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Stock Options
6 Months Ended
Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
5.
Stock Options
 
The Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016, is referred to herein as the “Plan.” The number of shares of common stock of Innodata Inc. that may be delivered, purchased or used for reference purposes (with respect to stock appreciation rights or stock units) for awards granted under the Plan after June 7, 2016 is 5,858,892 (the “Share Reserve”). Shares subject to an option or stock appreciation right granted under the Plan after June 7, 2016 count against the Share Reserve as one share for every share granted, and shares subject to any other type of award granted under the Plan after June 7, 2016 count against the Share Reserve as two shares for every share granted. Any award, or portion of an award, under the Plan or under the Company’s 2009 Stock Plan (as amended and restated (the “Prior Plan”)) that expires or terminates unexercised, becomes unexercisable or is forfeited or otherwise terminated, surrendered or canceled as to any shares without delivery of shares or other consideration will be added back to the Share Reserve as one share for each such share that was subject to an option or stock appreciation right granted under the Plan or the Prior Plan, and two shares for each such share that was subject to an award other than an option or stock appreciation right granted under the Plan or the Prior Plan. If any shares are withheld, tendered or exchanged by a participant in the Plan as full or partial payment to Innodata of the exercise price under an option under the Plan or the Prior Plan or in satisfaction of a participant’s tax withholding obligations with respect to any award under the Plan or the Prior Plan, there will be added back to the Share Reserve one share for each such share that was withheld, tendered or exchanged in respect of an option or stock appreciation right granted under the Plan or the Prior Plan, and two shares for each such share that was withheld, tendered or exchanged in respect of an award other than an option or stock appreciation right granted under the Plan or the Prior Plan.
 
A summary of stock option activity under the Plan as of June 30, 2019, and changes during the six months then ended, are presented below:
 
 
 
Number of

Options
 
 
Weighted -

Average Exercise

Price
 
 
Weighted-Average
Remaining

Contractual Term

(years)
 
 
Aggregate

Intrinsic Value
 
Outstanding at January 1, 2019
 
 
4,982,040
 
 
$
2.14
 
 
 
 
 
 
 
 
 
Granted
 
 
220,000
 
 
 
1.38
 
 
 
 
 
 
 
 
 
Exercised
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Forfeited/Expired
 
 
(174,237
)
 
 
2.04
 
 
 
 
 
 
 
 
 
Outstanding at June 30, 2019
 
 
5,027,803
 
 
$
2.11
 
 
 
6.27
 
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at June 30, 2019
 
 
3,564,211
 
 
$
2.49
 
 
 
5.13
 
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and Expected to Vest at June 30, 2019
 
 
5,027,803
 
 
$
2.11
 
 
 
6.27
 
 
$
-
 
 
The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average fair value of the options granted, and weighted average assumptions were as follows: 
 
 
 
For the Six Months Ended June 30,
 
 
 
2019
 
 
2018
 
Weighted average fair value of options granted
 
$
0.64
 
 
$
-
 
 
 
 
 
 
 
 
 
 
Risk-free interest rate
 
 
2.55
%
 
 
-
 
Expected life (years)
 
 
6
 
 
 
-
 
Expected volatility factor
 
 
45
%
 
 
-
 
Expected dividends
 
 
 None
 
 
 
-
 
  
A summary of restricted shares under the Company’s Plan as of June 30, 2019 are presented below:
 
 
 
Number of Shares
 
 
Weighted-Average
Grant Date Fair

Value
 
 
 
 
 
 
 
 
Granted
 
 
75,000
 
 
 
1.38
 
Vested
 
 
-
 
 
 
-
 
Forfeited/Expired
 
 
-
 
 
 
-
 
Unvested at June 30, 2019
 
 
75,000
 
 
$
1.38
 
  
The compensation cost related to non-vested stock options and restricted stock awards not yet recognized as of June 30, 2019 totaled approximately $0.9 million. The weighted average period over which these costs will be recognized is 24 months.
 
The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands):
 
 
 
Three months ended

June 30,
 
 
Six months ended

June 30,
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct operating costs
 
$
20
 
 
$
55
 
 
$
38
 
 
$
109
 
Selling and administrative expenses
 
 
125
 
 
 
76
 
 
 
235
 
 
 
162
 
Total stock-based compensation
 
$
145
 
 
$
131
 
 
$
273
 
 
$
271