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.