Quarterly report pursuant to Section 13 or 15(d)

Preference Shares Liabilities

v3.20.2
Preference Shares Liabilities
9 Months Ended
Sep. 30, 2020
Preference Shares Liabilities [Abstract]  
Preference Shares Liabilities

10. PREFERENCE SHARES LIABILITIES

Preference shares liabilities amounting to zero and $2.5 million as of September 30, 2020 and December 31, 2019, respectively, represent Kaleyra’s obligation to purchase in 2020 the preference shares from certain employees of Solutions Infini as a part of the Solutions Infini 2018 Purchase Agreement.

On March 9, 2020, Kaleyra signed a modification of the 2018 Solutions Infini Purchase Agreement to reduce the price of the preference shares to be purchased from the eligible employees of Solutions Infini in July 2020 to their face value, amounting to Indian Rupee 10.0 per each preference share. As a result of this modification, the total preference shares obligation was reduced to Indian Rupee 132,000 ($2,000 at the July 31, 2020 exchange rate) and paid in full on July 31, 2020.

On January 31, 2020, Kaleyra agreed to pay to the eligible employees of the preference shares, performance bonuses for a total amount of $3.5 million, to be paid in 2020, as a replacement of the preference shares obligation.

On March 24, 2020, given the prevailing situation of the COVID-19 pandemic both globally and in India, Kaleyra agreed with two of the eligible employees to delay payment of their performance bonuses, for a total amount of $1.4 million, and evaluate the timeline for payment thereof at a later date.

On July 31, 2020, following the resolution of the Board of Directors of Solutions Infini, the payment of the previously outstanding performance bonus obligation with two of the eligible employees was paid on August 31, 2020 for $1.4 million (at the August 31, 2020 exchange rate).

As of September 30, 2020, the outstanding performance bonus obligation payable to the other eligible employees amounted to $2.1 million. This amount is included in the condensed consolidated balance sheets line item “Payroll and payroll related accrued liabilities”.