Innodata Europe Limited

	Page
Balance Sheet	1
Notes to the Financial Statements	2—4

1. General Information

Innodata Europe Limited is a private company, limited by shares, incorporated in England & Wales, registered number 05660881 . The registered office is 1a Kingsbury's Lane, Ringwood, BH24 1EL.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS102") and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared and presented in US Dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position, and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares;

- Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 'Basic Financial Instruments' and Section 12 ' Other Financial Instrument Issues' - Carrying amounts, interest income/expenses and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in comprehensive income;

- Section 26 'Share based Payment' - Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 'Related Party Disclosures' - Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Innodata Inc. These consolidated financial statements are available from its registered office, Innodata Inc, Principal executive offices, 55 Challenger Road, Ridgefield Park, New Jersey, USA 07660.

2.2. Going Concern Disclosure

The company is dependent on group support in order to continue to trade. This support is not expected to be withdrawn in the immediate future. The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Rendering of services

Turnover is recognised at the fair value of the consideration received or receivable for goods and services

provided in the normal course of business , and is shown net of VAT and other sales related taxes . The fair

value of consideration takes into account trade discounts, settlement discounts and volume rebates.

2.4. Foreign Currencies

Transaction in currencies other than US Dollars are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

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Innodata Europe Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.5. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.6. Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Share based payments

Equity-settled share-based payments are measured at fiar value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes option-pricing model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based paymentunder the original terms and conditions and under the modified terms and conditionsare both determined at the date of the modification.Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair valueis less than the original fair value.

Cancellations or settlements (including those from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 3 (2023: 2)

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Innodata Europe Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

4. Debtors

	2024	2023
	$	$
Due within one year
Other debtors	10,633	17,453
VAT debtor	2,718	4,083
Other taxes and social security	-	110
Amounts owed by group undertakings	824,040	818,569

	837,391	840,215
Due after more than one year
Other debtors > 1 yr	50,833	-

	888,224	840,215

5. Creditors: Amounts Falling Due Within One Year

	2024	2023
	$	$
Corporation tax	8,309	13,883
Other taxes and social security	2,556	-
Net wages	60	-
Accounts payable - employees	5,217	391
Withholding Tax	1,215	(1,831 )
Accruals and deferred income	26,359	14,991

	43,716	27,434

6. Share Capital

	2024	2023
	$	$
Allotted, Called up and fully paid	1	1

7. Ultimate Parent Undertaking and Controlling Party

The company's immediate and ultimate parent undertaking is Innodata Inc. . Innodata Inc. was incorporated in the United Staes of America and is listed on the NASDAQ Stock Exchange. Copies of the group accounts may be obtained from the secretary, 55 Challenger Road, Ridgefield Park, New Jersey, USA 07660 . The ultimate controlling party is Innodata Inc. who controls 100% of the shares of Innodata Europe Limited .

8. Audit Information

The auditor's report on the accounts of Innodata Europe Limited for the year ended 31 December 2024 was unqualified.

The auditor's report was signed by Lee Gardner FCA (Senior Statutory Auditor) (Senior Statutory Auditor) for and on behalf of Vale and West Accountancy Services Limited , Statutory Auditor.

Vale and West Accountancy Services Limited

Victoria House

26 Queen Victoria Street

Reading

Berkshire

RG1 1TG

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		2024		2023
	Notes	$	$	$	$
CURRENT ASSETS
Debtors	4	888,224		840,215

		888,224		840,215
Creditors: Amounts Falling Due Within One Year	5	(43,716 )		(27,434 )

NET CURRENT ASSETS (LIABILITIES)			844,508		812,781

TOTAL ASSETS LESS CURRENT LIABILITIES			844,508		812,781

NET ASSETS			844,508		812,781

CAPITAL AND RESERVES
Called up share capital	6		1		1
Other reserves			113,444		92,756
Profit and Loss Account			731,063		720,024

SHAREHOLDERS' FUNDS			844,508		812,781