10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

Form 10-Q

(Mark One) 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

or 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to                

Commission file number 1-12793

StarTek, Inc.

(Exact name of registrant as specified in its charter)

Delaware	84-1370538
(State or other jurisdiction of	(I.R.S. employer
incorporation or organization)	Identification No.)
6200 South Syracuse Way, Suite 485
Greenwood Village, Colorado	80111
(Address of principal executive offices)	(Zip code)

(303) 262-4500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	SRT	New York Stock Exchange, Inc.

 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒  No ☐ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒  No  ☐ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer  ☐	Smaller reporting company  ☒
	Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes ☐  No ☒ 

As of July 29, 2019, there were 38,460,155 shares of Common Stock outstanding.

1

STARTEK, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

FORM 10-Q

PART I - FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	Page
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)	2
	Condensed Consolidated Balance Sheets as of June 30, 2019 (Unaudited) and December 31, 2018 (Audited)	3
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018 (Unaudited)	4
	Condensed Consolidated Statement of Stockholders' equity for the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	24
ITEM 4.	Controls and Procedures	24
PART II - OTHER INFORMATION
ITEM 1.	Legal proceeding
ITEM 1A.	Risk Factors	25
ITEM 2.	Unregistered sales of equity securities and use of proceeds
ITEM 3.	Defaults upon senior securities
ITEM 4.	Mine safety disclosure
ITEM 5.	Other Information	26
ITEM 6.	Exhibits	27
SIGNATURES		28

2

NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the following:

• certain statements, including possible or assumed future results of operations, in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”;

• any statements regarding the prospects for our business or any of our services;

• any statements preceded by, followed by or that include the words “may,” “will,” “should,” “seeks,” “believes,” “expects,” “anticipates,” “intends,” “continue,” “estimate,” “plans,” “future,” “targets,” “predicts,” “budgeted,” “projections,” “outlooks,” “attempts,” “is scheduled,” or similar expressions; and

• other statements regarding matters that are not historical facts.

Our business and results of operations are subject to risks and uncertainties, many of which are beyond our ability to control or predict. Because of these risks and uncertainties, actual results may differ materially from those expressed or implied by forward-looking statements, and investors are cautioned not to place undue reliance on such statements, which speak only as of the date thereof. Important factors that could cause actual results to differ materially from our expectations and may adversely affect our business and results of operations, include, but are not limited to, those items described herein or set forth in the Form 10-KT for the fiscal year ended December 31, 2018 filed with the Securities and Exchange Commission ("SEC") on March 14, 2019, the Quarterly report on Form 10-Q for the quarter ended March 31, 2019, and this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019. Unless otherwise noted in this report, any description of "us," "we," or "our," refers to StarTek, Inc. ("Startek") and its subsidiaries.

CHANGE IN FILING STATUS

In accordance with the SEC's expanded definition of Smaller Reporting Companies effective September 10, 2018, Startek now qualifies for Smaller Reporting Company status. As such, it has decided to take advantage of the relief provided from Part 1, Item 3.

3

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

STARTEK, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenue	$	161,283		$	110,223		$	322,425		$	225,318
Warrant contra revenue		(730	)		-			(730	)		-
Net Revenue	$	160,553		$	110,223		$	321,695		$	225,318
Cost of services		132,993			93,340			266,921			187,278
Gross profit		27,560			16,883			54,774			38,040
Selling, general and administrative expenses		24,936			15,257			49,015			29,663
Restructuring and other merger related cost		746			-			1,839			6,257
Operating income		1,878			1,626			3,920			2,120
Share of profit of associates		662			(25	)		1,003			39
Interest expense, net		(4,026	)		(3,273	)		(8,492	)		(7,402	)
Exchange gain / (losses), net		14			(1,868	)		(677	)		(3,146	)
Loss before income taxes		(1,472	)		(3,540	)		(4,246	)		(8,389	)
Income tax expense		730			234			1,113			565
Net loss	$	(2,202	)	$	(3,774	)	$	(5,359	)	$	(8,954	)
Net income/(loss) attributable to non-controlling interests		1,392			(66	)		1,581			906
Net loss attributable to Startek shareholders		(3,594	)		(3,708	)		(6,940	)		(9,860	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		32			(2,518	)		599			(3,185	)
Change in fair value of derivative instruments		413			-			348			-
Pension amortization		(236	)		(483	)		(60	)		(780	)
Comprehensive loss	$	(1,993	)	$	(6,775	)	$	(4,472	)	$	(12,919	)
Comprehensive income attributable to non-controlling interests		1,281			(284	)		1,556			549
Comprehensive loss attributable to Startek shareholders		(3,274	)		(6,491	)		(6,028	)		(13,468	)
Net loss per common share - basic and diluted	$	(0.10	)	$	(0.18	)	$	(0.18	)	$	(0.48	)
Weighted average common shares outstanding - basic and diluted		37,779			20,600			37,779			20,600

See Notes to Consolidated Financial Statements.

4

STARTEK, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands, except share data)

(Unaudited)

	As of June 30,			As of December 31,
	2019			2018
ASSETS
Current assets:
Cash and cash equivalents	$	15,452		$	16,617
Restricted cash		10,456			7,952
Trade accounts receivable, net		107,646			107,836
Unbilled Revenue		49,265			42,135
Prepaid and other current assets		17,567			18,850
Total current assets	$	200,386		$	193,390
Property, plant and equipment, net		39,638			42,242
Operating lease Right-of-use assets		72,079			-
Intangible assets, net		116,026			121,336
Goodwill		226,505			225,450
Investment in associates		1,767			2,097
Deferred tax assets, net		6,116			5,048
Prepaid expenses and other non-current assets		18,153			15,076
Total assets	$	680,670		$	604,639
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$	24,810		$	26,886
Accrued expenses and other current liabilities		77,621			84,881
Short term debt		28,295			21,975
Current maturity of long term debt		14,000			9,800
Current maturity of operating lease liabilities		22,000			-
Current maturity of finance lease obligations		1,074			1,816
Total current liabilities	$	167,800		$	145,358
Long term debt		148,726			152,100
Operating lease liabilities		51,400			-
Other non-current liabilities		14,279			11,907
Deferred tax liabilities, net		18,586			18,901
Total liabilities	$	400,791		$	328,266
Commitments and contingencies		—			—
Stockholders’ equity:
Common stock, 60,000,000 non-convertible shares, $0.01 par value, authorized; 38,452,111 and 37,446,323 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively	$	384		$	374
Additional paid-in capital		275,284			267,317
Accumulated other comprehensive loss		(4,634	)		(5,547	)
Accumulated deficit		(38,067	)		(31,127	)
Equity attributable to Startek shareholders	$	232,967		$	231,017
Non-controlling interest		46,912			45,356
Total stockholders’ equity	$	279,879		$	276,373
Total liabilities and stockholders’ equity	$	680,670		$	604,639

See Notes to Consolidated Financial Statements.

5

STARTEK, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2019			2018
Operating Activities
Net loss	$	(5,359	)	$	(8,954	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		14,631			10,749
Profit on sale of property, plant and equipment		(223	)		-
Provision for doubtful accounts		1,169			412
Warrant contra revenue		730			-
Share-based compensation expense		781			-
Deferred income taxes		(1,224	)		(1,203	)
Share of profit of affiliates		(1,003	)		(39	)
Changes in operating assets and liabilities:
Trade accounts receivable		(1,218	)		2,934
Prepaid expenses and other assets		(7,677	)		17,303
Accounts payable		(2,091	)		(1,565	)
Income taxes, net		(2,663	)		(1,508	)
Accrued and other liabilities		(1,280	)		(14,985	)
Net cash (used in) provided by operating activities	$	(5,427	)	$	3,144
Investing Activities
Purchases of property, plant and equipment		(7,302	)		(2,353	)
Distributions received from associates		1,329			18
Net cash used in investing activities	$	(5,973	)	$	(2,335	)
Financing Activities
Proceeds from the issuance of common stock		6,466			-
Payments on long term debt		(4,200	)		(1,400	)
Proceeds from (payments on) other debt, net		10,513			(3,290	)
Net cash provided by (used in) financing activities	$	12,779		$	(4,690	)
Net increase (decrease) in cash and cash equivalents		1,379			(3,881	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(40	)		(27	)
Cash and cash equivalents and restricted cash at beginning of period		24,569			21,601
Cash and cash equivalents and restricted cash at end of period	$	25,908		$	17,693
Components of cash and cash equivalents and restricted cash
Balances with banks		15,452			10,986
Restricted cash		10,456			6,707
Total cash and cash equivalents and restricted cash	$	25,908		$	17,693

See Notes to Consolidated Financial Statements.

6

STARTEK, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(In thousands, except share data)

(Unaudited)

	Common Stock				Additional paid-in		Accumulated other comprehensive			Accumulated			Equity attributable to Startek			Non-controlling			Total stockholders'
	Shares		Amount		capital		loss			deficit			shareholders			interest			equity
Three months ended
Balance at March 31, 2019		37,561,744	$	375	$	268,256	$	(4,955	)	$	(34,473	)	$	229,203		$	45,631		$	274,834
Issuance of common stock		890,367		9		5,942		-			-			5,951			-			5,951
Warrant expenses		-		-		730		-			-			730			-			730
Share-based compensation expenses		-		-		356		-			-			356			-			356
Net income (loss)		-		-		-		-			(3,594	)		(3,594	)		1,392			(2,202	)
Other comprehensive loss for the period		-		-		-		321			-			321			(111	)		210
Balance at June 30, 2019		38,452,111	$	384	$	275,284	$	(4,634	)	$	(38,067	)	$	232,967		$	46,912		$	279,879
Balance at March 31, 2018		20,600,100	$	206	$	153,704	$	(402	)	$	(6,815	)	$	146,693		$	47,452		$	194,145
Issuance of common stock		-		-		-		-			-			-			-			-
Net income (loss)		-		-		-		-			(3,708	)		(3,708	)		(66	)		(3,774	)
Other comprehensive loss for the period		-		-		-		(2,783	)		-			(2,783	)		(218	)		(3,001	)
Balance at June 30, 2018		20,600,100	$	206	$	153,704	$	(3,185	)	$	(10,523	)	$	140,202		$	47,168		$	187,370
Six months ended
Balance at December 31, 2018		37,446,323	$	374	$	267,317	$	(5,547	)	$	(31,127	)	$	231,017		$	45,356		$	276,373
Issuance of common stock		1,005,788		10		6,456		-			-			6,466			-			6,466
Warrant expenses		-		-		730		-			-			730			-			730
Share-based compensation expenses		-		-		781		-			-			781			-			781
Net income (loss)		-		-		-		-			(6,940	)		(6,940	)		1,581			(5,359	)
Other comprehensive loss for the period		-		-		-		913			-			913			(25	)		888
Balance at June 30, 2019		38,452,111	$	384	$	275,284	$	(4,634	)	$	(38,067	)	$	232,967		$	46,912		$	279,879
Balance at December 31, 2017		20,600,100	$	206	$	153,704	$	717		$	(663	)	$	153,964		$	46,619		$	200,584
Issuance of common stock		-		-		-		-			-			-			-			-
Net income (loss)		-		-		-		-			(9,860	)		(9,860	)		906			(8,954	)
Other comprehensive loss for the period		-		-		-		(3,902	)		-			(3,902	)		(357	)		(4,259	)
Balance at June 30, 2018		20,600,100	$	206	$	153,704	$	(3,185	)	$	(10,523	)	$	140,202		$	47,168		$	187,370

7

STARTEK, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2019

(In thousands, except share and per share data)

(Unaudited)

1. OVERVIEW AND BASIS OF PREPARATION

Unless otherwise noted in this report, any description of "us," "we," or "our," refers to StarTek, Inc. and its subsidiaries (the "Company"). Financial information in this report is presented in U.S. dollars.

Business

Startek is a global business process outsourcing company that provides omnichannel customer interactions, technology and back-office support solutions for some of the world’s most iconic brands in a variety of vertical markets. Operating under the Startek brand, we help these large global companies connect emotionally with their customers, solve issues, and improve net promoter scores and other customer-facing performance metrics. Through consulting and analytics services, technology-led innovation, and engagement solutions powered by the science of dialogue, we deliver personalized experiences at the point of conversation between our clients and their customers across every interaction channel and phase of the customer journey.

Startek has proven results for the multiple services we provide, including sales, order management and provisioning, customer care, technical support, receivables management, and retention programs. We manage programs using a variety of multi-channel customer interactions, including voice, chat, email, social media and back-office support. Startek has facilities in India, United States, Malaysia, Philippines, Australia, South Africa, Canada, Honduras, Jamaica, Kingdom of Saudi Arabia, Argentina, Peru and Sri Lanka.

We operate in a single operating segment providing business outsourcing solutions in the customer experience management space.

On July 20, 2018, Company completed the acquisition of all of the issued and outstanding shares of capital stock of CSP Alpha Midco Pte Ltd, a Singapore private limited company (“Aegis”), from CSP Alpha Holdings Parent Pte Ltd, a Singapore private limited company (the “Aegis Stockholder”), in exchange for the issuance of 20,600,000 shares of common stock of the Company, par value $.01 per share (the “Common Stock”). Concurrently, the Aegis Stockholder purchased 166,667 newly issued shares of Common Stock at a price of $12 per share for a total cash payment of $2,000.  As a result of the consummation of such transactions (the “Aegis Transactions”), the Aegis Stockholder became the holder of 20,766,667 shares of Common Stock, representing approximately 55% of the outstanding Common Stock.  For accounting purposes, the Aegis Transactions are treated as a reverse acquisition and Aegis is considered the accounting acquirer.  Accordingly, Aegis’ historical financial statements replace the Company’s historical financial statements following the completion of the Aegis Transactions, and the results of operations of both companies will be included in the Company’s financial statements for all periods following the completion of the Aegis Transactions. The historical financial information presented for the periods and dates prior to July 20, 2018 is that of Aegis, and for periods subsequent to July 20, 2018 is that of the combined company

In addition, on July 20, 2018, in connection with the consummation of the Aegis Transactions, the Company and the Aegis Stockholder entered into a Stockholders Agreement, pursuant to which the Company and the Aegis Stockholder agreed to, among other things: (i) certain rights, duties and obligations of the Aegis Stockholder and the Company as a result of the transactions contemplated by the Transaction Agreement and (ii) certain aspects of the management, operation and governance of the Company after consummation of the Aegis Transactions.

On December 13, 2018, the Company, and Aegis Stockholder, entered into a Securities Purchase Agreement, pursuant to which Aegis Stockholder purchased, and the Company issued and sold, 368,098 shares of Common Stock at a purchase price of $6.52 per share, or a total purchase price of $2,400, taking its holding to approximately 56% of the Company’s outstanding Common Stock (the “2018 Equity Offering”). The Company used the proceeds for general corporate purposes.

On May 17, 2019, the Company entered into a Stock Purchase Agreement with the Aegis stockholder and certain additional investors, pursuant to which the Company issued and sold 692,520 shares of Common Stock at a purchased price of $7.48 per share, or a total purchase price of $5,180 (the “ 2019 Equity Offering”). The Aegis stockholder purchased 100,267 shares of Common Stock in the 2019 Equity Offering.

Basis of preparation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US-GAAP") for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by US-GAAP for complete financial statements.

These financial statements reflect all adjustments (consisting only of normal recurring entries, except as noted) which, in the opinion of management, are necessary for fair presentation. The results of operations for interim periods are not necessarily indicative of full year results.

The consolidated balance sheet as of December 31, 2018, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by US-GAAP. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-KT for the nine months period ended December 31, 2018.

8

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation

The consolidated financial statements reflect the financial results of all subsidiaries that are more than 50% owned and over which the Company exerts control. When the Company does not have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances are eliminated on consolidation. Where our ownership of a subsidiary was less than 100%, the non-controlling interest is reported in our Condensed Consolidated Balance Sheets. The non-controlling interest in our consolidated net income is reported as "Net income (loss) attributable to non-controlling interests" in our Condensed Consolidated Statements of Comprehensive Income (Loss). These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in our Form 10-KT for the nine months period ended December 31, 2018 filed with the SEC on March 14, 2019.

Use of Estimates

The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles, impairment of goodwill, purchase price allocations, provision for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, lease termination liabilities, restructuring costs, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

Revenue

On April 1, 2018, the Company adopted Accounting Standards Codification 606, Revenue from Contracts with Customers, (Topic 606) using the modified retrospective method. Topic 606 utilizes a five-step process, for revenue recognition that focuses on transfer of control, rather than transfer of risks and rewards. It also provided additional guidance on accounting for contract acquisition and fulfillment costs. Refer Note 5 on "Revenue from Contracts with Customers" for further information.

Consistent with the modified retrospective method of adoption, the Company has not adjusted prior period amounts which continue to be reported in accordance with the Company’s historic revenue accounting policy and principles.

Leases

On January 1, 2019, the Company adopted Accounting Standards Codification 842, Leases, (Topic 842) with the transition approach. However, the Company has accounted the lease for the comparable periods as per the Accounting Standards Codification 840.

We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current maturity of operating lease liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property plant and equipment, long-term debt, accrued expenses and other current liabilities in our consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the balance lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the date of initial application on determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which are generally accounted for separately.

9

Business Combinations

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing identifiable tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquired business at their fair values. The excess of the cost of the acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. Acquisition related costs are expensed as incurred.

