Stock Options and Restricted Shares (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of weighted average assumptions

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 Three Months Ended
	March 31, 2021
Weighted average fair value of options granted	$	3.33
Risk-free interest rate		0.22%-0.82	%
Expected term (years)		2.96-6.0
Expected volatility factor		59.62	%
Expected dividends		—

Schedule of Stock Option Activity

A summary of stock option activity under the Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016 (the Plan), as of March 31, 2021, and changes during the three months then ended, are presented below:


		Weighted -		Weighted-Average
	Number of	Average Exercise		Remaining Contractual	Aggregate
	Options	Price		Term (years)	Intrinsic Value
Outstanding at January 1, 2021	5,906,884	$	1.61
Granted	360,000		6.40
Exercised	(689,616)		2.17
Forfeited/Expired	(13,333)		1.38
Outstanding at March 31, 2021	5,563,935	$	1.86	7.69	$	24,770,815

Exercisable at March 31, 2021	3,594,434	$	1.68	7.10	$	16,621,389

Vested and Expected to Vest at March 31, 2021	5,563,935	$	1.86	7.69	$	24,770,815

Summary of restricted shares under the Company's Plan

A summary of restricted shares under the Plan as of March 31, 2021 are presented below:


		Weighted-Average
		Grant Date Fair
	Number of Shares	Value
Unvested at December 31, 2020	50,000
Granted	—
Vested	(25,000)
Forfeited/Expired	—
Unvested at March 31, 2021	25,000	$	1.38

Schedule of Stock-Based Compensation Expense

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


	For the Three Months Ended
	March 31,
	2021		2020
Direct operating costs	$	38	$	40
Selling and administrative expenses		240		130
Total stock-based compensation	$	278	$	170