UNITED STATES



SECURITIES AND EXCHANGE COMMISSION



Washington, D.C. 20549



FORM 10-Q



(Mark One)



| | x | QUARTERLY
                                                                                                           REPORT PURSUANT TO
                                                                                                           SECTION 13 OR 15(d)
                                                                                                           OF THE SECURITIES EXCHANGE
                                                                                                           ACT OF 1934
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



For the quarterly period ended: March
31, 2013



or



| |  ̈ | TRANSITION
                                                                                                               REPORT PURSUANT
                                                                                                               TO SECTION 13 OR
                                                                                                               15(d) OF THE SECURITIES
                                                                                                               EXCHANGE ACT OF
                                                                                                               1934
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



For the transition period from ________________
to ________________



Commission File Number: 000-50373



Horne International, Inc.

(Exact name of registrant as specified
in its charter)



|Delaware                                 |  | 90-0182158         
|---------------------------------------- |  | -------------------
|(State or other jurisdiction of          |  | (I.R.S. Employer   
|incorporation or organization)           |  | Identification No.)
|                                         |  |                    
|3975 University Drive, Suite 100,        |  |                    
|Fairfax, Virginia                        |  | 22030              
|(Address of principal executive offices) |  | (Zip Code)         



703-641-1100

(Registrant’s telephone number, including
area code)



Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months, and (2) has been subject to such filing requirements for the past 90 days.

YesxNo ̈



Indicate by check mark whether the registrant
has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant
was required to submit and post such files).

YesxNo ̈



Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of
“accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

|Large Accelerated filer ̈Accelerated Filer ̈Non-Accelerated Filer ̈Smaller Reporting Companyx
|------------------------------------------------------------------------------------------
|                                                                                          



Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ̈Nox



As of August 8, 2013
there were 47,306,054 shares of the issuer’s common stock, par value $0.0001 per
share, outstanding.











HORNE INTERNATIONAL,
INC.



TABLE OF
CONTENTS



|PART I — FINANCIAL INFORMATION                                                                                           |   
|------------------------------------------------------------------------------------------------------------------------ | --
|                                                                                                                         |   
|Item 1. Financial Statements                                                                                             |   
|                                                                                                                         |   
|Consolidated Balance Sheets (Unaudited)
    as of March 31, 2013 and December 31, 2012                                   | 2 
|                                                                                                                         |   
|Consolidated Statements of Operations
    (Unaudited) for the three months ended March 31, 2013 and March 25, 2012       | 3 
|                                                                                                                         |   
|Consolidated Statement of Changes
    in Stockholders’ Deficit (Unaudited) for the three months ended March
    31, 2013 | 4 
|                                                                                                                         |   
|Consolidated Statements of Cash
    Flows (Unaudited) for the three months ended March 31, 2013 and  March 25, 2012      | 5 
|                                                                                                                         |   
|Notes to Consolidated Financial
    Statements (Unaudited)                                                               | 6 
|                                                                                                                         |   
|Item 2. Management's Discussion and Analysis of Financial Condition
    and Results of Operations                        | 13
|                                                                                                                         |   
|Item 3. Quantitative and Qualitative Disclosures about Market
    Risk                                                   | 16
|                                                                                                                         |   
|Item 4. Controls and Procedures                                                                                          | 17
|                                                                                                                         |   
|PART II - OTHER INFORMATION                                                                                              |   
|                                                                                                                         |   
|Item 1. Legal Proceedings                                                                                                | 18
|                                                                                                                         |   
|Item 1A. Risk Factors                                                                                                    | 18
|                                                                                                                         |   
|Item 6. Exhibits                                                                                                         | 19
|                                                                                                                         |   
|Signatures                                                                                                               | 20



1







Horne International,
Inc.

Consolidated
Balance Sheets (Unaudited)

(Dollars
shown in thousands except share amounts)



PART I - FINANCIAL INFORMATION



Item 1. Financial
Statements



|                                                                             |  | March 31, |         |   | December 31, |  
|---------------------------------------------------------------------------- |  | --------- | ------- | - | ------------ | -
|                                                                             |  | 2013      |         |   | 2012         |  
|ASSETS                                                                       |  |           |         |   |              |  
|Current assets:                                                              |  |           |         |   |              |  
|Cash and cash equivalents                                                    |  | $         | 6       |   |              | $
|Receivables, net                                                             |  |           | 1,022   |   |              |  
|Prepaid expenses and other current assets                                    |  |           | 36      |   |              |  
|Total current assets                                                         |  |           | 1,064   |   |              |  
|                                                                             |  |           |         |   |              |  
|Property and equipment, net                                                  |  |           | -       |   |              |  
|Other assets                                                                 |  |           | 19      |   |              |  
|TOTAL ASSETS                                                                 |  | $         | 1,083   |   |              | $
|                                                                             |  |           |         |   |              |  
|LIABILITIES AND STOCKHOLDERS' DEFICIT                                        |  |           |         |   |              |  
|Current liabilities:                                                         |  |           |         |   |              |  
|Accounts payable                                                             |  | $         | 644     |   |              | $
|Line of credit                                                               |  |           | -       |   |              |  
|Accrued expenses                                                             |  |           | 1,316   |   |              |  
|Debt, net of discount                                                        |  |           | 1,443   |   |              |  
|Other current liabilities                                                    |  |           | -       |   |              |  
|Total current liabilities                                                    |  |           | 3,403   |   |              |  
|                                                                             |  |           |         |   |              |  
|Total Liabilities                                                            |  |           | 3,403   |   |              |  
|                                                                             |  |           |         |   |              |  
|Stockholders' deficit                                                        |  |           |         |   |              |  
|Preferred stock, $.0001 par value; 20,000,000 shares authorized, none issued |  |           | -       |   |              |  
|Common stock, $0.0001 par value; 80,000,000 shares authorized,               |  |           | -       |   |              |  
|47,306,054 issued and outstanding                                            |  |           | 5       |   |              |  
|Additional paid-in capital                                                   |  |           | 80,251  |   |              |  
|Accumulated deficit                                                          |  |           | (82,576 | ) |              |  
|                                                                             |  |           |         |   |              |  
|Total stockholders' deficit                                                  |  |           | (2,320  | ) |              |  
|TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                  |  | $         | 1,083   |   |              | $



See accompanying notes to consolidated
financial statements (unaudited).



