SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

12 Months Ended

Dec. 31, 2017

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,
	2017			2016			2015
Operating expenses:
Selling, general and administrative expenses	$	9,615		$	10,451		$	13,327
Depreciation and amortization	359			405			488
Business reorganization	(22		)	(16		)	1,168
Operating loss	(9,952		)	(10,840		)	(14,983		)
Other income (expense):
Interest, net	172			197			516
Corporate costs allocation and other, net	3,442			4,195			5,318
Income (loss) from parent before provision for income taxes	(6,338		)	(6,448		)	(9,149		)
Provision for (benefit from) income taxes for parent company	390			(9		)	(12		)
Equity in earnings (losses) of subsidiaries, net of income taxes	3,787			(2,351		)	11,466
Net income (loss)	$	(2,941	)	$	(8,790	)	$	2,329
See notes to condensed financial statements.

HUDSON GLOBAL, INC.
CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY)
(in thousands)
	December 31,
	2017		2016
ASSETS
Current assets:
Cash and cash equivalents	$	1,770	$	2,414
Prepaid and other	136		220
Total current assets	1,906		2,634
Property and equipment, net	—		359
Investment in and advances to/from subsidiaries	44,775		39,965
Other assets	255		818
Total assets	$	46,936	$	43,776
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	2,968	$	1,425
Total current liabilities	2,968		1,425
Other non-current liabilities	816		466
Total liabilities	3,784		1,891
Stockholders’ equity	43,152		41,885
Total liabilities and stockholders' equity	$	46,936	$	43,776
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,
	2017			2016			2015
Cash flows from operating activities:
Net income (loss)	$	(2,941	)	$	(8,790	)	$	2,329
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Dividends received from subsidiaries	1,452			1,593			7,468
Non-cash (income) losses from subsidiaries, net of taxes	(3,787		)	2,363			(11,466		)
Depreciation and amortization	359			405			488
Stock-based compensation	394			390			637
Changes in operating assets and liabilities:
(Increase) decrease in prepaid and other assets	644			(447		)	1,921
(Increase) decrease in due from subsidiaries	2,206			4,959			14,503
Increase (decrease) in accounts payable, accrued expenses and other liabilities	1,914			(1,251		)	(1,269		)
Increase (decrease) in accrued business reorganization	(22		)	(825		)	(120		)
Net cash provided by (used in) operating activities	219			(1,603		)	14,491
Cash flows from investing activities:
Capital expenditures	—			—			(897		)
Advances to and investments in subsidiaries, net	—			(415		)	(5,945		)
Net cash provided by (used in) investing activities	—			(415		)	(6,842		)
Cash flows from financing activities:
Dividend payments	—			(3,401		)	—
Purchase of treasury stock	(858		)	(5,127		)	(1,386		)
Purchase of restricted stock from employees	(5		)	(65		)	(244		)
Net cash provided by (used in) financing activities	(863		)	(8,593		)	(1,630		)
Net increase (decrease) in cash and cash equivalents	(644		)	(10,611		)	6,019
Cash and cash equivalents, beginning of the period	2,414			13,025			7,006
Cash and cash equivalents, end of the period	$	1,770		$	2,414		$	13,025
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 Parent Company's Consolidated Financial Statements). As of December 31, 2017, the Parent Company was in a stockholders' equity position of $43,152, and approximately $19,398 constituted restricted net assets as defined in Rule 4-08(e)(3) of Regulation S-X. The restricted net assets of the Parent Company's subsidiaries exceeded 25% of the consolidated net assets of the Parent 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, 2017, 2016 and 2015, and the balance sheets as of December 31, 2017 and 2016 have been presented on a "Parent-only" basis. In these statements, the Parent 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 Parent Company's audited Consolidated Financial Statements included elsewhere herein.

NOTE 2 - DIVIDENDS RECEIVED

The Parent Company received dividends of $1,452, $1,593 and $7,468 in 2017, 2016 and 2015, respectively, from its consolidated subsidiaries.

NOTE 3 - CREDIT AGREEMENTS

Several of the Parent 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 Parent Company's Consolidated Financial Statements for further details.