Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Cover | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35774 | |
Entity Registrant Name | INNODATA INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3475943 | |
Entity Address, Address Line One | 55 Challenger Road | |
Entity Address, City or Town | Ridgefield Park, | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07660 | |
City Area Code | 201 | |
Local Phone Number | 371-8000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | INOD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,153,485 | |
Entity Central Index Key | 0000903651 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 20,943 | $ 17,573 |
Accounts receivable, net of allowance for doubtful accounts of $780 and $670, respectively | 9,016 | 10,048 |
Prepaid expenses and other current assets | 3,853 | 4,240 |
Total current assets | 33,812 | 31,861 |
Property and equipment, net | 2,414 | 1,852 |
Right-of-use-asset, net | 5,876 | 6,610 |
Other assets | 2,344 | 2,563 |
Deferred income taxes, net | 1,999 | 2,187 |
Intangibles, net | 10,245 | 10,031 |
Goodwill | 2,143 | 2,150 |
Total assets | 58,833 | 57,254 |
Current liabilities: | ||
Accounts payable | 1,763 | 1,435 |
Accrued expenses and other | 6,240 | 3,490 |
Accrued salaries, wages and related benefits | 6,692 | 5,719 |
Income and other taxes | 3,415 | 5,000 |
Long-term obligations - current portion | 1,130 | 1,712 |
Operating lease liability - current portion | 1,056 | 990 |
Total current liabilities | 20,296 | 18,346 |
Deferred income taxes | 60 | 44 |
Long-term obligations - current portion | 5,700 | 6,282 |
Operating lease liability - current portion | 5,507 | 6,332 |
Total liabilities | 31,563 | 31,004 |
Commitments and contingencies | ||
Non-controlling interests | (3,453) | (3,390) |
STOCKHOLDERS' EQUITY: | ||
Serial preferred stock; 4,998,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value; 75,000,000 shares authorized; 30,337,000 shares issued and 27,153,000 outstanding at September 30, 2021 and 28,984,000 shares issued and 25,800,000 outstanding at December 31, 2020; | 303 | 289 |
Additional paid-in capital | 34,475 | 31,921 |
Retained earnings | 4,328 | 4,833 |
Accumulated other comprehensive loss | (1,918) | (938) |
Stockholders' Equity before Treasury Stock, Total | 37,188 | 36,105 |
Less: treasury stock, 3,184,000 shares at cost | (6,465) | (6,465) |
Total stockholders' equity | 30,723 | 29,640 |
Total liabilities and stockholders' equity | $ 58,833 | $ 57,254 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, net of allowance for doubtful accounts | $ 780 | $ 670 |
Series preferred stock, shares authorized | 4,998,000 | 4,998,000 |
Series preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 30,337,000 | 28,984,000 |
Common stock, shares outstanding | 27,153,000 | 25,800,000 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||
Revenues | $ 17,450 | $ 14,553 | $ 50,466 | $ 42,946 |
Operating costs and expenses: | ||||
Direct operating costs | 10,703 | 9,784 | 31,208 | 29,209 |
Selling and administrative expenses | 7,262 | 4,582 | 19,767 | 13,663 |
Interest expense, net | 4 | 44 | 18 | 113 |
Total | 17,969 | 14,410 | 50,993 | 42,985 |
Loss from operations | (527) | (39) | ||
Gain on loan forgiveness | 580 | 0 | ||
Income (loss) before provision for income taxes | (519) | 143 | 53 | (39) |
Provision for income taxes | 328 | (70) | 621 | 504 |
Consolidated net income (loss) | (847) | 213 | (568) | (543) |
Income (loss) attributable to non-controlling interests | (47) | 7 | (63) | 25 |
Net income (loss) attributable to Innodata Inc. and Subsidiaries | $ (800) | $ 206 | $ (505) | $ (568) |
Income (loss) per share attributable to Innodata Inc. and Subsidiaries: | ||||
Basic | $ (0.03) | $ 0.01 | $ (0.02) | $ (0.02) |
Diluted | $ (0.03) | $ 0.01 | $ (0.02) | $ (0.02) |
Weighted average shares outstanding: | ||||
Basic | 26,971 | 24,470 | 26,459 | 24,427 |
Diluted | 26,971 | 25,260 | 26,459 | 24,427 |
Comprehensive income (loss): | ||||
Consolidated net loss | $ (847) | $ 213 | $ (568) | $ (543) |
Pension liability adjustment, net of taxes | 10 | (1) | 32 | 24 |
Foreign currency translation adjustment | (594) | 216 | (480) | (281) |
Change in fair value of derivatives, net of taxes | (265) | 51 | (532) | (33) |
Other comprehensive income (loss) | (849) | 266 | (980) | (290) |
Total comprehensive income (loss) | (1,696) | 479 | (1,548) | (833) |
Less: Comprehensive income (loss) attributable to non-controlling interests | (47) | 7 | (63) | 25 |
Comprehensive income (loss) attributable to Innodata Inc. and Subsidiaries | $ (1,649) | $ 472 | $ (1,485) | $ (858) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Consolidated net loss | $ (568) | $ (543) |
Adjustments to reconcile consolidated net loss to net cash | ||
Depreciation and amortization | 2,054 | 1,720 |
Gain on loan forgiveness | (580) | 0 |
Stock-based compensation | 1,117 | 700 |
Deferred income taxes | (16) | (412) |
Pension cost | 308 | 596 |
Loss on disposal of property and equipment | 0 | 33 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 431 | 568 |
Prepaid expenses and other current assets | 342 | (297) |
Other assets | 214 | (8) |
Accounts payable and accrued expenses | 2,895 | 814 |
Accrued salaries, wages and related benefits | 976 | 1,729 |
Income and other taxes | (1,531) | 753 |
Net cash provided by operating activities | 5,642 | 5,653 |
Cash flows from investing activities: | ||
Capital expenditures | (2,919) | (1,115) |
Proceeds from disposal of property and equipment | 0 | 39 |
Net cash used in investing activities | (2,919) | (1,076) |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 2,214 | 167 |
Withholding taxes on net settlement of stock-based compensation | (763) | 0 |
Payment of long-term obligations | (666) | (800) |
Proceeds from bank loan | 0 | 580 |
Net cash provided by (used in) financing activities | 785 | (53) |
Effect of exchange rate changes on cash and cash equivalents | (138) | (62) |
Net increase in cash and cash equivalents | 3,370 | 4,462 |
Cash and cash equivalents, beginning of period | 17,573 | 10,874 |
Cash and cash equivalents, end of period | 20,943 | 15,336 |
Supplemental disclosures of cash flow information: | ||
Shares withheld for withholding taxes on net settlement for stock-based compensation | 763 | 0 |
Cash paid for income taxes | 201 | 209 |
Cash paid for operating leases | 1,312 | 1,777 |
Cash paid for interest | $ 18 | $ 113 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total |
Balance at Dec. 31, 2019 | $ 275 | $ 28,426 | $ 4,216 | $ (920) | $ (6,465) | $ 25,532 |
Balance (in shares) at Dec. 31, 2019 | 27,643,000 | |||||
Balance (in shares) at Dec. 31, 2019 | 3,184,000 | |||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries | $ 0 | 0 | (365) | 0 | $ 0 | (365) |
Stock-based compensation | $ 0 | 170 | 0 | 0 | 0 | 170 |
Stock based compensation (in shares) | 0 | |||||
Pension liability adjustments, net of taxes | $ 0 | 0 | 0 | 14 | 0 | 14 |
Foreign currency translation adjustment, net of taxes | 0 | 0 | 0 | (718) | 0 | (718) |
Change in fair value of derivatives, net of taxes | 0 | 0 | 0 | (171) | 0 | (171) |
Balance at Mar. 31, 2020 | $ 275 | 28,596 | 3,851 | (1,795) | $ (6,465) | 24,462 |
Balance (in shares) at Mar. 31, 2020 | 27,643,000 | |||||
Balance (in shares) at Mar. 31, 2020 | 3,184,000 | |||||
Balance at Dec. 31, 2019 | $ 275 | 28,426 | 4,216 | (920) | $ (6,465) | 25,532 |
Balance (in shares) at Dec. 31, 2019 | 27,643,000 | |||||
Balance (in shares) at Dec. 31, 2019 | 3,184,000 | |||||
Shares withheld for exercise settlement and taxes | 0 | |||||
Pension liability adjustments, net of taxes | 24 | |||||
Foreign currency translation adjustment, net of taxes | (281) | |||||
Change in fair value of derivatives, net of taxes | (33) | |||||
Balance at Sep. 30, 2020 | $ 278 | 29,438 | 3,648 | (1,210) | $ (6,465) | 25,689 |
Balance (in shares) at Sep. 30, 2020 | 27,921,000 | 3,184,000 | ||||
Balance at Mar. 31, 2020 | $ 275 | 28,596 | 3,851 | (1,795) | $ (6,465) | 24,462 |
Balance (in shares) at Mar. 31, 2020 | 27,643,000 | |||||
Balance (in shares) at Mar. 31, 2020 | 3,184,000 | |||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries | $ 0 | 0 | (557) | 0 | $ 0 | (557) |
Stock-based compensation | 0 | 298 | 0 | 0 | 0 | 298 |
Pension liability adjustments, net of taxes | 0 | 0 | 0 | 11 | 0 | 11 |
Foreign currency translation adjustment, net of taxes | 0 | 0 | 0 | 221 | 0 | 221 |
Change in fair value of derivatives, net of taxes | 0 | 0 | 0 | 87 | 0 | 87 |
Balance at Jun. 30, 2020 | $ 275 | 28,894 | 3,294 | (1,476) | $ (6,465) | 24,522 |
Balance (in shares) at Jun. 30, 2020 | 27,643,000 | |||||
Balance (in shares) at Jun. 30, 2020 | 3,184,000 | |||||
Revision adjustments | $ 0 | 0 | 148 | 0 | $ 0 | 148 |
Net income (loss) attributable to Innodata Inc. and Subsidiaries | 0 | 0 | 206 | 0 | 0 | 206 |
Stock-based compensation | $ 0 | 232 | 0 | 0 | $ 0 | 232 |
Stock based compensation (in shares) | 0 | 0 | ||||
Exercise of stock options | $ 3 | 312 | 0 | 0 | $ 0 | 315 |
Exercise of stock options (in shares) | 278,000 | 0 | ||||
Pension liability adjustments, net of taxes | $ 0 | 0 | 0 | (1) | $ 0 | (1) |
Foreign currency translation adjustment, net of taxes | 0 | 0 | 0 | 216 | 0 | 216 |
Change in fair value of derivatives, net of taxes | 0 | 0 | 0 | 51 | 0 | 51 |
Balance at Sep. 30, 2020 | $ 278 | 29,438 | 3,648 | (1,210) | $ (6,465) | 25,689 |
Balance (in shares) at Sep. 30, 2020 | 27,921,000 | 3,184,000 | ||||
Balance at Dec. 31, 2020 | $ 289 | 31,921 | 4,833 | (938) | $ (6,465) | $ 29,640 |
Balance (in shares) at Dec. 31, 2020 | 28,984,000 | |||||
Balance (in shares) at Dec. 31, 2020 | 3,184,000 | 3,184,000 | ||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries | $ 0 | 0 | 398 | 0 | $ 0 | $ 398 |
Stock-based compensation | $ 0 | 278 | 0 | 0 | 0 | 278 |
Stock based compensation (in shares) | 0 | |||||
Exercise of stock options | $ 4 | 605 | 0 | 0 | 0 | 609 |
Exercise of stock options (in shares) | 690,000 | |||||
