Preference Shares Liabilities
|6 Months Ended|
Jun. 30, 2020
|Preference Shares Liabilities [Abstract]|
|Preference Shares Liabilities||
10. PREFERENCE SHARES LIABILITIES
Preference shares liabilities amounting to $2,000 and $2.5 million as of June 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 June 30, 2020 exchange rate) and paid in full on July 31, 2020. See Note 19 – Subsequent Events – for further details.
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 (at the June 30, 2020 exchange rate), 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 (at the June 30, 2020 exchange rate), 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 approved to be paid on August 31, 2020 for $1.4 million (at the June 30, 2020 exchange rate). See Note 19 – Subsequent Events – for further details.
The entire disclosure for terms, amounts, nature of changes, rights and privileges, dividends, and other matters related to preferred stock.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef