ $ 3,222 2025 ​ ​ 4,714 2026 ​ ​ 3,446 2027 ​ ​ 1,168 2028 ​ ​ 688 Thereafter ​ ​ 672 ​ ​ $ 13,910 ​

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2024
Income Taxes
Schedule of reconciliation of U.S. statutory rate with Company's effective tax rate	​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months ​ ​ ​ Ended June 30, ​ ​ 2024 2023 ​ Federal income tax expense (benefit) at statutory rate 21.0 % (21.0) % Effect of: ​ ​ ​ ​ GILTI provisions ​ 17.6 ​ - ​ Tax effects of foreign operations ​ 7.1 ​ 3.8 ​ Change in valuation allowance ​ 6.4 ​ 51.3 ​ Increase in unrecognized tax benefits (ASC 740) ​ 5.5 ​ 2.6 ​ State income tax net of federal benefit ​ 0.8 ​ 0.4 ​ Foreign rate differential ​ (1.4) ​ (1.5) ​ Effect of stock - based compensation ​ (2.9) ​ (22.7) ​ Return to provision true up ​ (3.2) ​ (0.6) ​ Deemed interest ​ (5.2) ​ (7.1) ​ Foreign operations permanent differences - foreign exchange gains and losses ​ (7.9) ​ 4.7 ​ Other ​ 4.2 ​ 6.2 ​ Effective tax rate ​ 42.0 % 16.1 %
Schedule of roll forward of the Company's unrecognized tax benefits and associated interest	The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the six months ended June 30, 2024 (in thousands): ​ ​ ​ ​ ​ ​ Unrecognized ​ Tax Benefits Balance at January 1, 2024 ​ $ 1,942 Increase for current period tax positions ​ 115 Decrease for prior year tax positions ​ ​ (81) Interest accrual ​ 59 Foreign currency remeasurement ​ (22) Balance at June 30, 2024 ​ $ 2,013 ​

Operating Leases (Tables)

Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2024
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, ​ 2024 2023 2024 2023 Rent expense for long-term operating leases ​ $ 314 ​ $ 312 ​ $ 628 ​ $ 621 Rent expense for short-term leases ​ 44 ​ 83 ​ ​ 91 ​ ​ 178 Total rent expense ​ $ 358 ​ $ 395 ​ $ 719 ​ $ 799 ​
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, 2024 (in thousands): ​ ​ ​ ​ ​ Year Amount 2024 ​ $ 644 2025 ​ 1,305 2026 ​ 1,336 2027 ​ 1,334 2028 ​ 964 2029 and thereafter ​ 870 Total lease payments ​ 6,453 Less: Interest ​ (1,378) Net present value of lease liabilities ​ $ 5,075 ​ ​ ​ Current portion ​ $ 828 Long-term portion ​ 4,247 Total ​ $ 5,075 ​
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, 2024 were as follows: ​ ​ ​ ​ ​ Weighted-average lease term remaining 57 months ​ Weighted-average discount rate 9.39 % ​

Long-term obligations (Tables)

Long-term obligations (Tables)	6 Months Ended
	Jun. 30, 2024
Long-term obligations
Schedule of total long-term obligations	Total long-term obligations as of June 30, 2024 and December 31, 2023 consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2024 2023 Pension obligations - accrued pension liability ​ $ 7,412 ​ $ 7,128 Microsoft licenses (1) ​ 732 ​ 911 ​ ​ ​ 8,144 ​ ​ 8,039 Less: Current portion of long-term obligations ​ 1,149 ​ 1,261 Totals ​ $ 6,995 ​ $ 6,778 ​ (1)

Stock Options and Restricted _2

Stock Options and Restricted Stock Units (Tables)	6 Months Ended
	Jun. 30, 2024
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, ​ 2024 2023 2024 2023 Direct operating costs ​ $ 73 ​ $ 62 ​ $ 157 ​ $ 126 Selling and administrative expenses ​ 919 ​ 957 ​ 1,869 ​ 1,855 Total stock-based compensation ​ $ 992 ​ $ 1,019 ​ $ 2,026 ​ $ 1,981
Schedule of weighted-average fair value of the options granted, and weighted-average assumptions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended June 30, ​ ​ 2024 2023 ​ Weighted average fair value of options granted ​ $ - ​ $ 1.79 ​ Risk-free interest rate ​ ​ - ​ ​ 3.88 % Expected term (years) ​ ​ - ​ ​ 3.0 ​ Expected volatility factor ​ ​ - ​ ​ 79.95 % 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, 2024 5,339,162 ​ $ 3.22 6.38 $ 28,640,009 Granted - ​ - - ​ - Exercised (155,899) ​ 4.00 - ​ - Forfeited/Expired (4,001) ​ 6.96 - ​ - Outstanding at June 30, 2024 5,179,262 ​ $ 3.19 5.87 ​ $ 60,291,271 ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2024 3,402,382 ​ $ 2.20 ​ 4.92 ​ $ 42,967,259 ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2024 5,179,262 ​ $ 3.19 5.87 ​ $ 60,291,271 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 7.19 ​ $ 5,989,709 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, 2024 923,571 ​ $ 3.41 8.76 $ 4,786,252 Granted - ​ - - ​ - Exercised (46,430) ​ 3.41 - ​ - Forfeited/Expired (7,668) ​ 3.41 - ​ - Outstanding at June 30, 2024 869,473 ​ $ 3.41 8.27 ​ $ 9,927,362 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2024 339,779 ​ $ 3.33 8.24 ​ $ 3,907,176 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and Expected to Vest at June 30, 2024 869,473 ​ $ 3.41 8.27 ​ $ 9,927,362 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 9.75 $ - 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
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, 2024 ​ 749,756 ​ $ 5.77 Granted 28,973 ​ 15.10 Vested (48,761) ​ 8.42 Forfeited/Expired (995) ​ 8.29 Unvested at June 30, 2024 728,973 ​ $ 5.96 ​ ​ ​ ​ ​ ​ ​ ​ 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