2







Horne International,
Inc.

Consolidated
Statements of Operations (Unaudited)

(Dollars
shown in thousands except share and per share amounts)



|                                            |  | Three Months Ended |           
|------------------------------------------- |  | ------------------ | ----------
|                                            |  | March 31, 2013     |           
|                                            |  |                    |           
|Revenue                                     |  | $                  | 25        
|                                            |  |                    |           
|Cost of revenue                             |  |                    | 42        
|                                            |  |                    |           
|Gross profit                                |  |                    | (17       
|                                            |  |                    |           
|Operating expense                           |  |                    | 254       
|                                            |  |                    |           
|Net operating loss                          |  |                    | (271      
|                                            |  |                    |           
|Non-operating expense, net                  |  |                    | (45       
|                                            |  |                    |           
|Loss before income taxes                    |  |                    | (316      
|                                            |  |                    |           
|Income tax expense (benefit)                |  |                    | -         
|                                            |  |                    |           
|Net loss                                    |  | $                  | (316      
|                                            |  |                    |           
|Weighted average common shares outstanding: |  |                    |           
|Basic and diluted                           |  |                    | 47,306,054
|                                            |  |                    |           
|Basic and diluted net loss per share        |  | $                  | (0.01     



See accompanying notes to consolidated
financial statements (unaudited).



3







Horne International,
Inc.

Consolidated
Statement of Changes in Stockholders’ Deficit (Unaudited)

For
the Three Months Ended March 31, 2013

(Dollars
shown in thousands except share amounts)



|                                                |  | Common Stock |            |  |        |   |   | Accumulated |  |   |         | 
|----------------------------------------------- |  | ------------ | ---------- |  | ------ | - | - | ----------- |  | - | ------- | 
|                                                |  | Shares       |            |  | Amount |   |   | APIC        |  |   | Deficit | 
|Balance as of December 31, 2012                 |  |              | 47,306,054 |  |        | $ | 5 |             |  | $ | 80,200  | 
|                                                |  |              |            |  |        |   |   |             |  |   |         | 
|Net loss                                        |  |              |            |  |        |   | - |             |  |   | -       | 
|Stock-based compensation                        |  |              |            |  |        |   | - |             |  |   | 9       | 
|Debt discount for beneficial conversion feature |  |              |            |  |        |   | - |             |  |   | 42      | 
|                                                |  |              |            |  |        |   |   |             |  |   |         | 
|Balance as of March 31, 2013                    |  |              | 47,306,054 |  |        | $ | 5 |             |  | $ | 80,251  | 



See accompanying notes to the consolidated
financial statements (unaudited).



4







Horne International,
Inc.

Consolidated
StatementS of Cash Flows(Unaudited)

For
The Three Months Ended March 31, 2013 and March 25, 2012

(Dollars
shown in thousands)



|                                                                                 |  | Three Months Ended |     
|-------------------------------------------------------------------------------- |  | ------------------ | ----
|                                                                                 |  | March 31,          |     
|                                                                                 |  | 2013               |     
|Cash flows from operating activities:                                            |  |                    |     
|Net loss                                                                         |  | $                  | (316
|Adjustments to reconcile net loss  to net
    cash used in operating activities: |  |                    |     
|Stock-based compensation                                                         |  |                    | 9   
|Depreciation and amortization                                                    |  |                    | 6   
|Bad debt recovery, net                                                           |  |                    | (81 
|Issuance of common stock                                                         |  |                    | -   
|Amortization of debt discount included in interest expense                       |  |                    | 16  
|Changes in assets and liabilities                                                |  |                    |     
|Receivables, net                                                                 |  |                    | 175 
|Prepaid expenses and other current assets                                        |  |                    | 12  
|Accounts payable                                                                 |  |                    | 37  
|Accrued expenses                                                                 |  |                    | 16  
|Net cash used in operations                                                      |  |                    | (126
|                                                                                 |  |                    |     
|Cash flows from financing activities:                                            |  |                    |     
|Proceeds from issuance of related party notes                                    |  |                    | 191 
|Proceeds from convertible notes                                                  |  |                    | 58  
|Net payments on lines of credit                                                  |  |                    | (118
|Principal payments on other debt                                                 |  |                    | (7  
|Net cash provided by financing
    activities                                    |  |                    | 124 
|                                                                                 |  |                    |     
|Decrease in cash                                                                 |  |                    | (2  
|Cash at beginning of period                                                      |  |                    | 8   
|Cash at end of period                                                            |  | $                  | 6   
|                                                                                 |  |                    |     
|Supplemental disclosure of cash flow information:                                |  |                    |     
|Cash paid for interest                                                           |  | $                  | -   
|Cash paid for taxes                                                              |  | $                  | -   
|Supplemental schedule of non-cash activities:                                    |  |                    |     
|Provision for debt discount                                                      |  | $                  | 42  
|Conversion of account payable to note payable                                    |  | $                  | 151 
|Reclassification of accrued liability to accounts payable                        |  | $                  | 45  
|Addition to other current assets and accounts payable                            |  | $                  | 18  



See accompanying notes to the consolidated
financial statements (unaudited).



5







Horne International,
Inc.



Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2013
and March 25, 2012



| | 1. | organization and nature of business and uncertainty
| | -- | ---------------------------------------------------



Horne International, Inc. (the “Company”
or “Horne”), headquartered in Fairfax, Virginia, is an engineering services company which has historically focused
on providing integrated, systems approach-based solutions to the energy and environmental sectors. The Company’s solutions
are sustainable, agile, and provide immediate as well as long term results. We provide products and services to both the United
States Government and to commercial customers.



The Company’s independent registered
public accountants stated in their report on the consolidated financial statements of the Company for the years endedDecember
31, 2012 and December 25, 2011, that the Company has had recurring operating losses that raise substantial doubt about its ability
to continue as a going concern. For the three months ended March 31, 2013, the Company experienced a major decrease in revenue,
incurred a net loss of approximately $316,000 and had a stockholders’ deficit of approximately $2,320,000 as of that date.



The consolidated financial statements
presented above and the accompanying Notes have been prepared on a going concern basis, which contemplates the realization of
assets and discharge of liabilities in the normal course of business for the foreseeable future, and does not include any adjustments
to reflect possible future effects on the recoverability and classification of assets, or the amounts and classification of liabilities
that may result from the outcome of any extraordinary regulatory action, which would affect our ability to continue as a going
concern.



Due to the conditions and events discussed
above, there is substantial doubt about the Company’s ability to continue as a going concern.



The Company is dependent upon operating
cash flow in addition to financing cash inflows to meet its working capital needs. The Company is considering all strategic options
to generate revenue and thereby improve its liquidity and provide it with working capital to fund its continuing business operations,
including debt service obligations, which include developing new business opportunities to generate revenue, equity offerings,
and debt financings from related parties and others. At March 31, 2013, the Company’s aggregate obligation for amounts borrowed,
before discounts, amounted to $1,506,000, of which $1,195,000 represented borrowings from related parties.





On May 21, 2013, the Company received notification that its
failure to file this Form 10-Q for the quarter ended June 30, 2013 with the Securities & Exchange Commission (“SEC”)
on a timely basis had resulted in an Event of Default, as defined, under a certain security purchase agreement, which was not cured
within the 5-day period allowed.  See Note 5 – Related Party Debt and Other Borrowings for a further description.



Furthermore, the Company failed to make a payment of principal
and interest to a creditor due on August 1, 2013, which failure constituted a default under the note agreement.   See
Note 5 – Related Party Debt and Other Borrowings for a further description.



| | 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
| | -- | ------------------------------------------



Principles of Consolidation and Basis
of Presentation



Prior to the end of fiscal year 2012,
the fiscal year for the Company was either a 52-or 53-week period ending on the last Sunday in each December. Effective December
31, 2012, the Company changed to a calendar year basis for its fiscal year and quarterly reporting. Accordingly, the end of the
first quarter of fiscal 2013 was March 31, 2013.



The consolidated financial statements
include the accounts of Horne and its subsidiaries. All significant intercompany accounts and transactions have been eliminated.



The accompanying unaudited consolidated
financial statements for the three-month periods ended March 31, 2013, and March 25, 2012 have been prepared in accordance with
accounting principles generally accepted in the United States of America for interim financial information and pursuant to the
rules and regulations of the Securities and Exchange Commission for Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they
do not include all of the information and disclosures required by generally accepted accounting principles for complete financial
statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments,
consisting only of normal recurring accruals, considered necessary for a fair presentation of the Company's financial position,
results of operations, and cash flows as of and for the periods presented.



6







Horne International,
Inc.



Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2013
and March 25, 2012



The results of operations for the three
month period ended March 31, 2013 are not necessarily indicative of the results that may be expected for the year. These interim
consolidated financial statements should be read in conjunction with the consolidated financial statements and related footnotes
included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012.



Revenue Recognition

Historically,
revenues have been derived from three sources:



| | (i) | Government and private sector
                                                                service fees under contracts for professional services and reimbursable
                                                                travel and training. Revenues from cost reimbursable contracts
                                                                are recorded as reimbursable costs are incurred, including an
                                                                estimated share of the applicable contractual fees earned. For
                                                                performance-based fees under cost reimbursable contracts, we recognize
                                                                the relevant portion of the expected fee to be awarded by the
                                                                client at the time such fee can be reasonably estimated, based
                                                                on factors such as prior award experience and communications with
                                                                the client regarding performance. For cost reimbursable contracts
                                                                with performance-based fee incentives, we recognize the relevant
                                                                portion of the fee upon customer approval. For time-and-materials
                                                                contracts, revenue is recognized based on billable rates times
                                                                hours delivered plus materials and other reimbursable costs incurred.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | License, installation and maintenance
                                                                 fees, as an agent of implementation of network services. We recognize
                                                                 revenue on a net basis excluding taxes collected from customers
                                                                 and remitted to government authorities.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | Reselling of hosted module leased
                                                                  equipment to retain ownership. Revenue is recognized once delivery
                                                                  has occurred.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In all cases, revenue is only recognized when persuasive evidence
of an arrangement exists, the price is fixed and determinable, delivery has occurred or services have been rendered, and collection
of the resulting receivable is reasonably assured.



Use of Estimates



The preparation of the consolidated financial
statements, in conformity with accounting principles generally accepted in the United States of America, requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during
the reporting period. Accordingly, results could differ from those estimates and assumptions.



Significant Customers and Credit
Risks



Due to the nature of the Company’s
business and the relative size of certain contracts, it is not unusual for a significant customer in one year to be insignificant
in the next. However, it is possible that the loss of any single significant customer could have a material adverse effect on
the Company’s results from operations. The Company’s primary customers are government entities. In December 2012 the
Company was notified that one of its two principal contracts would not be renewed, while the second one ended as of December 31,
2012. These two contracts represented approximately 84% of the Company’s 2012 revenues, causing a significant loss of future
revenue. For the three months ended March 31, 2013, the Company had no significant customers in terms of revenue contribution.