Goodwill and Intangible Assets

Goodwill was recorded at fair value at acquisition date and not amortized but is reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, that the fair value of the reporting unit is "more likely than not" less than the carrying amount or if significant changes related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. The Company can elect to forgo the qualitative assessment and perform the quantitative test.

Intangible assets acquired in a business combination were recorded at fair value at acquisition date using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment at least annually, or more frequently if indicators of impairment arise.

Foreign Currency Matters

The Company has operations in Argentina and its functional currency has historically been the Argentine Peso. The Company monitors inflation rates in countries in which it operates as required by US GAAP. Under ASC 830-10-45-12, an economy must be classified as highly inflationary when the cumulative three-year rate exceeds 100%.

In May 2018, a discussion document prepared by the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force describes inflation data for Argentina through April 2018. Considering this data and more recent data for May 2018, all of the three-year cumulative inflation rates commonly used to evaluate Argentina’s inflation currently exceed 100%.

Therefore, the Company has considered Argentina to be highly inflationary beginning on July 1, 2018. In accordance with ASC 830, the functional currency of the Argentina business has been changed to USD, which requires remeasurement of the local books to USD. Exchange gains and losses is recorded through net income as opposed to through other comprehensive income as had been done historically. Translation adjustments from prior periods will not be removed from equity.

Stock-Based Compensation

We recognize expense related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expense. We use the Black-Scholes method for valuing stock-based awards. See Note 11, “Share-Based Compensation” for further information.

Common Stock Warrant Accounting

We account for common stock warrants as equity instruments, based on the specific terms of our warrant agreement. For more information refer to Note 11, "Share-Based Compensation."

Recent Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”).  The amendment makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other post retirement benefit plans. The new guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new ones that the FASB considers pertinent. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020. The Company is evaluating the impact of the adoption of ASU No. 2018-14 on its financial statement disclosures.

In June 2016, FASB issued accounting standard updated on Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. We do not expect the adoption of this standards will have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework— Changes to the Disclosure Requirements for Fair Value Measurement.” The ASU modifies the disclosure requirements with respect to fair value measurements. The ASU is effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures.

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3. BUSINESS ACQUISITIONS

Aegis Transactions

On July 20, 2018, the Company completed the acquisition of all of the issued and outstanding shares of capital stock of Aegis from the Aegis Stockholder in exchange for the issuance of 20,600,000 shares of the Common Stock in the Aegis Transactions. Concurrently, the Aegis Stockholder purchased 166,667 newly issued shares of the Common Stock at a price of $12 per share for a total cash payment of $2,000. As a result of the consummation of the Aegis Transactions, the 2018 Equity Offering and the 2019 Equity Offering, the Aegis Stockholder now holds 21,235,032 shares of the Common Stock, which is equivalent to approximately 55% of the total outstanding Common Stock.

In accordance with ASC 805, Business Combinations, the transaction was accounted for as a reverse acquisition. As such, Aegis is considered to be the accounting acquirer. Therefore, Aegis’ historical financial statements replace the Company’s historical financial statements following the completion of the Aegis Transactions, and the results of operations of both companies will be included in the Company’s financial statements for all periods subsequent to July 20, 2018.

The estimated fair value of the purchase consideration is calculated based on the Company's stock price as it is considered to be more reliably determinable than the fair value of Aegis' private stock. Consideration is calculated based on the Company's closing stock price of $6.81 on July 20, 2018.

The following table presents the purchase price and the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date. These estimates are preliminary, pending final evaluation of certain assets, and therefore are subject to revisions that may result in adjustments to the values presented below:

	Amount
Stock consideration (number of shares outstanding immediately prior the closing date)		16,226,392
Closing share price on July 20, 2018	$	6.81
Total allocable purchase price	$	110,502

	Amount
Cash and cash equivalents	$	1,496
Other current assets		46,094
Property, plant and equipment, net		15,930
Identifiable intangible assets		28,960
Goodwill		64,337
Other non-current assets		3,204
Current liabilities		(22,540	)
Non-current liabilities		(26,979	)
Preliminary purchase price	$	110,502

The goodwill recognized was attributable primarily to the acquired workforce, increased utilization of our global delivery platform and other synergistic benefits. Goodwill from this acquisition is not expected to be deductible for tax purposes.

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4. GOODWILL AND INTANGIBLE ASSETS

Goodwill

As of June 30, 2019, the carrying value of goodwill relating to business acquisitions is $226,505. The carrying value of goodwill is allocated to reporting units is as follows:

Reporting Units	Amount
Aegis		162,168
StarTek		64,337
Ending balance, June 30, 2019	$	226,505

We perform a goodwill impairment analysis at least annually (in the fourth quarter of each year) unless indicators of impairment exist in interim periods. The assumptions used in the analysis are based on the Company’s internal budget. The Company projected revenue, operating margins and cash flows for a period of five years, and applied a perpetual long-term growth rate thereafter. These assumptions are reviewed annually as part of management’s budgeting and strategic planning cycles. These estimates may differ from actual results. The values assigned to each of the key assumptions reflect the management’s past experience as their assessment of future trends, and are consistent with external/internal sources of information.

As of June 30, 2019, based on the qualitative assessment, we concluded that goodwill was not impaired.

The following table presents the changes in goodwill during the period:

	Amount
Opening balance, December 31, 2018	$	225,450
Measurement period adjustments		1,055
Ending balance, June 30, 2019	$	226,505

Intangible Assets

The following table presents our intangible assets as of June 30, 2019:

	Gross Intangibles		Accumulated Amortization		Net Intangibles		Weighted Average Amortization Period (years)
Customer relationships	$	65,050	$	7,796	$	57,254		6.5
Brand		49,500		5,885		43,615		7.1
Trademarks		14,410		910		13,500		7.5
Other intangibles		2,100		443		1,657		4.9
	$	131,060	$	15,034	$	116,026

Expected future amortization of intangible assets as of June 30, 2019 is as follows:

Years Ending December 31,	Amount
Remainder of 2019	$	5,084
2020		10,277
2021		10,277
2022		10,277
2023		10,236
Thereafter		69,875

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5.  REVENUE

The company follows a five-step process in accordance with ASC 606, for revenue recognition that focuses on transfer of control, rather than transfer of risks and rewards.

Contracts with Customers

All of the Company's revenues are derived from written contracts with our customers. Generally speaking, our contracts document our customers' intent to utilize our services and the relevant terms and conditions under which our services will be provided. Our contracts generally do not contain minimum purchase requirements nor do they include termination penalties. Our customers may generally cancel our contract, without cause, upon written notice (generally ninety days). While our contracts do have stated terms, because of the facts stated above, they are accounted for on a month-to-month basis.

Our contracts give us the right to bill for services rendered during the period, which for the majority of our customers is a calendar month, with a few customers specifying a fiscal month. Our payment terms vary by client and generally range from due upon receipt to 60-90 days.

Performance Obligations

We have identified one main performance obligation for which we invoice our customers, which is to stand ready to provide care services for our customers’ clients. A stand-ready obligation is a promise that a customer will have access to services as and when the customer decides to use them. Ours is considered a stand-ready obligation because the delivery of the underlying service (that is, receiving customer contact and performing the associated care services) is outside of our control or the control of our customer.

Our stand-ready obligation involves outsourcing of the entire customer care life cycle, including:

• The identification, operation, management and maintenance of facilities, IT equipment, and IT and telecommunications infrastructure

• Management of the entire human resources function, including recruiting, hiring, training, supervising, evaluating, coaching, retaining, compensating, providing employee benefits programs, and disciplinary activities

These activities are all considered an integral part of the production activities required in the service of standing ready to accept calls as and when they are directed to us by our clients.

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Revenue Recognition Methods

Because our customers receive and consume the benefit of our services as they are performed and we have the contractual right to invoice for services performed to date, we have concluded that our performance obligation is satisfied over time. Accordingly, we recognize revenue for our services in the month they are performed. This is consistent with our prior revenue recognition model.

We are generally entitled to invoice for our services on a monthly basis. We invoice according to the hourly and/or per transaction rates stated in each contract for the various activities we perform. Some contracts include opportunities to earn bonuses or include parameters under which we will incur penalties related to performance in any given month. Bonus or penalty amounts are based on the current month’s performance. Formulas are included in the contracts for calculation of any bonus or penalty. There is no other performance in future periods that will impact the bonus or penalty calculation in the current period. We estimate the amount of the bonus or penalty using the “most likely amount” method and we apply this method consistently. The bonus or penalty calculated is generally approved by the client prior to billing (and revenue being recognized).

Practical expedients and exemptions

Because the Company’s contracts are essentially month-to-month, we have elected the following practical expedients:

• ASC 606-10-50-14 exempts companies from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less

• ASC 340-40-25-4 allows companies to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.

• ASC 606-10-32-2A allows an entity to make an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (for example, sales, use, value added, and some excise taxes)

• ASC 606-10-55-18 allows an entity that has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (for example, a service contract in which an entity bills a fixed amount for each hour of service provided), the entity may recognize revenue in the amount to which the entity has a right to invoice.

Disaggregated Revenue

Revenues by our clients' industry vertical for the Three and Six months ended June 30, 2019 and 2018, respectively:

	Three Months Ended June 30,					Six Months Ended June 30,
Vertical:	2019			2018		2019			2018
Telecom		64,421			58,412		130,245			124,761
E-commerce & Consumer		24,375			7,950		48,719			16,063
Financial & Business Services		13,245			12,941		26,565			28,182
Media & Cable		23,587			2,691		45,344			6,008
Travel & Hospitality		17,375			13,366		33,889			27,007
Healthcare & Education		8,352			2,301		18,881			4,945
Technology, IT & Related Services		3,458			1,346		5,896			2,822
All other segments		6,470			11,216		12,886			15,530
Gross Revenue		161,283			110,223		322,425			225,318
Less: Warrant Contra Revenue		(730	)		-		(730	)		-
Net Revenue	$	160,553		$	110,223	$	321,695		$	225,318

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6. NET LOSS PER SHARE

Basic net loss per common share is computed based on our weighted average number of common shares outstanding. Diluted earnings per share is computed based on our weighted average number of common shares outstanding plus the effect of dilutive stock options, non-vested restricted stock, and deferred stock units, using the treasury stock method. 

When a net loss is reported, potentially issuable common shares are excluded from the computation of diluted earnings per share as their effect would be anti-dilutive.

In connection with the Aegis Transactions, the Company maintained Startek's 2008 Equity Incentive Plan (see Note 11, "Share-based compensation and employee benefit plans" for more information). For the three and six months ended June 30, 2019, the following shares were not included in the computation of diluted earnings per share because we reported a net loss and the effect would have been anti-dilutive (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Anti-dilutive securities:
Stock options		2,628		-		2,628		-

7. RESTRUCTURING AND OTHER MERGER RELATED COST

The table below summarizes the balance of accrued restructuring and other merger related cost, which is included in other accrued liabilities in our consolidated balance sheets, and the changes during the six months ended June 30, 2019: 

	Employee related			Facilities related			Total
Balance as of December 31, 2018	$	760		$	2,267		$	3,027
Accruals/(reversals)		1,742			97			1,839
Payments		(1,685	)		(1,406	)		(3,091	)
Balance as of June 30, 2019	$	817		$	958		$	1,775

Employee related

In 2018, in conjunction with the closing of the Aegis Transactions, we eliminated a number of positions which were considered redundant, under a company-wide restructuring plan. We recognized provision for employee related costs across a number of geographies and we expect to pay the remaining costs of $673 by the end of third quarter 2019.

In March 2019, the Company has closed one of its sites in Argentina. Upon closure, the Company eliminated a number of positions which were considered redundant and recognized provision for employee related costs and we expect to pay the remaining costs of $144 by the end of fourth quarter 2019.

Facilities related

In 2018, in conjunction with the closing of the Aegis Transactions, we terminated various leases in the United States and the Philippines. We recognized provision for the remaining costs associated with the leases. We expect to pay the remaining costs of $849 by the end of the first quarter of 2021.

Upon closure of site in Argentina, the Company recognized provision for facility related costs and we expect to pay the remaining costs of $109 by the end of the fourth quarter of 2019.

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8.  DERIVATIVE INSTRUMENTS

Cash flow hedges

Our locations in Canada and the Philippines primarily serve US-based clients. The revenues from these clients is billed and collected in US Dollars, but the expenses related to these revenues are paid in Canadian Dollars and Philippine Pesos. We enter into derivative contracts, in the form of forward contracts and range forward contracts (a transaction where both a call option is purchased and a put option is sold) to mitigate this foreign currency exchange risk. The contracts cover periods commensurate with expected exposure, generally three to twelve months.  We have elected to designate our derivatives as cash flow hedges in order to associate the results of the hedges with forecasted expenses.

Unrealized gains and losses are recorded in accumulated other comprehensive income (“AOCI”) and will be re-classified to operations as the forecasted expenses are incurred, typically within one year. During the six months ended June 30, 2019 and 2018, our cash flow hedges were highly effective and hedge ineffectiveness was not material.

The following table shows the notional amount of our foreign exchange cash flow hedging instruments as of June 30, 2019:

	Local Currency Notional Amount		U.S. Dollar Notional Amount
Philippine Peso		2,764,000,014		52,227,335
			$	52,227,335

Derivative assets and liabilities associated with our hedging activities are measured at gross fair value as described in Note 9, "Fair Value Measurements," and are included in prepaid expense and other current assets and accrued expenses and other current liabilities in our condensed consolidated balance sheets, respectively.

Non-designated hedges

We have also entered into foreign currency range forward contracts and interest swap contract as required by our lenders. These hedges are not designated hedges under ASC 815, Derivatives and Hedging. These contracts generally do not exceed 3 years in duration.

Unrealized gains and losses and changes in fair value of these derivatives are recognized as incurred in Exchange gains (losses), net in the Consolidated Statements of Comprehensive Income (Loss). The following table presents these amounts for the three and six months ended June 30, 2019 and 2018:

Derivatives not designated under ASC 815	For the Three Months Ended June 30, 2019			For the Three Months Ended June 30, 2018			For the Six Months Ended June 30, 2019			For the Six Months Ended June 30, 2018
Foreign currency forward contracts	$	342		$	-		$	315		$	-
Interest rate swap	$	(405	)	$	(14	)	$	(630	)	$	(14	)

9.  FAIR VALUE MEASUREMENTS 

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below:

Level 1 - Quoted prices for identical instruments traded in active markets.

Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 - Unobservable inputs that cannot be supported by market activity and that are significant to the fair value of the asset, liability, or equity such as the use of certain pricing models, discounted cash flow models and similar techniques that use significant assumptions. These unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability:

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Derivative Instruments

The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such the derivatives are classified as Level 2 in the fair value hierarchy.

The following tables set forth our assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. These balances are included in Other current assets and Other current liabilities, respectively, on our balance sheet.

	As of June 30, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	1,812	$	—	$	1,812
Total fair value of assets measured on a recurring basis	$	—	$	1,812	$	—	$	1,812
Liabilities:
Interest rate swap	$	—	$	665	$	—	$	665
Foreign exchange contracts	$	—	$	100	$	—	$	100
Total fair value of liabilities measured on a recurring basis	$	—	$	765	$	—	$	765

	As of December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	1,388	$	—	$	1,388
Total fair value of assets measured on a recurring basis	$	—	$	1,388	$	—	$	1,388
Liabilities:
Interest rate swap	$	—	$	31	$	—	$	31
Foreign exchange contracts	$	—	$	276	$	—	$	276
Total fair value of liabilities measured on a recurring basis	$	—	$	307	$	—	$	307

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10. DEBT

The below table presents details of the Company's debt:

	June 30, 2019		December 31, 2018
Short term debt and current portion of long term debt
Working capital facilities	$	28,295	$	21,975
Term loan		14,000		9,800
Finance lease obligations		1,074		1,816
Total	$	43,369	$	33,591
Long term debt
Term loan, net of debt issuance costs	$	112,810	$	120,462
Equipment loan		1,796		-
Secured revolving credit facility		33,921		31,152
Finance lease obligations		199		486
Total	$	148,726	$	152,100

Working capital facilities

The Company has a number of working capital facilities in various countries in which it operates. These facilities provide for a combined borrowing capacity of approximately $33.6 million for a number of working capital products. These facilities bear interest at benchmark rate plus margins between 3.0% and 4.5% and are due on demand. These facilities are collateralized by various Company assets and have a total outstanding balance of $28.3 million as of June 30, 2019.

Term loan

On October 27, 2017, the Company entered into a Senior Term Agreement ("Term loan") to provide funding for the acquisition of ESM Holdings Limited and its subsidiaries in the amount of $140 million for a five year term. The Term loan was fully funded on November 22, 2017 and is to be repaid based on a quarterly repayment schedule beginning six months after the first utilization date.

Principal payments due on the term loan are as follows:

Years	Amount
2019		5,600
2020		16,800
2021		21,000
2022		88,200
	$	131,600

The Term loan has a floating interest rate of USD LIBOR plus 4.5% annually for the first year and thereafter the margin will range between 3.75% and 4.5% subject to certain financial ratios.

In connection with the Term loan, the Company incurred issuance costs of $7.3 million which are net against the Term loan on the balance sheet. Unamortized debt issuance costs as of June 30, 2019 amount to $4.8 million.

