----

----

| Nevada                            |   | 88-0434915                      |
|-----------------------------------|--------|---------------------------------|
| (State or other jurisdiction      |   | (I.R.S. Employer Identification |
| of incorporation or organization) |   | No.)                            |

| N/A |
|-----|

|   | Large accelerated filer                       | o      | Accelerated filer         | o |
|--------|-----------------------------------------------|--------|---------------------------|---|
|   | Non-accelerated filer                         | o      | Smaller reporting company | x |
|   | (Do not check if a smaller reporting company) |   |                      |

----

----

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|                                 | Page                                                                                         |
|--------------------------------------|----------------------------------------------------------------------------------------------|
| PART I – FINANCIAL INFORMATION |                                                                                         |
|                                 |                                                                                         |   |
| Item 1.                              | Financial Statements:                                                                        | 3 |
|                                 |                                                                                         |   |
|                                 | Condensed Consolidated Balance Sheets                                                        | 4 |
|                                 |                                                                                         |   |
|                                 | Condensed Consolidated Statements of Operations                                              | 6 |
|                                 |                                                                                         |   |
|                                 | Condensed Consolidated Statements of Stockholders’ Equity                              | 7 |
|                                 |                                                                                         |   |
|                                 | Condensed Consolidated Statements of Cash Flows                                              | 8 |
|                                 |                                                                                         |   |
|                                 | Notes to Financial Statements                                                                | 9 |
|                                 |                                                                                         |   |
| Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operations. | 26 |
|                                 |                                                                                         |   |
| Item 3.                              | Quantitative and Qualitative Disclosures About Market Risk.                                  | 40 |
|                                 |                                                                                         |   |
| Item 4.                              | Controls and Procedures.                                                                     | 40 |
|                                 |                                                                                         |   |
| PART II – OTHER INFORMATION    |                                                                                         |
|                                 |                                                                                         |   |
| Item 1.                              | Legal Proceedings.                                                                           | 40 |
|                                 |                                                                                         |   |
| Item 1A.                             | Risk Factors.                                                                                | 40 |
|                                 |                                                                                         |   |
| Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds.                                 | 40 |
|                                 |                                                                                         |   |
| Item 3.                              | Defaults Upon Senior Securities.                                                             | 41 |
|                                 |                                                                                         |   |
| Item 4.                              | Mine Safety Disclosures.                                                                     | 41 |
|                                 |                                                                                         |   |
| Item 5.                              | Other Information.                                                                           | 41 |
|                                 |                                                                                         |   |
| Item 6.                              | Exhibits.                                                                                    | 42 |
|                                 |                                                                                         |   |
| Signatures                           |                                                                                         | 44 |

----

----

| SYSOREX GLOBAL HOLDINGS CORP.         |
|---------------------------------------|
|                                  |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|                                  |

|                                                    |   | March 31, |       |   | December 31, |   |
|---------------------------------------------------------|--------|-----------|------------|--------|--------------|--------|
|                                                    |   | 2014      |       |   | 2013         |   |
| Assets                                                  |   |      |       |   |         |   |
| Current Assets                                          |   |      |       |   |         |   |
| Cash and cash equivalents                               |   | $         | 3,334,514  |   |         | $      | 2,103,955 |   |
| Marketable securities                                   |   |      | --         |   |         |   | 124,753 |   |
| Accounts receivable, net                                |   |      | 9,068,579  |   |         |   | 9,581,041 |   |
| Notes receivable                                        |   |      | 1,130,000  |   |         |   | 1,130,000 |   |
| Other receivables                                       |   |      | 606,454    |   |         |   | -- |   |
| Inventory                                               |   |      | 126,602    |   |         |   | 74,929 |   |
| Prepaid expenses                                        |   |      | 1,029,968  |   |         |   | 381,583 |   |
| Prepaid licenses and maintenance contracts              |   |      | 5,925,320  |   |         |   | 6,120,261 |   |
| Restricted cash                                         |   |      | 71,429     |   |         |   | 71,429 |   |
|                                                    |   |      |       |   |         |   |   |   |
| Total Current Assets                                    |   |      | 21,292,866 |   |         |   | 19,587,951 |   |
|                                                    |   |      |       |   |         |   |   |   |
| Property and equipment, net                             |   |      | 265,073    |   |         |   | 290,665 |   |
| Software development costs, net                         |   |      | 123,287    |   |         |   | 56,840 |   |
| Deposits                                                |   |      | 749,227    |   |         |   | 749,227 |   |
| Restricted cash, net of current portion                 |   |      | 428,571    |   |         |   | 428,571 |   |
| Prepaid licenses and maintenance contracts, non-current |   |      | 5,916,538  |   |         |   | 4,268,010 |   |
| Other assets                                            |   |      | 137,437    |   |         |   | 456,752 |   |
| Trade name/trademarks, net                              |   |      | 2,857,029  |   |         |   | 2,977,378 |   |
| Customer relationships, net                             |   |      | 2,964,517  |   |         |   | 3,085,953 |   |
| Developed technology, net                               |   |      | 1,178,750  |   |         |   | 1,265,000 |   |
| Goodwill                                                |   |      | 5,766,901  |   |         |   | 5,707,580 |   |
|                                                    |   |      |       |   |         |   |   |   |
| Total Assets                                            |   | $         | 41,680,196 |   |         | $      | 38,873,927 |   |

----

| SYSOREX GLOBAL HOLDINGS CORP.                     |
|---------------------------------------------------|
|                                              |
| CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) |
|                                              |