Shares withheld for exercise settlement and taxes | $ 1 | (764) | 0 | 0 | 0 | (763) |
Shares withheld for exercise settlement and taxes (in shares) | (193,000) | |||||
Pension liability adjustments, net of taxes | $ 0 | 0 | 0 | 11 | 0 | 11 |
Foreign currency translation adjustment, net of taxes | 0 | 0 | 0 | (21) | 0 | (21) |
Balance at Mar. 31, 2021 | $ 294 | 32,040 | 5,231 | (948) | $ (6,465) | 30,152 |
Balance (in shares) at Mar. 31, 2021 | 29,481,000 | |||||
Balance (in shares) at Mar. 31, 2021 | 3,184,000 | |||||
Balance at Dec. 31, 2020 | $ 289 | 31,921 | 4,833 | (938) | $ (6,465) | $ 29,640 |
Balance (in shares) at Dec. 31, 2020 | 28,984,000 | |||||
Balance (in shares) at Dec. 31, 2020 | 3,184,000 | 3,184,000 | ||||
Shares withheld for exercise settlement and taxes | $ (763) | |||||
Pension liability adjustments, net of taxes | 32 | |||||
Foreign currency translation adjustment, net of taxes | (480) | |||||
Change in fair value of derivatives, net of taxes | (532) | |||||
Balance at Sep. 30, 2021 | $ 303 | 34,475 | 4,328 | (1,918) | $ (6,465) | $ 30,723 |
Balance (in shares) at Sep. 30, 2021 | 30,337,000 | 3,184,000 | ||||
Balance (in shares) at Sep. 30, 2021 | 3,184,000 | |||||
Balance at Mar. 31, 2021 | $ 294 | 32,040 | 5,231 | (948) | $ (6,465) | $ 30,152 |
Balance (in shares) at Mar. 31, 2021 | 29,481,000 | |||||
Balance (in shares) at Mar. 31, 2021 | 3,184,000 | |||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries | $ 0 | 0 | (103) | 0 | $ 0 | (103) |
Stock-based compensation | 0 | 336 | 0 | 0 | 0 | 336 |
Exercise of stock options | $ 5 | 1,136 | 0 | 0 | 0 | 1,141 |
Exercise of stock options (in shares) | 556,000 | |||||
Pension liability adjustments, net of taxes | $ 0 | 0 | 0 | 11 | 0 | 11 |
Foreign currency translation adjustment, net of taxes | 0 | 0 | 0 | 135 | 0 | 135 |
Change in fair value of derivatives, net of taxes | 0 | 0 | 0 | (267) | 0 | (267) |
Balance at Jun. 30, 2021 | $ 299 | 33,512 | 5,128 | (1,069) | $ (6,465) | 31,405 |
Balance (in shares) at Jun. 30, 2021 | 30,037,000 | |||||
Balance (in shares) at Jun. 30, 2021 | 3,184,000 | |||||
Net income (loss) attributable to Innodata Inc. and Subsidiaries | $ 0 | 0 | (800) | 0 | $ 0 | (800) |
Stock-based compensation | $ 0 | 503 | 0 | 0 | $ 0 | 503 |
Stock based compensation (in shares) | 0 | 0 | ||||
Exercise of stock options | $ 4 | 460 | 0 | 0 | $ 0 | 464 |
Exercise of stock options (in shares) | 300,000 | 0 | ||||
Pension liability adjustments, net of taxes | $ 0 | 0 | 0 | 10 | $ 0 | 10 |
Foreign currency translation adjustment, net of taxes | 0 | 0 | 0 | (594) | 0 | (594) |
Change in fair value of derivatives, net of taxes | 0 | 0 | 0 | (265) | 0 | (265) |
Balance at Sep. 30, 2021 | $ 303 | $ 34,475 | $ 4,328 | $ (1,918) | $ (6,465) | $ 30,723 |
Balance (in shares) at Sep. 30, 2021 | 30,337,000 | 3,184,000 | ||||
Balance (in shares) at Sep. 30, 2021 | 3,184,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies 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”) Principles of Consolidation Use of Estimates Capitalized Software Development Costs Deferred Revenue 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 under agreements billed on a time-and-materials basis is recognized as services are performed. Revenue under fixed-fee agreements, which are not significant to overall revenue, 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 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 our functioning as a principal due to our meeting the following criteria: the Company acts as the primary obligor in the sales transaction; assumes the credit risk; sets the price; can select suppliers; and is involved in the execution of the services, including after sales service. Revenue includes reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. The Company considers U.S. GAAP criteria for determining whether to report gross revenue as a principal versus net revenue as an agent. The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement. Revenue is recognized on a gross basis if the Company is in the capacity of principal and on a net basis if it falls in the capacity of an agent. Contract acquisition costs, which are included in prepaid expenses and other current assets, are amortized over the term of a subscription agreement or contract. The Company reviews these prepaid acquisition costs on a periodic basis to determine the need to adjust the carrying values for early-terminated contracts. Foreign Currency The functional currency for the Company’s subsidiaries in Germany and the United Kingdom and for the Company’s Agility subsidiary in Canada are the Euro, the Pound Sterling and the Canadian dollar, respectively. The financial statements of these subsidiaries are prepared in these respective currencies. Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in the Company’s condensed consolidated financial statements. Revenues, expenses and cash flows are translated at weighted-average exchange rates prevailing during the fiscal periods, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive loss in stockholders’ equity. Foreign exchange transaction gains or losses are included in direct operating costs in the accompanying condensed consolidated statements of operations and comprehensive loss. Derivative Instruments - Income Taxes In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the U.S. and Canadian deferred tax assets will not be realizable. As the expectation of future taxable income resulting from the U.S. and Canadian entities cannot be predicted with certainty, the Company maintains a valuation allowance against all the U.S. and Canadian net deferred tax assets. The Company accounts for income taxes regarding uncertain tax positions, and recognizes interest and penalties related to uncertain tax positions in Income tax expense in the condensed consolidated statements of operations and comprehensive income (loss). Recent Accounting Pronouncements - In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” as part of its initiative to reduce complexity in the accounting standards. The standard eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies and simplifies other aspects of the accounting for income taxes. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted the standard on January 1, 2021 and it had no material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements” (“ASU 2016-13”). ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation amount that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. In November 2018, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” which clarifies ASC Topic 326, “Financial Instruments - Credit Losses” and corrects unintended application of the guidance, and in November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” which clarifies or addresses specific issues about certain aspects of ASU 2016-13. In March 2020, the FASB issued ASU No. 2020-03, “Codification Improvements to Financial Instruments,” which modifies the measurement of expected credit losses of certain financial instruments. ASU 2016-13 is effective for certain smaller reporting companies for financial statements issued for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, which will be fiscal 2023 for the Company if it continues to be classified as a smaller reporting company, with early adoption permitted. The Company does not expect that the adoption of the new guidance will have a material impact on the Company’s condensed consolidated financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 2. Goodwill and Intangible Assets The Company completed its annual impairment analysis procedures on its reporting units as of September 30, 2021. The Company determined that there was no impairment of long-lived assets, tangible or intangible, in any reporting units as of September 30, 2021. The change in the carrying amount of goodwill for the nine months ended September 30, 2021 was as follows (in thousands): Balance as of January 1, 2021 $ 2,150 Foreign currency translation adjustment (7) Balance as of September 30, 2021 $ 2,143 The fair value measurement of goodwill was classified within Level 3 of the fair value hierarchy because the Company used the income approach, which utilizes significant inputs that are unobservable in the market and the market multiple approach which utilizes comparable entities to further validate the carrying values. The Company believes it made reasonable estimates and assumptions to calculate the fair value of the reporting unit as of the impairment test measurement date. Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands): Company Acquired Intangible Assets Capitalized Developed Software Capitalized Capitalized Software Balance as of September 30, 2021 Trademarks Media Software Development Developed Customer and Contact Development Cost - Work in technology relationships tradenames Patents Database Cost Progress Total Gross carrying amounts: Balance as of January 1, 2021 $ 3,175 $ 2,228 $ 882 $ 45 $ 3,670 $ 5,507 $ 1,360 $ 16,867 Additions - - - - - 376 1,357 1,733 Transfers - - - - - 2,323 (2,323) - Foreign currency translation (6) - (2) - (23) (54) 24 (61) Balance as of September 30, 2021 $ 3,169 $ 2,228 $ 880 $ 45 $ 3,647 $ 8,152 $ 418 $ 18,539 Accumulated amortization: Balance as of January 1, 2021 $ 1,844 $ 1,192 $ 629 $ 29 $ 1,650 $ 1,492 $ - $ 6,836 Amortization expense 233 138 41 3 261 778 - 1,454 Foreign currency translation 2 1 - 1 2 (2) - 4 Balance as of September 30, 2021 $ 2,079 $ 1,331 $ 670 $ 33 $ 1,913 $ 2,268 $ - $ 8,294 Net carrying values - September 30, 2021 $ 1,090 $ 897 $ 210 $ 12 $ 1,734 $ 5,884 $ 418 $ 10,245 The Company reclassified capitalized developed software, net of accumulated amortization, of $6.3 million and $5.4 million as of September 30, 2021 and December 31, 2020, respectively, from Property and equipment to Intangibles. Amortization expense relating to Company acquired intangible assets was $0.2 million for the three months ended September 30, 2021 and $0.7 million for the nine months ended September 30, 2021 Amortization expense relating to capitalized developed software was $0.3 million for the three months ended September 30, 2021 and $0.8 million for the nine months ended September 30, 2021. As of September 30, 2021, estimated future amortization expense for intangible assets was as follows (in thousands): Year Amortization 2021 $ 532 2022 2,203 2023 2,018 2024 1,590 2025 1,215 Thereafter 2,687 $ 10,245 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Income Taxes | 3. Income Taxes Taxes primarily consist of a provision for foreign taxes recorded by the Company’s foreign subsidiaries in accordance with local tax regulations. Effective income tax rates are disproportionate due to the losses incurred by the Company’s U.S. and Canadian subsidiaries and a valuation allowance recorded on deferred taxes of these entities and tax effects of foreign operations, including foreign exchange gains and losses. The reconciliations of the U.S. statutory rate with the Company’s effective tax rate for the nine -month periods ended September 30, 2021 and 2020 are summarized in the table below: For the Nine Months Ended September 30, 2021 2020 Federal income tax expense at statutory rate 21.0 % (21.0) % Effect of: Change in valuation allowance 2,468.8 (660.0) Effect of Section 162 (m) 549.9 - Foreign operations permanent difference - foreign exchange gains and losses 271.9 90.3 Change in tax rates 225.0 - Tax effects of foreign operations 79.8 1,610.6 State income tax net of federal benefit 43.2 (120.1) Return to provision true up 31.6 (14.8) Foreign rate differential (478.8) (295.9) Increase (decrease) in unrecognized tax benefits (ASC 740) (490.0) 410.5 Effect of stock-based compensation (1,573.2) 263.7 Other 22.5 29.0 Effective tax rate 1,171.7 % 1,292.3 % The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the nine months ended September 30, 2021 (in thousands): Unrecognized tax benefits Balance - January 1, 2021 $ 3,231 Tax settlement matters – prior periods (1,713) Change in tax position 149 Interest accrual 84 Foreign currency remeasurement (32) Balance - September 30, 2021 $ 1,719 The Company expects that unrecognized tax benefits as of September 30, 2021 if recognized, would have a material impact on the Company’s effective tax rate. Tax Assessments In September 2015, the Company’s Indian subsidiary was subject to an inquiry by the Service Tax Department in India regarding the classification of services provided by this subsidiary, asserting that the services provided by this subsidiary fall under the category of online information and database access or retrieval services (“OID Services”), and not under the category of business support services (“BS Services”) that are exempt from service tax as historically indicated in the subsidiary’s service tax filings. The Company disagrees with the Service Tax Department’s position. In November 2019, the Commissioner of Central Tax, GST & Central Excise issued an order confirming the Service Tax Department's position. The Company is contesting this order in an appeal to the Customs, Excise and Service Tax Appellate Tribunal. In the event the Service Tax Department is ultimately successful in proving that the services fall under the category of OID Services, the revenues earned by the Company’s Indian subsidiary for the period July 2012 through November 2016 would be subject to a service tax of between 12.36% and 15%, and this subsidiary may also be liable for interest and penalties. The revenue of the Company’s Indian subsidiary during this period was approximately $64.0 million. In accordance with new rules promulgated by the Service Tax Department, as of December 1, 2016 service tax is no longer applicable to OID or BS Services. Based on the assessment of the Company’s counsel, the Company has not recorded any tax liability for this case. In a separate action relating to service tax refunds, in October 2016, the Company’s Indian subsidiary received notices from the Indian Service Tax Department in India seeking to reverse service tax refunds of approximately $160,000 previously granted to the Company’s Indian subsidiary for three quarters in 2014, asserting that the services provided by this subsidiary fall under the category of OID Services and not BS Services. The appeal was determined in favor of the Service Tax Department. The Company disagrees with the basis of this decision and is contesting it. The Company expects delays in its Indian subsidiary receiving further service tax refunds until this matter is adjudicated with finality, and currently has service tax credits of approximately $1.0 million recorded as a receivable. Based on the assessment of the Company’s counsel, the Company has not recorded any tax liability or allowance Substantial recovery against the Company in the above referenced 2015 Service Tax Department case could have a material adverse impact on the Company, and unfavorable rulings or recoveries in other tax proceedings could have a material adverse impact on the consolidated operating results of the period (and subsequent periods) in which the rulings or recovery occurs. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 4. Commitments and Contingencies Litigation – The Company is also subject to various other legal proceedings and claims that have arisen in the ordinary course of business. While management currently believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s consolidated financial position or overall trends in consolidated results of operations, litigation is subject to inherent uncertainties. Substantial recovery against the Company in the above-referenced Philippine action could have a material adverse impact on the Company, and unfavorable rulings or recoveries in the other proceedings could have a material adverse impact on the consolidated operating results in the period in which the ruling or recovery occurs. In addition, the Company’s estimate of the potential impact on the Company’s consolidated financial position or overall consolidated results of operations for the above referenced legal proceedings could change in the future. The Company’s legal accruals related to legal proceedings and claims are based on the Company’s determination of whether or not a loss is probable. The Company reviews outstanding proceedings and claims with external counsel to assess probability and estimates of loss. The accruals are adjusted if necessary. While the Company intends to defend these matters vigorously, adverse outcomes that it estimates could reach approximately $350,000 in the aggregate beyond recorded amounts are reasonably possible. If circumstances change, the Company may be required to record adjustments that could be material to its reported consolidated financial condition and results of operations. |
Stock Options and Restricted Sh
Stock Options and Restricted Shares | 9 Months Ended |
Sep. 30, 2021 | |
Stock Options and Restricted Shares | |
Stock Options and Restricted Shares | 5. Stock Options and Restricted Shares A summary of stock option activity under the Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016 (the “Plan”), as of September 30, 2021, and changes during the nine months then ended, are presented below: Weighted - Weighted-Average Number of Average Exercise Remaining Contractual Aggregate Options Price Term (years) Intrinsic Value Outstanding at January 1, 2021 5,906,884 $ 1.61 Granted 750,000 6.76 Exercised (1,546,288) 2.01 Forfeited/Expired (20,000) 1.38 Outstanding at September 30, 2021 5,090,596 $ 2.05 7.49 $ 37,037,015 Exercisable at September 30, 2021 3,468,912 $ 1.73 7.03 $ 27,069,483 Vested and Expected to Vest at September 30, 2021 5,090,596 $ 2.05 7.49 $ 37,037,015 During the nine months ended September 30, 2021, a total of 1,546,288 options were exercised at an average price of $2.01 for net proceeds of $2.2 million 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 Nine Months Ended September 30, 2021 2020 Weighted average fair value of options granted $ 3.56 $ 0.61 Risk-free interest rate 0.22% - 0.82 % 0.29% - 0.56 % Expected term (years) 3 - 6 5 - 6 Expected volatility factor 58% - 68 % 47% - 50 % Expected dividends None None A summary of outstanding restricted shares issued under the Plan as of September 30, 2021 are presented below: Weighted-Average Grant Number of Shares Date Fair Value Unvested at December 31, 2020 50,000 - Granted - - Vested (25,000) - Forfeited/Expired - - Unvested at September 30, 2021 25,000 $ 1.38 The compensation cost related to non-vested stock options and restricted stock awards not yet recognized as of September 30, 2021 totaled approximately $2.7 million. The weighted-average period over which these costs will be recognized is twenty-six months. The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Direct operating costs $ 21 $ 40 $ 96 $ 119 Selling and administrative expenses 482 192 1,021 581 Total stock-based compensation $ 503 $ 232 $ 1,117 $ 700 |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 30, 2021 | |
Operating Leases | |
Operating Leases | 6. Operating Leases The Company has various lease agreements for its offices and service delivery centers. The Company has determined that the risks and benefits related to the leased properties are retained by the lessors. Accordingly, these are accounted for as operating leases. These lease agreements are for terms ranging from two The table below summarizes the amounts recognized in the condensed consolidated financial statements related to operating leases for the periods presented (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Rent expense for long-term operating leases $ 393 $ 402 $ 1,169 $ 1,266 Rent expense for short-term leases 59 122 143 511 Total rent expense $ 452 $ 524 $ 1,312 $ 1,777 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 September 30, 2021 (in thousands): Year Amount 2021 $ 389 2022 1,511 2023 1,255 2024 1,028 2025 1,043 2026 and thereafter 3,490 Total lease payments 8,716 Less: Interest 2,153 Net present value of lease liabilities $ 6,563 Current portion $ 1,056 Long-term portion 5,507 Total $ 6,563 The weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of September 30, 2021 were as follows: Weighted-average lease term remaining 56 months Weighted-average discount rate 8.68 % |
