10.

Loss Per Share

	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
	(in thousands)				(in thousands)

Net loss attributable to Innodata Inc. and Subsidiaries	$	(1,778)	$	(799)	$	(1,775)	$	(2,639)

Weighted average common shares outstanding		25,445		25,337		25,445		25,337
Dilutive effect of outstanding options		-		-		-		-
Adjusted for dilutive computation		25,445		25,337		25,445		25,337

Basic net 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 4.6 million shares and 2.6 million shares of common stock for the three months ended June 30, 2016 and 2015, 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 June 30, 2015 does not include 1.0 million potential shares of common stock 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 4.3 million shares and 2.6 million shares of common stock for the six months ended June 30, 2016 and 2015, 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 six months ended June 30, 2016 and 2015 does not include 0.3 million and 1.0 million potential shares of common stock, 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.