Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The significant components of the provision for income taxes for each of the three years in the period ended December 31, 2016 are as follows (in thousands):

	2016		2015		2014
Current income tax expense:
Foreign	$	1,301	$	1,331	$	778
Federal		-		4		-
State and local		1		1		22
		1,302		1,336		800

Deferred income tax expense (benefit):
Foreign		(176)		(133)		(413)
Federal		-		-		19
		(176)		(133)		(394)

Provision for income taxes	$	1,126	$	1,203	$	406

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The reconciliation of the U.S. statutory rate with the Company’s effective tax rate for each of the three years in the period ended December 31, 2016 is summarized as follows:

	2016			2015			2014

Federal statutory rate		(34.0)	%		(34.0)	%		(34.0)	%
Effect of:
State income taxes (net of federal tax benefit)		(2.7)			(2.7)			(2.1)
Taxes on foreign income at rates that differ from U.S. statutory rate		17.3			(8.8)			(50.4)
Change in valuation allowance on deferred tax assets		(34.5)			41.1			94.1
Deemed dividend under Section 956 of the Internal Revenue Code		75.9			60.9			-
Increase (decrease) in unrecognized tax benefits		1.6			(25.7)			(21.7)
Incremental accrual for Innodata India transfer pricing		-			19.6			38.7
Other		0.1			4.8			2.1
Effective tax rate		23.7	%		55.2	%		26.7	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred tax assets and liabilities are classified as non-current. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands):

	December 31,
	2016		2015

Deferred income tax assets:
Allowances not currently deductible	$	546	$	312
Depreciation and amortization		1,654		1,762
Equity compensation not currently deductible		1,836		1,547
Net operating loss carryforwards		6,718		6,257
Expenses not deductible until paid		1,079		1,093
Tax credit carryforwards		176		176
Derivatives		-		61
Other		188		275
Total gross deferred income tax assets before valuation allowance		12,197		11,483
Valuation allowance		(10,556)		(9,887)
Net deferred income tax assets		1,641		1,596

Deferred income tax liabilities:
Acquisition of MediaMiser		(471)		(507)
Other		(209)		(217)
Totals		(680)		(724)

Net deferred tax assets	$	961	$	872

Net deferred income tax asset		1,641		1,664
Net deferred income tax liability		(680)		(792)

Net deferred income tax assets	$	961	$	872

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

United States and foreign components of income (loss) before provision for income taxes for each of the three years ended December 31, (in thousands) are as follows:

	2016		2015		2014

United States	$	(5,401)	$	(4,992)	$	(4,218)
Foreign		616		2,811		2,698
Total	$	(4,785)	$	(2,181)	$	(1,520)

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The following table represents a roll forward of the Company’s unrecognized tax benefits and associated interest for the years ended (amounts in thousands):

	December 31
	2016		2015
Balance at January 1	$	1,207	$	1,760
Increase for tax position		40		27
Decrease for tax position on account of settlement		(108)		(588)
Interest accrual		51		-
Foreign currency revaluation		(6)		8
Balance at December 31	$	1,184	$	1,207