7.	Stock Options

The Company adopted, with stockholder approval, amendments to the Innodata Inc. 2013 Stock Plan. The maximum number of shares of common stock that may be delivered, purchased or used for reference purposes (with respect to stock appreciation rights or stock units) with respect to awards granted under the Innodata Inc. 2013 Stock Plan, as amended and restated (the “2013 Plan”) is 2,138,655 shares of common stock of Innodata (“Stock”), plus (i) 41,096 shares of Stock that were available for issuance under the Innodata Isogen, Inc. 2009 Stock Plan, as amended and restated (the “Prior Plan”) as of June 4, 2013, plus (ii) any shares subject to an award or portion of any award under the Prior Plan that were outstanding as of June 4, 2013 that expire or terminate unexercised, become unexercisable or are forfeited or otherwise terminated, surrendered or canceled as to any shares without the delivery of shares of stock or other consideration. Shares of stock subject to options or stock appreciation rights granted under the 2013 Plan count against the share reserve as one share for every one share subject to such option or stock appreciation right and shares subject to any other type of award granted under the 2013 Plan count against the share reserve as two shares for every one share subject to such award. If any award, or portion of an award, under the 2013 Plan or Prior Plan expires or terminates unexercised, becomes unexercisable or is forfeited or otherwise terminated, surrendered or canceled as to any shares without the delivery of shares of Stock or other consideration, the shares subject to such award will thereafter be available for further awards under the 2013 Plan as provided in the next sentence. Shares of Stock that again become available for awards pursuant to the expiration, termination, forfeiture or cancellation of any award (other than an option or stock appreciation right) granted under the 2013 Plan, or of any award (other than an option or stock appreciation right) granted after March 31, 2011 under the Prior Plan, will be added back as two shares for every one share subject to such award or Prior Plan award. All other awards under the 2013 Plan and all other awards under the Prior Plan will be added back as one share for every one share subject to such award or Prior Plan award. The number of shares used for reference purposes in connection with these awards will be considered "delivered" for purposes of computing the maximum number of shares that may be delivered under the 2013 Plan.

The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average fair values of the options granted and weighted average assumptions are as follows:

	Number of Options		Weighted - Average Exercise Price		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 2015		3,641,857	$	3.05
Granted		-		-
Exercised		-		-
Forfeited/Expired		(20,354)		3.08
Outstanding at March 31, 2015		3,621,503	$	3.05		4.67	$	43,800
Exercisable at March 31, 2015		1,353,232	$	3.05		3.39	$	35,450
Vested and Expected to Vest at March 31, 2015		3,621,503	$	3.05		4.67	$	43,800

	Three Months Ended
	March 31,
	2015		2014
Weighted average fair value of options granted	$	-	$	1.55

Risk-free interest rate		-		1.53	%
Expected life (years)		-		5
Expected volatility factor		-		54.96	%
Expected dividends		-		-

A summary of restricted shares under the Company’s stock plans as of March 31, 2015, and changes during the period then ended, are presented below:

	Number of Shares		Weighted- Average Grant Date Fair Value
Unvested at January 1, 2015		7,500	$	2.59
Granted		-		-
Vested		-		-
Forfeited/Expired		-		-
Unvested at March 31, 2015		7,500	$	2.59

The total compensation cost related to non-vested stock awards not yet recognized as of March 31, 2015 totaled approximately $1.7 million. The weighted-average period over which these costs will be recognized is twenty months.

The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands):

	Three months ended March 31,
	2015		2014

Direct operating costs	$	91	$	69
Selling and administrative expenses		194		129
Total stock-based compensation	$	285	$	198

There were no options exercised in the quarter ended March 31, 2015.