Secured revolving credit facility

The Company has a secured revolving credit facility which is effective through March 2022. Under this agreement, we may borrow the lesser of the borrowing base calculation and $50 million. As long as no default has occurred and with lender consent, we may increase the maximum availability to $70 million in $5 million increments, and we may request letters of credit in an aggregate amount equal to the lesser of the borrowing base calculation (minus outstanding advances) and $5 million. The borrowing base is generally defined as 95% of our eligible accounts receivable less certain reserves.

As of June 30, 2019, we had $33.9 million of outstanding borrowings and our remaining borrowing capacity was $8.46 million. Our borrowings bear interest at one-month LIBOR plus 1.50% to 1.75%, depending on current availability.

We have entered into factoring agreements with financial institutions to sell certain of our accounts receivable under non-recourse agreements. These transactions are accounted for as a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. We do not service any factored accounts after the factoring has occurred. We utilize factoring arrangements as part of our financing for working capital. The aggregate gross amount factored under these agreements was $3.01 million for six months ended June 30, 2019.

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BMO Equipment Loan

On December 27, 2018, the Company executed an agreement to secure a loan against US and Canadian assets in the amount of $1.79 million at the interest of 7.57% per annum, to be repaid over 2.5 years. The loan was funded in January 2019.

Finance lease obligations

From time to time and when management believes it to be advantageous, we may enter into other arrangements to finance the purchase or construction of capital assets.

11. SHARE-BASED COMPENSATION

Amazon Warrant

On January 23, 2018, Startek entered into the Amazon Transaction Agreement, pursuant to which we agreed to issue to Amazon.com NV Investment Holdings LLC, a wholly owned subsidiary of Amazon (“NV Investment”), a warrant (the “Warrant”) to acquire up to 4,000,000 shares (the “Warrant Shares”) of our common stock, par value $0.01 per share (“Common Stock”), subject to certain vesting events. As a result of an anti-dilution adjustment that was triggered by the 2019 Equity Offering, total number of shares issuable to Amazon have been adjusted from 4,000,000 to 4,002,964. We entered into the Amazon Transaction Agreement in connection with commercial arrangements between us and any of our affiliates and Amazon and/or any of its affiliates pursuant to which we and any of our affiliates provide and will continue to provide commercial services to Amazon and/or any of its affiliates. The vesting of the Warrant shares, described below, is linked to payments made by Amazon or its affiliates (directly or indirectly through third parties) pursuant to the commercial arrangements.

The first tranche of 425,532 Warrant Shares vested upon the execution of the Amazon Transaction Agreement. The remainder of the Warrant Shares will vest in various tranches based on Amazon’s payment of up to $600 million to us or any of our affiliates in connection with the receipt by Amazon or any of its affiliates of commercial services from us or any of our affiliates. The exercise price for all Warrant Shares was originally $9.96 per share but was adjusted to $9.95 per share as a result of an anti-dilution adjustment that was triggered by the 2019 Equity Offering. The Warrant Shares are exercisable through January 23, 2026.

At June 30, 2019, the second tranche of 212,766 Warrant Shares has vested. The amount of contra revenue attributed to these Warrant Shares is $730. The contra-revenue and equity is estimated and recorded, using the Monte Carlo pricing model, when performance completion is probable, with adjustments in each reporting period until performance is complete in conformance with the requirements in ASC 505 and ASC 718.

The Warrant provides for net share settlement that, if elected by the holders, will reduce the number of shares issued upon exercise to reflect net settlement of the exercise price. The Warrant provides for certain adjustments that may be made to the exercise price and the number of shares of common stock issuable upon exercise due to customary anti-dilution provisions based on future events. Vested Warrant Shares are classified as equity instruments.

Because the Warrant contains performance criteria (i.e. aggregate purchase levels) which Amazon and/or any of its affiliates must achieve for the Warrant Shares to vest, as detailed above, the final measurement date for each tranche of the Warrant Shares is the date on which performance is completed. Prior to the final measurement date, when achievement of the performance criteria has been deemed probable, a reduction in revenue equal to the percentage of completion to date will be recognized. The fair value of the Warrant Shares will be adjusted at each reporting period until they are earned.

Share-based compensation

Our share-based compensation arrangements include grants of stock options, restricted stock units and deferred stock units under the StarTek, Inc. 2008 Equity Incentive Plan and our Employee Stock Purchase Plan. The compensation expense that has been charged against income for the six months ended June 30, 2019 was $781, and is included in selling, general and administrative expense. As of June 30, 2019, there was $1,544 of total unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted-average period of 2.04 years.

12.  ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss consisted of the following items:

	Foreign Currency Translation Adjustment			Derivatives Accounted for as Cash Flow Hedges			Defined Benefit Plan			Equity attributable to Startek shareholders			Non- controlling interests			Total
Balance at December 31, 2018	$	(3,989	)	$	(15	)	$	(1,543	)	$	(5,547	)	$	(1,243	)	$	(6,790	)
Foreign currency translation		599			-			-			599			-			599
Unrealized losses		-			348			-			348			-			348
Pension remeasurement		-			-			(34	)		(34	)		(25	)		(59	)
Balance at June 30, 2019	$	(3,390	)	$	333		$	(1,577	)	$	(4,634	)	$	(1,268	)	$	(5,902	)

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13.  SEGMENT AND GEOGRAPHICAL INFORMATION

The Company provides business process outsourcing services (“BPO”) to clients in a variety of industries and geographical locations. Our approach is focused on providing our clients with the best possible combination of services and delivery locations to meet our clients' needs in the best and most efficient manner. Our Chief Executive Officer, who has been identified as the Chief Operating Decision Maker ("CODM"), reviews financial information mainly on a consolidated basis.

Based on our evaluation of the facts and circumstances, the Company has concluded that it has a single operating and reportable segment (BPO), and two reporting units (Aegis and Startek).

The Group prepares its geographical information in conformity with the accounting policies adopted for preparing and presenting the consolidated financial statements of the Group as a whole.

Revenues by geography, based on the location of the Company's delivery centers for the three and six months June 30, 2019 and 2018, is presented below:

	Three Months Ended June 30,				For the Six Months Ended June 30,
	2019		2018		2019		2018
Revenue:
India		27,074		33,382		54,421		66,316
Middle East		34,216		29,741		65,334		61,989
Malaysia		16,117		13,862		33,196		28,352
Argentina		10,203		15,675		21,314		32,018
United States		24,437		-		54,181		-
Australia		6,599		8,627		13,956		18,435
Philippines		20,617		-		33,426		-
Rest of World		21,290		8,936		45,867		18,208
Total	$	160,553	$	110,223	$	321,695	$	225,318

Property, plant and equipment, net by geography based on the location of the assets is presented below:

	As on June 30, 2019		As on December 31, 2018
Property, plant and equipment, net:
India		12,121		13,287
Middle East		5,509		6,507
Malaysia		4,803		5,058
Argentina		1,401		1,341
United States		4,461		5,349
Australia		272		345
Philippines		1,987		2,835
Rest of World		9,084		7,520
Total	$	39,638	$	42,242

14.  LEASES

We have operating and finance leases for service centers, corporate offices and certain equipment. Our leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases for up to 3-5 years, and some of which include options to terminate the leases within 1 year.

The components of lease expense were as follows:

	Six months ended June 30, 2019
Operating lease cost	$	15,441
Finance lease cost:
Amortization of right-of-use assets		985
Interest on lease liabilities		43
Total finance lease cost		1,028

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Supplemental cash flow information related to leases was as follows:

	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		15,235
Operating cash flow from finance leases		43
Financing cash flows from finance leases		1,251
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		72,079
Finance lease		-

Supplemental balance sheet information related to leases was as follows:

	As of June 30, 2019
Operating Leases
Operating lease right-of-use assets	$	72,079
Operating Lease Liablities-Current		22,000
Operating Lease Liablities-Non-Current		51,400
Total operating lease liabilities	$	73,400
Finance Leases
Property and equipment, at cost		11,364
Accumulated depreciation		(9,323	)
Property and equipment, at net	$	2,041
Finance Lease Obligation-Current		1,074
Finance Lease Obligation-Non Current		199
Total finance lease liabilities	$	1,273

	As of June 30, 2019
Weighted average remaining lease term
Operating leases		4.19 yrs
Finance leases		2.83 yrs
Weighted average discount rate
Operating leases		7.50	%
Finance leases		6.01	%

Maturities of lease liabilities were as follows:

	Operating leases			Finance leases
Year ending December, 31
Remaining of 2019	$	26,264		$	886
2020		19,245			362
2021		12,298			63
2022		9,710			8
2023		6,601			-
Thereafter		11,810			-
Total lease payments	$	85,928		$	1,319
Less imputed interest		(12,528	)		(46	)
Total	$	73,400		$	1,273

15.  SUBSEQUENT EVENT

We plan to transition the remaining commercial Aegis branding to Startek over the coming quarters to better reflect our combined business and bring uniformity across geographies. Any accounting implications on the carrying values and amortization periods of the related intangible assets recognized in past periods would be formally evaluated in the upcoming quarter.

21

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes included elsewhere in this report. All dollar amounts are presented in thousands other than per share data.

BUSINESS DESCRIPTION AND OVERVIEW

Startek is a global business process outsourcing company that provides omnichannel customer interactions, technology and back-office support solutions for some of the world’s most iconic brands in a variety of vertical markets. Operating under the Startek brand, we help these large global companies connect emotionally with their customers, solve issues, and improve net promoter scores and other customer-facing performance metrics. Through consulting and analytics services, technology-led innovation, and engagement solutions powered by the science of dialogue, we deliver personalized experiences at the point of conversation between our clients and their customers across every interaction channel and phase of the customer journey.

Startek has proven results for the multiple services we provide, including sales, order management and provisioning, customer care, technical support, receivables management, and retention programs. We manage programs using a variety of multi-channel customer interactions, including voice, chat, email, social media and back-office support. Startek has facilities in India, United States, Malaysia, Philippines, Australia, South Africa, Canada, Honduras, Jamaica, Kingdom of Saudi Arabia, Argentina, Peru and Sri Lanka.

We operate in a single operating segment providing business outsourcing solutions in the customer experience management space.

SIGNIFICANT DEVELOPMENTS

None

RESULTS OF OPERATIONS — THREE MONTHS ENDED JUNE 30, 2019 AND 2018

Pursuant to the completion of the Aegis acquisition on July 20, 2018, the Aegis Stockholder became the holder of 20,766,667 shares of Common Stock, representing approximately 55% of the outstanding Common Stock. For accounting purposes, the Aegis acquisition is treated as a reverse acquisition and Aegis is considered the accounting acquirer. Accordingly, Aegis’ historical financial statements replace the Company’s historical financial statements following the completion of the Aegis Transactions, and the results of operations of both companies will be included in the Company’s financial statements for all periods following the completion of the Aegis Transactions. The historical financial information presented for the periods and dates prior to July 20, 2018 is that of Aegis, and for periods subsequent to July 20, 2018 is that of the combined company.

As a result, the financials discussed below are not strictly comparable as the financials for the three-month period ended June 30, 2018 represent only Aegis operations and the three-month period ended June 30, 2019 represents the combined operations of Aegis and Startek.

Revenue

Our revenues for the quarter ended June 30, 2019 increased by 46.3% to $161,283 as compared to $110,223 for the three-month period ended June 30, 2018. The increase in revenues is largely due to the consolidation of Startek with Aegis. In the quarter ended June 30, 2019, there was a warrant contra revenue of $730 on account of vesting of the second tranche of Amazon warrants. The Net Revenue for the quarter ended June 30, 2019, after adjusting the warrant contra revenue, stood at $160,553 which was an increase of 45.7% as compared to $110,223 for the three-month period ended June 30, 2018.

The three-month period ended June 30, 2018 includes only Aegis while the current three-month period ended June 30, 2019 includes both Startek and Aegis. In order to promote a better understanding of the overall results of the combined business, we are providing below pro forma revenues for the three-month period ended June 30, 2018 combining the revenues for Aegis and Startek. The financial information presented below is presented for illustrative purposes only and does not purport to represent what the results of operations of operations would actually have been had the combination of Aegis and Startek occurred on January 1, 2018, or to project the combined results of operations for any future periods.

	For the Three Months Ended June 30, 2019			Pro Forma For the Three Months Ended June 30, 2018
Revenues	$	161,283		$	169,940
Warrant Contra Revenue		(730	)		-
Net Revenue		160,553			169,940

22

Our net revenues for the three-month period ended June 30, 2019 was $160,553 compared to $169,940 for the three-month period ended June 30, 2018 on a pro forma basis. The breakdown of our revenues from various industry verticals for three-month period ended June 30, 2019 and three-month period ended June 30, 2018 on a pro forma basis is as follows:

		For the Three Months Ended June 30, 2019			Pro Forma For the Three Months Ended June 30, 2018
Verticals:
Telecom	$	64,421		$	82,326
E-commerce & Consumer		24,375			19,695
Financial & Business Services		13,245			15,104
Media & Cable		23,587			16,958
Travel & Hospitality		17,375			13,766
Healthcare & Education		8,352			6,844
Technology, IT & Related Services		3,458			3,001
All other segments		6,470			12,246
Gross Revenue		161,283			169,940
Less: Warrant Contra Revenue		(730	)		-
Net Revenue	$	160,553		$	169,940

Excluding Warrant Contra Revenue, the $9,387 decline in revenue was driven by the high base in the Americas telecom segment revenues in the previous period.

We have been successful in our strategy to diversify outside of telecommunication vertical which contributed around 41% of our revenue for the quarter as compared to 48% for the comparable quarter last year. We continue to focus on providing value added services to our telecom clients and shifting our business mix towards the premium market rather than the mass market.

We have been growing steadily in the e-commerce and consumer industry with our existing customers continue to increase their business with us. We continue to grow new business lines from our large clients in the media and cable industry vertical.

Our revenue growth in the three-month period ended June 30, 2019 as compared to the three-month period ended June 30, 2018 was also impacted negatively by fluctuations in foreign exchange particularly that of Argentine peso, South African rand and Australian dollar relative to the US dollar.

23

Cost of services

Overall, Cost of services as a percentage of revenue decreased to 82.8% for the three-month period ended June 30, 2019 as compared to 84.7% for the three-month period ended June 30, 2018. Employee wages and benefit expense, rent expense and depreciation and amortization are the most significant costs for the Company, representing 76.2%, 5.9% and 4.1% of total Cost of services, respectively. The breakdown of Cost of services is listed in the table below:

	For the Three Months Ended June 30, 2019				As percentage of Revenue
	2019		2018		2019			2018
Wages and benefits	$	101,397	$	73,179		63.2	%		66.4	%
Rent expense		7,895		3,522		4.9	%		3.2	%
Depreciation and amortization		5,435		3,790		3.4	%		3.4	%
Other		18,266		12,850		11.4	%		11.7	%
Total	$	132,993	$	93,341		82.8	%		84.7	%

Wages and benefits: Our business heavily relies on our employees to provide professional services to our clients. Thus, our most significant costs are payments made to agents, supervisors, and trainers who are directly involved in delivering services to the clients.

For the three-month period ended June 30, 2019, wages and benefits as a percentage of revenues decreased to 63.2%, compared to 66.4% for the quarter ended June 30, 2018. This was due to our ongoing strategy to diversify into more value added premium services and high margin verticals and away from telecommunication. While doing so we were able to mitigate the impact of the increase in minimum wages across several geographies.

Rent expense: Rent expense as a percentage of revenue increased to 4.9% for the three-month period ended June 30, 2019, compared to 3.2% for three-month period ended June 30, 2018. The increase was largely due to the combination of Startek with Aegis since the rent cost as a percentage of sales is higher for the legacy Startek business taking the consolidated rent costs as a percentage of sales higher. We also added a new site in Jamaica in this quarter and this was also a full quarter of operations at our second center in Tegucigalpa.

Depreciation and amortization: Depreciation and amortization expense as a percentage of revenue for the three-month period ended June 30, 2019 remained flat at 3.4% as compared 3.4% for the three-month period ended June 30, 2018.

Other expense includes technology, utility, travel and outsourcing costs. As a percentage of revenue, these costs decreased from 11.7% to 11.4%. The decrease was largely due to cost optimization and rationalization efforts undertaken by the Company post the merger between Startek and Aegis.

In aggregate, gross profit as a percentage of revenue for the three-month period ended June 30, 2019 increased to 17.2% as compared to 15.3% for the three-month period ended June 30, 2018.

Selling, general and administrative expenses

Selling, general and administrative expenses (SG&A) as a percentage of revenue increased from 13.8% in the three-month period ended June 30, 2018 to 15.5% in the three-month period ended June 30, 2019. The increase is largely driven by the Aegis Transaction and the related costs of employees in the United States, which, as a percentage of sales for legacy Startek, is higher relative to legacy Aegis. As part of the Company-wide restructuring exercise, we have taken steps to rationalize costs.

Restructuring and other merger related costs

Restructuring and other merger related costs totaled $746 for the three-month period ended June 30, 2019. This primarily relates to the restructuring of our U.S. operations where we closed one delivery center and restructure cost of employee severance.

Interest expense, net

Interest and other cost totaled $4,026 for the three-month period ended June 30, 2019, compared to $3,273 for the three-month period ended June 30, 2018. The interest expense is on our term debt and revolving line of credit facilities.

Income tax expense

Income tax expense for the three-month period ended June 30, 2019 was $730, compared to $234 for the three-month period ended June 30, 2018.