Concentration of Credit Risk



As ofMarch 31, 2013, the Company
had one customer that accounted for approximately 89% of its accounts receivable. As of December 31, 2012, the Company had one
customer that accounted for approximately 82% of its receivables, net.



7







Horne International,
Inc.



Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2013
and March 25, 2012



In determining the allowance for doubtful
accounts, the Company analyzes the aging of the accounts receivable, historical bad debts, customer creditworthiness, and specific
situations involving its customers. As the majority of the Company’s work is government related, the risk of uncollectible
debt is greatly reduced. The Company takes specific bad debt reserves when it considers its ability to collect an amount to be
in doubt.



Property and Equipment



All property and equipment are carried
at their cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives
of the underlying assets. The lives have historically ranged from 3 to 10 years depending on asset type. Routine maintenance and
repairs are expensed as incurred. Major replacements and improvements are capitalized. Leasehold improvements are amortized over
the shorter of their useful life or the lease term.



Income Taxes



The Company accounts for income taxes
utilizing the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the
expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in income in the period that includes the enacted date. Valuation allowances are established when necessary to reduce deferred
tax assets to the amount expected to be realized. The Company adopted Accounting Standards Codification
topic 740, subtopic 10 on January 1, 2007, which requires financial statement benefits to be recognized for positions taken for
tax return purposes when it is more-likely-than-not that the position will be sustained. There has been no change in our financial
position and results of operation due to the adoption of this standard.



The Company currently has a net operating
loss carry forward of approximately $56.7 million at March 31, 2013. The Company has not recorded this federal tax benefit in
the accompanying consolidated financial statements due to the possibility that the net operating loss carry forward may not be
utilized for various reasons, particularly including the potential that the Company might not have sufficient profits in future
years to use all or a portion of the carry forward, or the carry forward may be limited as a result of changes in the Company’s
equity ownership.



Loss Per Share



Basic loss per share is calculated by
dividing net loss by the weighted-average number of common shares outstanding during the reporting period. Diluted loss per share
is computed in a manner consistent with that of basic loss per share while giving effect to the impact of common stock equivalents.
The Company’s common stock equivalents consist of employee, director, and consultant stock options to purchase common stock.
Common stock equivalents of 539,639 and 3,089,993 were not included in the computation of diluted loss per share for the three
months ended March 31, 2013 and March 25, 2012, respectively, as the inclusion of these common stock equivalents would be anti-dilutive
as the Company is in a net loss position and including such shares would reduce the net loss per share.



Foreign Currency Translation



The Company’s functional currency
is the U.S. dollar.



8







Horne International,
Inc.



Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2013
and March 25, 2012



Stock-Based Compensation



The fair values of stock option awards
are determined using the Black-Sholes option pricing model. The compensation expense is recognized on a straight-line basis over
the vesting period. The Company, beginning in 2006, has included a vesting period for most options granted. See Note 7 for a detailed
discussion of the Company’s stock option plan. The Company accounts for stock incentive plans by measurement and recognition
of compensation expense for all share-based awards on estimated fair values, net of estimated and actual forfeitures, on a straight
line basis over the period during which the employee is required to provide services in exchange for the award.



Recent Accounting Pronouncements



Management does not believe that any recent adopted or proposed
accounting pronouncements will have a material effect on their financial statements.



| | 3. | RECEIVABLES, NET (in thousands)
| | -- | -------------------------------



Receivables, net, primarily comprise of
amounts due to the Company for work performed on contracts directly related to commercial and government customers. At March 31,
2013 the Company has a nominal bad debt reserve as most of its contracts are with governmental entities.



Unbilled receivables represent recoverable
costs and estimated earnings consisting principally of contract revenues that have been recognized for accounting purposes but
are not yet billable to the customer based upon the respective contract terms.



|                                    |  | March 31, |       |   | December 31, |  
|----------------------------------- |  | --------- | ----- | - | ------------ | -
|Receivables, net                    |  | 2013      |       |   | 2012         |  
|Billed                              |  | $         | 116   |   |              | $
|Unbilled                            |  |           | 917   |   |              |  
|Allowance for uncollectable account |  |           | (11   | ) |              |  
|Total Receivables, Net              |  | $         | 1,022 |   |              | $



| | 4. | Property and equipment (in thousands)
| | -- | -------------------------------------



|                            |  | March 31, |      |   | December 31, |  
|--------------------------- |  | --------- | ---- | - | ------------ | -
|Property and Equipment      |  | 2013      |      |   | 2012         |  
|Buildings and Improvements  |  | $         | 18   |   |              | $
|Furniture and Fixtures      |  |           | 35   |   |              |  
|Office Equipment            |  |           | 117  |   |              |  
|Total                       |  | $         | 170  |   |              | $
|Accumulated Depreciation    |  |           | (170 | ) |              |  
|Property and Equipment, net |  | $         | -    |   |              | $



| | 5. | ReLated Party DEBT AND OTHER BORROWINGS
| | -- | ---------------------------------------



The Company’s borrowings, consisting
of related party receivable financing, unsecured notes, and other borrowings net of discount, were approximately $1,443,000 as
of March 31, 2013 and 1,069,000 as of December 31, 2012. The rates on the related party notes are 13%, 7% and 8%.



9







Horne International,
Inc.



Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2013
and March 25, 2012



Darryl Horne Notes



During 2008, the Company entered into
an initial Loan Agreement with Darryl K. Horne, the Company’s Founder and current Chairman. The Loan Agreement permitted
the Company to borrow up to $525,000 at 8% interest. On January 15, 2013, the Loan Agreement was amended to permit borrowing up
to $1,000,000. As of March 31, 2013, the aggregate outstanding principal balance due to Mr. Horne under the Loan Agreement amounts
to $955,000 and is comprised of 10 notes in amounts ranging from $50,000 to $195,000, including three notes with an aggregate
total of $191,000 issued in January 2013. The interest rate on such notes is 8%. Further, one additional note in the amount of
$50,000 with an interest rate of 7% is convertible into Company common stock at an exercise price of $.10 per share. The related
accrued interest balance at March 31, 2013 for all the aforementioned notes issued to Mr. Horne is $131,635.