|                                                                                                            |   | March 31, |        |   | December 31, |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|--------------|--------|
|                                                                                                            |   | 2014      |        |   | 2013         |   |
|                                                                                                            |   |      |        |   |         |   |
| Liabilities and Stockholders' Equity                                                                            |   |      |        |   |         |   |
|                                                                                                            |   |      |        |   |         |   |
| Current Liabilities                                                                                             |   |      |        |   |         |   |
|     Accounts payable                                                                        |   | $         | 8,739,189   |   |         | $      | 8,435,100 |   |
|     Accrued expenses                                                                        |   |      | 1,092,983   |   |         |   | 1,219,195 |   |
|     Accrued compensation and related benefits                                               |   |      | 2,604,527   |   |         |   | 2,622,356 |   |
|     Deferred revenue                                                                        |   |      | 7,166,934   |   |         |   | 7,402,149 |   |
|     Due to related parties                                                                  |   |      | 160,331     |   |         |   | 160,331 |   |
|     Advances payable                                                                        |   |      | 722,157     |   |         |   | 722,157 |   |
|     Notes payable                                                                           |   |      | 587,195     |   |         |   | 723,042 |   |
|     Revolving line of credit                                                                |   |      | 5,274,473   |   |         |   | 5,697,590 |   |
|     Term loan                                                                               |   |      | 500,004     |   |         |   | 458,337 |   |
|                                                                                                            |   |      |        |   |         |   |   |   |
| Total Current Liabilities                                                                                       |   |      | 26,847,793  |   |         |   | 27,440,258 |   |
|                                                                                                            |   |      |        |   |         |   |   |   |
| Long Term Liabilities                                                                                           |   |      |        |   |         |   |   |   |
| Deferred revenue, non-current                                                                                   |   |      | 6,840,462   |   |         |   | 4,845,138 |   |
| Term loan, non-current portion                                                                                  |   |      | 249,996     |   |         |   | 291,663 |   |
| Total Liabilities                                                                                               |   |      | 33,938,251  |   |         |   | 32,577,059 |   |
|                                                                                                            |   |      |        |   |         |   |   |   |
| Commitments and Contingencies                                                                                   |   |      |        |   |         |   |   |   |
|                                                                                                            |   |      |        |   |         |   |   |   |
| Stockholders' Equity                                                                                            |   |      |        |   |         |   |   |   |
|                                                                                                            |   |      |        |   |         |   |   |   |
| Preferred stock - $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding               |   |      | --          |   |         |   | -- |   |
| Common stock - $0.001 par value; 50,000,000 shares authorized; 14,499,532 and 14,094,532 issued and outstanding |   |      | 14,500      |   |         |   | 14,095 |   |
| Additional paid-in capital                                                                                      |   |      | 23,803,081  |   |         |   | 21,531,457 |   |
| Due from Sysorex Consulting Inc.                                                                                |   |      | (665,554    | )      |         |   | (665,554 | ) |
| Accumulated other comprehensive income                                                                          |   |      | --          |   |         |   | 3,048 |   |
| Accumulated deficit (excluding $2,441,960 reclassified to additional paid in capital in quasi-reorganization)   |   |      | (13,887,279 | )      |         |   | (13,105,962 | ) |
|                                                                                                            |   |      |        |   |         |   |   |   |
|     Stockholders' Equity Attributable to Sysorex Global Holdings Corp.                           |   |      | 9,264,748   |   |         |   | 7,777,084 |   |
|                                                                                                            |   |      |        |   |         |   |   |   |
| Non- controlling Interest                                                                                       |   |      | (1,522,803  | )      |         |   | (1,480,215 | ) |
|                                                                                                            |   |      |        |   |         |   |   |   |
| Total Stockholders' Equity                                                                                      |   |      | 7,741,945   |   |         |   | 6,296,869 |   |
|                                                                                                            |   |      |        |   |         |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                      |   | $         | 41,680,196  |   |         | $      | 38,873,927 |   |

----

| SYSOREX GLOBAL HOLDINGS CORP.                   |
|-------------------------------------------------|
|                                            |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|                                            |

|                                                                   |   | For the Three Months Ended |       |
|------------------------------------------------------------------------|--------|----------------------------|------------|
|                                                                   |   | March 31,                  |       |
|                                                                   |   | 2014                       |       |   | 2013 |   |
| Revenues, Net                                                          |   | $                          | 16,319,813 |   |   | $ | 5,361,544 |   |
|                                                                   |   |                       |       |   |   |   |   |   |
| Cost of Revenues                                                       |   |                       | 11,969,345 |   |   |   | 3,905,733 |   |
|                                                                   |   |                       |       |   |   |   |   |   |
| Gross Profit                                                           |   |                       | 4,350,468  |   |   |   | 1,455,811 |   |
|                                                                   |   |                       |       |   |   |   |   |   |
| Operating Expenses                                                     |   |                       |       |   |   |   |   |   |
| Compensation and related benefits                                      |   |                       | 3,245,142  |   |   |   | 1,088,640 |   |
| Professional and legal fees                                            |   |                       | 387,970    |   |   |   | 47,375 |   |
| Consulting expenses                                                    |   |                       | 140,930    |   |   |   | 68,932 |   |
| Occupancy                                                              |   |                       | 153,989    |   |   |   | 36,939 |   |
| Acquisition costs                                                      |   |                       | 103,861    |   |   |   | 907,865 |   |
| Costs associated with public offering                                  |   |                       | 44,717     |   |   |   | -- |   |
| Amortization of intangibles                                            |   |                       | 328,035    |   |   |   | 62,857 |   |
| Other administrative                                                   |   |                       | 640,602    |   |   |   | 205,242 |   |
|                                                                   |   |                       |       |   |   |   |   |   |
| Total Operating Expenses                                               |   |                       | 5,045,246  |   |   |   | 2,417,850 |   |
|                                                                   |   |                       |       |   |   |   |   |   |
| Loss from Operations                                                   |   |                       | (694,778   | ) |   |   | (962,039 | ) |
|                                                                   |   |                       |       |   |   |   |   |   |
| Other Income (Expense)                                                 |   |                       |       |   |   |   |   |   |
| Other income                                                           |   |                       | 13,827     |   |   |   | -- |   |
| Interest expense                                                       |   |                       | (107,954   | ) |   |   | (27,538 | ) |
| Interest expense - amortization of debt discount                       |   |                       | --         |   |   |   | (16,667 | ) |
| Change in fair value of derivative liability                           |   |                       | --         |   |   |   | (489,168 | ) |
| Total Other Income (Expense)                                           |   |                       | (94,127    | ) |   |   | (533,373 | ) |
|                                                                   |   |                       |       |   |   |   |   |   |
| Loss before Provision for Income Taxes                                 |   |                       | (788,905   | ) |   |   | (1,495,412 | ) |
| Provision for Income Taxes                                             |   |                       | (35,000    | ) |   |   | -- |   |
|                                                                   |   |                       |       |   |   |   |   |   |
| Net Loss                                                               |   |                       | (823,905   | ) |   |   | (1,495,412 | ) |
|                                                                   |   |                       |       |   |   |   |   |   |
| Net Loss Attributable to Non-controlling Interest                      |   | $                          | (42,588    | ) |   | $ | (37,041 | ) |
|                                                                   |   |                       |       |   |   |   |   |   |
| Net Loss Attributable to Stockholders of Sysorex Global Holdings Corp. |   | $                          | (781,317   | ) |   | $ | (1,458,371 | ) |
|                                                                   |   |                       |       |   |   |   |   |   |
| Net Loss Per Share - Basic and Diluted                                 |   | $                          | (0.05      | ) |   | $ | (0.16 | ) |
|                                                                   |   |                       |       |   |   |   |   |   |
| Weighted Average Shares Outstanding                                    |   |                       |       |   |   |   |   |   |
| Basic and Diluted                                                      |   |                       | 14,244,699 |   |   |   | 9,372,342 |   |