24

RESULTS OF OPERATIONS — SIX MONTHS ENDED JUNE 30, 2019 AND 2018

Pursuant to the completion of the Aegis acquisition on July 20, 2018, the Aegis Stockholder became the holder of 20,766,667 shares of Common Stock, representing approximately 55% of the outstanding Common Stock. For accounting purposes, the Aegis acquisition is treated as a reverse acquisition and Aegis is considered the accounting acquirer. Accordingly, Aegis’ historical financial statements replace the Company’s historical financial statements following the completion of the Aegis Transactions, and the results of operations of both companies will be included in the Company’s financial statements for all periods following the completion of the Aegis Transactions. The historical financial information presented for the periods and dates prior to July 20, 2018 is that of Aegis, and for periods subsequent to July 20, 2018 is that of the combined company.

As a result, the financials discussed below are not strictly comparable as the financials for the six-month period ended June 30, 2018 represent legacy Aegis operations and the six-month period ended June 30, 2019 represents the combined operations of Aegis and Startek.

Revenue

Our revenues for the six-month period ended June 30, 2019 increased by 43.1% to $322,425 as compared to $225,318 for the six-month period ended June 30, 2018. The increase in revenues is largely due to the consolidation of Startek with Aegis. In the six-months ended June 30, 2019, there was a warrant contra revenue of $730 on account of vesting of the second tranche of Amazon warrants. The net Revenue for the six-months ended June 30, 2019, after adjusting the warrant contra revenue, stood at $321,695 which was an increase of 42.8% as compared to $255,318 for the six-month period ended June 30, 2018.

The six-month period ended June 30, 2018 includes only Aegis while the current six-month period ended June 30, 2019 includes both Startek and Aegis. In order to promote a better understanding of the overall results of the combined business, we are providing below pro forma revenues for the six-month period ended June 30, 2018 combining the revenues for Aegis and Startek. The financial information presented below is presented for illustrative purposes only and does not purport to represent what the results of operations would actually have been had the combination of Aegis and Startek occurred on January 1, 2018, or to project the combined results of operations for any future periods.

	For Six Months Ended June 30, 2019		Pro Forma For Six Months Ended June 30, 2018
Revenues	$	322,425	$	354,149
Warrant Contra Revenue	(730)		(2,500		)
Net Revenue	321,695		351,649

Our net revenues for the six-month period ended June 30, 2019 was $321,695 compared to $351,649 for the six-month period ended June 30, 2018 on a pro forma basis. The breakdown of our revenues from various industry verticals for six-month period ended June 30, 2019 and six-month period ended June 30, 2018 on a pro forma basis is as follows:
	For Six Months Ended June 30, 2019		Pro Forma For Six Months Ended June 30, 2018
Verticals:
Telecom	$	130,245	$	179,213
E-commerce & Consumer	48,719		38,565
Financial & Business Services	26,565		32,158
Media & Cable	45,344		34,588
Travel & Hospitality	33,889		27,781
Healthcare & Education	18,881		15,346
Technology, IT & Related Services	5,896		6,270
All other segments	12,886		20,228
Gross Revenue		322,425		354,149
Less: Warrant Contra Revenue		(730)		(2,500)
Net Revenue	$	321,695		351,649

Excluding Warrant Contra Revenue, the $29,954 decrease in revenue was driven by lower telecom revenues in the Americas, India and other countries as well as due to foreign exchange impact mainly in Argentina and India.

We have been successful in our strategy to diversify outside of telecommunication vertical which contributed around 40% of our revenue for the six-month period ended June 30, 2019 as compared to 51% for the comparable period last year. We continue to focus on providing value added services to our telecom clients and shifting our business mix towards the premium market rather than the mass market.

We have been growing steadily in the e-commerce and consumer industry with our existing customers continue to increase their business with us. We continue to grow new business lines from our large clients in the media and cable industry vertical.

Our revenue growth in the current six-month period ended June 30, 2019 as compared to the six-month period ended June 30, 2018 was also impacted negatively by fluctuations in foreign exchange particularly that of Argentine peso, South African rand, Australian dollar and Indian rupee relative to the US dollar.

25

Cost of services

Overall, Cost of services as a percentage of revenue decreased to 83.0% for the six-month period ended June 30, 2019 as compared to 83.1% for the six-month period ended June 30, 2018. Employee wages and benefit expense, rent expense and depreciation and amortization are the most significant costs for the Company, representing 75.8%, 5.9% and 4.1% of total Cost of services, respectively. The breakdown of Cost of services is listed in the table below: 

	For the Six Months Ended June 30, 2019				As percentage of Revenue
	2019		2018		2019			2018
Wages and benefits	$	202,262	$	144,409		62.9	%		64.1	%
Rent expense		15,693		7,921		4.9	%		3.5	%
Depreciation and amortization		10,865		9,311		3.4	%		4.1	%
Other		38,101		25,637		11.8	%		11.4	%
Total	$	266,921	$	187,278		83.0	%		83.1	%

Wages and benefits: Our business heavily relies on our employees to provide professional services to our clients. Thus, our most significant costs are payments made to agents, supervisors, and trainers who are directly involved in delivering services to the clients.

For the six-month period ended June 30, 2019, wages and benefits as a percentage of revenues decreased to 62.9%, compared to 64.1% for the six-month ended June 30, 2018. This was due to our ongoing strategy to diversify into more value-added premium services and high margin verticals and away from telecommunication. While doing so we were able to overcome the impact of the increase in minimum wages across several geographies.

Rent expense: Rent expense as a percentage of revenue increased to 4.9% for the six-month period ended June 30, 2019, compared to 3.5% for six-month period ended June 30, 2018. The increase was largely due to the combination of Startek with Aegis since the rent cost as a percentage of sales is higher for the legacy Startek business taking the consolidated rent costs as a percentage of sales higher. Additionally, we also commenced operations from one new center each in Jamaica and Tegucigalpa in the current period.

Depreciation and amortization: Depreciation and amortization expense as a percentage of revenue for the six-month period ended June 30, 2019 decreased to 3.4% as compared 4.1% for the six-month period ended June 30, 2018.

Other expense includes technology, utility, travel and outsourcing costs. As a percentage of revenue, these costs increased to 11.8% as compared to 11.4%. The increase was driven largely by an increase in communication expense as a percentage of sales which was driven by the combination of Startek with Aegis.

In aggregate, gross profit as a percentage of revenue for the six-month period ended June 30, 2019 increased to 17.0% as compared to 16.9% for the Six-month period ended June 30, 2018.

Selling, general and administrative expenses

Selling, general and administrative expenses (SG&A) as a percentage of revenue increased from 13.2% in the six-month period ended June 30, 2018 to 15.2% in the six-month period ended June 30, 2019. The increase is largely driven by the Aegis Transaction and the related costs of employees in the United States, which, as a percentage of sales for legacy Startek, is higher relative to legacy Aegis. As part of the Company-wide restructuring exercise, we have taken steps to rationalize costs.

Restructuring and other merger related costs

Restructuring and other merger related costs totaled $1,839 for the six-month period ended June 30, 2019. This primarily relates to the restructuring of our U.S. and Latin America operations where we closed one delivery center each and restructure cost of employee severance. The acquisition related costs for the six-month period ended June 30, 2018 of $6,257 relates to the acquisition of Aegis by Capital Square Partners.

Interest expense, net

Interest and other cost totaled $8,492 for the six-month period ended June 30, 2019, compared to $7,402 for the six-month period ended June 30, 2018. The interest expense is on our term debt and revolving line of credit facilities.

Income tax expense

Income tax expense for the six-month period ended June 30, 2019 was $1,113 compared to $565 for the six-month period ended June 30, 2018.

26

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are cash flows generated by operating activities, our working capital facilities, and term debt.  We have historically utilized these resources to finance our operations and make capital expenditures associated with capacity expansion, upgrades of information technologies and service offerings, and business acquisitions. Due to the timing of our collections of receivables due from our major customers, we have historically needed to draw on our working capital facilities periodically for ongoing working capital needs. The Company expects to meet all its debt obligations in a timely manner.

Cash and cash equivalents and restricted cash

Cash and cash equivalents and restricted cash held by the Company and all its foreign subsidiaries was $25,908 and $24,569 as at June 30, 2019 and December 31, 2018, respectively. Under current tax laws and regulations, if cash and cash equivalents held outside the United States are distributed to the United States in the form of dividends or otherwise, we may be subject to additional U.S. income taxes and foreign withholding taxes.

Cash flows from operating activities

For the six-month period ended June 30, 2019 and 2018 we reported net cash flows generated from operating activities of $(5,427) and $3,144 respectively. The decrease was driven primarily by a decrease in cash flows related to net changes in operating assets and liabilities.

Cash flows used in investing activities

For the six-month period ended June 30, 2019 and 2018 we reported net cash used in investing activities of $5,973 and $2,335 respectively. Net cash used in investing activities during the six-month period ended 2019 primarily consisted of capital expenditures.

Cash flows generated from financing activities

For the six-month period ended June 30, 2019 and 2018 we reported net cash flows generated from financing activities of $12,779 and $(4,690) respectively. During the six-month period ended June 30, 2019 our net borrowings increased by $6,313 across our various borrowing arrangements and amounts raised from the 2019 Equity Offering was $6,466.

Debt

For more information, refer to Note 10, "Debt," to our unaudited condensed consolidated financial statements included in Item 1, "Financial Statements."

27

CONTRACTUAL OBLIGATIONS

There were no material changes in our contractual obligations during the six months ended June 30, 2019.

OFF-BALANCE SHEET ARRANGEMENTS

We have no material off-balance sheet transactions, unconditional purchase obligations or similar instruments, and we are not a guarantor of any other entities’ debt or other financial obligations.

VARIABILITY OF OPERATING RESULTS

We have experienced and expect to continue to experience some quarterly variations in revenue and operating results due to a variety of factors, many of which are outside our control, including: (i) timing and amount of costs incurred to expand capacity in order to provide for volume growth from existing and future clients; (ii) changes in the volume of services provided to clients; (iii) expiration or termination of client projects or contracts; (iv) timing of existing and future client product launches or service offerings; (v) seasonal nature of certain clients’ businesses; and (vi) variability in demand for our services by our clients depending on demand for their products or services, and/or depending on our performance.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

In preparing our consolidated financial statements in conformity with US-GAAP, management must undertake decisions that impact the reported amounts and related disclosures. Such decisions include the selection of the appropriate accounting principles to be applied and assumptions upon which accounting estimates are based. Management applies its best judgment based on its understanding and analysis of the relevant circumstances to reach these decisions. By their nature, these judgments are subject to an inherent degree of uncertainty. Accordingly, actual results may vary significantly from the estimates we have applied.

Please refer to Note 2 of the Notes to the Consolidated Financial Statements in our Form 10-KT for the year ended December 31, 2018 for a complete description of our critical accounting policies and estimates.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As Startek has now qualified for Smaller Reporting Company status, this disclosure is not required.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures. As of June 30, 2019, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2019, our disclosure controls and procedures were effective and were designed to ensure that all information required to be disclosed by us in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and accumulated and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

Changes in internal controls over financial reporting. On July 20, 2018, we completed Aegis transaction. In connection with this, our internal controls over financial reporting are being integrated to incorporate the internal controls over financial reporting framework of Aegis. Such integration has resulted in changes in our financial reporting (as described in Rule 13a - 15(f) under the Exchange Act) that have materially affected our internal controls over financial reporting specifically in relation to accounting period end closure process and consolidation process. As a result of the remediation plan to address the material weakness raised by Plante Moran, PLCC in relation to SEC Financial Reporting process, accounting for significant and unusual transactions and the consolidation process,  there are changes in our internal controls over financial reporting.

Other than the remediation plan to mitigate the material weaknesses identified by Plante Moran, PLLC, additions and modifications to policies and controls over implementation of new lease standard, there has been no change in our internal controls over financial reporting (as described in Rule 13a - 15(f) under the Exchange Act) during the quarter ended June 30, 2019 that has materially affected or is reasonably likely to have material affect our internal controls.

28

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDING

None.

ITEM 1A.  RISK FACTORS

None.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURE

Not applicable.

ITEM 5. OTHER INFORMATION

None.

29

ITEM 6.  EXHIBITS 

INDEX OF EXHIBITS

Exhibit		Incorporated Herein by Reference
No.	Exhibit Description	Form	Exhibit	Filing Date
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Written Statement of the Chief Executive Officer and Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*	The following materials are formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited), (ii) Consolidated Balance Sheets as of June 30, 2019 (Unaudited) and December 31, 2018, (iii) Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018 (Unaudited) and (iv) Notes to Consolidated Financial Statements (Unaudited)

* Filed with this Form 10-Q.

30

SIGNATURES

Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

STARTEK, INC.
By:	/s/ Lance Rosenzweig	Date: August 8, 2019
	Lance Rosenzweig
	President and Global CEO
	(principal executive officer)
By:	/s/ Ramesh Kamath	Date: August 8, 2019
	Ramesh Kamath
	Chief Financial Officer
	(principal financial and accounting officer)

31

EX-31.1

EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Lance Rosenzweig, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of StarTek, Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.      Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.      Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2019	/s/ Lance Rosenzweig
	Lance Rosenzweig
	President and Global CEO

EX-31.2

EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Ramesh Kamath, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of StarTek, Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.      Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.      Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2019	/s/ Ramesh Kamath
	Ramesh Kamath
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS

In connection with the Quarterly Report of StarTek, Inc. on Form 10-Q for the quarterly period ended June 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned individuals, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1)      The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)      The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Registrant.

Date: August 8, 2019	/s/ Lance Rosenzweig
	Lance Rosenzweig
	President and Chief Executive Officer
Date: August 8, 2019	/s/ Ramesh Kamath
	Ramesh Kamath
	Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Corporation and will be retained by the Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 29, 2019
Document Information [Line Items]
Entity Registrant Name	StarTek, Inc.
Entity Central Index Key	0001031029
Trading Symbol	srtk
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		38,460,155
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Title of 12(b) Security	Common Stock

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue	$ 161,283	$ 110,223	$ 322,425	$ 225,318
Warrant contra revenue	(730)		(730)
Net Revenue	160,553	110,223	321,695	225,318
Cost of services	132,993	93,340	266,921	187,278
Gross profit	27,560	16,883	54,774	38,040
Selling, general and administrative expenses	24,936	15,257	49,015	29,663
Restructuring and other merger related cost	746		1,839	6,257
Operating income	1,878	1,626	3,920	2,120
Share of profit of associates	662	(25)	1,003	39
Interest expense, net	(4,026)	(3,273)	(8,492)	(7,402)
Exchange gain / (losses), net	14	(1,868)	(677)	(3,146)
Loss before income taxes	(1,472)	(3,540)	(4,246)	(8,389)
Income tax expense	730	234	1,113	565
Net loss	(2,202)	(3,774)	(5,359)	(8,954)
Net income/(loss) attributable to non-controlling interests	1,392	(66)	1,581	906
Net loss attributable to Startek shareholders	(3,594)	(3,708)	(6,940)	(9,860)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	32	(2,518)	599	(3,185)
Change in fair value of derivative instruments	413		348
Pension amortization	(236)	(483)	(60)	(780)
Comprehensive loss	(1,993)	(6,775)	(4,472)	(12,919)
Comprehensive income attributable to non-controlling interests	1,281	(284)	1,556	549
Comprehensive loss attributable to Startek shareholders	$ (3,274)	$ (6,491)	$ (6,028)	$ (13,468)
Net loss per common share - basic and diluted (in dollars per share)	$ (0.10)	$ (0.18)	$ (0.18)	$ (0.48)
Weighted average common shares outstanding - basic and diluted (in shares)	37,779	20,600	37,779	20,600

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 15,452	$ 16,617
Restricted cash	10,456	7,952
Trade accounts receivable, net	107,646	107,836
Unbilled Revenue	49,265	42,135
Prepaid and other current assets	17,567	18,850
Total current assets	200,386	193,390
Property, plant and equipment, net	39,638	42,242
Operating lease Right-of-use assets	72,079
Intangible assets, net	116,026	121,336
Goodwill	226,505	225,450
Investment in associates	1,767	2,097
Deferred tax assets, net	6,116	5,048
Prepaid expenses and other non-current assets	18,153	15,076
Total assets	680,670	604,639
Current liabilities:
Trade accounts payable	24,810	26,886
Accrued expenses and other current liabilities	77,621	84,881
Short term debt	28,295	21,975
Current maturity of long term debt	14,000	9,800
Current maturity of operating lease liabilities	22,000
Current maturity of finance lease obligations	1,074	1,816
Total current liabilities	167,800	145,358
Long term debt	148,726	152,100
Operating lease liabilities	51,400
Other non-current liabilities	14,279	11,907
Deferred tax liabilities, net	18,586	18,901
Total liabilities	400,791	328,266
Commitments and contingencies
Stockholders’ equity:
Common stock, 60,000,000 non-convertible shares, $0.01 par value, authorized; 38,452,111 and 37,446,323 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively	384	374
Additional paid-in capital	275,284	267,317
Accumulated other comprehensive loss	(4,634)	(5,547)
Accumulated deficit	(38,067)	(31,127)
Equity attributable to Startek shareholders	232,967	231,017
Non-controlling interest	46,912	45,356
Total stockholders’ equity	279,879	276,373
Total liabilities and stockholders’ equity	$ 680,670	$ 604,639