Comprehensive income (loss) (Ta

Comprehensive income (loss) (Tables)	6 Months Ended
	Jun. 30, 2024
Comprehensive income (loss)
Schedule of components of accumulated other comprehensive loss and reclassifications from accumulated other 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, 2024 and 2023, and reclassifications from accumulated other comprehensive loss for the three and six-month periods, are presented below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ ​ ​ Pension Liability ​ Fair Value of ​ Translation ​ Accumulated Other ​ ​ Adjustment ​ Derivatives ​ Adjustment ​ Comprehensive Loss Balance at April 1, 2024 ​ $ (413) ​ $ 7 ​ $ (1,380) ​ $ (1,786) Other comprehensive loss before reclassifications, net of taxes ​ - ​ (193) ​ (78) ​ (271) Total other comprehensive loss before reclassifications, net of taxes ​ (413) ​ (186) ​ (1,458) ​ (2,057) Net amount reclassified to earnings ​ - ​ 19 ​ - ​ 19 Balance at June 30, 2024 ​ $ (413) ​ $ (167) ​ $ (1,458) ​ $ (2,038) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Currency ​ ​ Pension Liability Fair Value of Translation Accumulated Other ​ Adjustment Derivatives Adjustment Comprehensive Loss Balance at January 1, 2024 ​ $ (412) ​ $ 41 ​ $ (1,250) ​ $ (1,621) Other comprehensive loss before reclassifications, net of taxes ​ - ​ (206) ​ (208) ​ (414) Total other comprehensive loss before reclassifications, net of taxes ​ (412) ​ (165) ​ (1,458) ​ (2,035) Net amount reclassified to earnings ​ (1) ​ (2) ​ - ​ (3) Balance at June 30, 2024 ​ $ (413) ​ $ (167) ​ $ (1,458) ​ $ (2,038) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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) ​