Evan Auld-Susott Note



In March 2011, the Company entered into
a receivables financing agreement with Evan Auld-Susott, the Company’s former Chief Executive Officer, as agent of the Susott
Family Limited Partnership (FLP). Under the terms of the agreement, Mr. Auld-Susott agreed to finance specific accounts receivable
under a line of credit for up to $500,000 at an interest rate of 13%. As of March 31, 2013, the outstanding balance is $190,000
and the accrued interest balance is $37,265. The loan is not convertible into any Company securities.



Trevor Foster Note



On December 29, 2011, the Company entered
into a Loan Agreement with Trevor Foster pursuant to which the Company borrowed $100,000 from Mr. Foster in exchange for a promissory
note. The note is payable on a quarterly basis and fully due and payable December 29, 2013. The Loan Agreement and Promissory
Note provide for interest at a rate of 7% per annum on the outstanding principal, payable quarterly beginning March 31, 2012.
The note is unsecured. On May 7, 2012 an amendment was made to the Loan Agreement that permits Mr. Foster to convert the entire
principal loan balance into Company common stock at a conversion price equal to $.10 per share. As of March 31, 2013, the outstanding
balance of the loan is $100,000 and the accrued interest balance is $8,884.



Other Borrowings



On February 19, 2013, the Company entered
into a security purchase agreement with Asher Enterprises, Inc. (“Asher”). The Company issued a convertible note with
a principal amount of $58,000 and maturity date of November 21, 2013. The note bears interest of 8%, payable at maturity, or earlier
in the event of prepayment, and is convertible to Company common stock at a Variable Conversion Price of 58% multiplied by the
Market Price. The Market Price is defined as the average of the lowest three trading prices during a ten day period prior to conversion.
The maturity date of the note is November 21, 2013. The issuance of the Note wasmade in reliance on
the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended. The Company has the right
to prepay the obligation at any time prior to August 18, 2013 with a payment of principal, a premium ranging up to 44% of principal
and accrued and unpaid interest. At March 31, 2013, the accrued interest balance was $508.



In May, 2013, an Event of Default occurred
with respect to this convertible note. See Note 9 – Subsequent Events.



The convertible
notes of $50,000, $100,000 and $58,000 issued to Mr. Horne, Mr. Foster and Asher, respectfully, contain a "beneficial conversion"
feature that required separate recognition, at issuance, of a portion of the proceeds equal to the intrinsic value of the feature
as additional paid-in-capital. This "discount" is being amortized using the effective interest method through a charge
to interest expense over the term of the notes. The notes with Mr. Horne, Mr. Foster are convertible into up to 1,500,000 shares
of common stock. The maximum number of shares into which the note with Asher could be converted is not quantifiable as the
Variable Conversion Price is unknown.



On March 12, 2013, the Company entered
into a note agreement with a creditor to finance and outstanding liability in the amount of $153,498. Monthly principal payments
in the amount of $25,583 plus interest of 6% are scheduled to begin August 1, 2013 with a final balloon payment of $51,166 to
be made on December 1, 2013. The Company did not make the August 1, 2013 principal and interest payment; accordingly, this note
is in default. See Note 9 – Subsequent Events.



10







Horne International,
Inc.



Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2013
and March 25, 2012



| | 6. | Line of Credit
| | -- | --------------



In April 2011, the Company entered into
a financing agreement with United Capital Funding under which the Company can elect to factor certain eligible accounts receivable.
The Company is able to receive up to 85 percent of the amount of any invoices factored to the lender. The agreement calls for
a minimum factoring fee of 4.25% for the first five days and 4.25% for each additional five day period. At March 31, 2013, the
amount borrowed and payable under this facility is $0.



| | 7. | common stock and STock Option plan
| | -- | ----------------------------------



On March 22, 2010, the Company entered
into a strategic partnership and related Stock Option Agreement and Restricted Stock Agreement with Intelligent Decisions, Inc.
(“Intelligent”). Intelligent is an information technology services company headquartered in Ashburn, Virginia, servicing
both commercial and government customers. The partnership between the parties provides for Intelligent to provide business support
services to the Company. On March 6, 2012, the Company notified Intelligent of the termination of a Stock Option Agreement and
Restricted Stock Agreement between the two parties which pertained to certain Business Services, as defined, that Intelligent
is to provide to the Company as requested. The Company unilaterally cancelled 4,166,667 options associated with the agreements.
Further, as of June 24, 2012, the Company unilaterally cancelled the remaining 4,166,667 options of stock associated with the
agreement. As a result of these actions the Company faced the possibility of a contingent liability and pending litigation. The
Company is currently in negotiations with Intelligent to resolve this matter.



On January 3, 2012, 91 Hill, LLC, an entity
owned by Darryl Horne , the Company’s Chairman, and an affiliate of Evan Auld-Susott, the Company’s former Chief Executive
Officer, exercised 500,000 shares of its stock option to purchase up to 2,000,000 common shares at the exercise price of $0.10
per share, and received 500,000 shares of the Company’s common stock. Such shares were sold in May 2013. The remainder of
the option to purchase 1,500,000 common shares expired on December 31, 2012.



The Company has a stock option plan available
to eligible employees, non-employee directors, consultants and advisors to acquire proprietary interests in the Company by providing
eligible persons an additional incentive to promote the success of the Company as deemed appropriate by senior management. This
is accomplished by providing for the granting of Non-Statutory Stock Options to employees, non-employee directors, consultants
and advisors. During the first three months of 2013, the Company did not make any option grants.