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, non-convertible shares authorized (in shares)	60,000,000	60,000,000
Common Stock, shares issued (in shares)	38,452,111	37,446,323
Common stock, shares outstanding (in shares)	38,452,111	37,446,323

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating Activities
Net loss	$ (2,202)	$ (3,774)	$ (5,359)	$ (8,954)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			14,631	10,749
Profit on sale of property, plant and equipment			(223)
Provision for doubtful accounts			1,169	412
Warrant contra revenue	730		730
Share-based compensation expense			781
Deferred income taxes			(1,224)	(1,203)
Share of profit of affiliates	(662)	25	(1,003)	(39)
Changes in operating assets and liabilities:
Trade accounts receivable			(1,218)	2,934
Prepaid expenses and other assets			(7,677)	17,303
Accounts payable			(2,091)	(1,565)
Income taxes, net			(2,663)	(1,508)
Accrued and other liabilities			(1,280)	(14,985)
Net cash (used in) provided by operating activities			(5,427)	3,144
Investing Activities
Purchases of property, plant and equipment			(7,302)	(2,353)
Distributions received from associates			1,329	18
Net cash used in investing activities			(5,973)	(2,335)
Financing Activities
Proceeds from the issuance of common stock			6,466
Payments on long term debt			(4,200)	(1,400)
Proceeds from (payments on) other debt, net			10,513	(3,290)
Net cash provided by (used in) financing activities			12,779	(4,690)
Net increase (decrease) in cash and cash equivalents			1,379	(3,881)
Effect of exchange rate changes on cash and cash equivalents and restricted cash			(40)	(27)
Cash and cash equivalents and restricted cash at beginning of period			24,569	21,601
Cash and cash equivalents and restricted cash at end of period	25,908	17,693	25,908	17,693
Components of cash and cash equivalents and restricted cash
Balances with banks	15,452	10,986	15,452	10,986
Restricted cash	10,456	6,707	10,456	6,707
Cash and cash equivalents and restricted cash at end of period	$ 25,908	$ 17,693	$ 25,908	$ 17,693

XML

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Balance (in shares) at Dec. 31, 2017	20,600,100
Balance at Dec. 31, 2017	$ 206	$ 153,704	$ 717	$ (663)	$ 153,964	$ 46,619	$ 200,584
Issuance of common stock
Net income (loss)				(9,860)	(9,860)	906	(8,954)
Other comprehensive loss for the period			(3,902)		(3,902)	(357)	(4,259)
Balance (in shares) at Jun. 30, 2018	20,600,100
Balance at Jun. 30, 2018	$ 206	153,704	(3,185)	(10,523)	140,202	47,168	187,370
Balance (in shares) at Mar. 31, 2018	20,600,100
Balance at Mar. 31, 2018	$ 206	153,704	(402)	(6,815)	146,693	47,452	194,145
Issuance of common stock
Net income (loss)				(3,708)	(3,708)	(66)	(3,774)
Other comprehensive loss for the period			(2,783)		(2,783)	(218)	(3,001)
Balance (in shares) at Jun. 30, 2018	20,600,100
Balance at Jun. 30, 2018	$ 206	153,704	(3,185)	(10,523)	140,202	47,168	$ 187,370
Balance (in shares) at Dec. 31, 2018	37,446,323						37,446,323
Balance at Dec. 31, 2018	$ 374	267,317	(5,547)	(31,127)	231,017	45,356	$ 276,373
Issuance of common stock (in shares)	1,005,788
Issuance of common stock	$ 10	6,456			6,466		6,466
Warrant expenses		730			730		730
Share-based compensation expenses		781			781		781
Net income (loss)				(6,940)	(6,940)	1,581	(5,359)
Other comprehensive loss for the period			913		913	(25)	$ 888
Balance (in shares) at Jun. 30, 2019	38,452,111						38,452,111
Balance at Jun. 30, 2019	$ 384	275,284	(4,634)	(38,067)	232,967	46,912	$ 279,879
Balance (in shares) at Mar. 31, 2019	37,561,744
Balance at Mar. 31, 2019	$ 375	268,256	(4,955)	(34,473)	229,203	45,631	274,834
Issuance of common stock (in shares)	890,367
Issuance of common stock	$ 9	5,942			5,951		5,951
Warrant expenses		730			730		730
Share-based compensation expenses		356			356		356
Net income (loss)				(3,594)	(3,594)	1,392	(2,202)
Other comprehensive loss for the period			321		321	(111)	$ 210
Balance (in shares) at Jun. 30, 2019	38,452,111						38,452,111
Balance at Jun. 30, 2019	$ 384	$ 275,284	$ (4,634)	$ (38,067)	$ 232,967	$ 46,912	$ 279,879

XML

Note 1 - Overview and Basis of Preparation

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.

OVERVIEW AND BASIS OF PREPARATION

Unless otherwise noted in this report, any description of "us," "we," or "our," refers to StarTek, Inc. and its subsidiaries (the "Company"). Financial information in this report is presented in U.S. dollars.

Business

Startek is a global business process outsourcing company that provides omnichannel customer interactions, technology and back-office support solutions for some of the world’s most iconic brands in a variety of vertical markets. Operating under the Startek brand, we help these large global companies connect emotionally with their customers, solve issues, and improve net promoter scores and other customer-facing performance metrics. Through consulting and analytics services, technology-led innovation, and engagement solutions powered by the science of dialogue, we deliver personalized experiences at the point of conversation between our clients and their customers across every interaction channel and phase of the customer journey.

Startek has proven results for the multiple services we provide, including sales, order management and provisioning, customer care, technical support, receivables management, and retention programs. We manage programs using a variety of multi-channel customer interactions, including voice, chat, email, social media and back-office support. Startek has facilities in India, United States, Malaysia, Philippines, Australia, South Africa, Canada, Honduras, Jamaica, Kingdom of Saudi Arabia, Argentina, Peru and Sri Lanka.

We operate in a single operating segment providing business outsourcing solutions in the customer experience management space.

On

July 20, 2018,

Company completed the acquisition of all of the issued and outstanding shares of capital stock of CSP Alpha Midco Pte Ltd, a Singapore private limited company (“Aegis”), from CSP Alpha Holdings Parent Pte Ltd, a Singapore private limited company (the “Aegis Stockholder”), in exchange for the issuance of

20,600,000

shares of common stock of the Company, par value

$.01

per share (the “Common Stock”). Concurrently, the Aegis Stockholder purchased

166,667

newly issued shares of Common Stock at a price of

$12

per share for a total cash payment of

$2,000.

  As a result of the consummation of such transactions (the “Aegis Transactions”), the Aegis Stockholder became the holder of

20,766,667

shares of Common Stock, representing approximately

55%

of the outstanding Common Stock.  For accounting purposes, the Aegis Transactions are treated as a reverse acquisition and Aegis is considered the accounting acquirer.  Accordingly, Aegis’ historical financial statements replace the Company’s historical financial statements following the completion of the Aegis Transactions, and the results of operations of both companies will be included in the Company’s financial statements for all periods following the completion of the Aegis Transactions. The historical financial information presented for the periods and dates prior to

July 20, 2018

is that of Aegis, and for periods subsequent to

July 20, 2018

is that of the combined company

In addition, on

July 20, 2018,

in connection with the consummation of the Aegis Transactions, the Company and the Aegis Stockholder entered into a Stockholders Agreement, pursuant to which the Company and the Aegis Stockholder agreed to, among other things: (i) certain rights, duties and obligations of the Aegis Stockholder and the Company as a result of the transactions contemplated by the Transaction Agreement and (ii) certain aspects of the management, operation and governance of the Company after consummation of the Aegis Transactions.

On

December 13, 2018,

the Company, and Aegis Stockholder, entered into a Securities Purchase Agreement, pursuant to which Aegis Stockholder purchased, and the Company issued and sold,

368,098

shares of Common Stock at a purchase price of

$6.52

per share, or a total purchase price of

$2,400,

taking its holding to approximately

56%

of the Company’s outstanding Common Stock (the

“2018

Equity Offering”). The Company used the proceeds for general corporate purposes.

On

May 17, 2019,

the Company entered into a Stock Purchase Agreement with the Aegis stockholder and certain additional investors, pursuant to which the Company issued and sold

692,520

shares of Common Stock at a purchased price of

$7.48

per share, or a total purchase price of

$5,180

(the “

2019

Equity Offering”). The Aegis stockholder purchased

100,267

shares of Common Stock in the

2019

Equity Offering.

Basis of preparation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US-GAAP") for interim financial information and instructions to Form

10

-Q and Article

10

of Regulation S-

X.

Accordingly, they do

not

include all information and footnotes required by US-GAAP for complete financial statements.

These financial statements reflect all adjustments (consisting only of normal recurring entries, except as noted) which, in the opinion of management, are necessary for fair presentation. The results of operations for interim periods are

not

necessarily indicative of full year results.

The consolidated balance sheet as of 

December 

31,

2018,

included herein was derived from the audited financial statements as of that date, but does

not

include all disclosures including notes required by US-GAAP. As such, the information included in this quarterly report on Form

10

-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form

10

-KT for the

nine

months period ended 

December 

31,

2018.

XML

Note 2 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Significant Accounting Policies [Text Block]

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation

The consolidated financial statements reflect the financial results of all subsidiaries that are more than

50%

owned and over which the Company exerts control. When the Company does

not

have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances are eliminated on consolidation. Where our ownership of a subsidiary was less than

100%,

the non-controlling interest is reported in our Condensed Consolidated Balance Sheets. The non-controlling interest in our consolidated net income is reported as "Net income (loss) attributable to non-controlling interests" in our Condensed Consolidated Statements of Comprehensive Income (Loss). These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in our Form 

10

-KT for the

nine

months period ended

December 

31,

2018

filed with the SEC on

March 14, 2019.

Use of Estimates

The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles, impairment of goodwill, purchase price allocations, provision for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, lease termination liabilities, restructuring costs, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

Revenue

On

April 1, 2018,

the Company adopted Accounting Standards Codification

606,

Revenue from Contracts with Customers, (Topic

606

) using the modified retrospective method. Topic

606

utilizes a

five

-step process, for revenue recognition that focuses on transfer of control, rather than transfer of risks and rewards. It also provided additional guidance on accounting for contract acquisition and fulfillment costs. Refer Note

5

on "Revenue from Contracts with Customers" for further information.

Consistent with the modified retrospective method of adoption, the Company has

not

adjusted prior period amounts which continue to be reported in accordance with the Company’s historic revenue accounting policy and principles.

Leases

On

January 1, 2019,

the Company adopted Accounting Standards Codification

842,

Leases

,

(Topic

842

)

with

the transition approach

.

However, the Company has accounted the lease for the comparable periods as per the Accounting Standards Codification

840.

We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current maturity of operating lease liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property plant and equipment, long-term debt, accrued expenses and other current liabilities in our consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the balance lease term. As most of our leases do

not

provide an implicit rate, we use our incremental borrowing rate based on the information available at the date of initial application on determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms

may

include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which are generally accounted for separately.

Business Combinations

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC

805,

Business Combinations, by recognizing identifiable tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquired business at their fair values. The excess of the cost of the acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. Acquisition related costs are expensed as incurred.

Goodwill and Intangible Assets

Goodwill was recorded at fair value at acquisition date and

not

amortized but is reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by

first

performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, that the fair value of the reporting unit is "more likely than

not"

less than the carrying amount or if significant changes related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. The Company can elect to forgo the qualitative assessment and perform the quantitative test.

Intangible assets acquired in a business combination were recorded at fair value at acquisition date using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment at least annually, or more frequently if indicators of impairment arise.

Foreign Currency Matters

The Company has operations in Argentina and its functional currency has historically been the Argentine Peso. The Company monitors inflation rates in countries in which it operates as required by US GAAP. Under ASC

830

-

10

-

45

-

12,

an economy must be classified as highly inflationary when the cumulative

three

-year rate exceeds

100%.

In

May 2018,

a discussion document prepared by the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force describes inflation data for Argentina through

April 2018.

Considering this data and more recent data for

May 2018,

all of the

three

-year cumulative inflation rates commonly used to evaluate Argentina’s inflation currently exceed

100%.

Therefore, the Company has considered Argentina to be highly inflationary beginning on

July 1, 2018.

In accordance with ASC

830,

the functional currency of the Argentina business has been changed to USD, which requires remeasurement of the local books to USD. Exchange gains and losses is recorded through net income as opposed to through other comprehensive income as had been done historically. Translation adjustments from prior periods will

not

be removed from equity.

Stock-Based Compensation

We recognize expense related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expense. We use the Black-Scholes method for valuing stock-based awards. See Note

11,

“Share-Based Compensation” for further information.

Common Stock Warrant Accounting

We account for common stock warrants as equity instruments, based on the specific terms of our warrant agreement. For more information refer to Note

11,

"Share-Based Compensation."

Recent Accounting Pronouncements

In

August 2018,

the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")

2018

-

14,

Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic

715

-

20

): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU

2018

-

14”

)

.  The amendment makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other post retirement benefit plans. The new guidance eliminates requirements for certain disclosures that are

no

longer considered cost beneficial and requires new ones that the FASB considers pertinent. ASU

No.

2018

-

14

is effective for fiscal years ending after

December 15, 2020.

The Company is evaluating the impact of the adoption of ASU

No.

2018

-

14

on its financial statement disclosures.

In

June 2016,

FASB issued accounting standard updated on 

Financial Instruments - Credit Losses (Topic

326

)

,

Measurement of Credit Losses on Financial Instruments.

The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. This ASU is effective for annual periods beginning after

December 15, 2019,

and interim periods therein. Early adoption is permitted for annual periods beginning after

December 15, 2018,

and interim periods therein. We do

not

expect the adoption of this standards will have a material impact on our consolidated financial statements.

In

August 2018,

the FASB issued ASU

No.

2018

-

13,

“Disclosure Framework— Changes to the Disclosure Requirements for Fair Value Measurement.” The ASU modifies the disclosure requirements with respect to fair value measurements. The ASU is effective for the Company beginning

January 1, 2020,

including interim periods in fiscal year

2020.

Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures.

XML

Note 3 - Business Acquisitions

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Business Combination Disclosure [Text Block]

3.

BUSINESS ACQUISITIONS

Aegis Transactions

On

July 20, 2018,

the Company completed the acquisition of all of the issued and outstanding shares of capital stock of Aegis from the Aegis Stockholder in exchange for the issuance of

20,600,000

shares of the Common Stock in the Aegis Transactions. Concurrently, the Aegis Stockholder purchased

166,667

newly issued shares of the Common Stock at a price of

$12

per share for a total cash payment of

$2,000.

As a result of the consummation of the Aegis Transactions, the

2018

Equity Offering and the

2019

Equity Offering, the Aegis Stockholder now holds

21,235,032

shares of the Common Stock, which is equivalent to approximately

55%

of the total outstanding Common Stock.

In accordance with ASC

805,

Business Combinations, the transaction was accounted for as a reverse acquisition. As such, Aegis is considered to be the accounting acquirer. Therefore, Aegis’ historical financial statements replace the Company’s historical financial statements following the completion of the Aegis Transactions, and the results of operations of both companies will be included in the Company’s financial statements for all periods subsequent to

July 20, 2018.

The estimated fair value of the purchase consideration is calculated based on the Company's stock price as it is considered to be more reliably determinable than the fair value of Aegis' private stock. Consideration is calculated based on the Company's closing stock price of

$6.81

on

July 20, 2018.

The following table presents the purchase price and the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date. These estimates are preliminary, pending final evaluation of certain assets, and therefore are subject to revisions that

may

result in adjustments to the values presented below:

	Amount
Stock consideration (number of shares outstanding immediately prior the closing date)		16,226,392
Closing share price on July 20, 2018	$	6.81
Total allocable purchase price	$	110,502

	Amount
Cash and cash equivalents	$	1,496
Other current assets		46,094
Property, plant and equipment, net		15,930
Identifiable intangible assets		28,960
Goodwill		64,337
Other non-current assets		3,204
Current liabilities		(22,540	)
Non-current liabilities		(26,979	)
Preliminary purchase price	$	110,502

The goodwill recognized was attributable primarily to the acquired workforce, increased utilization of our global delivery platform and other synergistic benefits. Goodwill from this acquisition is

not

expected to be deductible for tax purposes.

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Note 4 - Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

4.

GOODWILL AND INTANGIBLE ASSETS

Goodwill

As of

June 

30,

2019,

the carrying value of goodwill relating to business acquisitions is

$226,505.

The carrying value of goodwill is allocated to reporting units is as follows:

Reporting Units	Amount
Aegis		162,168
StarTek		64,337
Ending balance, June 30, 2019	$	226,505

We perform a goodwill impairment analysis at least annually (in the

fourth

quarter of each year) unless indicators of impairment exist in interim periods. The assumptions used in the analysis are based on the Company’s internal budget. The Company projected revenue, operating margins and cash flows for a period of

five

years, and applied a perpetual long-term growth rate thereafter. These assumptions are reviewed annually as part of management’s budgeting and strategic planning cycles. These estimates

may

differ from actual results. The values assigned to each of the key assumptions reflect the management’s past experience as their assessment of future trends, and are consistent with external/internal sources of information.

As of

June 

30,

2019,

based on the qualitative assessment, we concluded that goodwill was

not

impaired.

