Income (Loss) Per Share

9 Months Ended

Sep. 30, 2015

11.

Income (Loss) Per Share

	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
	(in thousands)				(in thousands)

Net income (loss) attributable to Innodata Inc. and Subsidiaries	$	406	$	(219)	$	(2,233)	$	(693)

Weighted average common shares outstanding		25,455		25,294		25,377		25,197
Dilutive effect of outstanding options		-		-		-		-
Adjusted for dilutive computation		25,455		25,294		25,377		25,197

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by considering the impact of the potential issuance of common shares, using the treasury stock method, on the weighted average number of shares outstanding. For those securities that are not convertible into a class of common stock, the “two-class” method of computing income per share is used.

Options to purchase 3.4 million shares and 1.4 million shares of common stock for the three months ended September 30, 2015 and 2014, respectively, were outstanding but not included in the computation of diluted net loss per share, because the options exercise price was greater than the average market price of the common shares and, therefore, the effect would have been anti-dilutive. In addition, diluted net loss per share for the three months ended September 30, 2014 does not include 2.2 million potential common shares, respectively, derived from the exercise of stock options, because as a result of the Company’s incurring losses, their effect would have been anti-dilutive.

Options to purchase 2.6 million shares and 1.4 million shares of common stock for the nine months ended September 30, 2015 and 2014, respectively, were outstanding but not included in the computation of diluted net loss per share, because the options exercise price was greater than the average market price of the common shares and, therefore, the effect would have been anti-dilutive. In addition, diluted net loss per share for the nine months ended September 30, 2015 and 2014 does not include 0.8 million and 2.2 million potential common shares, respectively, derived from the exercise of stock options, because as a result of the Company’s incurring losses, their effect would have been anti-dilutive.