----

| SYSOREX GLOBAL HOLDINGS CORP.                             |
|-----------------------------------------------------------|
|                                                      |
| CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY |

| FOR THE THREE MONTHS ENDED MARCH 31, 2014 |
|-------------------------------------------|
| (Unaudited)                               |
|                                      |

|                                                     |   |         |       |   |    |   |   | Additional  |   |    | Due to Sysorex |   |   | Accumulated Other |     |   |        |   |   | Non-          |   |   | Total       |   |
|----------------------------------------------------------|--------|--------------|------------|--------|---------|--------|--------|-------------|--------|---------|----------------|--------|--------|-------------------|----------|--------|-------------|--------|--------|---------------|--------|--------|-------------|--------|
|                                                     |   | Common Stock |       |   | Paid-In |   |   | Consulting, |   |    | Comprehensive  |   |   | Accumulated       |     |   | Controlling |   |   | Stockholders' |   |
|                                                     |   | Shares       |       |   | Amount  |   |   | Capital     |   |    | Inc.           |   |   | Income (Loss)     |     |   | Deficit     |   |   | Interest      |   |   | Equity      |   |
|                                                     |   |         |       |   |    |   |   |        |   |    |           |   |   |              |     |   |        |   |   |          |   |   |        |   |
| Balance - December 31, 2013                              |   |         | 14,094,532 |   |    | $      | 14,095 |        |   | $       | 21,531,457     |   |   | $                 | (665,554 | )      |        | $      | 3,048  |          |   | $      | (13,105,962 | )      |   | $ | (1,480,215 | ) |   | $ | 6,296,869 |   |
|                                                     |   |         |       |   |    |   |   |        |   |    |           |   |   |              |     |   |        |   |   |          |   |   |        |   |   |   |   |   |   |   |   |   |
|     Common stock issued for services |   |         | 5,000      |   |    |   | 5      |        |   |    | 20,295         |   |   |              |     |   |        |   |   |          |   |   |        |   |   |   |   |   |   |   | 20,300 |   |
|     Common stock issued for cash     |   |         | 400,000    |   |    |   | 400    |        |   |    | 2,079,600      |   |   |              |     |   |        |   |   |          |   |   |        |   |   |   |   |   |   |   | 2,080,000 |   |
| Stock options granted to employees for services          |   |         |       |   |    |   |   |        |   | 171,729 |           |   |   |              |     |   |        |   |   |          |   |   |        |   |   |   |   |   |   | 171,729 |   |
| Unrealized gain on marketable securities                 |   |         |       |   |    |   |   |        |   |    |           |   |   |              |     |   |        |   | (3,048 | )             |   |   |        |   |   |   |   |   |   |   | (3,048 | ) |
| Net loss                                                 |   |         |       |   |    |   |   |        |   |    |           |   |   |              |     |   |        |   |   |          |   |   | (781,317    | )      |   |   | (42,588 | ) |   |   | (823,905 | ) |
|                                                     |   |         |       |   |    |   |   |        |   |    |           |   |   |              |     |   |        |   |   |          |   |   |        |   |   |   |   |   |   |   |   |   |
| Balance - March 31, 2014 (Unaudited)                     |   |         | 14,499,532 |   |    | $      | 14,500 |        |   | $       | 23,803,081     |   |   | $                 | (665,554 | )      |        | $      | -      |          |   | $      | (13,887,279 | )      |   | $ | (1,522,803 | ) |   | $ | 7,741,945 |   |

----

| SYSOREX GLOBAL HOLDINGS CORP.                   |
|-------------------------------------------------|
|                                            |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|                                            |

|                                                                                 |   | For the Three Months Ended |       |
|--------------------------------------------------------------------------------------|--------|----------------------------|------------|
|                                                                                 |   | March 31,                  |       |
|                                                                                 |   | 2014                       |       |   | 2013 |   |
|                                                                                 |   | (Unaudited)                |       |
| Cash Flows from Operating Activities                                                 |   |                       |       |   |   |   |
| Net loss                                                                             |   | $                          | (823,905   | ) |   | $ | (1,495,412 | ) |
| Adjustment to reconcile net loss to net cash used in operating activities:           |   |                       |       |   |   |
| Depreciation and amortization                                                        |   |                       | 39,498     |   |   |   | 17,642 |   |
| Amortization of intangible assets                                                    |   |                       | 328,035    |   |   |   | 62,857 |   |
| Stock based compensation                                                             |   |                       | 192,029    |   |   |   | 342,900 |   |
| Investment income                                                                    |   |                       | (3,048     | ) |   |   | -- |   |
| Amortization of debt discount                                                        |   |                       | --         |   |   |   | 16,667 |   |
| Change in the fair value of derivative liability                                     |   |                       | --         |   |   |   | 489,168 |   |
| Changes in operating assets and liabilities:                                         |   |                       |       |   |   |   |   |   |
| Accounts receivable and other receivables                                            |   |                       | (93,992    | ) |   |   | 450,712 |   |
| Inventory                                                                            |   |                       | (51,673    | ) |   |   | (4,866 | ) |
| Prepaid expenses                                                                     |   |                       | (648,385   | ) |   |   | 3,109 |   |
| Prepaid licenses and maintenance contracts                                           |   |                       | (1,453,587 | ) |   |   | (79,491 | ) |
| Other assets                                                                         |   |                       | 319,315    |   |   |   | (332,035 | ) |
| Accounts payable                                                                     |   |                       | 304,089    |   |   |   | (821,621 | ) |
| Accrued expenses                                                                     |   |                       | (185,534   | ) |   |   | 370,695 |   |
| Accrued compensation                                                                 |   |                       | (17,829    | ) |   |   | -- |   |
| Deferred revenue                                                                     |   |                       | 1,760,109  |   |   |   | 84,479 |   |
| Total Adjustments                                                                    |   |                       | 489,027    |   |   |   | 600,216 |   |
|                                                                                 |   |                       |       |   |   |   |   |   |
| Net Cash Used in Operating Activities                                                |   |                       | (334,878   | ) |   |   | (895,196 | ) |
|                                                                                 |   |                       |       |   |   |   |   |   |
| Cash Flows From (Used in) Investing Activities                                       |   |                       |       |   |   |
|     Purchase of property and equipment                           |   |                       | (10,352    | ) |   |   | -- |   |
|     Proceeds from the sale of marketable securities              |   |                       | 124,753    |   |   |   | -- |   |
|     Investment in capitalized software                           |   |                       | (70,000    | ) |   |   | -- |   |
| Cash paid for Lilien                                                                 |   |                       | --         |   |   |   | (3,000,000 | ) |
| Cash acquired in Lilien acquisition                                                  |   |                       | --         |   |   |   | 1,112,485 |   |
| Net Cash Flows Provided by (Used in) Investing Activities                            |   |                       | 44,401     |   |   |   | (1,887,515 | ) |
|                                                                                 |   |                       |       |   |   |   |   |   |
| Cash Flows from Financing Activities                                                 |   |                       |       |   |   |   |   |   |
| Advances from revolving credit line                                                  |   |                       | --         |   |   |   | 4,175,000 |   |
| Repayment of line of credit                                                          |   |                       | (423,117   | ) |   |   | -- |   |
| Net proceeds from issuance of common stock                                           |   |                       | 2,080,000  |   |   |   | -- |   |
| Repayment of advances to related parties                                             |   |                       | --         |   |   |   | (85,782 | ) |
| Repayment of notes payable                                                           |   |                       | (135,847   | ) |   |   | (65,386 | ) |
| Repayment of factor                                                                  |   |                       | --         |   |   |   | (46,426 | ) |
| Advance from Duroob Technology                                                       |   |                       | --         |   |   |   | 94,419 |   |
| Repayment of convertible notes                                                       |   |                       | --         |   |   |   | (105,000 | ) |
|                                                                                 |   |                       |       |   |   |   |   |   |
| Net Cash Provided by Financing Activities                                       |   |                       | 1,521,036  |   |   |   | 3,966,825 |   |
|                                                                                 |   |                       |       |   |   |   |   |   |
| Net Increase in Cash and Cash Equivalents                                       |   |                       | 1,230,559  |   |   |   | 1,184,114 |   |
|                                                                                 |   |                       |       |   |   |   |   |   |
| Cash and Cash Equivalents - Beginning of period                                      |   |                       | 2,103,955  |   |   |   | 8,301 |   |
|                                                                                 |   |                       |       |   |   |   |   |   |
| Cash and Cash Equivalents - End of period                                            |   | $                          | 3,334,514  |   |   | $ | 1,192,415 |   |
|                                                                                 |   |                       |       |   |   |   |   |   |
| Supplemental Disclosure of cash flow information:                                    |   |                       |       |   |   |
| Cash paid for:                                                                       |   |                       |       |   |   |   |   |   |
|       Interest                                         |   | $                          | 85,271     |   |   | $ | 40,146 |   |
|       Income Taxes                                     |   | $                          | 35,000     |   |   | $ | -- |   |
|                                                                                 |   |                       |       |   |   |   |   |   |
| Supplemental disclosures for non-cash operating, investing and financing activities: |   |
| Acquisition of Lilien:                                                               |   |                       |       |   |   |   |   |   |
|      Assumption of assets other than cash                   |   | $                          | --         |   |   | $ | 15,180,332 |   |
|      Assumption of liabilities                              |   | $                          | --         |   |   | $ | 17,216,770 |   |
|      Issuance of Common Stock                               |   | $                          | --         |   |   | $ | 6,000,000 |   |
|                                                                                 |   |                       |       |   |   |   |   |   |
| Issuance of common stock for settlement of liability                                 |   | $                          | --         |   |   | $ | 1,774,866 |   |