The fair values of stock option awards
are determined using the Black-Sholes option pricing model. The compensation expense is recognized on a straight-line basis over
the vesting period. The Company, beginning in 2006, has included a vesting period for most options granted.



The table below summarizes our stock option
activity during the three months ended March 31, 2013.



|                               |  | Number of Shares |         |   | Weighted Average Exercise
    Price |   |      | Weighted Average Remaining
    Life (yrs) |  |  | Aggregate Intrinsic Value | 
|------------------------------ |  | ---------------- | ------- | - | ----------------------------------- | - | ---- | ----------------------------------------- |  |  | ------------------------- | 
|Options Outstanding 12/31/2012 |  |                  | 566,790 |   |                                     | $ | 0.22 |                                           |  |  | 1.30                      | 
|Granted                        |  |                  | -       |   |                                     |   |      |                                           |  |  |                           | 
|Exercised                      |  |                  | -       |   |                                     |   |      |                                           |  |  |                           | 
|Forfeited                      |  |                  | (27,151 | ) |                                     | $ | 0.25 |                                           |  |  |                           | 
|Options Outstanding 03/31/2013 |  |                  | 539,639 |   |                                     | $ | 0.21 |                                           |  |  | 1.05                      | 
|Options Exercisable 03/31/2013 |  |                  | 315,916 |   |                                     | $ | 0.22 |                                           |  |  | 0.99                      | 





11







Horne International,
Inc.



Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2013
and March 25, 2012





| | 8. | COMMITMENTS AND
                                                                               CONTINGENCIES
| | -- | ------------------------------------------------------------------------------------------------------------



Operating Leases



The Company leases office space at one
location in the United States. Rent expense totaled approximately $36,000 for the three month periods ending March 31, 2013 and
March 25, 2012. The lease termination date of August 31, 2013 for this office space was renegotiated to terminate June 30, 2013
after which the Company will rent a reduced amount of space on a month to month basis. The aggregate minimum lease payments payable
after March 31, 2013 total approximately $36,000.



Contingent Liabilities



The Company, through its Horne Engineering
Services subsidiary, was a member of Weskem LLC a company that specialized in environmental remediation. In 2011 the Company received
notice of an outstanding legal liability of $10,000 associated with activities of Weskem. There may be future liabilities but
at this time such liabilities are not quantifiable.



| | 9. | SUBSEQUENT
                                                                                      EVENT
| | -- | ------------------------------------------------------------------------------------------------------



On May 21, 2013, the Company received
notification that its failure to file this Form 10-Q for the quarter ended March 31, 2013 with the Securities & Exchange Commission
(“SEC”) on a timely basis had resulted in an Event of Default, as defined, under the security purchase agreement with
Asher, which was not cured within a 5-day period allowed. Accordingly, in accordance with the terms of the convertible note, the
principal amount increased to 150% of the original note amount, or $87,000 (“Default Amount”), the interest rate of
8% increased to a default interest rate of 22%, and the obligation of $87,000 and accrued interest thereon became payable on demand
and convertible upon the sole election of Asher. Until such time as this Form 10-Q for the quarter ended March 31, 2013 is filed
with the SEC, the obligation remains payable upon demand.



The Company failed to make a payment of
principal and interest to a creditor due on August 1, 2013, which failure constituted a default under the note agreement.



12







Horne International,
Inc.



Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2013
and March 25, 2012



ITEM 2.	          MANAGEMENT’S
DISCUSSION AND analysis of financial condition and results of operations



The following discussion provides information
which management believes is relevant to an assessment and an understanding of the Company’s operations and financial condition.
This discussion should be read in conjunction with the attached unaudited consolidated financial statements and accompanying notes
as well as our annual report on Form 10-K for the fiscal year ended December 31, 2013.



FORWARD-LOOKING STATEMENTS



The matters discussed in this Quarterly
Report on Form 10-Q may constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act
of 1995. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results,
activity levels, performance or achievements to be materially different from any future results, activity levels, performance
or achievements expressed or implied by such forward-looking statements. In some cases, you can identify these statements by forward-looking
words such as “could”, “expect”, “estimate”, “may”, “potential”, “will”,
and “would”, or similar words. You should read statements that contain these words carefully because they discuss
our future expectations, contain projections of our future results of operations or of our financial position, or state other
forward-looking information. We believe it is important to communicate our future expectations to our investors. However, there
may be events in the future that we are not able to predict or control accurately. The factors listed in the section captioned
“Risk Factors,” contained in our Annual Report of Form 10-K for the fiscal year ended December 31, 2013, as well as
any cautionary language in this Form 10-Q, provide examples of risks, uncertainties, and events that may cause our actual results
to differ materially from the expectations we describe in our forward-looking statements.



Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we cannot guarantee future results, activity levels, performance or
achievements. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this
Form 10-Q. Subsequent events and developments may cause our views to change. While we may elect to update the forward-looking
statements at some point in the future, we specifically disclaim any obligation to do so.



Description of the Company



The Company provides a variety of services
through its wholly-owned subsidiaries; Horne Engineering Services LLC, Hornet LLC, and BEES LLC.



Horne Engineering Services LLC, focuses
on providing program engineering, energy solutions, occupational safety and health, environmental sciences, acquisition and procurement,
business process engineering, public outreach, and product solutions. Our primary customer in this segment is the U.S. Government,
with specific focus within the Departments of Homeland Security, Defense, Transportation and other civilian agencies.



On February 6, 2012 the Company incorporated
Hornet LLC. The Company focuses on cloud based technology, by providing hosted voice services, application and infrastructure
management, and security solutions with the anticipation of having both Government and Commercial accounts.



On February 6, 2012, the Company incorporated
BEES LLC to expand its current Efficiency Solutions business. The Company expects that BEES LLC will provide services to maximize
building energy efficiency with a focus on Commercial and Government customers. As of March 31, 2013, BEES LLC did not have any
business operations.



