SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

12 Months Ended

Dec. 31, 2014

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,
	2014			2013			2012
Operating expenses:
Selling, general and administrative expenses	$	16,948		$	15,953		$	18,272
Depreciation and amortization	541			645			641
Business reorganization expenses	967			790			359
Operating loss	(18,456		)	(17,388		)	(19,272		)
Other income (expense):
Interest, net	103			105			43
Corporate costs allocation and other, net	8,150			9,412			15,016
Income (loss) from parent before provision for income taxes	(10,203		)	(7,871		)	(4,213		)
Provision for (benefit from) income taxes for parent company	(4		)	2			19
Equity in earnings (losses) of subsidiaries, net of income taxes	(2,995		)	(22,522		)	(1,103		)
Net income (loss)	$	(13,194	)	$	(30,395	)	$	(5,335	)
See notes to condensed financial statements.

HUDSON GLOBAL, INC.
CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY)
(in thousands)
	December 31,
	2014		2013
ASSETS
Current assets:
Cash and cash equivalents	$	7,006	$	7,470
Prepaid and other	1,366		449
Total current assets	8,372		7,919
Property and equipment, net	584		1,694
Investment in and advances to/from subsidiaries	54,785		67,821
Other assets	917		766
Total assets	$	64,658	$	78,200
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	4,937		$	2,621
Total current liabilities	4,937		2,621
Other non-current liabilities	464		1,194
Total liabilities	5,401		3,815
Stockholders’ equity	59,257		74,385
Total liabilities and stockholders' equity	$	64,658	$	78,200
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,
	2014			2013			2012
Cash flows from operating activities:
Net income (loss)	$	(13,194	)	$	(30,395	)	$	(5,335	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Dividends received from subsidiaries	—			2,341			6,255
Non-cash (income) losses from subsidiaries, net of taxes	2,995			22,522			1,103
Depreciation and amortization	541			645			641
Stock-based compensation	405			953			1,479
Other, net	248			368			368
Changes in assets and liabilities:
(Increase) decrease in prepaid and other assets	(744		)	144			1,151
(Increase) decrease in due from subsidiaries	11,910			10,409			(6,736		)
Increase (decrease) in accounts payable, accrued expenses and other liabilities	837			(1,597		)	(2,443		)
Increase (decrease) in accrued business reorganization expenses	793			134			40
Net cash provided by (used in) operating activities	3,791			5,524			(3,477		)
Cash flows from investing activities:
Capital expenditures	—			(368		)	(76		)
Advances to and investments in subsidiaries, net	(4,126		)	(6,673		)	—
Net cash provided by (used in) investing activities	(4,126		)	(7,041		)	(76		)
Cash flows from financing activities:
Borrowings under credit facility	22,081			514			6,862
Repayments under credit facility	(22,081		)	(514		)	(6,862		)
Purchase of restricted stock from employees	(129		)	(488		)	(600		)
Net cash provided by (used in) financing activities	(129		)	(488		)	(600		)
Net (decrease) increase in cash and cash equivalents	(464		)	(2,005		)	(4,153		)
Cash and cash equivalents, beginning of the period	7,470			9,475			13,628
Cash and cash equivalents, end of the period	$	7,006		$	7,470		$	9,475
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.S., Netherlands, 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 14, “Credit Agreements”, to the Company's Consolidated Financial Statements). As of December 31, 2014, the Company was in a stockholders' equity position of $59,257, and approximately $26,436 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, 2014, 2013 and 2012, and the balance sheets as of December 31, 2014 and 2013 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 $0, $2,341 and $6,255 in 2014, 2013 and 2012, 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. The borrowings of the holding company with RBS Citizens Business Capital were secured by the accounts receivable of the Company's U.S. and U.K. subsidiaries and the agreement expired on August 5, 2014. Refer to Note 14, “Credit Agreements” to the Company's Consolidated Financial Statements for further details.