----

----

| · | The valuation of stock-based compensation; |
|--------|--------------------------------------------|

| · | The allowance for doubtful accounts; |
|--------|--------------------------------------|

| · | The valuation allowance for the deferred tax asset; and |
|--------|---------------------------------------------------------|

| · | Impairment of intangible assets. |
|--------|----------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Three Months EndedMarch 31, |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2014                        |       |   | 2013 |   |
| Resale of hardware                                                                                                           |   | $                           | 8,836,631  |   |   | $ | 2,291,310 |   |
| Resale of software                                                                                                           |   |                        | 2,112,235  |   |   |   | 691,006 |   |
| Maintenance services                                                                                                         |   |                        | 2,629,042  |   |   |   | 830,281 |   |
| Professional services contracts – time and materials                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        | 350,903    |   |   |   | 318,438 |   |
| Professional services contracts – fixed price                                                                          |   |                        | 1,417,670  |   |   |   | 1,230,509 |   |
| Revenues from digital advertising and electronic services                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        | 973,332    |   |   |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        |       |   |   |   |   |   |
| Total                                                                                                                        |   | $                           | 16,319,813 |   |   | $ | 5,361,544 |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                              |   | March 31,2014 |    |   | March 31,2013 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                              |   |          |    |   |          |   |
| Compensation and related benefits                                                                                                                                                                                                                                                                                                                                 |   | $             | 171,729 |   |          | $      | 38,600 |   |
| Acquisition transaction costs                                                       |   |          | 20,300  |   |          |   | 304,300 |   |
|                                                                                                                                                                                                                                                                                                                                                              |   |          |    |   |          |   |   |   |
| Totals                                                                              |   | $             | 192,029 |   |          | $      | 342,900 |   |

----

|                                                                                                                                                                                                                                                                                                                             |   | March 31,2014 |      |   | March 31,2013 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                             |   |          |      |   |          |   |
| Options                                                      |   |          | 2,067,210 |   |          |   | 836,250 |   |
| Warrants                                                     |   |          | 411,262   |   |          |   | 505,012 |   |
|                                                                                                                                                                                                                                                                                                                             |   |          |      |   |          |   |   |   |
| Totals                                                       |   |          | 2,478,472 |   |          |   | 1,341,262 |   |

----

| Assets Acquired:                    |   |   |       |
|-------------------------------------|--------|--------|------------|
| Cash                                |   | $      | 1,112,485  |   |
| Receivables                         |   |   | 4,870,471  |   |
| Inventory                           |   |   | 55,410     |   |
| Other current assets (Note A)       |   |   | 852,759    |   |
| Prepaid Licenses/Contracts (Note B) |   |   | 9,146,954  |   |
| Property and equipment              |   |   | 254,638    |   |
| Trade name/trademarks (Note C)      |   |   | 3,250,000  |   |
| Customer relationships (Note C)     |   |   | 2,130,000  |   |
| Goodwill                            |   |   | 4,544,053  |   |
|                                |   |   | 26,216,770 |   |
| Liabilities Assumed:                |   |   |       |   |
| Accounts payable                    |   |   | 5,094,390  |   |
| Accrued expenses (Note D)           |   |   | 970,139    |   |
| Deferred Revenue                    |   |   | 11,152,241 |   |
|                                |   |   | 17,216,770 |   |
| Purchase Price                      |   | $      | 9,000,000  |   |

| (A) | Other current assets consist primarily of $356,000 of rebates receivable, $107,000 of prepaid expenses, $195,000 of unbilled revenues and $153,000 for a working capital settlement adjustment. The asset purchase agreement included a provision for an adjustment to working capital as of the closing date of the transaction. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | Prepaid licenses/contracts are payments made by the Company directly to the manufacturer for the maintenance services and are being amortized over the life of the contract |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | The trade name/trademarks and customer relationships are identifiable intangible assets that are being amortized over their useful life of seven years. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (D) | Accrued expenses consist primarily of $654,000 of accrued compensation, $50,000 of accrued other operational expenses and $35,000 of sales taxes payable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Assets Acquired:                   |   |   |      |
|------------------------------------|--------|--------|-----------|
| Cash                               |   | $      | 3,669,000 |   |
| Marketable securities              |   |   | 605,000   |   |
| Receivables                        |   |   | 141,000   |   |
| Other assets (Note A)              |   |   | 178,000   |   |
| Property and equipment             |   |   | 29,000    |   |
| Trade name/trademarks (Note B)     |   |   | 120,000   |   |
| Customer relationships (Note B)    |   |   | 1,270,000 |   |
| Developed technology (Note C)      |   |   | 1,380,000 |   |
| Goodwill                           |   |   | 1,164,000 |   |
|                               |   |   | 8,556,000 |   |
| Liabilities Assumed:               |   |   |      |   |
| Accounts payable                   |   |   | 69,000    |   |
| Other current liabilities (Note D) |   |   | 380,000   |   |
|                               |   |   | 449,000   |   |
| Purchase Price                     |   | $      | 8,107,000 |   |