Operating segments
are defined as components of an enterprise about which separate financial information is available that is evaluated regularly
in deciding how to allocate resources and in assessing performance.



Critical Accounting Policies
and estimates



In our Form 10-K for the fiscal year ended
December 31, 2012, our most critical accounting policies and estimates upon which our financial status depends were identified
as those relating to revenue recognition, stock-based compensation and net operating losses and tax credit carryforwards. We reviewed
our policies and determined that those policies remain our most critical accounting policies for the three months ended March
31, 2013.



13







Horne International,
Inc.



Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2013
and March 25, 2012



Comparison of THREE Months
Ended March 31, 2013, and March 25, 2012



The following discussion and analysis
should be read in conjunction with the unaudited financial statements (and notes thereto) and other financial information of the
Company appearing elsewhere in this report.



Consolidated Overview (in thousands)



|                   |  | March 31, 2013 |      |   | March 25, 2012 | 
|------------------ |  | -------------- | ---- | - | -------------- | 
|Revenue            |  | $              | 25   |   |                | 
|Gross profit       |  |                | (17  | ) |                | 
|Net operating loss |  | $              | (271 | ) |                | 



Revenue for the quarter ended March 31,
2013, decreased to $25,000 from $1,430,000 in the quarter ended March 25, 2012, a decrease of approximately $1.4 million. The
principal reason for the decrease was the termination of the Company’s two major contracts in effect in 2012, with no new
contracts entered into in the quarter ended March 31, 2013 as new sources of revenue. Both gross profit and gross margin as a
percentage of revenue decreased due to the substantial decrease in revenue and revenue mix. The overall operating loss in the
first quarter of 2013 included the favorable impact of a net $81,000 reduction in the reserve for doubtful accounts reflecting
the collection in full in July 2013 of an account receivable which had been fully reserved for at December 31, 2012. Compared
to the first quarter of 2012, the greater operating loss in the current quarter before the effect of the net receivables recovery
is primarily due to the material decrease in revenue, which could not be offset by a commensurate decrease in costs due to the
fixed nature of certain expenses such as professional fees, facilities and other infrastructure costs.



Liquidity and Capital Resources



Cash totaled approximately $6,000 at March
31, 2013. During the three months ended March 31, 2013 cash decreased by $2,000 principally due to the operating loss sustained,
offset by net collections of $175,000 on receivable, net, and a net increase in debt financing of $124,000.



The Company’s independent registered
public accountants stated in their report on the consolidated financial statements of the Company for the year ended December
31, 2012, that the Company has had recurring operating losses that raise substantial doubt about its ability to continue as a
going concern. For the three months ended March 31, 2012, the Company experienced a major decrease in revenue, incurred a net
loss of $316,000 and had a stockholders’ deficit of $2,320,000 million as of that date.



The consolidated financial statements
presented above and the accompanying Notes have been prepared on a going concern basis, which contemplates the realization of
assets and discharge of liabilities in the normal course of business for the foreseeable future, and does not include any adjustments
to reflect possible future effects on the recoverability and classification of assets, or the amounts and classification of liabilities
that may result from the outcome of any extraordinary regulatory action, which would affect our ability to continue as a going
concern.



Due to the conditions and events discussed
above, there is substantial doubt about the Company’s ability to continue as a going concern.



The Company is dependent upon available
cash and operating cash flow in addition to financing cash inflows to meet its working capital needs. The Company is considering
strategic options to generate revenue and thereby improve its liquidity and provide it with working capital to fund its continuing
business operations, including debt service obligations, which includes developing new business opportunities to generate revenue,
equity offerings and debt financings from related parties and others as alternatives to improve its cash requirements.



14







Horne International,
Inc.



Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2013
and March 25, 2012



The Company anticipates that its future
funding sources would primarily be in the form of notes from related parties or non-traditional, non-banking sources or equity
financings. Given our past financial performance, the costs and fees associated with funding sources may be more expensive than
the Company has historically paid.



The Company has no present binding commitments for additional
financing. There is no guarantee that such additional financing will be available to the Company on commercially reasonable terms,
or at all.



15







Horne International,
Inc.



Item 3. 	       Quantitative
and Qualitative Disclosures about Market Risk



In addition to the risks inherent in our
operations, we are exposed to contractual, financial, market, political and economic risks. The following discussion provides
additional detail regarding our exposure to interest rates and foreign exchange rates.



Government Contracts



The funding of U.S. government programs
is subject to Congressional appropriations. Although multi-year contracts may be authorized in connection with major procurements,
Congress generally appropriates funds on a fiscal-year basis, even though a program may continue for many years. Consequently,
programs are often only partially funded initially, and additional funds are committed only as Congress makes further appropriations.
Provisions in these contracts permit termination, in whole or in part, without prior notice, at the government’s convenience
or upon contractor default under the contract. Compensation in the event of a termination, if any, is limited to work completed
at the time of termination. In the event of termination for convenience, the contractor may receive a certain allowance for profit
on the work performed.



Foreign Exchange Risk



We currently do not have any foreign currency
risk and accordingly, estimate that an immediate 10 percent change in foreign exchange rates would have no impact on our reported
results of operations. We do not currently utilize any derivative financial instruments to hedge foreign currency risks.



16







Horne International,
Inc.



ITEM 4.	       CONTROLS
AND PROCEDURES



Evaluation of Disclosure Controls and
Procedures



As of the end of the period covered by
this report, management carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure
controls and procedures (as defined in Rule 13a-15 (e) under the Securities Exchange Act of 1934). In designing and evaluating
its disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived
and operated can provide only reasonable, but not absolute, assurance that the objectives of the disclosure controls and procedures
are met. Additionally, in designing disclosure controls and procedures, management was necessarily required to apply its judgment
in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls
and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential future conditions. Based upon that evaluation,
management concluded that these disclosure controls and procedures were not effective as of the end of the period covered in this
report.