Long-term obligations
Long-term obligations | 9 Months Ended |
Sep. 30, 2021 | |
Long-term obligations | |
Long-term obligations | 7. Long-term obligations Total long-term obligations as of September 30, 2021 and December 31, 2020 consisted of the following (in thousands): September 30, December 31, 2021 2020 Pension obligations - accrued pension liability $ 6,124 $ 5,940 Settlement agreement 326 518 Capital lease obligations - 209 Microsoft licenses 380 747 Bank loans payable - 580 6,830 7,994 Less: Current portion of long-term obligations 1,130 1,712 Totals $ 5,700 $ 6,282 |
Comprehensive loss
Comprehensive loss | 9 Months Ended |
Sep. 30, 2021 | |
Comprehensive loss | |
Comprehensive loss | 8. Comprehensive loss Accumulated other comprehensive loss, as reflected in the condensed consolidated balance sheets, consists of pension liability adjustments, net of taxes, foreign currency translation adjustment and changes in fair value of derivatives, net of taxes. The components of Accumulated other comprehensive loss as of September 30, 2021 and 2020, and reclassifications from Accumulated other comprehensive loss to earnings for the three and nine months then ended, are presented below (in thousands): Foreign Currency Pension Liability Fair Value of Translation Accumulated Other Adjustment Derivatives Adjustment Comprehensive Loss Balance at July 1, 2021 $ (422) $ (267) $ (380) $ (1,069) Other comprehensive loss before reclassifications, net of taxes - (302) (594) (896) Total other comprehensive loss before reclassifications, net of taxes (422) (569) (974) (1,965) Net amount reclassified to earnings 10 37 - 47 Balance at September 30, 2021 $ (412) $ (532) $ (974) $ (1,918) Foreign Currency Pension Liability Fair Value of Translation Accumulated Other Adjustment Derivatives Adjustment Comprehensive Loss Balance at January 1, 2021 $ (444) $ - $ (494) $ (938) Other comprehensive loss before reclassifications, net of taxes - (536) (480) (1,016) Total other comprehensive loss before reclassifications, net of taxes (444) (536) (974) (1,954) Net amount reclassified to earnings 32 4 - 36 Balance at September 30, 2021 $ (412) $ (532) $ (974) $ (1,918) Foreign Currency Pension Liability Fair Value of Translation Accumulated Other Adjustment Derivatives Adjustment Comprehensive Loss Balance at July 1, 2020 $ (28) $ (51) $ (1,397) $ (1,476) Other comprehensive income before reclassifications, net of taxes - 12 216 228 Total other comprehensive loss before reclassifications, net of taxes (28) (39) (1,181) (1,248) Net amount reclassified to earnings (1) 39 - 38 Balance at September 30, 2020 $ (29) $ - $ (1,181) $ (1,210) Foreign Currency Pension Liability Fair Value of Translation Accumulated Other Adjustment Derivatives Adjustment Comprehensive Loss Balance at January 1, 2020 $ (53) $ 33 $ (900) $ (920) Other comprehensive loss before reclassifications, net of taxes - (154) (281) (435) Total other comprehensive loss before reclassifications, net of taxes (53) (121) (1,181) (1,355) Net amount reclassified to earnings 24 121 - 145 Balance at September 30, 2020 $ (29) $ - $ (1,181) $ (1,210) All reclassifications from Accumulated other comprehensive loss had an impact on Direct operating costs in the condensed consolidated statements of operations and comprehensive loss. |
Segment Reporting and Concentra
Segment Reporting and Concentrations | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting and Concentrations | |
Segment Reporting and Concentrations | 9. Segment Reporting and Concentrations The Company’s operations are classified in three reporting segments: DDS, Synodex and Agility. The DDS segment provides a range of solutions and platforms for solving complex data challenges that companies face when they seek to obtain the benefits of artificial intelligence (“AI”) systems and analytics platforms. These include data annotation, data transformation, data curation and intelligent automation. The DDS segment also provides a variety of services for clients in the information industry that relate to content operations and product development. The Synodex segment provides an intelligent data platform that transforms medical records into useable digital data organized in accordance with the Company’s proprietary data models or client data models. The Agility segment provides an intelligent data 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 services are generated from its operations in the Philippines, India, Sri Lanka, Canada, Germany, the United Kingdom and Israel. Revenues from external clients and segment operating profit (loss), and other reportable segment information for the periods presented were as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: DDS $ 13,237 $ 10,526 $ 37,997 $ 30,793 Synodex 983 1,197 2,888 3,680 Agility 3,230 2,830 9,581 8,473 Total Consolidated $ 17,450 $ 14,553 $ 50,466 $ 42,946 Income (loss) before provision for income taxes (1) : DDS $ 1,608 $ 4 $ 3,988 $ 226 Synodex (657) 79 (878) 356 Agility (1,470) 60 (3,057) (621) Total Consolidated $ (519) $ 143 $ 53 $ (39) Income (loss) before provision for income taxes (2) : DDS $ 1,509 $ (64) $ 3,740 $ 27 Synodex (584) 124 (711) 487 Agility (1,444) 83 (2,976) (553) Total Consolidated $ (519) $ 143 $ 53 $ (39) September 30, 2021 December 31, 2020 Total assets: DDS $ 29,640 $ 27,767 Synodex 714 457 Agility 28,479 29,030 Total Consolidated $ 58,833 $ 57,254 September 30, 2021 December 31, 2020 Goodwill: Agility $ 2,143 $ 2,150 Total Consolidated $ 2,143 $ 2,150 (1) Before elimination of any inter-segment profits (2) After elimination of any inter-segment profits The following table summarizes revenues by geographic region (determined and based upon customer’s domicile) (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 United States $ 9,467 $ 6,613 $ 26,761 $ 19,561 United Kingdom 2,912 2,832 8,709 8,284 The Netherlands 1,750 1,704 5,012 5,003 Canada 1,469 1,434 4,556 4,304 Others - principally Europe 1,852 1,970 5,428 5,794 Totals $ 17,450 $ 14,553 $ 50,466 $ 42,946 Long-lived assets as of September 30, 2021 and December 31, 2020 by geographic region were comprised of (in thousands): September 30, December 31, 2021 2020 United States $ 4,367 $ 4,045 Foreign countries: Canada 9,238 9,044 Philippines 4,162 4,545 United Kingdom 1,577 1,759 India 1,140 930 Sri Lanka 194 319 Israel - 1 Total foreign 16,311 16,598 Totals $ 20,678 $ 20,643 Long-lived assets include the unamortized balance of right-of-use assets amounting to $5.9 million and $6.6 million as of September 30, 2021 and December 31, 2020, respectively. One client in the DDS segment generated approximately 10% and 13% of the Company’s total revenues for the three months ended September 30, 2021 and 2020, respectively. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 46% and 55% As of September 30, 2021, approximately 44% of the Company’s accounts receivable was from foreign (principally European) clients and 34% of the Company’s accounts receivable was due from three clients. As of December 31, 2020, approximately 55% of the Company’s accounts receivable was from foreign (principally European) clients and 36% of the Company’s accounts receivable was due from three clients. |
Income (Loss) per Share
Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2021 | |
Income (Loss) Per Share | |
Income (Loss) Per Share | 10. Income (Loss) Per Share For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net income (loss) attributable to Innodata Inc. and Subsidiaries $ (800) $ 206 $ (505) $ (568) Weighted average common shares outstanding 26,971 24,470 26,459 24,427 Dilutive effect of outstanding options - 790 - - Adjusted for dilutive computation 26,971 25,260 26,459 24,427 Basic income (loss) per share is computed using the weighted-average number of common shares outstanding during the year. Diluted income 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 loss per share is used. Options to purchase 5.1 million shares of common stock for the three months ended September 30, 2021 were outstanding but not included in the computation of diluted loss per share because the effect would have been anti-dilutive. Options to purchase 2.3 million shares of common stock for the three months ended September 30, 2020 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. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2021 | |
Derivatives | |