Segment reporting and concent_2

Segment reporting and concentrations (Tables)	6 Months Ended
	Jun. 30, 2024
Segment reporting and concentrations
Schedule of segment reporting information, by segment	Revenues from external customers, segment operating profit (loss), and other reportable segment information are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended June 30, ​ For the Six Months Ended June 30, ​ 2024 2023 2024 2023 Revenues: ​ ​ ​ ​ ​ DDS ​ $ 25,410 ​ $ 13,180 ​ $ 45,116 ​ $ 25,927 Synodex ​ 1,986 ​ 2,112 ​ 3,857 ​ 3,976 Agility ​ 5,157 ​ 4,363 ​ 10,084 ​ 8,591 Total Consolidated ​ $ 32,553 ​ $ 19,655 ​ $ 59,057 ​ $ 38,494 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (1) ​ ​ ​ ​ ​ ​ ​ ​ DDS ​ $ (27) ​ $ (216) ​ $ 972 ​ $ (497) Synodex ​ 195 ​ (22) ​ 345 ​ (133) Agility ​ 108 ​ (389) ​ 373 ​ (1,892) Total Consolidated ​ $ 276 ​ $ (627) ​ $ 1,690 ​ $ (2,522) ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before provision for income taxes (2) ​ ​ ​ ​ ​ ​ ​ ​ DDS ​ $ (172) ​ $ (368) ​ $ 676 ​ $ (792) Synodex ​ 316 ​ 121 ​ 592 ​ 135 Agility ​ 132 ​ (380) ​ 422 ​ (1,865) Total Consolidated ​ $ 276 ​ $ (627) ​ $ 1,690 ​ $ (2,522) ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 December 31, 2023 Total assets: ​ ​ DDS ​ $ 42,925 ​ $ 37,232 Synodex ​ 3,759 ​ 3,379 Agility ​ 19,289 ​ 18,820 Total Consolidated ​ $ 65,973 ​ $ 59,431 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2024 December 31, 2023 Goodwill: ​ ​ Agility ​ $ 2,044 ​ $ 2,075 Total ​ $ 2,044 ​ $ 2,075 ​ (1) Before elimination of any inter-segment profits (2) After elimination of any inter-segment profits
Schedule of revenue from external customers and long-lived assets	Revenues for the three and six-month periods ended June 30, 2024, and 2023 by geographic region (determined based upon customer’s domicile), were as follows (in thousands): ​ Revenues by geographic region ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2024 2023 2024 2023 United States ​ $ 23,804 ​ $ 10,960 ​ $ 41,673 ​ $ 22,196 United Kingdom ​ 2,364 ​ 2,898 ​ 4,614 ​ 5,453 Canada ​ 2,284 ​ 1,762 ​ 4,510 ​ 3,485 The Netherlands ​ 2,005 ​ 2,193 ​ 4,044 ​ 3,805 Others - principally other European countries ​ 2,096 ​ 1,842 ​ 4,216 ​ 3,555 Totals ​ $ 32,553 ​ $ 19,655 ​ $ 59,057 ​ $ 38,494
Schedule of revenue from external customers based on client domicile	Long-lived assets as of June 30, 2024 and December 31, 2023 by geographic region were comprised of (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2024 2023 United States ​ $ 10,222 ​ $ 9,101 ​ ​ ​ ​ ​ Foreign countries: ​ ​ ​ ​ Canada ​ 6,806 ​ 7,328 United Kingdom ​ 922 ​ 1,028 Philippines ​ 3,591 ​ 3,484 India ​ 1,717 ​ 1,791 Sri Lanka ​ 548 ​ 423 Israel ​ 46 ​ 13 Total foreign ​ 13,630 ​ 14,067 Totals ​ $ 23,852 ​ $ 23,168

Income (Loss) Per Share (Tables

Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Income (Loss) Per Share
Schedule of loss per share, basic and diluted	The calculation of the dilutive effect of outstanding options is shown in the table below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ 2024 2023 2024 2023 Net income (loss) attributable to Innodata Inc. and Subsidiaries ​ $ (14) ​ $ (815) ​ $ 975 ​ $ (2,931) Weighted average common shares outstanding ​ 28,878 ​ 27,860 ​ 28,819 ​ 27,661 Dilutive effect of outstanding options ​ - ​ - ​ 3,872 ​ - Adjusted for dilutive computation ​ 28,878 ​ 27,860 ​ 32,691 ​ 27,661

Derivatives (Tables)

Derivatives (Tables)	6 Months Ended
	Jun. 30, 2024
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, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet Location ​ Fair Value ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2024 2023 Derivatives designated as hedging instruments: ​ ​ Foreign currency forward contracts Accrued expenses ​ $ 167 ​ $ - Foreign currency forward contracts Prepaid expenses and other current assets ​ $ - ​ $ 41
Schedule of effect of foreign currency forward contracts designated as cash flow hedges on 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, 2024 and 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ June 30, ​ June 30, ​ 2024 2023 2024 2023 Net gain (loss) recognized in OCI (1) ​ $ (193) ​ $ 2 ​ $ (206) ​ $ 244 Net (gain) loss reclassified from accumulated OCI into income (2) ​ $ 19 ​ $ 106 ​ $ (2) ​ $ 287 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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Description of Business and Summary of Significant Accounting Estimates and Policies
Amortization period	12 months		12 months
Prepaid expenses and other current assets on contract acquisition costs	$ 800		$ 800			$ 800
Foreign exchange (gains) losses	(389,000)	$ 18,000	(329,000)	$ 327,000
Deferred revenue	4,770	$ 3,036	4,770	$ 3,036	$ 6,668	3,523	$ 4,189	$ 4,366
Capitalized software development
Description of Business and Summary of Significant Accounting Estimates and Policies
Cost	18,500		18,500			15,200
In process research and development
Description of Business and Summary of Significant Accounting Estimates and Policies
Cost	$ 2,800		$ 2,800			$ 3,500
Minimum | Capitalized software development
Description of Business and Summary of Significant Accounting Estimates and Policies
Estimated useful life of intangibles	3 years		3 years
Maximum | Capitalized software development
Description of Business and Summary of Significant Accounting Estimates and Policies
Estimated useful life of intangibles	10 years		10 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies and Estimates - Deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Summary of Significant Accounting Policies and Estimates
Balance at the beginning of period	$ 6,668	$ 4,189	$ 3,523	$ 4,366
Net deferred revenue in the period	580	5,474	15,328	8,059
Revenue recognized	(2,467)	(6,756)	(13,990)	(9,500)
Currency translations and other adjustments	(11)	129	(91)	111
Balance at the end of period	$ 4,770	$ 3,036	$ 4,770	$ 3,036