| (A) | Other current assets consist primarily of approximately $137,000 of prepaid expenses, $30,000 of other receivables and $11,000 of security deposits. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | The trade name/trademarks and customer relationships are identifiable intangible assets that are being amortized over their useful life of seven years. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | The developed technology is an identifiable intangible asset that is being amortized over their useful life of four years. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (D) | Other current liabilities consist primarily of approximately $136,000 of payroll liabilities and $167,000 of profit sharing liabilities. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Three monthsended March 31, 2013 |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|
| Revenues                                                                                                                    |   | $                                     | 11,548,370 |   |
| Net Loss Attributable to Common Shareholder                                                                                 |   | $                                     | (1,306,216 | ) |
| Weighted Average Number of Common Shares Outstanding, basic and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                  | 13,337,998 |   |
| Loss Per Common Share - Basic and Diluted                                                                                   |   | $                                     | (.10       | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | As of March 31, 2014 |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-----------|
| Amortized Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Gross CarryingAmount |      |   | AccumulatedAmortization |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |      |   |   |   |
| Trade name/trademarks                                                                                  |   | $                    | 3,250,000 |   |   | $ | (502,971 | ) |
| Customer relationships                                                                                 |   |                 | 2,130,000 |   |   |   | (329,650 | ) |
| Total                                                                                                  |   | $                    | 5,380,000 |   |   | $ | (832,621 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | As of March 31, 2014 |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-----------|
| Amortized Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Gross CarryingAmount |      |   | AccumulatedAmortization |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |      |   |   |   |
| Trade name/trademarks                                                                                  |   | $                    | 120,000   |   |   | $ | (10,000 | ) |
| Customer relationships                                                                                 |   |                 | 1,270,000 |   |   |   | (105,833 | ) |
| Developed technology                                                                                   |   |                 | 1,380,000 |   |   |   | (201,250 | ) |
| Total                                                                                                  |   | $                    | 2,770,000 |   |   | $ | (317,083 | ) |

| Year Ending December 31,                                                                                                                                                                                                                                                                                                               |   | Amount |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|
| 2014                                                                                                                                                                                                                                                                                                                                        |   | $      | 984,108   |   |
| 2015                                                                    |   |   | 1,312,143 |   |
| 2016                                                                    |   |   | 1,312,143 |   |
| 2017                                                                    |   |   | 1,197,143 |   |
| 2018                                                                    |   |   | 967,143   |   |
| 2019 and thereafter                                                     |   |   | 1,227,616 |   |
| Total                                                                   |   | $      | 7,000,296 |   |

----

| Balance at January 1, 2014    |   | $      | 5,707,580 |   |
|-------------------------------|--------|--------|-----------|--------|
|                          |   |   |      |   |
| Measurement period adjustment |   |   | 59,321    |   |
|                          |   |   |      |   |
| Balance at March 31, 2014     |   | $      | 5,766,901 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | March 31,2014 |       |   | December 31,2013 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|------------------|--------|
| Deferred Revenue, current                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |       |   |             |   |
| Lilien maintenance agreements                                                                                      |   | $             | 6,926,777  |   |             | $      | 7,161,992 |   |
| Services to be provided by Shoom                                                                                   |   |          | 3,866      |   |             |   | 3,866 |   |
| Services to be provided by Sysorex                                                                                 |   |          | 236,291    |   |             |   | 236,291 |   |
| Total Deferred Revenue, current                                                                                    |   |          | 7,166,934  |   |             |   | 7,402,149 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          |       |   |             |   |   |   |
| Deferred Revenue, non-current                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |       |   |             |   |   |   |
| Lilien maintenance agreements                                                                                      |   |          | 6,840,462  |   |             |   | 4,845,138 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          |       |   |             |   |   |   |
| Total Deferred Revenue                                                                                             |   | $             | 14,007,396 |   |             | $      | 12,247,287 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | March 31,2014 |    |   | December 31,2013 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |    |   |             |   |
| Duroob Technology, Inc., an entity whose CEO owns 49.8% of Sysorex Arabia LLC, the Company’s 50.2% owned subsidiary.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | 160,331 |   |             |   | 160,331 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |    |   |             |   |   |   |
| Totals                                                                                                |   | $             | 160,331 |   |             | $      | 160,331 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | March 31,2014 |    |   | December 31,2013 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
| a)   Note payable dated July 1, 2008                                                                |   | $             | 108,566 |   |             | $      | 208,566 |   |
| b)  Note payable dated August 31, 2013                                                                                                                                                                                                                                                                                                                                                                                         |   |          | 478,629 |   |             |   | 514,476 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |    |   |             |   |   |   |
| Totals                                                                                                        |   | $             | 587,195 |   |             | $      | 723,042 |   |

----

| a)   | Note payable dated July 1, 2008 |
|----------------|---------------------------------|

| b)   | Note payable dated August 31, 2013 |
|----------------|------------------------------------|

| Risk-free interest rate                 |   | 2.78%    |   |
|-----------------------------------------|--------|----------|--------|
| Expected life of option grants          |   | 10 years |   |
| Expected volatility of underlying stock |   | 39.4%    |   |
| Dividends                               |   | $--      |   |

----

|       |   | Three Months EndedMarch 31, 2014 |      |   | Three Months EndedMarch 31, 2013 |   |
|------------|--------|----------------------------------|-----------|--------|----------------------------------|--------|
|       |   | $                                |      |   | %                                |   |   | $ |   |   | % |   |
| Customer A |   |                             | 2,332,539 |   |                             |   | 14% |   |   | -- |   |   | -- |   |
| Customer B |   |                             | 2,025,221 |   |                             |   | 12% |   |   | -- |   |   | -- |   |
| Customer C |   |                             | --        |   |                             |   | --   |   |   |   | 1,436,588 |   |   |   | 27% |   |