Derivatives | 11. Derivatives The Company conducts a large portion of its operations in international markets, which subject it to foreign currency fluctuations. The most significant foreign currency exposures occur when revenue and associated accounts receivable are collected in one currency and expenses to generate that revenue are incurred in another currency. The Company is also subject to wage inflation and other government mandated increases and operating expenses in Asian countries where the Company has the majority of its operations. The Company’s primary inflation and exchange rate exposure relates to payroll, other payroll costs and operating expenses in the Philippines, India, Sri Lanka and Israel. In addition, although most of the Company’s revenue is denominated in U.S. dollars, a significant portion of total revenues is denominated in Canadian dollars, Pound Sterling and Euros. The Company's policy is to enter derivative instrument contracts with terms that coincide with the underlying exposure being hedged for a period up to 12 months. As such, the Company's derivative instruments are expected to be highly effective. For derivative instruments that are designated and qualify as cash flow hedges, the entire change in fair value of the hedging instrument is recorded to Other comprehensive income (loss). Upon settlement of these contracts, the change in the fair value recorded in Other comprehensive income (loss) are reclassified to earnings and included as part of Direct operating costs The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company does not hold or issue derivatives for trading purposes. All derivatives are recognized at their fair value and classified based on the instrument’s maturity date. The total notional amount for outstanding derivatives designated as hedges There were no outstanding derivatives not designated as hedges as of September 30, 2021. The total notional amount for outstanding derivatives not designated as hedges was $7.0 million as of December 31, 2020. The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020 (in thousands): Balance Sheet Location Fair Value 2021 2020 Derivatives designated as hedging instruments: Foreign currency forward contracts Accrued expenses $ 532 $ - Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other current assets $ - $ 48 The effect of foreign currency forward contracts designated as cash flow hedges on the condensed consolidated statements of operations for the For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net loss recognized in OCI (1) $ (302) $ 12 $ (536) $ (154) Net loss reclassified from accumulated OCI into income (2) $ 37 $ 39 $ 4 $ 121 Net gain recognized in income (3) $ - $ - $ - $ - (1) Net change in fair value of the effective portion classified into other comprehensive income ("OCI"). (2) Effective portion classified within direct operating costs. (3) There were no ineffective portions for the period presented. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
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”) |
Principles of Consolidation | Principles of Consolidation |
Use of Estimates | Use of Estimates |
Capitalized Software Development Costs | Capitalized Software Development Costs |
Deferred Revenue | Deferred Revenue |
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 under agreements billed on a time-and-materials basis is recognized as services are performed. Revenue under fixed-fee agreements, which are not significant to overall revenue, 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 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 our functioning as a principal due to our meeting the following criteria: the Company acts as the primary obligor in the sales transaction; assumes the credit risk; sets the price; can select suppliers; and is involved in the execution of the services, including after sales service. Revenue includes reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs. The Company considers U.S. GAAP criteria for determining whether to report gross revenue as a principal versus net revenue as an agent. The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement. Revenue is recognized on a gross basis if the Company is in the capacity of principal and on a net basis if it falls in the capacity of an agent. Contract acquisition costs, which are included in prepaid expenses and other current assets, are amortized over the term of a subscription agreement or contract. The Company reviews these prepaid acquisition costs on a periodic basis to determine the need to adjust the carrying values for early-terminated contracts. |
Foreign Currency | Foreign Currency The functional currency for the Company’s subsidiaries in Germany and the United Kingdom and for the Company’s Agility subsidiary in Canada are the Euro, the Pound Sterling and the Canadian dollar, respectively. The financial statements of these subsidiaries are prepared in these respective currencies. Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in the Company’s condensed consolidated financial statements. Revenues, expenses and cash flows are translated at weighted-average exchange rates prevailing during the fiscal periods, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive loss in stockholders’ equity. Foreign exchange transaction gains or losses are included in direct operating costs in the accompanying condensed consolidated statements of operations and comprehensive loss. |
Derivative Instruments | Derivative Instruments - |
Income Taxes | Income Taxes In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the U.S. and Canadian deferred tax assets will not be realizable. As the expectation of future taxable income resulting from the U.S. and Canadian entities cannot be predicted with certainty, the Company maintains a valuation allowance against all the U.S. and Canadian net deferred tax assets. The Company accounts for income taxes regarding uncertain tax positions, and recognizes interest and penalties related to uncertain tax positions in Income tax expense in the condensed consolidated statements of operations and comprehensive income (loss). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” as part of its initiative to reduce complexity in the accounting standards. The standard eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies and simplifies other aspects of the accounting for income taxes. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted the standard on January 1, 2021 and it had no material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements” (“ASU 2016-13”). ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation amount that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. In November 2018, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” which clarifies ASC Topic 326, “Financial Instruments - Credit Losses” and corrects unintended application of the guidance, and in November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” which clarifies or addresses specific issues about certain aspects of ASU 2016-13. In March 2020, the FASB issued ASU No. 2020-03, “Codification Improvements to Financial Instruments,” which modifies the measurement of expected credit losses of certain financial instruments. ASU 2016-13 is effective for certain smaller reporting companies for financial statements issued for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, which will be fiscal 2023 for the Company if it continues to be classified as a smaller reporting company, with early adoption permitted. The Company does not expect that the adoption of the new guidance will have a material impact on the Company’s condensed consolidated financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets | |
Schedule of Carrying Amount of Goodwill | The change in the carrying amount of goodwill for the nine months ended September 30, 2021 was as follows (in thousands): Balance as of January 1, 2021 $ 2,150 Foreign currency translation adjustment (7) Balance as of September 30, 2021 $ 2,143 |
Schedule of company's acquisition-related intangible assets | Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands): Company Acquired Intangible Assets Capitalized Developed Software Capitalized Capitalized Software Balance as of September 30, 2021 Trademarks Media Software Development Developed Customer and Contact Development Cost - Work in technology relationships tradenames Patents Database Cost Progress Total Gross carrying amounts: Balance as of January 1, 2021 $ 3,175 $ 2,228 $ 882 $ 45 $ 3,670 $ 5,507 $ 1,360 $ 16,867 Additions - - - - - 376 1,357 1,733 Transfers - - - - - 2,323 (2,323) - Foreign currency translation (6) - (2) - (23) (54) 24 (61) Balance as of September 30, 2021 $ 3,169 $ 2,228 $ 880 $ 45 $ 3,647 $ 8,152 $ 418 $ 18,539 Accumulated amortization: Balance as of January 1, 2021 $ 1,844 $ 1,192 $ 629 $ 29 $ 1,650 $ 1,492 $ - $ 6,836 Amortization expense 233 138 41 3 261 778 - 1,454 Foreign currency translation 2 1 - 1 2 (2) - 4 Balance as of September 30, 2021 $ 2,079 $ 1,331 $ 670 $ 33 $ 1,913 $ 2,268 $ - $ 8,294 Net carrying values - September 30, 2021 $ 1,090 $ 897 $ 210 $ 12 $ 1,734 $ 5,884 $ 418 $ 10,245 |
Schedule of estimated amortization expense for intangible assets | As of September 30, 2021, estimated future amortization expense for intangible assets was as follows (in thousands): Year Amortization 2021 $ 532 2022 2,203 2023 2,018 2024 1,590 2025 1,215 Thereafter 2,687 $ 10,245 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliations of the U.S. statutory rate with the Company’s effective tax rate for the nine -month periods ended September 30, 2021 and 2020 are summarized in the table below: For the Nine Months Ended September 30, 2021 2020 Federal income tax expense at statutory rate 21.0 % (21.0) % Effect of: Change in valuation allowance 2,468.8 (660.0) Effect of Section 162 (m) 549.9 - Foreign operations permanent difference - foreign exchange gains and losses 271.9 90.3 Change in tax rates 225.0 - Tax effects of foreign operations 79.8 1,610.6 State income tax net of federal benefit 43.2 (120.1) Return to provision true up 31.6 (14.8) Foreign rate differential (478.8) (295.9) Increase (decrease) in unrecognized tax benefits (ASC 740) (490.0) 410.5 Effect of stock-based compensation (1,573.2) 263.7 Other 22.5 29.0 Effective tax rate 1,171.7 % 1,292.3 % |
Schedule Of unrecognized Tax Benefits | The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the nine months ended September 30, 2021 (in thousands): Unrecognized tax benefits Balance - January 1, 2021 $ 3,231 Tax settlement matters – prior periods (1,713) Change in tax position 149 Interest accrual 84 Foreign currency remeasurement (32) Balance - September 30, 2021 $ 1,719 |
Stock Options and Restricted _2
Stock Options and Restricted Shares (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stock Options and Restricted Shares | |