Management’s Report on Internal
Control Over Financial Reporting



The Company’s management is responsible
for establishing and maintaining adequate internal control over financial reporting for the Company. In order to evaluate the
effectiveness of internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act, management has
conducted an assessment, including testing using criteria described in Internal Control-Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (“COSO”). Because of the inherent limitations, internal control
over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.



We have identified material weaknesses
in our internal control over financial reporting, which, if not remedied effectively, could have an adverse effect on the trading
price of our common stock and otherwise seriously harm our business. Management through, in part, the documentation and assessment
of our internal control over financial reporting and pursuant to the rules promulgated by the SEC under Section 404 of the Sarbanes-Oxley
Act of 2002 and item 308 of Regulation S-K has concluded that our internal control over financial reporting had material weaknesses,
as of September 23, 2012. Management of the Company does not have the ability to effectively and efficiently prepare consolidated
financial statements in accordance with generally accepted accounting principles or pursuant to the rules and regulations of the
Securities and Exchange Commission Form l0-Q. We have taken certain actions to begin to address the material weaknesses. Our inability
to remedy such material weaknesses promptly and effectively could have a material adverse effect on our business, results of operations
and financial condition, as well as impair our ability to meet our quarterly and annual reporting requirements in a timely manner.



Changes in Internal Control Over Financial
Reporting



During
the fiscal quarter ended March 31, 2013 there has been no change in our internal control over financial reporting (as defined
in rule 13 a-i 5(f under the exchange act) that has materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.



17







Horne International,
Inc.



PART II -OTHER INFORMATION



ITEM 1.



Item 1A. Risk Factors.



There have been no material changes in our risk factors from
those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012.



18







Horne International,
Inc.



EXHIBITS



ITEM 6.	     EXHIBITS



|Exhibit
        Number | Description                                                                                                                                                                                                                           
|---------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                       |                                                                                                                                                                                                                                       
|3.1                    | Certificate of Incorporation, filed August 28, 1998 (previously filed in registration statement
    on Form 10-SB File No. 1-31710, filed with the Securities and Exchange Commission on June 10, 2003).                              
|3.2                    | Certificate of Renewal and Revival, filed March 24, 2003 (previously filed in registration
    statement on Form 10-SB File No. 1-31710, filed with the Securities and Exchange Commission on June 10, 2003).                         
|3.3                    | Certificate of Amendment of Certificate of Incorporation, filed April 8, 2003 (previously
    filed in registration statement on Form 10-SB File No. 1-31710, filed with the Securities and Exchange Commission on June
    10, 2003).
|3.4                    | Certificate of Merger filed with the Delaware Secretary of State (previously filed in registration
    statement on Form 10-SB File No. 1-31710, filed with the Securities and Exchange Commission on June 10, 2003).                 
|3.5                    | Articles of Merger filed with the Florida Secretary of State (previously filed in registration
    statement on Form 10-SB File No. 1-31710, filed with the Securities and Exchange Commission on June 10, 2003).                     
|3.6                    | Amended and Restated Bylaws of Spectrum Sciences & Software Holdings Corp., as amended
    (previously filed on Form 10-Q, filed with the Securities and Exchange Commission on November 14, 2005).                                   
|3.7                    | Amended and Restated Bylaws of Spectrum Sciences & Software Holdings Corp., as amended
    (previously filed on Form 8-K, filed with the Securities and Exchange Commission on May 2, 2006).                                          
|3.8                    | Amended Articles of Incorporation of Horne International, Inc. (previously filed on Form 8-K,
    filed with the Securities and Exchange Commission on September 6, 2006).                                                            
|4.1                    | Specimen Certificate of Common Stock (previously filed in registration statement on Form 10-SB
    File No. 1-31710, filed with the Securities and Exchange Commission on June 10, 2003).                                             
|10.1                   | Amended Notes of Darryl K. Horne and Trevor R. Foster (previously filed on Form 8-K, filed
    with the Securities and Exchange Commission on May 10, 2012).                                                                          
|14.1                   | Code of Ethics (previously filed on Form 10-KSB, filed with the Securities and Exchange Commission
    on April 13, 2004).                                                                                                            
|31.1*                  | Certification of Chief Executive Officer and Interim Chief Financial Officer Pursuant to Section
    302 of the Sarbanes-Oxley Act of 2002                                                                                            
|32.1*                  | Certification of Chief Executive Officer & Interim  Chief Financial Officer Pursuant
    to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                             
|101.INS**              | XBRL Instance Document.                                                                                                                                                                                                               
|101.SCH**              | XBRL Taxonomy Extension Schema Document.                                                                                                                                                                                              
|101.DEF**              | XBRL Taxonomy Extension Definition Linkbase Document                                                                                                                                                                                  
|101.CAL**              | XBRL Taxonomy Extension Calculation Linkbase Document                                                                                                                                                                                 
|101.LAB**              | XBRL Taxonomy Extension Label Linkbase Document                                                                                                                                                                                       
|101.PRE**              | XBRL Taxonomy Extension Presentation Linkbase Document                                                                                                                                                                                



| | * | Filed herewith.
| | - | ---------------

| | ** | To be filed by amendment.
| | -- | -------------------------



19







Horne International,
Inc.



SIGNATURES



Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



| | Horne International, Inc.
| | -------------------------



|August
    20, 2013 |  |                                                               | By: | /s/ Dallas
    Evans | 
|------------------- |  | ------------------------------------------------------------- | --- | -------------------- | 
|Date                |  | Dallas Evans                                                 
|                    |  | Chief Executive Officer (Principal Executive Officer)        
|                    |  | Interim Chief Financial Officer (Principal AccountingOfficer)



20