----

| · | IT Commercial: These services include enterprise computing and storage, virtualization, business continuity, networking and information technology business consulting services to commercial organizations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | IT Government: Information technology and telecommunications solutions and services primarily to government agencies in the United States, (Domestic) and Saudi Arabia (Foreign). The operations include systems integration and consulting, including, but not limited to: custom application/software design, architecture and development, data center design and operations services, command control, computer communication, intelligence (C4I) system consulting, program management and security solutions and services. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | eSolutions: Internet based hosting eServices to its customers located in Europe (Foreign), Canada (Foreign) and the United States (Domestic) by providing Cloud-based data analytics and enterprise solutions to the media, publishing, and entertainment industries. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | IT Commercial |        |   | IT Government: |   |      | eSolutions |   |   | Unallocated/Corporate/Other |   |   | Total  |       |
|------------------------------------------|--------|---------------|-------------|--------|----------------|--------|-----------|------------|--------|--------|-----------------------------|--------|--------|--------|------------|
| Three months ended March 31, 2014        |   |          |        |   |           |   |      |       |   |   |                        |   |   |   |       |
| Revenues from external customers         |   | $             | 13,965,000  |   |           | $      | 1,382,000 |       |   | $      | 973,000                     |   |   | $      | --         |   |   | $ | 16,320,000 |   |
| Cost of revenues                         |   | $             | (10,951,000 | )      |           | $      | (816,000  | )          |   | $      | (202,000                    | )      |   | $      | --         |   |   | $ | (11,969,000 | ) |
| Gross margin                             |   | $             | 3,013,000   |   |           | $      | 566,000   |       |   | $      | 771,000                     |   |   | $      | --         |   |   | $ | 4,350,000 |   |
| Depreciation and amortization            |   | $             | 21,000      |   |           | $      | 7,000     |       |   | $      | 11,000                      |   |   | $      | --         |   |   | $ | 39,000 |   |
| Amortization of Intangibles              |   | $             | 192,000     |   |           | $      | --        |       |   | $      | 136,000                     |   |   | $      | --         |   |   | $ | 328,000 |   |
| Segment profit (loss)                    |   | $             | (99,000     | )      |           | $      | 84,000    |       |   | $      | 223,000                     |   |   | $      | (1,032,000 | ) |   | $ | (824,000 | ) |
|                                     |   |          |        |   |           |   |      |       |   |   |                        |   |   |   |       |   |   |   |   |   |
| Three months ended March 31, 2013        |   |          |        |   |           |   |      |       |   |   |                        |   |   |   |       |   |   |   |   |   |
| Revenues from external customers         |   | $             | 4,276,000   |   |           | $      | 1,086,000 |       |   | $      | --                          |   |   | $      | --         |   |   | $ | 5,362,000 |   |
| Cost of revenues                         |   | $             | (3,313,000  | )      |           | $      | (593,000  | )          |   | $      | --                          |   |   | $      | --         |   |   | $ | (3,906,000 | ) |
| Gross margin                             |   | $             | 963,000     |   |           | $      | 493,000   |       |   | $      | --                          |   |   | $      | --         |   |   | $ | 1,456,000 |   |
| Depreciation                             |   | $             | 8,000       |   |           | $      | 10,000    |       |   | $      | --                          |   |   | $      | --         |   |   | $ | 18,000 |   |
| Amortization of Intangibles              |   | $             | 63,000      |   |           | $      | --        |       |   | $      | --                          |   |   | $      | --         |   |   | $ | 63,000 |   |
| Segment profit (loss)                    |   | $             | (19,000     | )      |           | $      | 128,000   |       |   | $      | --                          |   |   | $      | (1,604,000 | ) |   | $ | (1,495,000 | ) |
|                                     |   |          |        |   |           |   |      |       |   |   |                        |   |   |   |       |   |   |   |   |   |
| As of March 31, 2014                     |   |          |        |   |           |   |      |       |   |   |                        |   |   |   |       |   |   |   |   |   |
| Total property and equipment             |   | $             | 223,000     |   |           | $      | 9,000     |       |   | $      | 31,000                      |   |   | $      | 2,000      |   |   | $ | 265,000 |   |
| Property and equipment additions         |   | $             | 9,000       |   |           | $      | 1,000     |       |   | $      | --                          |   |   | $      | --         |   |   | $ | 10,000 |   |
| Intangible assets and goodwill           |   | $             | 9,091,000   |   |           | $      | --        |       |   | $      | 3,676,000                   |   |   | $      | --         |   |   | $ | 12,767,000 |   |
| Intangible assets and goodwill additions |   | $             | --          |   |           | $      | --        |       |   | $      | 59,000                      |   |   | $      | --         |   |   | $ | 59,000 |   |
| Total segment assets                     |   | $             | 31,906,000  |   |           | $      | 3,765,000 |       |   | $      | 9,150,000                   |   |   | $      | (3,141,000 | ) |   | $ | 41,680,000 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                              |   | United |       |   | Saudi  |   |    |         |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                              |   | States |       |   | Arabia |   |    | Eliminations |   |   | Total  |   |
| Three Months Ended March 31, 2014:                                                                                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |    |         |   |   |   |   |
| Revenues by geographic area                                                               |   | $      | 16,320,000 |   |   | $      | --      |         |   | $      | --     |   |   | $ | 16,320,000 |   |
| Operating loss by geographic area                                                         |   | $      | (609,000   | )      |   | $      | (86,000 | )            |   | $      | --     |   |   | $ | (695,000 | ) |
| Net loss by geographic area                                                               |   | $      | (738,000   | )      |   | $      | (86,000 | )            |   | $      | --     |   |   | $ | (824,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |       |   |   |   |    |         |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, 2013:                                                                                                                                                                                                                                                                                                                                                |   |   |       |   |   |   |    |         |   |   |   |   |   |   |   |   |
| Revenues by geographic area                                                               |   | $      | 5,317,000  |   |   | $      | 45,000  |         |   | $      | --     |   |   | $ | 5,362,000 |   |
| Operating loss by geographic area                                                         |   | $      | (888,000   | )      |   | $      | (74,000 | )            |   | $      | --     |   |   | $ | (962,000 | ) |
| Net loss by geographic area                                                               |   | $      | (1,421,000 | )      |   | $      | (74,000 | )            |   | $      | --     |   |   | $ | (1,495,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                              |   |   |       |   |   |   |    |         |   |   |   |   |   |   |   |   |
| As of March 31, 2014:                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |   |    |         |   |   |   |   |   |   |   |   |
| Identifiable assets by geographic area                                                                                                                                                                                                                                                                                                                                            |   | $      | 40,904,000 |   |   | $      | 776,000 |         |   | $      | --     |   |   | $ | 41,680,000 |   |
| Long lived assets by geographic area                                                                                                                                                                                                                                                                                                                                              |   | $      | 13,152,000 |   |   | $      | 4,000   |         |   | $      | --     |   |   | $ | 13,156,000 |   |