Schedule of Stock Option Activity | A summary of stock option activity under the Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016 (the “Plan”), as of September 30, 2021, and changes during the nine months then ended, are presented below: Weighted - Weighted-Average Number of Average Exercise Remaining Contractual Aggregate Options Price Term (years) Intrinsic Value Outstanding at January 1, 2021 5,906,884 $ 1.61 Granted 750,000 6.76 Exercised (1,546,288) 2.01 Forfeited/Expired (20,000) 1.38 Outstanding at September 30, 2021 5,090,596 $ 2.05 7.49 $ 37,037,015 Exercisable at September 30, 2021 3,468,912 $ 1.73 7.03 $ 27,069,483 Vested and Expected to Vest at September 30, 2021 5,090,596 $ 2.05 7.49 $ 37,037,015 |
Schedule of weighted average assumptions | The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average fair value of the options granted, and weighted-average assumptions were as follows: For the Nine Months Ended September 30, 2021 2020 Weighted average fair value of options granted $ 3.56 $ 0.61 Risk-free interest rate 0.22% - 0.82 % 0.29% - 0.56 % Expected term (years) 3 - 6 5 - 6 Expected volatility factor 58% - 68 % 47% - 50 % Expected dividends None None |
Summary of restricted shares under the Company's Plan | A summary of outstanding restricted shares issued under the Plan as of September 30, 2021 are presented below: Weighted-Average Grant Number of Shares Date Fair Value Unvested at December 31, 2020 50,000 - Granted - - Vested (25,000) - Forfeited/Expired - - Unvested at September 30, 2021 25,000 $ 1.38 |
Schedule of Stock-Based Compensation Expense | The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Direct operating costs $ 21 $ 40 $ 96 $ 119 Selling and administrative expenses 482 192 1,021 581 Total stock-based compensation $ 503 $ 232 $ 1,117 $ 700 |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Rent expense for long-term operating leases $ 393 $ 402 $ 1,169 $ 1,266 Rent expense for short-term leases 59 122 143 511 Total rent expense $ 452 $ 524 $ 1,312 $ 1,777 |
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 September 30, 2021 (in thousands): Year Amount 2021 $ 389 2022 1,511 2023 1,255 2024 1,028 2025 1,043 2026 and thereafter 3,490 Total lease payments 8,716 Less: Interest 2,153 Net present value of lease liabilities $ 6,563 Current portion $ 1,056 Long-term portion 5,507 Total $ 6,563 |
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 September 30, 2021 were as follows: Weighted-average lease term remaining 56 months Weighted-average discount rate 8.68 % |
Long-term obligations (Tables)
Long-term obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Long-term obligations | |
Schedule of Total Long-Term Obligations | Total long-term obligations as of September 30, 2021 and December 31, 2020 consisted of the following (in thousands): September 30, December 31, 2021 2020 Pension obligations - accrued pension liability $ 6,124 $ 5,940 Settlement agreement 326 518 Capital lease obligations - 209 Microsoft licenses 380 747 Bank loans payable - 580 6,830 7,994 Less: Current portion of long-term obligations 1,130 1,712 Totals $ 5,700 $ 6,282 |
Comprehensive loss (Tables)
Comprehensive loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Comprehensive loss | |
Schedule of Accumulated Other Comprehensive Loss | The components of Accumulated other comprehensive loss as of September 30, 2021 and 2020, and reclassifications from Accumulated other comprehensive loss to earnings for the three and nine months then ended, are presented below (in thousands): Foreign Currency Pension Liability Fair Value of Translation Accumulated Other Adjustment Derivatives Adjustment Comprehensive Loss Balance at July 1, 2021 $ (422) $ (267) $ (380) $ (1,069) Other comprehensive loss before reclassifications, net of taxes - (302) (594) (896) Total other comprehensive loss before reclassifications, net of taxes (422) (569) (974) (1,965) Net amount reclassified to earnings 10 37 - 47 Balance at September 30, 2021 $ (412) $ (532) $ (974) $ (1,918) Foreign Currency Pension Liability Fair Value of Translation Accumulated Other Adjustment Derivatives Adjustment Comprehensive Loss Balance at January 1, 2021 $ (444) $ - $ (494) $ (938) Other comprehensive loss before reclassifications, net of taxes - (536) (480) (1,016) Total other comprehensive loss before reclassifications, net of taxes (444) (536) (974) (1,954) Net amount reclassified to earnings 32 4 - 36 Balance at September 30, 2021 $ (412) $ (532) $ (974) $ (1,918) Foreign Currency Pension Liability Fair Value of Translation Accumulated Other Adjustment Derivatives Adjustment Comprehensive Loss Balance at July 1, 2020 $ (28) $ (51) $ (1,397) $ (1,476) Other comprehensive income before reclassifications, net of taxes - 12 216 228 Total other comprehensive loss before reclassifications, net of taxes (28) (39) (1,181) (1,248) Net amount reclassified to earnings (1) 39 - 38 Balance at September 30, 2020 $ (29) $ - $ (1,181) $ (1,210) Foreign Currency Pension Liability Fair Value of Translation Accumulated Other Adjustment Derivatives Adjustment Comprehensive Loss Balance at January 1, 2020 $ (53) $ 33 $ (900) $ (920) Other comprehensive loss before reclassifications, net of taxes - (154) (281) (435) Total other comprehensive loss before reclassifications, net of taxes (53) (121) (1,181) (1,355) Net amount reclassified to earnings 24 121 - 145 Balance at September 30, 2020 $ (29) $ - $ (1,181) $ (1,210) |
Segment Reporting and Concent_2
Segment Reporting and Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting and Concentrations | |
Schedule of Segment Reporting Information, by Segment | Revenues from external clients and segment operating profit (loss), and other reportable segment information for the periods presented were as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: DDS $ 13,237 $ 10,526 $ 37,997 $ 30,793 Synodex 983 1,197 2,888 3,680 Agility 3,230 2,830 9,581 8,473 Total Consolidated $ 17,450 $ 14,553 $ 50,466 $ 42,946 Income (loss) before provision for income taxes (1) : DDS $ 1,608 $ 4 $ 3,988 $ 226 Synodex (657) 79 (878) 356 Agility (1,470) 60 (3,057) (621) Total Consolidated $ (519) $ 143 $ 53 $ (39) Income (loss) before provision for income taxes (2) : DDS $ 1,509 $ (64) $ 3,740 $ 27 Synodex (584) 124 (711) 487 Agility (1,444) 83 (2,976) (553) Total Consolidated $ (519) $ 143 $ 53 $ (39) September 30, 2021 December 31, 2020 Total assets: DDS $ 29,640 $ 27,767 Synodex 714 457 Agility 28,479 29,030 Total Consolidated $ 58,833 $ 57,254 September 30, 2021 December 31, 2020 Goodwill: Agility $ 2,143 $ 2,150 Total Consolidated $ 2,143 $ 2,150 (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 | The following table summarizes revenues by geographic region (determined and based upon customer’s domicile) (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 United States $ 9,467 $ 6,613 $ 26,761 $ 19,561 United Kingdom 2,912 2,832 8,709 8,284 The Netherlands 1,750 1,704 5,012 5,003 Canada 1,469 1,434 4,556 4,304 Others - principally Europe 1,852 1,970 5,428 5,794 Totals $ 17,450 $ 14,553 $ 50,466 $ 42,946 |
Schedule of Revenue from External Customers based on Client domicile | Long-lived assets as of September 30, 2021 and December 31, 2020 by geographic region were comprised of (in thousands): September 30, December 31, 2021 2020 United States $ 4,367 $ 4,045 Foreign countries: Canada 9,238 9,044 Philippines 4,162 4,545 United Kingdom 1,577 1,759 India 1,140 930 Sri Lanka 194 319 Israel - 1 Total foreign 16,311 16,598 Totals $ 20,678 $ 20,643 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income (Loss) Per Share | |
Schedule of Earnings Per Share, Basic and Diluted | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net income (loss) attributable to Innodata Inc. and Subsidiaries $ (800) $ 206 $ (505) $ (568) Weighted average common shares outstanding 26,971 24,470 26,459 24,427 Dilutive effect of outstanding options - 790 - - Adjusted for dilutive computation 26,971 25,260 26,459 24,427 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivatives | |
Schedule of fair value of derivative instruments | The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020 (in thousands): Balance Sheet Location Fair Value 2021 2020 Derivatives designated as hedging instruments: Foreign currency forward contracts Accrued expenses $ 532 $ - Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other current assets $ - $ 48 |
Schedule of effects of foreign currency forward contracts designated as cash flow hedges | The effect of foreign currency forward contracts designated as cash flow hedges on the condensed consolidated statements of operations for the For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net loss recognized in OCI (1) $ (302) $ 12 $ (536) $ (154) Net loss reclassified from accumulated OCI into income (2) $ 37 $ 39 $ 4 $ 121 Net gain recognized in income (3) $ - $ - $ - $ - (1) Net change in fair value of the effective portion classified into other comprehensive income ("OCI"). (2) Effective portion classified within direct operating costs. (3) There were no ineffective portions for the period presented. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Description of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Foreign Currency Transaction Gain (Loss), before Tax | $ 348,000 | $ 13,000 | $ 503,000 | $ (221,000) | |
Deferred Revenue | 3,100,000 | 3,100,000 | $ 1,200,000 | ||
Cash and Cash Equivalents, at Carrying Value, Total | 20,943,000 | 20,943,000 | 17,573,000 | ||
Capitalized software development costs | |||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Cost | 8,200,000 | 8,200,000 | 5,500,000 | ||
Capitalized software development cost - work in progress | |||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Cost | $ 400,000 | $ 400,000 | $ 1,400,000 | ||
Minimum | Capitalized software development costs | |||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | three | ||||
Maximum | Capitalized software development costs | |||||
Description of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | P10Y |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill and Intangible Assets | |
Balance | $ 2,150 |
Foreign currency translation | (7) |
Balance | $ 2,143 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Acquisition-Related Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gross carrying amounts: | ||||