The following table presents the changes in goodwill during the period:

	Amount
Opening balance, December 31, 2018	$	225,450
Measurement period adjustments		1,055
Ending balance, June 30, 2019	$	226,505

Intangible Assets

The following table presents our intangible assets as of

June 

30,

2019:

	Gross Intangibles		Accumulated Amortization		Net Intangibles		Weighted Average Amortization Period (years)
Customer relationships	$	65,050	$	7,796	$	57,254		6.5
Brand		49,500		5,885		43,615		7.1
Trademarks		14,410		910		13,500		7.5
Other intangibles		2,100		443		1,657		4.9
	$	131,060	$	15,034	$	116,026

Expected future amortization of intangible assets as of

June 

30,

2019

is as follows:

Years Ending December 31,	Amount
Remainder of 2019	$	5,084
2020		10,277
2021		10,277
2022		10,277
2023		10,236
Thereafter		69,875

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Note 5 - Revenue

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

5.

  REVENUE

The company follows a

five

-step process in accordance with ASC

606,

for revenue recognition that focuses on transfer of control, rather than transfer of risks and rewards.

Contracts with Customers

All of the Company's revenues are derived from written contracts with our customers. Generally speaking, our contracts document our customers' intent to utilize our services and the relevant terms and conditions under which our services will be provided. Our contracts generally do

not

contain minimum purchase requirements nor do they include termination penalties. Our customers

may

generally cancel our contract, without cause, upon written notice (generally

ninety

days). While our contracts do have stated terms, because of the facts stated above, they are accounted for on a month-to-month basis.

Our contracts give us the right to bill for services rendered during the period, which for the majority of our customers is a calendar month, with a few customers specifying a fiscal month. Our payment terms vary by client and generally range from due upon receipt to

60

-

90

days.

Performance Obligations

We have identified

one

main performance obligation for which we invoice our customers, which is to stand ready to provide care services for our customers’ clients. A stand-ready obligation is a promise that a customer will have access to services as and when the customer decides to use them. Ours is considered a stand-ready obligation because the delivery of the underlying service (that is, receiving customer contact and performing the associated care services) is outside of our control or the control of our customer.

Our stand-ready obligation involves outsourcing of the entire customer care life cycle, including:

• The identification, operation, management and maintenance of facilities, IT equipment, and IT and telecommunications infrastructure

• Management of the entire human resources function, including recruiting, hiring, training, supervising, evaluating, coaching, retaining, compensating, providing employee benefits programs, and disciplinary activities

These activities are all considered an integral part of the production activities required in the service of standing ready to accept calls as and when they are directed to us by our clients.

Revenue Recognition Methods

Because our customers receive and consume the benefit of our services as they are performed and we have the contractual right to invoice for services performed to date, we have concluded that our performance obligation is satisfied over time. Accordingly, we recognize revenue for our services in the month they are performed. This is consistent with our prior revenue recognition model.

We are generally entitled to invoice for our services on a monthly basis. We invoice according to the hourly and/or per transaction rates stated in each contract for the various activities we perform. Some contracts include opportunities to earn bonuses or include parameters under which we will incur penalties related to performance in any given month. Bonus or penalty amounts are based on the current month’s performance. Formulas are included in the contracts for calculation of any bonus or penalty. There is

no

other performance in future periods that will impact the bonus or penalty calculation in the current period. We estimate the amount of the bonus or penalty using the “most likely amount” method and we apply this method consistently. The bonus or penalty calculated is generally approved by the client prior to billing (and revenue being recognized).

Practical expedients and exemptions

Because the Company’s contracts are essentially month-to-month, we have elected the following practical expedients:

• ASC 606 - 10 - 50 - 14 exempts companies from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less

• ASC 340 - 40 - 25 - 4 allows companies to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.

• ASC 606 - 10 - 32 - 2A allows an entity to make an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (for example, sales, use, value added, and some excise taxes)

• ASC 606 - 10 - 55 - 18 allows an entity that has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (for example, a service contract in which an entity bills a fixed amount for each hour of service provided), the entity may recognize revenue in the amount to which the entity has a right to invoice.

Disaggregated Revenue

Revenues by our clients' industry vertical for the Three and Six months ended

June 

30,

2019

and

2018,

respectively:

	Three Months Ended June 30,					Six Months Ended June 30,
Vertical:	2019			2018		2019			2018
Telecom		64,421			58,412		130,245			124,761
E-commerce & Consumer		24,375			7,950		48,719			16,063
Financial & Business Services		13,245			12,941		26,565			28,182
Media & Cable		23,587			2,691		45,344			6,008
Travel & Hospitality		17,375			13,366		33,889			27,007
Healthcare & Education		8,352			2,301		18,881			4,945
Technology, IT & Related Services		3,458			1,346		5,896			2,822
All other segments		6,470			11,216		12,886			15,530
Gross Revenue		161,283			110,223		322,425			225,318
Less: Warrant Contra Revenue		(730	)		-		(730	)		-
Net Revenue	$	160,553		$	110,223	$	321,695		$	225,318

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Note 6 - Net Loss Per Share

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

6.

NET LOSS PER SHARE

Basic net loss per common share is computed based on our weighted average number of common shares outstanding. Diluted earnings per share is computed based on our weighted average number of common shares outstanding plus the effect of dilutive stock options, non-vested restricted stock, and deferred stock units, using the treasury stock method. 

When a net loss is reported, potentially issuable common shares are excluded from the computation of diluted earnings per share as their effect would be anti-dilutive.

In connection with the Aegis Transactions, the Company maintained Startek's

2008

Equity Incentive Plan (see Note

11,

"Share-based compensation and employee benefit plans" for more information). For the

three

 and

six

months ended

June 

30,

2019,

the following shares were

not

included in the computation of diluted earnings per share because we reported a net loss and the effect would have been anti-dilutive (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Anti-dilutive securities:
Stock options		2,628		-		2,628		-

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Note 7 - Restructuring and Other Merger Related Cost

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

7.

RESTRUCTURING AND OTHER MERGER RELATED COST

The table below summarizes the balance of accrued restructuring and other merger related cost, which is included in other accrued liabilities in our consolidated balance sheets, and the changes during the

six

 months ended

June 

30,

2019:

 

	Employee related			Facilities related			Total
Balance as of December 31, 2018	$	760		$	2,267		$	3,027
Accruals/(reversals)		1,742			97			1,839
Payments		(1,685	)		(1,406	)		(3,091	)
Balance as of June 30, 2019	$	817		$	958		$	1,775

Employee related

In

2018,

in conjunction with the closing of the Aegis Transactions, we eliminated a number of positions which were considered redundant, under a company-wide restructuring plan. We recognized provision for employee related costs across a number of geographies and we expect to pay the remaining costs of

$673

by the end of

third

quarter

2019.

In

March 2019,

the Company has closed

one

of its sites in Argentina. Upon closure, the Company eliminated a number of positions which were considered redundant and recognized provision for employee related costs and we expect to pay the remaining costs of

$144

 by the end of

fourth

quarter

2019.

Facilities related

In

2018,

in conjunction with the closing of the Aegis Transactions, we terminated various leases in the United States and the Philippines. We recognized provision for the remaining costs associated with the leases. We expect to pay the remaining costs of

$849

 by the end of the

first

quarter of

2021.

Upon closure of site in Argentina, the Company recognized provision for facility related costs and we expect to pay the remaining costs of

$109

 by the end of the

fourth

quarter of

2019.

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Note 8 - Derivative Instruments

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

8.

  DERIVATIVE INSTRUMENTS

Cash flow hedges

Our locations in Canada and the Philippines primarily serve US-based clients. The revenues from these clients is billed and collected in US Dollars, but the expenses related to these revenues are paid in Canadian Dollars and Philippine Pesos. We enter into derivative contracts, in the form of forward contracts and range forward contracts (a transaction where both a call option is purchased and a put option is sold) to mitigate this foreign currency exchange risk. The contracts cover periods commensurate with expected exposure, generally

three

to

twelve

months.  We have elected to designate our derivatives as cash flow hedges in order to associate the results of the hedges with forecasted expenses.

Unrealized gains and losses are recorded in accumulated other comprehensive income (“AOCI”) and will be re-classified to operations as the forecasted expenses are incurred, typically within

one

year. During the

six

months ended

June 30, 2019

and

2018,

our cash flow hedges were highly effective and hedge ineffectiveness was

not

material.

The following table shows the notional amount of our foreign exchange cash flow hedging instruments as of

June 

30,

2019:

	Local Currency Notional Amount		U.S. Dollar Notional Amount
Philippine Peso		2,764,000,014		52,227,335
			$	52,227,335

Derivative assets and liabilities associated with our hedging activities are measured at gross fair value as described in Note

9,

"Fair Value Measurements," and are included in prepaid expense and other current assets and accrued expenses and other current liabilities in our condensed consolidated balance sheets, respectively.

Non-designated hedges

We have also entered into foreign currency range forward contracts and interest swap contract as required by our lenders. These hedges are

not

designated hedges under ASC

815,

Derivatives and Hedging.

These contracts generally do

not

exceed

3

years in duration.

Unrealized gains and losses and changes in fair value of these derivatives are recognized as incurred in Exchange gains (losses), net in the Consolidated Statements of Comprehensive Income (Loss). The following table presents these amounts for the

three

 and

six

months ended

June 

30,

2019

and

2018:

Derivatives not designated under ASC 815	For the Three Months Ended June 30, 2019			For the Three Months Ended June 30, 2018			For the Six Months Ended June 30, 2019			For the Six Months Ended June 30, 2018
Foreign currency forward contracts	$	342		$	-		$	315		$	-
Interest rate swap	$	(405	)	$	(14	)	$	(630	)	$	(14	)

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Note 9 - Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

9.

  FAIR VALUE MEASUREMENTS

 

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below:

Level

1

- Quoted prices for identical instruments traded in active markets.

Level

2

- Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are

not

active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level

3

- Unobservable inputs that cannot be supported by market activity and that are significant to the fair value of the asset, liability, or equity such as the use of certain pricing models, discounted cash flow models and similar techniques that use significant assumptions. These unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability:

Derivative Instruments

The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such the derivatives are classified as Level

2

in the fair value hierarchy.

The following tables set forth our assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. These balances are included in Other current assets and Other current liabilities, respectively, on our balance sheet.

	As of June 30, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	1,812	$	—	$	1,812
Total fair value of assets measured on a recurring basis	$	—	$	1,812	$	—	$	1,812
Liabilities:
Interest rate swap	$	—	$	665	$	—	$	665
Foreign exchange contracts	$	—	$	100	$	—	$	100
Total fair value of liabilities measured on a recurring basis	$	—	$	765	$	—	$	765

	As of December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	1,388	$	—	$	1,388
Total fair value of assets measured on a recurring basis	$	—	$	1,388	$	—	$	1,388
Liabilities:
Interest rate swap	$	—	$	31	$	—	$	31
Foreign exchange contracts	$	—	$	276	$	—	$	276
Total fair value of liabilities measured on a recurring basis	$	—	$	307	$	—	$	307

XML

Note 10 - Debt

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

10.

DEBT

The below table presents details of the Company's debt:

	June 30, 2019		December 31, 2018
Short term debt and current portion of long term debt
Working capital facilities	$	28,295	$	21,975
Term loan		14,000		9,800
Finance lease obligations		1,074		1,816
Total	$	43,369	$	33,591
Long term debt
Term loan, net of debt issuance costs	$	112,810	$	120,462
Equipment loan		1,796		-
Secured revolving credit facility		33,921		31,152
Finance lease obligations		199		486
Total	$	148,726	$	152,100

Working capital facilities

The Company has a number of working capital facilities in various countries in which it operates. These facilities provide for a combined borrowing capacity of approximately

$33.6

million for a number of working capital products. These facilities bear interest at benchmark rate plus margins between

3.0%

and

4.5%

and are due on demand. These facilities are collateralized by various Company assets and have a total outstanding balance of

$28.3

million as of

June 30, 2019.

Term loan

On

October 27, 2017,

the Company entered into a Senior Term Agreement ("Term loan") to provide funding for the acquisition of ESM Holdings Limited and its subsidiaries in the amount of

$140

million for a

five

year term. The Term loan was fully funded on

November 22, 2017

and is to be repaid based on a quarterly repayment schedule beginning

six

months after the

first

utilization date.

Principal payments due on the term loan are as follows:

Years	Amount
2019		5,600
2020		16,800
2021		21,000
2022		88,200
	$	131,600

The Term loan has a floating interest rate of USD LIBOR plus

4.5%

annually for the

first

year and thereafter the margin will range between

3.75%

and

4.5%

subject to certain financial ratios.

In connection with the Term loan, the Company incurred issuance costs of

$7.3

million which are net against the Term loan on the balance sheet. Unamortized debt issuance costs as of

June 

30,

2019

amount to

$4.8

 million.

Secured revolving credit facility

The Company has a secured revolving credit facility which is effective through

March 2022.

Under this agreement, we

may

borrow the lesser of the borrowing base calculation and

$50

million. As long as

no

default has occurred and with lender consent, we

may

increase the maximum availability to

$70

million in

$5

million increments, and we

may

request letters of credit in an aggregate amount equal to the lesser of the borrowing base calculation (minus outstanding advances) and

$5

million. The borrowing base is generally defined as

95%

of our eligible accounts receivable less certain reserves.

As of

June 30, 2019,

we had

$33.9

million of outstanding borrowings and our remaining borrowing capacity was

$8.46

million. Our borrowings bear interest at

one

-month LIBOR plus

1.50%

to

1.75%,

depending on current availability.

We have entered into factoring agreements with financial institutions to sell certain of our accounts receivable under non-recourse agreements. These transactions are accounted for as a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. We do

not

service any factored accounts after the factoring has occurred. We utilize factoring arrangements as part of our financing for working capital. The aggregate gross amount factored under these agreements was

$3.01

 million for

six

 months ended

June 

30,

2019.

BMO Equipment Loan

On

December 27, 2018,

the Company executed an agreement to secure a loan against US and Canadian assets in the amount of

$1.79

 million at the interest of

7.57%

per annum, to be repaid over

2.5

years. The loan was funded in

January 2019.

Finance lease obligations

From time to time and when management believes it to be advantageous, we

may

enter into other arrangements to finance the purchase or construction of capital assets.

XML

Note 11 - Share-based Compensation

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

11.

SHARE-BASED COMPENSATION

Amazon Warrant

On

January 23, 2018,

Startek entered into the Amazon Transaction Agreement, pursuant to which we agreed to issue to Amazon.com NV Investment Holdings LLC, a wholly owned subsidiary of Amazon (“NV Investment”), a warrant (the “Warrant”) to acquire up to

4,000,000

shares (the “Warrant Shares”) of our common stock, par value

$0.01

per share (“Common Stock”), subject to certain vesting events. As a result of an anti-dilution adjustment that was triggered by the

2019

Equity Offering, total number of shares issuable to Amazon have been adjusted from

4,000,000

to

4,002,964.

 We entered into the Amazon Transaction Agreement in connection with commercial arrangements between us and any of our affiliates and Amazon and/or any of its affiliates pursuant to which we and any of our affiliates provide and will continue to provide commercial services to Amazon and/or any of its affiliates. The vesting of the Warrant shares, described below, is linked to payments made by Amazon or its affiliates (directly or indirectly through

third

parties) pursuant to the commercial arrangements.

The

first

tranche of

425,532

Warrant Shares vested upon the execution of the Amazon Transaction Agreement. The remainder of the Warrant Shares will vest in various tranches based on Amazon’s payment of up to

$600

million to us or any of our affiliates in connection with the receipt by Amazon or any of its affiliates of commercial services from us or any of our affiliates. The exercise price for all Warrant Shares was originally

$9.96

per share but was adjusted to

$9.95

per share as a result of an anti-dilution adjustment that was triggered by the

2019

Equity Offering. The Warrant Shares are exercisable through

January 23, 2026.

At

June 30, 2019,

the

second

tranche of

212,766

Warrant Shares has vested. The amount of contra revenue attributed to these Warrant Shares is

$730.

The contra-revenue and equity is estimated and recorded, using the Monte Carlo pricing model, when performance completion is probable, with adjustments in each reporting period until performance is complete in conformance with the requirements in ASC

505

and ASC

718.

The Warrant provides for net share settlement that, if elected by the holders, will reduce the number of shares issued upon exercise to reflect net settlement of the exercise price. The Warrant provides for certain adjustments that

may

be made to the exercise price and the number of shares of common stock issuable upon exercise due to customary anti-dilution provisions based on future events. Vested Warrant Shares are classified as equity instruments.

Because the Warrant contains performance criteria (i.e. aggregate purchase levels) which Amazon and/or any of its affiliates must achieve for the Warrant Shares to vest, as detailed above, the final measurement date for each tranche of the Warrant Shares is the date on which performance is completed. Prior to the final measurement date, when achievement of the performance criteria has been deemed probable, a reduction in revenue equal to the percentage of completion to date will be recognized. The fair value of the Warrant Shares will be adjusted at each reporting period until they are earned.

Share-based compensation

Our share-based compensation arrangements include grants of stock options, restricted stock units and deferred stock units under the StarTek, Inc.

2008

Equity Incentive Plan and our Employee Stock Purchase Plan. The compensation expense that has been charged against income for the

six

months ended

June 30, 2019

was

$781,

and is included in selling, general and administrative expense. As of

June 30, 2019,

there was

$1,544

of total unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted-average period of

2.04

years.

XML

Note 12 - Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

12.

  ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss consisted of the following items:

	Foreign Currency Translation Adjustment			Derivatives Accounted for  as Cash Flow Hedges			Defined Benefit Plan			Equity attributable to  Startek shareholders			Non- controlling interests			Total
Balance at December 31, 2018	$	(3,989	)	$	(15	)	$	(1,543	)	$	(5,547	)	$	(1,243	)	$	(6,790	)
Foreign currency translation		599			-			-			599			-			599
Unrealized losses		-			348			-			348			-			348
Pension remeasurement		-			-			(34	)		(34	)		(25	)		(59	)
Balance at June 30, 2019	$	(3,390	)	$	333		$	(1,577	)	$	(4,634	)	$	(1,268	)	$	(5,902	)

XML

Note 13 - Segment and Geographical Information

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

13.

  SEGMENT AND GEOGRAPHICAL INFORMATION

The Company provides business process outsourcing services (“BPO”) to clients in a variety of industries and geographical locations. Our approach is focused on providing our clients with the best possible combination of services and delivery locations to meet our clients' needs in the best and most efficient manner. Our Chief Executive Officer, who has been identified as the Chief Operating Decision Maker ("CODM"), reviews financial information mainly on a consolidated basis.

Based on our evaluation of the facts and circumstances, the Company has concluded that it has a

single

 operating and reportable segment (BPO), and

two

reporting units (Aegis and Startek).

The Group prepares its geographical information in conformity with the accounting policies adopted for preparing and presenting the consolidated financial statements of the Group as a whole.

Revenues by geography, based on the location of the Company's delivery centers for the

three

and

six

months

June 30, 2019

and

2018,

is presented below:

	Three Months Ended June 30,				For the Six Months Ended June 30,
	2019		2018		2019		2018
Revenue:
India		27,074		33,382		54,421		66,316
Middle East		34,216		29,741		65,334		61,989
Malaysia		16,117		13,862		33,196		28,352
Argentina		10,203		15,675		21,314		32,018
United States		24,437		-		54,181		-
Australia		6,599		8,627		13,956		18,435
Philippines		20,617		-		33,426		-
Rest of World		21,290		8,936		45,867		18,208
Total	$	160,553	$	110,223	$	321,695	$	225,318

Property, plant and equipment, net by geography based on the location of the assets is presented below:

	As on June 30, 2019		As on December 31, 2018
Property, plant and equipment, net:
India		12,121		13,287
Middle East		5,509		6,507
Malaysia		4,803		5,058
Argentina		1,401		1,341
United States		4,461		5,349
Australia		272		345
Philippines		1,987		2,835
Rest of World		9,084		7,520
Total	$	39,638	$	42,242

XML

Note 14 - Leases

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

14.

  LEASES

We have operating and finance leases for service centers, corporate offices and certain equipment. Our leases have remaining lease terms of

1

year to

10

years, some of which include options to extend the leases for up to

3

-

5

years, and some of which include options to terminate the leases within

1

year.

The components of lease expense were as follows:

	Six months ended June 30, 2019
Operating lease cost	$	15,441
Finance lease cost:
Amortization of right-of-use assets		985
Interest on lease liabilities		43
Total finance lease cost		1,028

Supplemental cash flow information related to leases was as follows:

	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		15,235
Operating cash flow from finance leases		43
Financing cash flows from finance leases		1,251
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		72,079
Finance lease		-

Supplemental balance sheet information related to leases was as follows:

	As of June 30, 2019
Operating Leases
Operating lease right-of-use assets	$	72,079
Operating Lease Liablities-Current		22,000
Operating Lease Liablities-Non-Current		51,400
Total operating lease liabilities	$	73,400
Finance Leases
Property and equipment, at cost		11,364
Accumulated depreciation		(9,323	)
Property and equipment, at net	$	2,041
Finance Lease Obligation-Current		1,074
Finance Lease Obligation-Non Current		199
Total finance lease liabilities	$	1,273

	As of June 30, 2019
Weighted average remaining lease term
Operating leases		4.19 yrs
Finance leases		2.83 yrs
Weighted average discount rate
Operating leases		7.50	%
Finance leases		6.01	%

Maturities of lease liabilities were as follows:

	Operating leases			Finance leases
Year ending December, 31
Remaining of 2019	$	26,264		$	886
2020		19,245			362
2021		12,298			63
2022		9,710			8
2023		6,601			-
Thereafter		11,810			-
Total lease payments	$	85,928		$	1,319
Less imputed interest		(12,528	)		(46	)
Total	$	73,400		$	1,273

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Note 15 - Subsequent Event

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

15.

  SUBSEQUENT EVENT

We plan to transition the remaining commercial Aegis branding to Startek over the coming quarters to better reflect our combined business and bring uniformity across geographies. Any accounting implications on the carrying values and amortization periods of the related intangible assets recognized in past periods would be formally evaluated in the upcoming quarter.

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of consolidation

The consolidated financial statements reflect the financial results of all subsidiaries that are more than

50%

owned and over which the Company exerts control. When the Company does

not

have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances are eliminated on consolidation. Where our ownership of a subsidiary was less than

100%,

the non-controlling interest is reported in our Condensed Consolidated Balance Sheets. The non-controlling interest in our consolidated net income is reported as "Net income (loss) attributable to non-controlling interests" in our Condensed Consolidated Statements of Comprehensive Income (Loss). These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in our Form 

10

-KT for the

nine

months period ended

December 

31,

2018

filed with the SEC on

March 14, 2019.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles, impairment of goodwill, purchase price allocations, provision for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, lease termination liabilities, restructuring costs, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

Revenue from Contract with Customer [Policy Text Block]

Revenue

On

April 1, 2018,

the Company adopted Accounting Standards Codification

606,

Revenue from Contracts with Customers, (Topic

606

) using the modified retrospective method. Topic

606

utilizes a

five

-step process, for revenue recognition that focuses on transfer of control, rather than transfer of risks and rewards. It also provided additional guidance on accounting for contract acquisition and fulfillment costs. Refer Note

5

on "Revenue from Contracts with Customers" for further information.

Consistent with the modified retrospective method of adoption, the Company has

not

adjusted prior period amounts which continue to be reported in accordance with the Company’s historic revenue accounting policy and principles.

Lessee, Leases [Policy Text Block]

Leases

On

January 1, 2019,

the Company adopted Accounting Standards Codification

842,

Leases

,

(Topic

842

)withthe transition approach

.

However, the Company has accounted the lease for the comparable periods as per the Accounting Standards Codification

840.

We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current maturity of operating lease liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property plant and equipment, long-term debt, accrued expenses and other current liabilities in our consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the balance lease term. As most of our leases do

not

provide an implicit rate, we use our incremental borrowing rate based on the information available at the date of initial application on determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms

may

include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which are generally accounted for separately.

Business Combinations Policy [Policy Text Block]

Business Combinations

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC

805,

Business Combinations, by recognizing identifiable tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquired business at their fair values. The excess of the cost of the acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. Acquisition related costs are expensed as incurred.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Intangible Assets

Goodwill was recorded at fair value at acquisition date and

not

amortized but is reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by

first

performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, that the fair value of the reporting unit is "more likely than

not"

less than the carrying amount or if significant changes related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. The Company can elect to forgo the qualitative assessment and perform the quantitative test.

Intangible assets acquired in a business combination were recorded at fair value at acquisition date using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment at least annually, or more frequently if indicators of impairment arise.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Matters

The Company has operations in Argentina and its functional currency has historically been the Argentine Peso. The Company monitors inflation rates in countries in which it operates as required by US GAAP. Under ASC

830

-

10

-

45

-

12,

an economy must be classified as highly inflationary when the cumulative

three

-year rate exceeds

100%.

In

May 2018,

a discussion document prepared by the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force describes inflation data for Argentina through

April 2018.

Considering this data and more recent data for

May 2018,

all of the

three

-year cumulative inflation rates commonly used to evaluate Argentina’s inflation currently exceed

100%.

Therefore, the Company has considered Argentina to be highly inflationary beginning on

July 1, 2018.

In accordance with ASC

830,

the functional currency of the Argentina business has been changed to USD, which requires remeasurement of the local books to USD. Exchange gains and losses is recorded through net income as opposed to through other comprehensive income as had been done historically. Translation adjustments from prior periods will

not

be removed from equity.

Share-based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

We recognize expense related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expense. We use the Black-Scholes method for valuing stock-based awards. See Note

11,

“Share-Based Compensation” for further information.

Common Stock Warrant Accounting, Policy [Policy Text Block]

Common Stock Warrant Accounting

We account for common stock warrants as equity instruments, based on the specific terms of our warrant agreement. For more information refer to Note

11,

"Share-Based Compensation."

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In

August 2018,

the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")

2018

-

14,

 

Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic

715

-

20

): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU

2018

-

14”

)

.  The amendment makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other post retirement benefit plans. The new guidance eliminates requirements for certain disclosures that are

no

longer considered cost beneficial and requires new ones that the FASB considers pertinent. ASU

No.

2018

-

14

is effective for fiscal years ending after

December 15, 2020.

The Company is evaluating the impact of the adoption of ASU

No.

2018

-

14

on its financial statement disclosures.

In

June 2016,

FASB issued accounting standard updated on 

Financial Instruments - Credit Losses (Topic

326

)

,

Measurement of Credit Losses on Financial Instruments.

The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. This ASU is effective for annual periods beginning after

December 15, 2019,

and interim periods therein. Early adoption is permitted for annual periods beginning after

December 15, 2018,

and interim periods therein. We do

not

expect the adoption of this standards will have a material impact on our consolidated financial statements.

In

August 2018,

the FASB issued ASU

No.

2018

-

13,

“Disclosure Framework— Changes to the Disclosure Requirements for Fair Value Measurement.” The ASU modifies the disclosure requirements with respect to fair value measurements. The ASU is effective for the Company beginning

January 1, 2020,

including interim periods in fiscal year

2020.

Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures.

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Note 3 - Business Acquisitions (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

	Amount
Stock consideration (number of shares outstanding immediately prior the closing date)		16,226,392
Closing share price on July 20, 2018	$	6.81
Total allocable purchase price	$	110,502

	Amount
Cash and cash equivalents	$	1,496
Other current assets		46,094
Property, plant and equipment, net		15,930
Identifiable intangible assets		28,960
Goodwill		64,337
Other non-current assets		3,204
Current liabilities		(22,540	)
Non-current liabilities		(26,979	)
Preliminary purchase price	$	110,502

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Note 4 - Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Goodwill [Table Text Block]

Reporting Units	Amount
Aegis		162,168
StarTek		64,337
Ending balance, June 30, 2019	$	226,505

	Amount
Opening balance, December 31, 2018	$	225,450
Measurement period adjustments		1,055
Ending balance, June 30, 2019	$	226,505

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	Gross Intangibles		Accumulated Amortization		Net Intangibles		Weighted Average Amortization Period (years)
Customer relationships	$	65,050	$	7,796	$	57,254		6.5
Brand		49,500		5,885		43,615		7.1
Trademarks		14,410		910		13,500		7.5
Other intangibles		2,100		443		1,657		4.9
	$	131,060	$	15,034	$	116,026

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Years Ending December 31,	Amount
Remainder of 2019	$	5,084
2020		10,277
2021		10,277
2022		10,277
2023		10,236
Thereafter		69,875

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Note 5 - Revenue (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Disaggregation of Revenue [Table Text Block]

	Three Months Ended June 30,					Six Months Ended June 30,
Vertical:	2019			2018		2019			2018
Telecom		64,421			58,412		130,245			124,761
E-commerce & Consumer		24,375			7,950		48,719			16,063
Financial & Business Services		13,245			12,941		26,565			28,182
Media & Cable		23,587			2,691		45,344			6,008
Travel & Hospitality		17,375			13,366		33,889			27,007
Healthcare & Education		8,352			2,301		18,881			4,945
Technology, IT & Related Services		3,458			1,346		5,896			2,822
All other segments		6,470			11,216		12,886			15,530
Gross Revenue		161,283			110,223		322,425			225,318
Less: Warrant Contra Revenue		(730	)		-		(730	)		-
Net Revenue	$	160,553		$	110,223	$	321,695		$	225,318

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Note 6 - Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Anti-dilutive securities:
Stock options		2,628		-		2,628		-

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Note 7 - Restructuring and Other Merger Related Cost (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Restructuring and Related Costs [Table Text Block]

	Employee related			Facilities related			Total
Balance as of December 31, 2018	$	760		$	2,267		$	3,027
Accruals/(reversals)		1,742			97			1,839
Payments		(1,685	)		(1,406	)		(3,091	)
Balance as of June 30, 2019	$	817		$	958		$	1,775

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Note 8 - Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

	Local Currency Notional Amount		U.S. Dollar Notional Amount
Philippine Peso		2,764,000,014		52,227,335
			$	52,227,335

Schedule of Derivative Instruments [Table Text Block]

Derivatives not designated under ASC 815	For the Three Months Ended June 30, 2019			For the Three Months Ended June 30, 2018			For the Six Months Ended June 30, 2019			For the Six Months Ended June 30, 2018
Foreign currency forward contracts	$	342		$	-		$	315		$	-
Interest rate swap	$	(405	)	$	(14	)	$	(630	)	$	(14	)

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Note 9 - Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

	As of June 30, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	1,812	$	—	$	1,812
Total fair value of assets measured on a recurring basis	$	—	$	1,812	$	—	$	1,812
Liabilities:
Interest rate swap	$	—	$	665	$	—	$	665
Foreign exchange contracts	$	—	$	100	$	—	$	100
Total fair value of liabilities measured on a recurring basis	$	—	$	765	$	—	$	765

	As of December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	1,388	$	—	$	1,388
Total fair value of assets measured on a recurring basis	$	—	$	1,388	$	—	$	1,388
Liabilities:
Interest rate swap	$	—	$	31	$	—	$	31
Foreign exchange contracts	$	—	$	276	$	—	$	276
Total fair value of liabilities measured on a recurring basis	$	—	$	307	$	—	$	307

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Note 10 - Debt (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Debt [Table Text Block]

	June 30, 2019		December 31, 2018
Short term debt and current portion of long term debt
Working capital facilities	$	28,295	$	21,975
Term loan		14,000		9,800
Finance lease obligations		1,074		1,816
Total	$	43,369	$	33,591
Long term debt
Term loan, net of debt issuance costs	$	112,810	$	120,462
Equipment loan		1,796		-
Secured revolving credit facility		33,921		31,152
Finance lease obligations		199		486
Total	$	148,726	$	152,100

Contractual Obligation, Fiscal Year Maturity [Table Text Block]

Years	Amount
2019		5,600
2020		16,800
2021		21,000
2022		88,200
	$	131,600

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Note 12 - Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Comprehensive Income (Loss) [Table Text Block]

	Foreign Currency Translation Adjustment			Derivatives Accounted for  as Cash Flow Hedges			Defined Benefit Plan			Equity attributable to  Startek shareholders			Non- controlling interests			Total
Balance at December 31, 2018	$	(3,989	)	$	(15	)	$	(1,543	)	$	(5,547	)	$	(1,243	)	$	(6,790	)
Foreign currency translation		599			-			-			599			-			599
Unrealized losses		-			348			-			348			-			348
Pension remeasurement		-			-			(34	)		(34	)		(25	)		(59	)
Balance at June 30, 2019	$	(3,390	)	$	333		$	(1,577	)	$	(4,634	)	$	(1,268	)	$	(5,902	)

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Note 13 - Segment and Geographical Information (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended June 30,				For the Six Months Ended June 30,
	2019		2018		2019		2018
Revenue:
India		27,074		33,382		54,421		66,316
Middle East		34,216		29,741		65,334		61,989
Malaysia		16,117		13,862		33,196		28,352
Argentina		10,203		15,675		21,314		32,018
United States		24,437		-		54,181		-
Australia		6,599		8,627		13,956		18,435
Philippines		20,617		-		33,426		-
Rest of World		21,290		8,936		45,867		18,208
Total	$	160,553	$	110,223	$	321,695	$	225,318

	As on June 30, 2019		As on December 31, 2018
Property, plant and equipment, net:
India		12,121		13,287
Middle East		5,509		6,507
Malaysia		4,803		5,058
Argentina		1,401		1,341
United States		4,461		5,349
Australia		272		345
Philippines		1,987		2,835
Rest of World		9,084		7,520
Total	$	39,638	$	42,242

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Note 14 - Leases (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Lease, Cost [Table Text Block]

	Six months ended June 30, 2019
Operating lease cost	$	15,441
Finance lease cost:
Amortization of right-of-use assets		985
Interest on lease liabilities		43
Total finance lease cost		1,028

	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		15,235
Operating cash flow from finance leases		43
Financing cash flows from finance leases		1,251
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		72,079
Finance lease		-

Assets And Liabilities, Lessee [Table Text Block]

	As of June 30, 2019
Operating Leases
Operating lease right-of-use assets	$	72,079
Operating Lease Liablities-Current		22,000
Operating Lease Liablities-Non-Current		51,400
Total operating lease liabilities	$	73,400
Finance Leases
Property and equipment, at cost		11,364
Accumulated depreciation		(9,323	)
Property and equipment, at net	$	2,041
Finance Lease Obligation-Current		1,074
Finance Lease Obligation-Non Current		199
Total finance lease liabilities	$	1,273