Short Term Investments - othe_2

Short Term Investments - other (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Short Term Investments - other
Certificates of deposit	$ 14	$ 14
Total	$ 14	$ 14

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts Receivable
Gross Accounts receivable	$ 19,595		$ 15,505
Allowance for credit losses	(1,433)	$ (1,225)	(1,217)	$ (1,220)	$ (1,166)	$ (1,213)
Accounts receivable, net	$ 18,162		$ 14,288

Accounts Receivable - Activity

Accounts Receivable - Activity in allowance for credit losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounts Receivable
Balance at beginning of period	$ 1,225	$ 1,166	$ 1,217	$ 1,213
Additions charged to expense	219	152	234	332
Write-offs against allowance	(10)	(101)	(17)	(331)
Foreign currency translation adjustment	(1)	3	(1)	6
Balance at beginning of period	$ 1,433	$ 1,220	$ 1,433	$ 1,220

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Changes in carrying amount of goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Goodwill and Intangible Assets
Balance - January 1, 2024	$ 2,075
Foreign currency translation adjustment	(31)
Balance - June 30, 2024	$ 2,044

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Acquisition-related intangible assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets
Gross Carrying Value	$ 31,000	$ 28,178
Accumulated Amortization	(16,861)	(14,582)
Foreign Currency Translation Adjustment	(229)	162
Net Carrying Value	13,910	13,758
Acquired Intangible Assets
Goodwill and Intangible Assets
Gross Carrying Value	9,656	9,482
Accumulated Amortization	(8,304)	(7,720)
Foreign Currency Translation Adjustment	(19)	35
Net Carrying Value	1,333	1,797
Developed technology
Goodwill and Intangible Assets
Gross Carrying Value	3,060	2,999
Accumulated Amortization	(2,845)	(2,640)
Foreign Currency Translation Adjustment	(3)	7
Net Carrying Value	212	366
Customer relationships
Goodwill and Intangible Assets
Gross Carrying Value	2,144	2,096
Accumulated Amortization	(1,770)	(1,645)
Foreign Currency Translation Adjustment	(16)	10
Net Carrying Value	358	461
Trademarks and tradenames
Goodwill and Intangible Assets
Gross Carrying Value	862	852
Accumulated Amortization	(809)	(774)
Foreign Currency Translation Adjustment		2
Net Carrying Value	53	80
Patents
Goodwill and Intangible Assets
Gross Carrying Value	44	43
Accumulated Amortization	(43)	(40)
Net Carrying Value	1	3
Media Contact Database
Goodwill and Intangible Assets
Gross Carrying Value	3,546	3,492
Accumulated Amortization	(2,837)	(2,621)
Foreign Currency Translation Adjustment		16
Net Carrying Value	709	887
Capitalized Developed Software
Goodwill and Intangible Assets
Gross Carrying Value	21,344	18,696
Accumulated Amortization	(8,557)	(6,862)
Foreign Currency Translation Adjustment	(210)	127
Net Carrying Value	12,577	11,961
Capitalized Developed Software
Goodwill and Intangible Assets
Gross Carrying Value	18,504	15,216
Accumulated Amortization	(8,557)	(6,862)
Foreign Currency Translation Adjustment	(206)	138
Net Carrying Value	9,741	8,492
Capitalized Developed Software - in Progress
Goodwill and Intangible Assets
Gross Carrying Value	2,840	3,480
Foreign Currency Translation Adjustment	(4)	(11)
Net Carrying Value	$ 2,836	$ 3,469

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Estimated amortization expense (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets
2024	$ 3,222
2025	4,714
2026	3,446
2027	1,168
2028	688
Thereafter	672
Net Carrying Value	$ 13,910	$ 13,758

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Goodwill and Intangible Assets
Goodwill	$ 2,044		$ 2,044		$ 2,075
Acquired Intangible Assets
Goodwill and Intangible Assets
Amortization expense	200	$ 200	400	$ 400
Capitalized Developed Software
Goodwill and Intangible Assets
Amortization expense	$ 800	$ 600	$ 1,600	$ 1,200

Income Taxes - Tax rate reconci

Income Taxes - Tax rate reconciliation (Details)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Income Taxes
Federal income tax expense (benefit) at statutory rate	21%	(21.00%)
Effect of:
GILTI provisions	17.60%
Tax effects of foreign operations	7.10%	3.80%
Change in valuation allowance	6.40%	51.30%
Increase in unrecognized tax benefits (ASC 740)	5.50%	2.60%
State income tax net of federal benefit	0.80%	0.40%
Foreign rate differential	(1.40%)	(1.50%)
Effect of stock-based compensation	(2.90%)	(22.70%)
Return to provision true up	(3.20%)	(0.60%)
Deemed interest	(5.20%)	(7.10%)
Foreign operations permanent differences - foreign exchange gains and losses	(7.90%)	4.70%
Other	4.20%	6.20%
Effective tax rate	42%	16.10%
U.S. federal
Income Taxes
Federal income tax expense (benefit) at statutory rate	21%