----

----

----

----

----

----

| · | significant under-performance relative to expected and/or historical results (negative comparable sales growth or operating cash flows for two consecutive years); |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | significant negative industry or economic trends; |
|--------|---------------------------------------------------|

| · | knowledge of transactions involving the sale of similar property at amounts below our carrying value; or |
|--------|----------------------------------------------------------------------------------------------------------|

| · | our expectation to dispose of long-lived assets before the end of their estimated useful lives, even though the assets do not meet the criteria to be classified as “held for sale.” |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                    |   | Three Months endedMarch 31, 2014 |     |   | Three Months endedMarch 31,2013 |   |
|-----------------------------------------|--------|---------------------------------------|----------|--------|--------------------------------------|--------|
| Risk-free interest rate                 |   |                                  | 2.78%    |   |                                 |   | 1.96% |   |
| Expected life of option grants          |   |                                  | 10 years |   |                                 |   | 10 years |   |
| Expected volatility of underlying stock |   |                                  | 39.4%    |   |                                 |   | 39.7% |   |
| Dividends                               |   |                                  | $--      |   |                                 |   | $-- |   |

| Date      |   | Pre SplitOptions/WarrantsGranted |   |   | Post SplitOptions/WarrantsGranted |   |   | ExercisePrice |   |   | Black SholesValue of Option |   |   | Fair Value ofCommon Stockper Share |   |
|-----------|--------|----------------------------------|--------|--------|-----------------------------------|--------|--------|---------------|--------|--------|-----------------------------|--------|--------|------------------------------------|--------|
| 1/27/2014 |   |                             | 20,000 |   |                              |   | 10,000 |          |   | $      | 2.37                        |   |   | $                                  | 16,600 |   |   | $ | 2.03 |   |

| Date      |   | Pre SplitCommonShares Issued |    |   | Post SplitCommonShares Issued |   |    | Fair Value ofCommon Stockper Share |   | Fair Value ofCommon StockIssued |   |
|-----------|--------|------------------------------|---------|--------|-------------------------------|--------|---------|------------------------------------|--------|---------------------------------|--------|
| 1/24/2014 |   |                         | 10,000  |   |                          |   | 5,000   |                               |   | $                               | 2.03   |   |   | $ | 20,300 |   |
| 2/26/2014 |   |                         | 800,000 |   |                          |   | 400,000 |                               |   | $                               | 2.60   |   |   | $ | 2,080,000 |   |

----

| · | IT Commercial: These services include enterprise computing and storage, virtualization, business continuity, networking and information technology business consulting services to commercial organizations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | IT Government: Information technology and telecommunications solutions and services primarily to government agencies in the United States (Domestic) and Saudi Arabia (Foreign). The operations include systems integration and consulting, including, but not limited to: custom application/software design, architecture and development, data center design and operations services, command control, computer communication, intelligence (C4I) system consulting, program management and security solutions and services. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | eSolutions: Internet based hosting eServices to its customers located in Europe (Foreign), Canada (Foreign) and the United States (Domestic) by providing Cloud-based data analytics and enterprise solutions to the media, publishing, and entertainment industries. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                   |   | Three Monthsended March 31,2014 |     |   | Three MonthsendedMarch 31,2013 |   |
|------------------------------------------------------------------------|--------|---------------------------------|----------|--------|--------------------------------|--------|
| Adjusted EBITDA                                                        |   | $                               | 51,000   |   |                           | $      | 102,000 |   |
|                                                                   |   |                            |     |   |                           |   |   |   |
| Taxes                                                                  |   |                            | (35,000  | )      |                           |   | -- |   |
| Cost of public offering - non recurring one time charges               |   |                            | (45,000  | )      |                           |   | -- |   |
| Acquisition transaction costs - non-recurring one time charges         |   |                            | (84,000  | )      |                           |   | (604,000 | ) |
| Stock-based compensation – included in acquisition costs         |   |                            | (20,000  | )      |                           |   | (304,000 | ) |
| Stock-based compensation – included in SG&A expense          |   |                            | (172,000 | )      |                           |   | (39,000 | ) |
| Change in the fair value of derivative liability                       |   |                            | --       |   |                           |   | (489,000 | ) |
| Other interest expense                                                 |   |                            | (108,000 | )      |                           |   | (44,000 | ) |
| Depreciation and amortization                                          |   |                            | (368,000 | )      |                           |   | (80,000 | ) |
| Net loss attributable to stockholders of Sysorex Global Holdings Corp. |   | $                               | (781,000 | )      |                           | $      | (1,458,000 | ) |

| · | To review and assess the operating performance of our Company as permitted by Accounting Standards Codification Topic 280, Segment Reporting; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| · | To compare our current operating results with corresponding periods and with the operating results of other companies in our industry; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| · | As a basis for allocating resources to various projects; |
|--------|----------------------------------------------------------|

| · | As a measure to evaluate potential economic outcomes of acquisitions, operational alternatives and strategic decisions; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | To evaluate internally the performance of our personnel. |
|--------|----------------------------------------------------------|

| · | We believe Adjusted EBITDA is a useful tool for investors to assess the operating performance of our business without the effect of interest, income taxes, and other non-operating expenses as well as depreciation and amortization which are non-cash expenses; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We believe that it is useful to provide to investors with a standard operating metric used by management to evaluate our operating performance; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We believe that the use of Adjusted EBITDA is helpful to compare our results to other companies. |
|--------|--------------------------------------------------------------------------------------------------|

| · | Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

| · | Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; |
|--------|---------------------------------------------------------------------------------------------------|

| · | Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Adjusted EBITDA does not reflect income or other taxes or the cash requirements to make any tax payments; and |
|--------|---------------------------------------------------------------------------------------------------------------|

| · | Other companies in our industry may calculate Adjusted EBITDA differently than we do, thereby potentially limiting its usefulness as a comparative measure. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                     |   | Three MonthsendedMarch 31,2014 |   |    | Three MonthsendedMarch 31,2013 |   |
|----------------------------------------------------------|--------|--------------------------------|--------|---------|--------------------------------|--------|
| Proforma net loss per share                              |   | $                              | (0.01  | )       |                           | $      | (0.05 | ) |
|                                                     |   |                           |   |    |                           |   |   |   |
| Amortization of intangibles                              |   |                           | (0.02  | )  |                           |   | (0.01 | )  |
| Stock based compensation                                 |   |                           | (0.01  | )  |                           |   | (0.01 | )  |
| Stock based compensation – acquisition costs  |   |                           | (0.00  | )  |                           |   | (0.03 | )  |
| Acquisition costs                                        |   |                           | (0.01  | )  |                           |   | (0.06 | )  |
| Net loss per share – basic and diluted             |   | $                              | (0.05  | )       |                           | $      | (0.16 | ) |

| ● | To review and assess the operating performance of our Company as permitted by Accounting Standards Codification Topic 280, Segment Reporting; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| ● | To compare our current operating results with corresponding periods and with the operating results of other companies in our industry;        |
| ● | As a measure to evaluate potential economic outcomes of acquisitions, operational alternatives and strategic decisions; and                   |
| ● | To evaluate internally the performance of our personnel.                                                                                      |

| ● | We believe proforma net loss per share is a useful tool for investors to assess the operating performance of our business without the effect of non-cash items including stock based compensation, amortization of intangibles and one time of charges including acquisition costs and the costs associated with the public offering. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | We believe that it is useful to provide to investors with a standard operating metric used by management to evaluate our operating performance; and                                                                                                                                                                                   |

| ● | We believe that the use of proforma net loss per share is helpful to compare our results to other companies. |
|---------|--------------------------------------------------------------------------------------------------------------|

