SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

HUDSON GLOBAL, INC.
CONDENSED STATEMENTS OF OPERATIONS (PARENT COMPANY ONLY)
(in thousands)
	Year Ended December 31,
	2015			2014			2013
Operating expenses:
Selling, general and administrative expenses	$	13,327		$	16,948		$	15,953
Depreciation and amortization	488			541			645
Business reorganization expenses	1,168			967			790
Operating loss	(14,983		)	(18,456		)	(17,388		)
Other income (expense):
Interest, net	516			103			105
Corporate costs allocation and other, net	5,318			8,150			9,412
Income (loss) from parent before provision for income taxes	(9,149		)	(10,203		)	(7,871		)
Provision for (benefit from) income taxes for parent company	(12		)	(4		)	2
Equity in earnings (losses) of subsidiaries, net of income taxes	11,466			(2,995		)	(22,522		)
Net income (loss)	$	2,329		$	(13,194	)	$	(30,395	)
See notes to condensed financial statements.

HUDSON GLOBAL, INC.
CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY)
(in thousands)
	December 31,
	2015		2014
ASSETS
Current assets:
Cash and cash equivalents	$	13,025	$	7,006
Prepaid and other	196		1,366
Total current assets	13,221		8,372
Property and equipment, net	674		584
Investment in and advances to/from subsidiaries	50,770		54,785
Other assets	485		917
Total assets	$	65,150	$	64,658
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	3,494	$	4,937
Total current liabilities	3,494		4,937
Other non-current liabilities	476		464
Total liabilities	3,970		5,401
Stockholders’ equity	61,180		59,257
Total liabilities and stockholders' equity	$	65,150	$	64,658
See notes to condensed financial statements.

HUDSON GLOBAL, INC.
CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY)
(in thousands)
	For the Years Ended December 31,
	2015			2014			2013
Cash flows from operating activities:
Net income (loss)	$	2,329		$	(13,194	)	$	(30,395	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Dividends received from subsidiaries	7,468			—			2,341
Non-cash (income) losses from subsidiaries, net of taxes	(11,466		)	2,995			22,522
Depreciation and amortization	488			541			645
Stock-based compensation	637			405			953
Other, net	—			248			368
Changes in operating assets and liabilities:
(Increase) decrease in prepaid and other assets	1,921			(744		)	144
(Increase) decrease in due from subsidiaries	14,503			11,910			10,409
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(1,269		)	837			(1,597		)
Increase (decrease) in accrued business reorganization expenses	(120		)	793			134
Net cash provided by (used in) operating activities	14,491			3,791			5,524
Cash flows from investing activities:
Capital expenditures	(897		)	—			(368		)
Advances to and investments in subsidiaries, net	(5,945		)	(4,126		)	(6,673		)
Net cash provided by (used in) investing activities	(6,842		)	(4,126		)	(7,041		)
Cash flows from financing activities:
Borrowings under credit facility	—			22,081			514
Repayments under credit facility	—			(22,081		)	(514		)
Purchase of treasury stock	(1,386		)	—			—
Purchase of restricted stock from employees	(244		)	(129		)	(488		)
Net cash provided by (used in) financing activities	(1,630		)	(129		)	(488		)
Net increase (decrease) in cash and cash equivalents	6,019			(464		)	(2,005		)
Cash and cash equivalents, beginning of the period	7,006			7,470			9,475
Cash and cash equivalents, end of the period	$	13,025		$	7,006		$	7,470
See notes to condensed financial statements.

NOTE 1 - BASIS OF PRESENTATION

Hudson Global, Inc. (the “Parent Company”) is a holding company that conducts substantially all of its business through its subsidiaries. As specified in certain of its subsidiaries' credit agreements in the U.K., Australia and New Zealand, there are restrictions on the Parent Company's ability to obtain funds from certain of its subsidiaries through dividends, intercompany expenses or interest (refer to Note 15, “Credit Agreements”, to the Company's Consolidated Financial Statements). As of December 31, 2015, the Company was in a stockholders' equity position of $61,180, and approximately $24,226 constituted restricted net assets as defined in Rule 4-08(e)(3) of Regulation S-X. The restricted net assets of the Company's subsidiaries exceeded 25% of the consolidated net assets of the Company and its subsidiaries, thus requiring this Schedule I, “Condensed Financial Information of the Registrant.” Accordingly, the results of operations and cash flows for the years ended December 31, 2015, 2014 and 2013, and the balance sheets as of December 31, 2015 and 2014 have been presented on a “Parent-only” basis. In these statements, the Company's investments in its consolidated subsidiaries are presented under the equity method of accounting. The Parent-only financial statements should be read in conjunction with the Company's audited Consolidated Financial Statements included elsewhere herein.

NOTE 2 - DIVIDENDS RECEIVED

The Company received dividends of $7,468, $0 and $2,341 in 2015, 2014 and 2013, respectively, from its consolidated subsidiaries.

NOTE 3 - CREDIT AGREEMENTS

Several of the Company's subsidiaries have credit agreements with lenders. Borrowings under the credit agreements are based on an agreed percentage of eligible accounts receivable. Refer to Note 15, “Credit Agreements” to the Company's Consolidated Financial Statements for further details.