Income Taxes - Unrecognized tax

Income Taxes - Unrecognized tax benefits (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Income Taxes
Balance at January 1, 2024	$ 1,942
Increase for current period tax positions	115
Decrease for prior year tax positions	(81)
Interest accrual	59
Foreign currency remeasurement	(22)
Balance at June 30, 2024	$ 2,013

Operating Leases (Details)

Operating Leases (Details)	6 Months Ended
	Jun. 30, 2024
Minimum
Operating Leases
Lease agreements term	3 years
Percentage of rental escalations	1.75%
Maximum
Operating Leases
Lease agreements term	11 years
Percentage of rental escalations	15%

Operating Leases - Financial st

Operating Leases - Financial statements related to operating leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Operating Leases
Total rent expense	$ 358	$ 395	$ 719	$ 799
Long-term operating leases
Operating Leases
Total rent expense	314	312	628	621
Short-term operating leases
Operating Leases
Total rent expense	$ 44	$ 83	$ 91	$ 178

Operating Leases - Net present

Operating Leases - Net present value of the operating lease liability (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Operating Leases
2024	$ 644
2025	1,305
2026	1,336
2027	1,334
2028	964
2029 and thereafter	870
Total lease payments	6,453
Less: Interest	(1,378)
Net present value of lease liabilities	5,075
Current portion	828	$ 782
Long-term portion	4,247	$ 4,701
Total	$ 5,075

Operating Leases - Weighted ave

Operating Leases - Weighted average remaining lease terms (Details)	Jun. 30, 2024
Operating Leases
Weighted-average lease term remaining (in months)	57 months
Weighted-average discount rate	9.39%

Long-term obligations (Details)

Long-term obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Long-term obligations
Pension obligations - accrued pension liability	$ 7,412	$ 7,128
Microsoft licenses	732	911
Total long-term obligations	8,144	8,039
Less: Current portion of long-term obligations	1,149	1,261
Totals	6,995	$ 6,778
Microsoft licenses, Amount payable annually over the term of the agreement	$ 400

Commitments and Contingencies (

Commitments and Contingencies (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
Commitments and Contingencies
Estimated litigation liability	$ 5,600,000
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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivatives, Fair Value
Total stock-based compensation			$ 2,026	$ 1,981
Equity Plans
Derivatives, Fair Value
Direct operating costs	$ 73	$ 62	157	126
Selling and administrative expenses	919	957	1,869	1,855
Total stock-based compensation	$ 992	$ 1,019	$ 2,026	$ 1,981

Stock Options and Restricted _4

Stock Options and Restricted Stock Units - Summary of Stock Option Activity (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Stock Options
Number of Options, Granted (in shares)	0
Number of Options, Exercised (in shares)	(202,329)
Weighted Average Exercise Price Exercised (in dollars per shares)	$ 3.87
Employee Stock Option | 2013 Stock Plan
Stock Options
Number of Options, Outstanding - Beginning balance (in shares)	5,339,162	6,690,490	6,690,490
Number of Options, Granted (in shares)		25,000
Number of Options, Exercised (in shares)	(155,899)	(871,884)
Number of Options, Forfeited/Expired (in shares)	(4,001)	(75,766)
Number of Options, Outstanding - Ending balance (in shares)	5,179,262	5,767,840	5,339,162	6,690,490
Number of Options Exercisable (in shares)	3,402,382	3,600,261
Number of Options, Vested and Expected to Vest (in shares)	5,179,262	5,767,840
Weighted Average Exercise Price Outstanding beginning balance (in dollars per shares)	$ 3.22	$ 3.09	$ 3.09
Weighted Average Exercise Price Granted (in dollars per shares)		3.31
Weighted Average Exercise Price Exercised (in dollars per shares)	4	2.34
Weighted Average Exercise Price Forfeited/Expired (in dollars per shares)	6.96	6.96
Weighted Average Exercise Price Outstanding Ending balance (in dollars per shares)	3.19	3.16	$ 3.22	$ 3.09
Weighted Average Exercise Price Exercisable (in dollars per shares)	2.20	1.91
Weighted Average Exercise Price Vested and Expected to Vest (in dollars per shares)	$ 3.19	$ 3.16
Weighted Average Remaining Contractual Term Outstanding (in years)	5 years 10 months 13 days	6 years 10 months 2 days	6 years 4 months 17 days	7 years 2 months 8 days
Weighted Average Remaining Contractual Term Exercisable (in years)	4 years 11 months 1 day	5 years 8 months 23 days
Weighted Average Remaining Contractual Term Vested and Expected to Vest (in years)	5 years 10 months 13 days	6 years 10 months 2 days
Aggregate Intrinsic Value, Outstanding	$ 60,291,271	$ 47,137,674	$ 28,640,009	$ 5,989,709
Aggregate Intrinsic Value, Exercisable	42,967,259	33,897,858
Aggregate Intrinsic Value, Vested and Expected to Vest	$ 60,291,271	$ 47,137,674
Employee Stock Option | 2021 Stock Plan
Stock Options
Number of Options, Outstanding - Beginning balance (in shares)	923,571	1,027,500	1,027,500
Number of Options, Exercised (in shares)	(46,430)	(25,000)
Number of Options, Forfeited/Expired (in shares)	(7,668)	(42,000)
Number of Options, Outstanding - Ending balance (in shares)	869,473	960,500	923,571	1,027,500
Number of Options Exercisable (in shares)	339,779	18,750
Number of Options, Vested and Expected to Vest (in shares)	869,473	960,500
Weighted Average Exercise Price Outstanding beginning balance (in dollars per shares)	$ 3.41	$ 3.46	$ 3.46
Weighted Average Exercise Price Exercised (in dollars per shares)	3.41	6.40
Weighted Average Exercise Price Forfeited/Expired (in dollars per shares)	3.41	3.41
Weighted Average Exercise Price Outstanding Ending balance (in dollars per shares)	3.41	3.38	$ 3.41	$ 3.46
Weighted Average Exercise Price Exercisable (in dollars per shares)	3.33	3.39
Weighted Average Exercise Price Vested and Expected to Vest (in dollars per shares)	$ 3.41	$ 3.38
Weighted Average Remaining Contractual Term Outstanding (in years)	8 years 3 months 7 days	9 years 3 months 7 days	8 years 9 months 3 days	9 years 9 months
Weighted Average Remaining Contractual Term Exercisable (in years)	8 years 2 months 26 days	9 years 2 months 15 days
Weighted Average Remaining Contractual Term Vested and Expected to Vest (in years)	8 years 3 months 7 days	9 years 3 months 7 days
Aggregate Intrinsic Value, Outstanding	$ 9,927,362	$ 7,634,060	$ 4,786,252
Aggregate Intrinsic Value, Exercisable	3,907,176	148,875
Aggregate Intrinsic Value, Vested and Expected to Vest	$ 9,927,362	$ 7,634,060

Stock Options and Restricted _5

Stock Options and Restricted Stock Units - Weighted Average Fair Values and Assumptions (Details) - Employee Stock Option - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Stock Options
Weighted average fair value of options granted (in dollars per share)		$ 1.79
Risk-free interest rate		3.88%
Expected term (years)	0 years	3 years
Expected volatility factor		79.95%

Stock Options and Restricted _6

Stock Options and Restricted Stock Units - Summary of stock option and Restricted Stock option activity (Details) - Restricted Stock Units - Equity Plans - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Stock Options
Number of Restricted Stock Units, Unvested at Beginning of the year	749,756	700,000
Number of Restricted Stock Units, Granted	28,973	28,804
Number of Restricted Stock Units, Vested	(48,761)
Number of Restricted Stock Units, Forfeited/Expired	(995)
Number of Restricted Stock Units, Unvested at End of the year	728,973	728,804
Weighted-Average Grant Date Fair Value, Outstanding at Beginning of the year	$ 5.77	$ 5.59
Weighted-Average Grant Date Fair Value, Granted	15.10	8.29
Weighted-Average Grant Date Fair Value, Vested	8.42
Weighted-Average Grant Date Fair Value, Forfeited/Expired	8.29
Weighted-Average Grant Date Fair Value, Outstanding at End of the year	$ 5.96	$ 5.70

Stock Options and Restricted _7

Stock Options and Restricted Stock Units - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Restricted Stock Units
Stock Options
Compensation cost related to non-vested stock options and restricted stock awards not yet recognized	$ 2.8
Weighted-average period over which compensation cost recognized	8 months
Employee Stock Option
Stock Options
Compensation cost related to non-vested stock options and restricted stock awards not yet recognized	$ 1.9
Weighted-average period over which compensation cost recognized	11 months
2013 Stock Plan | Restricted Stock Units
Stock Options
Number of Options, Outstanding	200,000
2013 Stock Plan | Employee Stock Option
Stock Options
Number of Options, Outstanding	5,179,262	5,339,162	5,767,840	6,690,490
2021 Stock Plan | Restricted Stock Units
Stock Options
Number of Options, Outstanding	528,973
2021 Stock Plan | Employee Stock Option
Stock Options
Number of Options, Outstanding	869,473	923,571	960,500	1,027,500