Balance | $ 16,867 | |||
Additions | 1,733 | |||
Foreign currency translation | (61) | |||
Balance | $ 18,539 | 18,539 | ||
Accumulated amortization: | ||||
Balance | 6,836 | |||
Amortization expense | 1,454 | |||
Foreign currency translation | 4 | |||
Net carrying values | 10,245 | 10,245 | $ 10,031 | |
Accumulated amortization | 8,294 | 8,294 | 6,836 | |
Balance | 8,294 | 8,294 | ||
Developed technology [Member] | ||||
Gross carrying amounts: | ||||
Balance | 3,175 | |||
Foreign currency translation | (6) | |||
Balance | 3,169 | 3,169 | ||
Accumulated amortization: | ||||
Amortization expense | 233 | |||
Foreign currency translation | 2 | |||
Net carrying values | 1,090 | 1,090 | ||
Accumulated amortization | 2,079 | 2,079 | $ 1,844 | |
Balance | 2,079 | 2,079 | ||
Customer relationships [Member] | ||||
Gross carrying amounts: | ||||
Balance | 2,228 | |||
Balance | 2,228 | 2,228 | ||
Accumulated amortization: | ||||
Amortization expense | 138 | |||
Foreign currency translation | 1 | |||
Net carrying values | 897 | 897 | ||
Accumulated amortization | 1,331 | 1,331 | 1,192 | |
Balance | 1,331 | 1,331 | ||
Trademarks and trade names [Member] | ||||
Gross carrying amounts: | ||||
Balance | 882 | |||
Foreign currency translation | (2) | |||
Balance | 880 | 880 | ||
Accumulated amortization: | ||||
Amortization expense | 41 | |||
Net carrying values | 210 | 210 | ||
Accumulated amortization | 670 | 670 | 629 | |
Balance | 670 | 670 | ||
Patents [Member] | ||||
Gross carrying amounts: | ||||
Balance | 45 | |||
Balance | 45 | 45 | ||
Accumulated amortization: | ||||
Amortization expense | 3 | |||
Foreign currency translation | 1 | |||
Net carrying values | 12 | 12 | ||
Accumulated amortization | 33 | 33 | 29 | |
Balance | 33 | 33 | ||
Media Contact Database [Member] | ||||
Gross carrying amounts: | ||||
Balance | 3,670 | |||
Foreign currency translation | (23) | |||
Balance | 3,647 | 3,647 | ||
Accumulated amortization: | ||||
Amortization expense | 261 | |||
Foreign currency translation | 2 | |||
Net carrying values | 1,734 | 1,734 | ||
Accumulated amortization | 1,913 | 1,913 | 1,650 | |
Balance | 1,913 | 1,913 | ||
Developed software | ||||
Accumulated amortization: | ||||
Balance | 5,400 | |||
Amortization expense | 300 | 800 | ||
Accumulated amortization | 6,300 | 6,300 | $ 5,400 | |
Balance | 6,300 | 6,300 | ||
Capitalized Software Development Cost | ||||
Gross carrying amounts: | ||||
Balance | 5,507 | |||
Additions | 376 | |||
Transfers | 2,323 | |||
Foreign currency translation | (54) | |||
Balance | 8,152 | 8,152 | ||
Accumulated amortization: | ||||
Amortization expense | 778 | |||
Foreign currency translation | (2) | |||
Net carrying values | 5,884 | 5,884 | ||
Accumulated amortization | 2,268 | 2,268 | $ 1,492 | |
Balance | 2,268 | 2,268 | ||
Capitalized Software Development Cost - Work in Progress | ||||
Gross carrying amounts: | ||||
Balance | 1,360 | |||
Additions | 1,357 | |||
Transfers | (2,323) | |||
Foreign currency translation | 24 | |||
Balance | 418 | 418 | ||
Accumulated amortization: | ||||
Net carrying values | $ 418 | $ 418 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Goodwill and Intangible Assets | |
2021 | $ 532 |
2022 | 2,203 |
2023 | 2,018 |
2024 | 1,590 |
2025 | 1,215 |
Thereafter | 2,687 |
Finite-Lived Intangible Assets, Net | $ 10,245 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Goodwill and Intangible Assets | ||
Amortization expense | $ 1,454 | |
Intangible Assets, Amortization Period [Member] | ||
Goodwill and Intangible Assets | ||
Amortization expense | $ 200 | $ 700 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Details) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes | ||
Federal income tax expense (benefit) at statutory rate | 21.00% | (21.00%) |
Effect of: | ||
Change in valuation allowance | 2468.80% | (660.00%) |
Effect of Section 162 (m) | 549.90% | |
Foreign operations permanent difference - foreign exchange gains and losses | 271.90% | 90.30% |
Change in tax rates | 225.00% | |
Tax effects of foreign operations | 79.80% | 1610.60% |
State income tax net of federal benefit | 43.20% | (120.10%) |
Return to provision true up | 31.60% | (14.80%) |
Foreign rate differential | (478.80%) | (295.90%) |
Increase (decrease) in unrecognized tax benefits (ASC 740) | (490.00%) | 410.50% |
Effect of stock-based compensation | (1573.20%) | 263.70% |
Other | 22.50% | 29.00% |
Effective tax rate | 1171.70% | 1292.30% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Income Taxes | |
Balance - January 1, 2021 | $ 3,231 |
Tax settlement matters - prior periods | (1,713) |
Change in tax position | 149 |
Interest accrual | 84 |
Foreign currency remeasurement | (32) |
Balance - September 30, 2021 | $ 1,719 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 1 Months Ended | |
Oct. 31, 2016 | Sep. 30, 2015 | |
Income Taxes [Line Items] | ||
Subsidiary Revenue | $ 64,000,000 | |
Reversal of Service Tax Refund | $ 160,000 | |
Service Tax Credit Receivable | $ 1,000,000 | |
Maximum | ||
Income Taxes [Line Items] | ||
Percentage for Subsidiary Service Tax | 15.00% | |
Minimum | ||
Income Taxes [Line Items] | ||
Percentage for Subsidiary Service Tax | 12.36% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Commitments and Contingencies | |
Estimated Litigation Liability | $ 6,800,000 |
Interest Rate Description Litigation | plus legal interest that accrued at 12% per annum from August 13, 2008 to June 30, 2013, and thereafter accrued and continues to accrue at 6% per annum |
Litigation Settlement, Expense | $ 350,000 |
Stock Options and Restricted _3
Stock Options and Restricted Shares - Summary of Stock Option Activity (Details) - Employee Stock Option [Member] - USD ($) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Outstanding at January 1, 2021, (in shares) | 5,906,884 |
Number of Options, Granted (in shares) | 750,000 |
Number of Options, Exercised (in shares) | (1,546,288) |
Number of Options, Forfeited/Expired (in shares) | (20,000) |
Number of Options, Outstanding at September 30, 2021, (in shares) | 5,090,596 |
Number of Options Exercisable at September 30, 2021 (in shares) | 3,468,912 |
Number of Options, Vested and Expected to Vest at September 30, 2021 (in shares) | 5,090,596 |
Weighted Average Exercise Price Outstanding (in dollars per shares) | $ 1.61 |
Weighted Average Exercise Price Granted (in dollars per shares) | 6.76 |
Weighted Average Exercise Price Exercised (in dollars per shares) | 2.01 |
Weighted Average Exercise Price Forfeited/Expired (in dollars per shares) | 1.38 |
Weighted Average Exercise Price Outstanding (in dollars per shares) | 2.05 |
Weighted Average Exercise Price Exercisable at September 30, 2021 (in dollars per shares) | 1.73 |
Weighted Average Exercise Price Vested and Expected to Vest at September 30, 2021 (in dollars per shares) | $ 2.05 |
Weighted Average Remaining Contractual Term Outstanding (in years) | 7 years 5 months 26 days |
Weighted Average Remaining Contractual Term Exercisable at September 30, 2021 (in years) | 7 years 10 days |
Weighted Average Remaining Contractual Term Vested and Expected to Vest at September 30, 2021 (in years) | 7 years 5 months 26 days |
Aggregate Intrinsic Value, Outstanding at September 30, 2021 | $ 37,037,015 |
Aggregate Intrinsic Value, Exercisable at September 30, 2021 | 27,069,483 |
Aggregate Intrinsic Value, Vested and Expected to Vest at December 31, 2020 | $ 37,037,015 |
Stock Options and Restricted _4
Stock Options and Restricted Shares - Weighted Average Fair Values and Assumptions (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of options granted (in dollars per share) | $ 3.56 | $ 0.61 |
Expected dividends | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.22% | 0.29% |
Expected term (years) | 3 years | 5 years |
Expected volatility factor | 58.00% | 47.00% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.82% | 0.56% |
Expected term (years) | 6 years | 6 years |
Expected volatility factor | 68.00% | 50.00% |
Stock Options and Restricted _5
Stock Options and Restricted Shares - Summary of Restricted Shares (Details) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Stock Options and Restricted Shares | |
Number of Shares, Unvested at December 31, 2020 | shares | 50,000 |
Number of Shares, Granted | shares | 0 |
Number of Shares, Vested | shares | (25,000) |
Number of Shares, Forfeited/Expired | shares | 0 |
Number of Shares, Unvested at June 30, 2021 | shares | 25,000 |
Weighted-Average Grant Date Fair Value, Outstanding | $ / shares | $ 0 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Forfeited/Expired | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Outstanding | $ / shares | $ 1.38 |
Stock Options and Restricted _6
Stock Options and Restricted Shares - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock Options and Restricted Shares | ||||
Direct operating costs | $ 21 | $ 40 | $ 96 | $ 119 |
Selling and administrative expenses | 482 | 192 | 1,021 | 581 |
Total stock-based compensation | $ 503 | $ 232 | $ 1,117 | $ 700 |
Stock Options and Restricted _7
Stock Options and Restricted Shares - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate value of options exercised | $ 464 | $ 1,141 | $ 609 | $ 315 | |
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized | $ 2,700 | $ 2,700 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 26 months | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate value of options exercised | $ 2,200 |
Operating Leases - Operating Le
Operating Leases - Operating Leases Amount Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Leases, Rent Expense | $ 452 | $ 524 | $ 1,312 | $ 1,777 |
Long Term Operating Lease [Member] | ||||
Operating Leases, Rent Expense | 393 | 402 | 1,169 | 1,266 |
Short Term Operating Lease [Member] | ||||
Operating Leases, Rent Expense | $ 59 | $ 122 | $ 143 | $ 511 |
Operating Leases - Net Present