	As of June 30, 2019
Weighted average remaining lease term
Operating leases		4.19 yrs
Finance leases		2.83 yrs
Weighted average discount rate
Operating leases		7.50	%
Finance leases		6.01	%

Finance Lease, Liability, Maturity [Table Text Block]

	Operating leases			Finance leases
Year ending December, 31
Remaining of 2019	$	26,264		$	886
2020		19,245			362
2021		12,298			63
2022		9,710			8
2023		6,601			-
Thereafter		11,810			-
Total lease payments	$	85,928		$	1,319
Less imputed interest		(12,528	)		(46	)
Total	$	73,400		$	1,273

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Note 1 - Overview and Basis of Preparation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	May 17, 2019	Dec. 13, 2018	Jul. 20, 2018	Jun. 30, 2019	Dec. 31, 2018	Jan. 23, 2018
Common Stock, Par or Stated Value Per Share				$ 0.01	$ 0.01	$ 0.01
The 2019 Equity Offering [Member]
Sale of Stock, Number of Shares Issued in Transaction	692,520
Common Stock [Member] | Aegis Stockholder [Member] | The 2018 Equity Offering [Member]
Sale of Stock, Percentage of Ownership after Transaction		56.00%
Aegis [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares			16,226,392
Business Acquisition, Share Price			$ 6.81
Aegis [Member] | Common Stock [Member]
Business Acquisition, Share Price			$ 12
Payments to Acquire Businesses, Gross			$ 2,000
Aegis [Member] | Common Stock [Member] | Aegis Stockholder [Member]
Sale of Stock, Percentage of Ownership after Transaction			55.00%
Aegis Stockholder [Member] | The 2018 Equity Offering [Member]
Sale of Stock, Number of Shares Issued in Transaction		368,098
Sale of Stock, Price Per Share		$ 6.52
Sale of Stock, Consideration Received on Transaction		$ 2,400
Aegis Stockholder [Member] | The 2019 Equity Offering [Member]
Sale of Stock, Number of Shares Issued in Transaction	100,267
Sale of Stock, Price Per Share	$ 7.48
Sale of Stock, Consideration Received on Transaction	$ 5,180
Aegis Stockholder [Member] | Aegis [Member]
Common Stock, Par or Stated Value Per Share			$ 0.01
Aegis Stockholder [Member] | Aegis [Member] | Common Stock [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares			20,600,000
Business Acquisition, Equity Interests Issued or Issuable, Number of Additional Shares Issued			166,667
Common Stock, Ownership By Investor, Shares	21,235,032		20,766,667

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Note 3 - Business Acquisitions (Details Textual) - Aegis [Member] - USD ($) $ / shares in Units, $ in Thousands	Jul. 20, 2018	May 17, 2019
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	16,226,392
Business Acquisition, Share Price	$ 6.81
Common Stock [Member]
Business Acquisition, Share Price	$ 12
Payments to Acquire Businesses, Gross	$ 2,000
Common Stock [Member] | Aegis Stockholder [Member]
Sale of Stock, Percentage of Ownership after Transaction	55.00%
Aegis Stockholder [Member] | Common Stock [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	20,600,000
Business Acquisition, Equity Interests Issued or Issuable, Number of Additional Shares Issued	166,667
Common Stock, Ownership By Investor, Shares	20,766,667	21,235,032

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Note 3 - Business Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 20, 2018	Jun. 30, 2019	Dec. 31, 2018
Goodwill		$ 226,505	$ 225,450
Aegis [Member]
Stock consideration (number of shares outstanding immediately prior the closing date) (in shares)	16,226,392
Closing share price on July 20, 2018 (in dollars per share)	$ 6.81
Total allocable purchase price	$ 110,502
Cash and cash equivalents	1,496
Other current assets	46,094
Property, plant and equipment, net	15,930
Identifiable intangible assets	28,960
Goodwill	64,337
Other non-current assets	3,204
Current liabilities	(22,540)
Non-current liabilities	(26,979)
Preliminary purchase price	$ 110,502

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Note 4 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Goodwill, Ending Balance	$ 226,505	$ 225,450
Goodwill Impairment Analysis, Period for Which Revenue, Operating Margins and Cash Flows Are Projected	5 years

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Note 4 - Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Goodwill	$ 226,505
Goodwill	225,450
Measurement period adjustments	1,055
Goodwill	226,505
Aegis [Member]
Goodwill	162,168
Goodwill	162,168
StarTek [Member]
Goodwill	64,337
Goodwill	$ 64,337

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Note 4 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Gross Intangibles	$ 131,060
Accumulated Amortization	15,034
Net Intangibles	$ 116,026	$ 121,336
Weighted Average Amortization Period (Year)
Customer Relationships [Member]
Gross Intangibles	$ 65,050
Accumulated Amortization	7,796
Net Intangibles	$ 57,254
Weighted Average Amortization Period (Year)	6 years 182 days
Customer-Related Intangible Assets [Member]
Gross Intangibles	$ 49,500
Accumulated Amortization	5,885
Net Intangibles	$ 43,615
Weighted Average Amortization Period (Year)	7 years 36 days
Trademarks [Member]
Gross Intangibles	$ 14,410
Accumulated Amortization	910
Net Intangibles	$ 13,500
Weighted Average Amortization Period (Year)	7 years 182 days
Other Intangible Assets [Member]
Gross Intangibles	$ 2,100
Accumulated Amortization	443
Net Intangibles	$ 1,657
Weighted Average Amortization Period (Year)	4 years 328 days

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Note 4 - Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Remainder of 2019	$ 5,084
2020	10,277
2021	10,277
2022	10,277
2023	10,236
Thereafter	$ 69,875

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Note 5 - Revenue - Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue	$ 161,283	$ 110,223	$ 322,425	$ 225,318
Less: Warrant Contra Revenue	(730)		(730)
Net Revenue	160,553	110,223	321,695	225,318
Communications [Member]
Revenue	64,421	58,412	130,245	124,761
E-Commerce and Consumer [Member]
Revenue	24,375	7,950	48,719	16,063
Financial and Business Service [Member]
Revenue	13,245	12,941	26,565	28,182
Media [Member]
Revenue	23,587	2,691	45,344	6,008
Travel and Hospitality [Member]
Revenue	17,375	13,366	33,889	27,007
Health Care and Education [Member]
Revenue	8,352	2,301	18,881	4,945
Technology, IT and Related Service [Member]
Revenue	3,458	1,346	5,896	2,822
Other Sector [Member]
Revenue	$ 6,470	$ 11,216	$ 12,886	$ 15,530

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Note 6 - Net Loss Per Share - Summary of Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Payment Arrangement, Option [Member]
Stock options (in shares)	2,628		2,628

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Note 7 - Restructuring and Other Merger Related Cost (Details Textual) $ in Thousands	Jun. 30, 2019 USD ($)
Employee Severance [Member] | Aegis Transaction Agreement [Member]
Restructuring and Related Cost, Expected Cost Remaining	$ 673
Employee Severance [Member] | Closure of Site in Argentina [Member]
Restructuring and Related Cost, Expected Cost Remaining	144
Facility Closing [Member] | Aegis Transaction Agreement [Member]
Restructuring and Related Cost, Expected Cost Remaining	849
Facility Closing [Member] | Closure of Site in Argentina [Member]
Restructuring and Related Cost, Expected Cost Remaining	$ 109

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Note 7 - Restructuring and Other Merger Related Cost - Restructuring and Related Costs (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Beginning balance	$ 3,027
Accruals/(reversals)	1,839
Payments	(3,091)
Ending balance	1,775
Employee Severance [Member]
Beginning balance	760
Accruals/(reversals)	1,742
Payments	(1,685)
Ending balance	817
Facility Closing [Member]
Beginning balance	2,267
Accruals/(reversals)	97
Payments	(1,406)
Ending balance	$ 958

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Note 8 - Derivative Instruments (Details Textual)	6 Months Ended
	Jun. 30, 2019
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Minimum [Member]
Derivative, Term of Contract	90 days
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Maximum [Member]
Derivative, Term of Contract	1 year
Foreign Exchange Forward [Member] | Maximum [Member] | Not Designated as Hedging Instrument [Member]
Derivative, Term of Contract	3 years

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Note 8 - Derivative Instruments - Summary of Notional Amounts of Outstanding Derivative Positions (Details) - Jun. 30, 2019 ₱ in Thousands, $ in Thousands	PHP (₱)	USD ($)
Derivative, Notional Amount		$ 52,227,335
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Philippine Foreign Exchange Contract [Member]
Derivative, Notional Amount	₱ 2,764,000,014	$ 52,227,335

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Note 8 - Derivative Instruments - Summary of Non-designated Hedges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Realized gains and losses	$ (405)	$ (14)	$ (630)	$ (14)
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Realized gains and losses	$ 342		$ 315

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Note 9 - Fair Value Measurements - Assets and Liabilities Measured At Fair Value On a Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total fair value of assets measured on a recurring basis	$ 1,812	$ 1,388
Total fair value of liabilities measured on a recurring basis	765	307
Foreign Exchange Contract [Member]
Derivate asset	1,812	1,388
Derivate liability	100	276
Interest Rate Swap [Member]
Derivate liability	665	31
Fair Value, Inputs, Level 1 [Member]
Total fair value of assets measured on a recurring basis
Total fair value of liabilities measured on a recurring basis
Fair Value, Inputs, Level 1 [Member] | Foreign Exchange Contract [Member]
Derivate asset
Derivate liability
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member]
Derivate liability
Fair Value, Inputs, Level 2 [Member]
Total fair value of assets measured on a recurring basis	1,812	1,388
Total fair value of liabilities measured on a recurring basis	765	307
Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Contract [Member]
Derivate asset	1,812	1,388
Derivate liability	100	276
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Derivate liability	665	31
Fair Value, Inputs, Level 3 [Member]
Total fair value of assets measured on a recurring basis
Total fair value of liabilities measured on a recurring basis
Fair Value, Inputs, Level 3 [Member] | Foreign Exchange Contract [Member]
Derivate asset
Derivate liability
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member]
Derivate liability

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Note 10 - Debt (Details Textual) - USD ($) $ in Thousands			6 Months Ended
	Dec. 27, 2018	Oct. 27, 2017	Jun. 30, 2019	Dec. 31, 2018
Short-term Debt, Total			$ 28,295	$ 21,975
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity			50,000
Line of Credit Facility, Additional Borrowing Capacity			70,000
Line of Credit Facility, Incremental Borrowing Amount			5,000
Long-term Line of Credit, Noncurrent			$ 5,000
Line of Credit Facility, Borrowing Base, Accounts Receivable Percentage			95.00%
Long-term Line of Credit, Total			$ 33,900
Line of Credit Facility, Remaining Borrowing Capacity			8,460
Long-term Debt, Gross			3,010
Loans Payable [Member]
Debt Instrument, Face Amount		$ 140,000
Debt Instrument, Term		5 years
Debt Issuance Costs, Net, Total			7,300
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net, Total			$ 4,800
Loans Payable [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		4.50%
Secured Debt [Member]
Debt Instrument, Face Amount	$ 1,790
Debt Instrument, Interest Rate, Stated Percentage	7.57%
Debt Instrument, Convertible, Remaining Discount Amortization Period	2 years 182 days
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member]
Debt Instrument, Basis Spread on Variable Rate			1.50%
Minimum [Member] | Loans Payable [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		3.75%
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member]
Debt Instrument, Basis Spread on Variable Rate			1.75%
Maximum [Member] | Loans Payable [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		4.50%
Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 33,600
Short-term Debt, Total			$ 28,300
Line of Credit [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate			3.00%
Line of Credit [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate			4.50%

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Note 10 - Debt - Summary of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total short term debt	$ 43,369	$ 33,591
Total long term debt	148,726	152,100
Loans Payable [Member]
Total short term debt	14,000	9,800
Total long term debt	112,810	120,462
Capital Lease Obligations [Member]
Total short term debt	1,074	1,816
Total long term debt	199	486
Commercial Loan [Member]
Total long term debt	1,796
Line of Credit [Member]
Total long term debt	33,921	31,152
Working Capital Facilities [Member]
Total short term debt	$ 28,295	$ 21,975

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Note 10 - Debt - Principal Payments Due on Term Loan (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
	$ 148,726	$ 152,100
Loans Payable [Member]
2019	5,600
2020	16,800
2021	21,000
2022	88,200
	$ 131,600

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Note 11 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Jan. 23, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	May 17, 2019	Dec. 31, 2018
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01		$ 0.01			$ 0.01
Warrant Contra Revenue		$ 730		$ 730
Share-based Payment Arrangement, Option [Member]
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount		$ 1,544		$ 1,544
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition				2 years 14 days
Selling, General and Administrative Expenses [Member]
Share-based Payment Arrangement, Expense				$ 781
Amazon Transaction Agreement [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	4,000,000					4,002,964
Class of Warrant or Right, Vested During Period	425,532			212,766
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Expected Proceeds from Transaction Required for Vesting	$ 600,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 9.96					$ 9.95
Warrant Contra Revenue				$ 730

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Note 12 - Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	$ (3,989)
Foreign currency translation	599
Unrealized losses
Pension remeasurement
Balance	(3,390)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Balance	(15)
Foreign currency translation
Unrealized losses	348
Pension remeasurement
Balance	333
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(1,543)
Foreign currency translation
Unrealized losses
Pension remeasurement	(34)
Balance	(1,577)
AOCI Attributable to Parent [Member]
Balance	(5,547)
Foreign currency translation	599
Unrealized losses	348
Pension remeasurement	(34)
Balance	(4,634)
AOCI Attributable to Noncontrolling Interest [Member]
Balance	(1,243)
Foreign currency translation
Unrealized losses
Pension remeasurement	(25)
Balance	(1,268)
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
Balance	(6,790)
Foreign currency translation	599
Unrealized losses	348
Pension remeasurement	(59)
Balance	$ (5,902)

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Note 13 - Segment and Geographical Information (Details Textual)	6 Months Ended
	Jun. 30, 2019
Number of Reporting Units	2
Number of Reportable Segments	1
Number of Operating Segments	1

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Note 13 - Segment and Geographical Information - Summary of Segment Reporting Information, By Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Net Revenue	$ 160,553	$ 110,223	$ 321,695	$ 225,318
Property, plant and equipment, net	39,638		39,638		$ 42,242
INDIA
Net Revenue	27,074	33,382	54,421	66,316
Property, plant and equipment, net	12,121		12,121		13,287
Middle East [Member]
Net Revenue	34,216	29,741	65,334	61,989
Property, plant and equipment, net	5,509		5,509		6,507
MYANMAR
Property, plant and equipment, net	4,803		4,803
Malaysia 1[Member]
Net Revenue	16,117	13,862	33,196	28,352
Property, plant and equipment, net					5,058
ARGENTINA
Net Revenue	10,203	15,675	21,314	32,018
Property, plant and equipment, net	1,401		1,401		1,341
UNITED STATES
Net Revenue	24,437		54,181
Property, plant and equipment, net	4,461		4,461		5,349
AUSTRALIA
Net Revenue	6,599	8,627	13,956	18,435
Property, plant and equipment, net	272		272		345
PHILIPPINES
Net Revenue	20,617		33,426
Property, plant and equipment, net	1,987		1,987		2,835
Rest of World [Member]
Net Revenue	21,290	$ 8,936	45,867	$ 18,208
Property, plant and equipment, net	$ 9,084		$ 9,084		$ 7,520

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Note 14 - Leases (Details Textual)	6 Months Ended
	Jun. 30, 2019
Lessee, Lease, Termination Period	1 year
Minimum [Member]
Lease, Remaining Lease Term	1 year
Lessee, Lease, Renewal Term	3 years
Maximum [Member]
Lease, Remaining Lease Term	10 years
Lessee, Lease, Renewal Term	5 years

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Note 14 - Leases - Components of Lease Expense (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Operating lease cost	$ 15,441
Amortization of right-of-use assets	985
Interest on lease liabilities	43
Total finance lease cost	1,028
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	15,235
Operating cash flow from finance leases	43
Financing cash flows from finance leases	1,251
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	72,079
Finance lease

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Note 14 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Operating Leases
Operating lease right-of-use assets	$ 72,079
Operating Lease Liablities-Current	22,000
Operating Lease Liablities-Non-Current	51,400
Total operating lease liabilities	73,400
Finance Leases
Property and equipment, at cost	11,364
Accumulated depreciation	(9,323)
Property and equipment, at net	2,041
Finance Lease Obligation-Current	1,074	$ 1,816
Finance Lease Obligation-Non Current	199
Total finance lease liabilities	$ 1,273
Weighted average remaining lease term
Operating leases (Year)	4 years 69 days
Finance leases (Year)	2 years 302 days
Weighted average discount rate
Operating leases	7.50%
Finance leases	6.01%

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Note 14 - Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Remaining of 2019, Operating leases	$ 26,264
Remaining of 2019, Finance leases	886
2020, Operating leases	19,245
2020, Finance leases	362
2021, Operating leases	12,298
2021, Finance leases	63
2022, Operating leases	9,710
2022, Finance leases	8
2023, Operating leases	6,601
2023, Finance leases
Thereafter, Operating leases	11,810
Thereafter, Finance leases
Total lease payments, Operating leases	85,928
Total lease payments, Finance leases	1,319
Less imputed interest, Operating leases	(12,528)
Less imputed interest, Finance leases	(46)
Total, Operating leases	73,400
Total, Finance leases	$ 1,273