Comprehensive income (loss) - R

Comprehensive income (loss) - Reclassifications from accumulated other comprehensive loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Comprehensive loss
Balance at the beginning	$ 27,561	$ 18,418	$ 25,703	$ 18,773
Balance at the end	28,973	20,651	28,973	20,651
Pension Liability Adjustment
Comprehensive loss
Balance at the beginning	(413)	(91)	(412)	(86)
Total other comprehensive income (loss) before reclassifications, net of taxes	(413)	(91)	(412)	(86)
Net amount reclassified to earnings		(4)	(1)	(9)
Balance at the end	(413)	(95)	(413)	(95)
Fair Value of Derivatives
Comprehensive loss
Balance at the beginning	7	58	41	(365)
Other comprehensive income (loss) before reclassifications, net of taxes	(193)	2	(206)	244
Total other comprehensive income (loss) before reclassifications, net of taxes	(186)	60	(165)	(121)
Net amount reclassified to earnings	19	106	(2)	287
Balance at the end	(167)	166	(167)	166
Foreign Currency Translation Adjustment
Comprehensive loss
Balance at the beginning	(1,380)	(1,597)	(1,250)	(1,657)
Other comprehensive income (loss) before reclassifications, net of taxes	(78)	67	(208)	127
Total other comprehensive income (loss) before reclassifications, net of taxes	(1,458)	(1,530)	(1,458)	(1,530)
Balance at the end	(1,458)	(1,530)	(1,458)	(1,530)
Accumulated Other Comprehensive Loss
Comprehensive loss
Balance at the beginning	(1,786)	(1,630)	(1,621)	(2,108)
Other comprehensive income (loss) before reclassifications, net of taxes	(271)	69	(414)	371
Total other comprehensive income (loss) before reclassifications, net of taxes	(2,057)	(1,561)	(2,035)	(1,737)
Net amount reclassified to earnings	19	102	(3)	278
Balance at the end	$ (2,038)	$ (1,459)	$ (2,038)	$ (1,459)

Segment reporting and concent_3

Segment reporting and concentrations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Segment reporting and concentrations
Revenues	$ 32,553	$ 19,655	$ 59,057	$ 38,494
Income (loss) before provision for income taxes	276	(627)	1,690	(2,522)
Total assets	65,973		65,973		$ 59,431
Goodwill	2,044		2,044		2,075
Before intersegment eliminations
Segment reporting and concentrations
Income (loss) before provision for income taxes	276	(627)	1,690	(2,522)
After intersegment eliminations
Segment reporting and concentrations
Income (loss) before provision for income taxes	276	(627)	1,690	(2,522)
DDS
Segment reporting and concentrations
Total assets	42,925		42,925		37,232
DDS | Operating Segments
Segment reporting and concentrations
Revenues	25,410	13,180	45,116	25,927
DDS | Before intersegment eliminations
Segment reporting and concentrations
Income (loss) before provision for income taxes	(27)	(216)	972	(497)
DDS | After intersegment eliminations
Segment reporting and concentrations
Income (loss) before provision for income taxes	(172)	(368)	676	(792)
Synodex
Segment reporting and concentrations
Total assets	3,759		3,759		3,379
Synodex | Operating Segments
Segment reporting and concentrations
Revenues	1,986	2,112	3,857	3,976
Synodex | Before intersegment eliminations
Segment reporting and concentrations
Income (loss) before provision for income taxes	195	(22)	345	(133)
Synodex | After intersegment eliminations
Segment reporting and concentrations
Income (loss) before provision for income taxes	316	121	592	135
Agility
Segment reporting and concentrations
Total assets	19,289		19,289		18,820
Goodwill	2,044		2,044		$ 2,075
Agility | Operating Segments
Segment reporting and concentrations
Revenues	5,157	4,363	10,084	8,591
Agility | Before intersegment eliminations
Segment reporting and concentrations
Income (loss) before provision for income taxes	108	(389)	373	(1,892)
Agility | After intersegment eliminations
Segment reporting and concentrations
Income (loss) before provision for income taxes	$ 132	$ (380)	$ 422	$ (1,865)

Segment reporting and concent_4

Segment reporting and concentrations - Long-lived assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Segment reporting and concentrations
Long - lived assets	$ 23,852	$ 23,168
United States
Segment reporting and concentrations
Long - lived assets	10,222	9,101
Canada
Segment reporting and concentrations
Long - lived assets	6,806	7,328
United Kingdom
Segment reporting and concentrations
Long - lived assets	922	1,028
Philippines
Segment reporting and concentrations
Long - lived assets	3,591	3,484
India
Segment reporting and concentrations
Long - lived assets	1,717	1,791
Sri Lanka
Segment reporting and concentrations
Long - lived assets	548	423
Israel
Segment reporting and concentrations
Long - lived assets	46	13
Total foreign
Segment reporting and concentrations
Long - lived assets	$ 13,630	$ 14,067