Operating Leases - Net Present Value of Operating Lease Liability (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 | $ 389 | |
2022 | 1,511 | |
2023 | 1,255 | |
2024 | 1,028 | |
2025 | 1,043 | |
2026 and thereafter | 3,490 | |
Total lease payments | 8,716 | |
Less: Interest | 2,153 | |
Net present value of lease liabilities | 6,563 | |
Current portion | 1,056 | $ 990 |
Long- term portion | 5,507 | $ 6,332 |
Total | $ 6,563 |
Operating Leases - Weighted Ave
Operating Leases - Weighted Average Remaining Lease Terms (Details) | Sep. 30, 2021 |
Operating Leases | |
Weighted-average lease term remaining | 56 months |
Weighted-average discount rate | 8.68% |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Minimum | |
Lessee, Operating Lease, Term of Contract | 2 years |
Percentage of Rental Escalations | 1.75% |
Maximum | |
Lessee, Operating Lease, Term of Contract | 11 years |
Percentage of Rental Escalations | 10.00% |
Long-term obligations (Details)
Long-term obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Pension obligations | ||
Pension obligations - accrued pension liability | $ 6,124 | $ 5,940 |
Settlement agreement | 326 | 518 |
Capital Lease Obligations | 0 | 209 |
Microsoft licenses | 380 | 747 |
Bank loans payable | 0 | 580 |
Long-term Debt | 6,830 | 7,994 |
Less: Current portion of long-term obligations | 1,130 | 1,712 |
Totals | $ 5,700 | $ 6,282 |
Comprehensive loss - Reclassifi
Comprehensive loss - Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 31,405 | $ 24,522 | $ 29,640 | $ 25,532 |
Balance | 30,723 | 25,689 | 30,723 | 25,689 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (1,069) | (1,476) | (938) | (920) |
Other comprehensive income (loss) before reclassifications, net of taxes | (896) | 228 | (1,016) | (435) |
Total other comprehensive loss before reclassifications, net of taxes | (1,965) | (1,248) | (1,954) | (1,355) |
Net amount reclassified to earnings | 47 | 38 | 36 | 145 |
Balance | (1,918) | (1,210) | (1,918) | (1,210) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (422) | (28) | (444) | (53) |
Total other comprehensive loss before reclassifications, net of taxes | (422) | (28) | (444) | (53) |
Net amount reclassified to earnings | 10 | (1) | 32 | 24 |
Balance | (412) | (29) | (412) | (29) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (267) | (51) | 33 | |
Other comprehensive income (loss) before reclassifications, net of taxes | (302) | 12 | (536) | (154) |
Total other comprehensive loss before reclassifications, net of taxes | (569) | (39) | (536) | (121) |
Net amount reclassified to earnings | 37 | 39 | 4 | 121 |
Balance | (532) | (532) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (380) | (1,397) | (494) | (900) |
Other comprehensive income (loss) before reclassifications, net of taxes | (594) | 216 | (480) | (281) |
Total other comprehensive loss before reclassifications, net of taxes | (974) | (1,181) | (974) | (1,181) |
Balance | $ (974) | $ (1,181) | $ (974) | $ (1,181) |
Segment Reporting and Concent_3
Segment Reporting and Concentrations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment reporting information | |||||
Revenues | $ 17,450 | $ 14,553 | $ 50,466 | $ 42,946 | |
Income (loss) before provision for income taxes | (519) | 143 | 53 | (39) | |
Total assets | 58,833 | 58,833 | $ 57,254 | ||
Goodwill | 2,143 | 2,143 | 2,150 | ||
Before Intersegment Eliminations [Member] | |||||
Segment reporting information | |||||
Income (loss) before provision for income taxes | (519) | 143 | 53 | (39) | |
After Intersegment Eliminations [Member] | |||||
Segment reporting information | |||||
Income (loss) before provision for income taxes | (519) | 143 | 53 | (39) | |
DDS [Member] | |||||
Segment reporting information | |||||
Revenues | 13,237 | 10,526 | 37,997 | 30,793 | |
Total assets | 29,640 | 29,640 | 27,767 | ||
DDS [Member] | Before Intersegment Eliminations [Member] | |||||
Segment reporting information | |||||
Income (loss) before provision for income taxes | 1,608 | 4 | 3,988 | 226 | |
DDS [Member] | After Intersegment Eliminations [Member] | |||||
Segment reporting information | |||||
Income (loss) before provision for income taxes | 1,509 | (64) | 3,740 | 27 | |
Synodex [Member] | |||||
Segment reporting information | |||||
Revenues | 983 | 1,197 | 2,888 | 3,680 | |
Total assets | 714 | 714 | 457 | ||
Synodex [Member] | Before Intersegment Eliminations [Member] | |||||
Segment reporting information | |||||
Income (loss) before provision for income taxes | (657) | 79 | (878) | 356 | |
Synodex [Member] | After Intersegment Eliminations [Member] | |||||
Segment reporting information | |||||
Income (loss) before provision for income taxes | (584) | 124 | (711) | 487 | |
Agility [Member] | |||||
Segment reporting information | |||||
Revenues | 3,230 | 2,830 | 9,581 | 8,473 | |
Total assets | 28,479 | 28,479 | 29,030 | ||
Goodwill | 2,143 | 2,143 | $ 2,150 | ||
Agility [Member] | Before Intersegment Eliminations [Member] | |||||
Segment reporting information | |||||
Income (loss) before provision for income taxes | (1,470) | 60 | (3,057) | (621) | |
Agility [Member] | After Intersegment Eliminations [Member] | |||||
Segment reporting information | |||||
Income (loss) before provision for income taxes | $ (1,444) | $ 83 | $ (2,976) | $ (553) |
Segment Reporting and Concent_4
Segment Reporting and Concentrations - Revenues by geographic region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 17,450 | $ 14,553 | $ 50,466 | $ 42,946 |
US | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 9,467 | 6,613 | 26,761 | 19,561 |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,912 | 2,832 | 8,709 | 8,284 |
The Netherlands | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,750 | 1,704 | 5,012 | 5,003 |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,469 | 1,434 | 4,556 | 4,304 |
Other - principally Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,852 | $ 1,970 | $ 5,428 | $ 5,794 |
Segment Reporting and Concent_5
Segment Reporting and Concentrations - Long-lived assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | $ 20,678 | $ 20,643 |
US | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 4,367 | 4,045 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 9,238 | 9,044 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1,577 | 1,759 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 4,162 | 4,545 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1,140 | 930 |
Sri Lanka | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 194 | 319 |
Israel | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | 1 | |
Total Foreign | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long - lived assets | $ 16,311 | $ 16,598 |
Segment Reporting and Concent_6
Segment Reporting and Concentrations - Additional information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021client | Jun. 30, 2021client | Sep. 30, 2020client | Jun. 30, 2020client | Sep. 30, 2021clientsegment | Sep. 30, 2020 | Dec. 31, 2020client | |
Segment Reporting Information [Line Items] | |||||||
Number of Reportable Segments | segment | 3 | ||||||
Foreign Customer [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk | Non-US | |||||||
Segment Reporting Information [Line Items] | |||||||
Concentration Risk, Percentage | 47.00% | 54.00% | |||||
Foreign Customer [Member] | Accounts receivable | Customer Concentration Risk | |||||||
Segment Reporting Information [Line Items] | |||||||
Concentration Risk, Percentage | 44.00% | 55.00% | |||||
One Client [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk | US | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of clients | 1 | 1 | |||||
Concentration Risk, Percentage | 10.00% | 13.00% | 11.00% | 14.00% | |||
Another client [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk | US | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of clients | 0 | ||||||
Concentration Risk, Percentage | 10.00% | ||||||
Another client [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk | Non-US | |||||||
Segment Reporting Information [Line Items] | |||||||
Concentration Risk, Percentage | 46.00% | 55.00% | |||||
Three Clients [Member] | Accounts receivable | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of clients | 3 | 3 | |||||
Three Clients [Member] | Accounts receivable | Customer Concentration Risk | |||||||
Segment Reporting Information [Line Items] | |||||||
Concentration Risk, Percentage | 34.00% | 36.00% | |||||
Client [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk | US | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of clients | 0 | 0 | |||||
Concentration Risk, Percentage | 10.00% | 10.00% |
Income (Loss) Per Share (Detail
Income (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income (Loss) Per Share | ||||
Net loss attributable to Innodata Inc. and Subsidiaries | $ (800) | $ 206 | $ (505) | $ (568) |
Weighted average common shares outstanding | 26,971 | 24,470 | 26,459 | 24,427 |
Dilutive effect of outstanding options | 0 | 790 | 0 | 0 |
Adjusted for dilutive computation | 26,971 | 25,260 | 26,459 | 24,427 |
Income (Loss) Per Share - Addit
Income (Loss) Per Share - Additional information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 5.1 | 2.3 | 5.1 | 7 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 21.5 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 0 | $ 7 |
Derivatives - fair value of der
Derivatives - fair value of derivative instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued expenses | Foreign currency forward contracts | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as hedging instruments | $ 532 | |
Prepaid expenses and other current assets [Member] | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Assets | $ 48 |
Derivatives - Contracts designa
Derivatives - Contracts designated as cash flow hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivatives | ||||
Net loss recognized in OCI | $ (302) | $ 12 | $ (536) | $ (154) |
Net loss reclassified from accumulated OCI into income | $ 37 | $ 39 | $ 4 | $ 121 |