SPECIAL DIVERSIFIED OPPORTUNITIES INC.

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income from continuing operations	$ 32	$ 3,700
Net loss from discontinued operations	(1,712)	(3,983)
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on disposal of property, plant and equipment	0	23
Loss on disposal of Insurance segment	1,045	0
Depreciation expense	1,166	830
Amortization of deferred financing costs and debt discount	2,328	366
Amortization of other intangible assets	498	431
Deferred income taxes	545	(29)
Stock-based compensation expense	633	646
Non-cash lease expense	77	0
Changes in operating assets and liabilities:
Accounts receivable	2,690	(1,677)
Inventories	1,784	366
Other current assets	(2,233)	3,090
Other assets	(130)	(427)
Accounts payable	3,195	8,646
Accrued postretirement liabilities	(27)	(9)
Accrued liabilities and other	2,522	(4,104)
Net cash provided by operating activities of continuing operations	14,125	11,852
Net cash used in operating activities of discontinued operations	(2,543)	(929)
Net cash provided by operating activities	11,582	10,923
Cash flows from investing activities:
Cash outflow from disposal of Insurance segment	(4,939)	0
Capital expenditures	(877)	(901)
Restricted cash, MSA escrow deposits	0	1,702
Net cash (used in) provided by investing activities from continuing operations	(5,816)	801
Net cash provided by (used in) investing activities of discontinued operations	102	(216)
Net cash (used in) provided by investing activities	(5,714)	585
Cash flows from financing activities:
Payments of 2018 revolving credit facility	0	(12,000)
Payments of Standard Outdoor promissory note	(1,206)	(966)
Payments of financing costs	(168)	0
Turning Point exercise of stock options	227	187
Turning Point redemption of options	0	(12)
Turning Point dividend to noncontrolling interests	(443)	(437)
Turning Point repurchase of common shares	(2,627)	0
SDI repurchase of common shares	(707)	(1,385)
Share repurchase for tax withholdings on vesting of restricted stock	(117)	0
Net cash used in financing activities	(11,281)	(16,613)
Net decrease in cash	(5,413)	(5,105)
Cash, beginning of period:
Unrestricted	105,841	15,611
Restricted	32,074	2,361
Discontinued operations	6,626	5,590
Total cash at beginning of period	144,541	23,562
Cash, end of period
Unrestricted	107,054	9,950
Restricted	32,074	4,062
Discontinued operations	0	4,445
Total cash at end of period	139,128	18,457
Supplemental schedule of noncash financing activities:
Turning Point accrued expenses incurred for financing costs	13	0
Turning Point dividend to noncontrolling interests declared not paid	506	444
2018 First Lien Term Loan [Member]
Cash flows from financing activities:
Payment of term loan	(2,000)	(2,000)
Note Payable - IVG [Member]
Cash flows from financing activities:
Payment of term loan	$ (4,240)	$ 0

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 107,054	$ 105,841
Trade accounts receivable, net of allowances of $373 in 2020 and $280 in 2019	4,520	7,213
Inventories	69,195	70,979
Other current assets	19,043	16,391
Current assets - discontinued operations	0	33,948
Total current assets	199,812	234,372
Property, plant and equipment, net	29,433	30,160
Right of use assets	15,526	14,490
Deferred financing costs, net	860	890
Goodwill	154,282	154,282
Other intangible assets, net	33,590	34,088
Master Settlement Agreement (MSA) escrow deposits	32,074	32,074
Other assets	10,858	10,690
Total assets	476,435	511,046
Current liabilities:
Accounts payable	17,015	13,855
AccruedLiabilitiesCurrent	30,510	27,638
Current portion of long-term debt	13,743	16,977
Current liabilities - discontinued operations	1,254	33,301
Total current liabilities	62,522	91,771
Notes payable and long-term debt	297,475	299,569
Deferred income taxes	1,495	1,572
Lease liabilities	13,997	13,262
Asset retirement obligations	2,100	2,100
Other long-term liabilities	4,762	2,523
Total liabilities	382,351	410,797
Commitments and Contingencies
Equity:
Preferred stock, $0.01 par value; authorized shares 50,000,000; -0- issued and outstanding shares	0	0
Additional paid-in capital	82,494	84,862
Class A treasury stock, 81,183 common shares at cost as of December 31, 2019	0	(1,103)
Accumulated other comprehensive loss	(2,425)	(1,722)
Accumulated deficit	(38,553)	(35,236)
Total stockholders' equity	41,682	46,968
Noncontrolling interests	52,402	53,281
Total equity	94,084	100,249
Total liabilities and equity	476,435	511,046
Class A Common Stock [Member]
Equity:
Common stock	89	90
Class B Common Stock [Member]
Equity:
Common stock	$ 77	$ 77