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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment reporting and concentrations
Revenues	$ 32,553	$ 19,655	$ 59,057	$ 38,494
United States
Segment reporting and concentrations
Revenues	23,804	10,960	41,673	22,196
United Kingdom
Segment reporting and concentrations
Revenues	2,364	2,898	4,614	5,453
Canada
Segment reporting and concentrations
Revenues	2,284	1,762	4,510	3,485
The Netherlands
Segment reporting and concentrations
Revenues	2,005	2,193	4,044	3,805
Others - principally other European countries
Segment reporting and concentrations
Revenues	$ 2,096	$ 1,842	$ 4,216	$ 3,555

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, 2024 USD ($) customer	Jun. 30, 2023	Jun. 30, 2024 USD ($) customer segment	Jun. 30, 2023 customer	Dec. 31, 2023 USD ($) customer
Segment reporting and concentrations
Number of reporting segments | segment			3
Right-of-use-asset, net | $	$ 4,627		$ 4,627		$ 5,054
Sales revenue, net | Customer concentration risk | Non-US
Segment reporting and concentrations
Concentration risk, percentage	27%	44%	29%	42%
Foreign customer | Accounts receivable | Customer concentration risk
Segment reporting and concentrations
Concentration risk, percentage			22%		31%
One customer | Sales revenue, net | Customer concentration risk
Segment reporting and concentrations
Number of clients	1		1
Concentration risk, percentage	38%	10%	31%
Two customer | Sales revenue, net | Customer concentration risk
Segment reporting and concentrations
Number of clients				2
Concentration risk, percentage				10.70%
Other customer | Sales revenue, net | Customer concentration risk
Segment reporting and concentrations
Concentration risk, percentage				10.60%
Three customer | Accounts receivable | Customer concentration risk
Segment reporting and concentrations
Number of clients			2
Concentration risk, percentage			47%
Four customer | Accounts receivable | Customer concentration risk
Segment reporting and concentrations
Number of clients					3
Concentration risk, percentage					53%
Customer | Customer concentration risk | United States
Segment reporting and concentrations
Number of clients	0		0
Customer | Accounts receivable | Customer concentration risk
Segment reporting and concentrations
Number of clients			0
Customer | Minimum | Sales revenue, net | Customer concentration risk
Segment reporting and concentrations
Concentration risk, percentage	10%		10%
Customer | Minimum | Accounts receivable | Customer concentration risk
Segment reporting and concentrations
Concentration risk, percentage					10%

Income (Loss) Per Share (Detail

Income (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income (Loss) Per Share
Net loss attributable to Innodata Inc. and Subsidiaries	$ (14)	$ (815)	$ 975	$ (2,931)
Weighted average common shares outstanding	28,878	27,860	28,819	27,661
Dilutive effect of outstanding options			3,872
Adjusted for dilutive computation	28,878	27,860	32,691	27,661

Income (Loss) Per Share - Addit

Income (Loss) Per Share - Additional information (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Employee Stock Option
Antidilutive securities excluded from computation of earnings per share
Computation of diluted loss per share	6,000,000	6,700,000	3,000	6,700,000

Derivatives - Additional Inform

Derivatives - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Derivatives
Derivative notional amount	$ 10.2	$ 10.5

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, 2024	Dec. 31, 2023
Accrued expenses and other
Derivatives, Fair Value
Derivatives designated as hedging instruments	$ 167
Prepaid expenses and other current assets
Derivatives, Fair Value
Derivatives designated as hedging instruments		$ 41

Derivatives - Contracts designa

Derivatives - Contracts designated as cash flow hedges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivatives
Net gain (loss) recognized in OCI	$ (193)	$ 2	$ (206)	$ 244
Net loss reclassified from accumulated OCI into income	$ 19	$ 106	$ (2)	$ 287

Line Of Credit (Details)

Line Of Credit (Details) - Revolving Credit Facility $ in Millions	Apr. 04, 2023 USD ($)	Jun. 30, 2024 USD ($)
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		$ 10
Threshold minimum fixed charge coverage ratio required to be maintained by December 31, 2023	1.10
Interest rate	2.25%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember

Subsequent Event - (Details)

Subsequent Event - (Details) - Revolving Credit Facility - USD ($) $ in Millions	Aug. 05, 2024	Jun. 30, 2024	Apr. 04, 2023
Subsequent Event
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%
Line of credit facility, borrowing base		$ 12.4
Subsequent event
Subsequent Event
Maximum borrowing capacity	$ 30
Maximum borrowing capacity subject to approval of the lender	$ 50
Percentage of eligible accounts considered for determination of borrowing base	85%
Percentage of eligible unbilled accounts considered for determination of borrowing base	80%
Percentage of all eligible unbilled accounts considered for determination of borrowing base	30%
Percentage of eligible foreign accounts considered for determination of borrowing base	85%
Percentage of all eligible foreign accounts considered for determination of borrowing base	20%
Amount of all eligible foreign accounts considered for determination of borrowing base	$ 4