----

|                                                              |   | Three Months EndedMarch 31, 2014 |       |   | Three Months EndedMarch 31, 2013 |   |
|-------------------------------------------------------------------|--------|----------------------------------|------------|--------|----------------------------------|--------|
| Net cash used in operating activities                             |   | $                                | (335,000   | )      |                             | $      | (895,000 | ) |
| Net cash provided by (used in) investing activities               |   |                             | 45,000     |   |                             |   | (1,888,000 | ) |
| Net cash provided by financing activities                         |   |                             | 1,521,000  |   |                             |   | 3,967,000 |   |
| Net increase in cash                                              |   | $                                | 1,231,000  |   |                             | $      | 1,184,000 |   |
|                                                              |   |                             |       |   |                             |   |   |   |
|                                                              |   |                             |       |   |                             |   |   |   |
| Cash and cash equivalents at March 31, 2014 and December 31, 2013 |   | $                                | 3,335,000  |   |                             | $      | 2,104,000 |   |
| Working capital (deficit) at March 31, 2014 and December 31, 2013 |   | $                                | (5,555,000 | )      |                             | $      | (7,852,000 | ) |

| $      | (824,000 | )      | Net loss before non-controlling interest       |
|--------|----------|--------|------------------------------------------------|
|   | 560,000  |   | Non-cash expenses                              |
|   | (71,000  | )      | Net change in operating assets and liabilities |
| $      | (335,000 | )      | Net cash used in operating activities          |

| $      | (149,000 | )      | Expenses attributable to transaction costs of $104,000 directly related to acquisitions and $45,000 related to our ongoing public offering related activities.                                                                                  |
|--------|----------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (99,000  | )      | Loss attributable to the Lilien operations. These operating results included non-cash charges for amortization of intangible assets totaling $192,000. Otherwise Lilien’s reported operating results would have been a profit of $93,000. |
|   | 223,000  |   | Profit attributable to the Shoom operations. These charges include amortization of intangibles of $136,000. Otherwise Shoom’s reported operating results would have been a profit of $359,000.                                            |
|   | 84,000   |   | Profit attributable to information technology solutions services to U.S. and foreign governments.                                                                                                                                               |
|   | (883,000 | )      | Losses attributable to other Company activities consisting of a non-cash charge of $84,000 for non-acquisition related stock based compensation expense and all other Company activities of $799,000.                                           |
| $      | (824,000 | )      | Net loss                                                                                                                                                                                                                                        |

----

| $      | 368,000 |   | Depreciation expense and amortization of intangible primarily attributable to the Lilien and Shoom operations, which were, acquired effective March 1, 2013 and August 31, 2013, respectively. |
|--------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 192,000 |   | Stock-based compensation expense attributable to warrants and options issued as part of Company operations.                                                                                    |
| $      | 560,000 |   | Total non-cash expenses                                                                                                                                                                        |

| $      | (94,000    | )      | Increase in accounts receivable and other receivables              |
|--------|------------|--------|--------------------------------------------------------------------|
|   | (1,454,000 | )      | Increase in prepaid licenses and maintenance contracts             |
|   | 304,000    |   | Increase in accounts payable                                       |
|   | 1,760,000  |   | Increase in deferred revenue                                       |
|   | (18,000    | )      | Decrease in accrued compensation                                   |
|   | (569,000   | )      | Other                                                              |
| $      | (71,000    | )      | Net use of cash in the changes in operating assets and liabilities |

----

| Working capital                                           |   | Assets |       |   | Liabilities |   |       | Net    |   |
|-----------------------------------------------------------|--------|--------|------------|--------|-------------|--------|------------|--------|--------|
| Cash                                                      |   | $      | 3,335,000  |   |        | $      | --         |   |   | $ | 3,335,000 |   |
| Accounts receivable / accounts payable                    |   |   | 9,069,000  |   |        |   | 8,739,000  |   |   |   | 330,000 |   |
| Note receivable                                           |   |   | 1,130,000  |   |        |   | --         |   |   |   | 1,130,000 |   |
| Prepaid contracts / deferred revenue                      |   |   | 5,925,000  |   |        |   | 7,167,000  |   |   |   | (1,242,000 | ) |
| Accrued compensation and related benefits                 |   |   | --         |   |        |   | 2,605,000  |   |   |   | (2,605,000 | ) |
| Notes payable                                             |   |   | --         |   |        |   | 587,000    |   |   |   | (587,000 | ) |
| Revolving line of credit and current portion of term loan |   |   | --         |   |        |   | 5,775,000  |   |   |   | (5,775,000 | ) |
| Other                                                     |   |   | 1,834,000  |   |        |   | 1,975,000  |   |   |   | (141,000 | ) |
| Net                                                       |   | $      | 21,293,000 |   |        | $      | 26,848,000 |   |   | $ | (5,555,000 | ) |

| 1)  | The Company received approximately $17.7 million in April 2014, after deducting the underwriting discounts and commissions, in net proceeds from the sale of 3,166,666 shares in a public offering; |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)  | The Company completed a $2 million private equity offering from a strategic investor in February 2014; |
|----------|--------------------------------------------------------------------------------------------------------|

| 3)  | Sysorex was awarded a $3 million contract of which $1.4 million in revenue is expected to be recognized in 2014; |
|----------|------------------------------------------------------------------------------------------------------------------|

| 4)  | Lilien, Shoom and AirPatrol complement and significantly expand our current base of business and enable us to provide integrated solutions and services to both government and private organizations globally.  In that light, we anticipate increases in revenues and cash flows during 2014. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit No.                     |   | Description                                                                                                                                                                                                                                       |
|---------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1                             |   | Asset Purchase and Merger Agreement, effective March 1, 2013, by and among Sysorex Global Holdings Corp., Lilien, LLC and Lilien Systems. (1)(2)                                                                                                  |
| 2.2                             |   | Agreement of Merger dated March 20, 2013 by and between Lilien Systems and Sysorex Acquisition Corporation. (1)                                                                                                                                   |
| 2.3                             |   | Agreement and Plan of Merger between Sysorex Global Holdings Corp. and Shoom, Inc. (3)                                                                                                                                                            |
| 2.4                             |   | Agreement and Plan of Merger dated as of December 20, 2013, by and among Sysorex Global Holdings Corp., AirPatrol Corporation, AirPatrol Acquisition Corp. I, AirPatrol Acquisition Corp. II, and Shareholder Representative Services LLC. (4)(5) |
| 2.5                             |   | Amendment No. 1 to Agreement and Plan of Merger dated February 28, 2014 with AirPatrol Corporation. (6)                                                                                                                                           |
| 2.6                             |   | Amendment No. 2 to Agreement and Plan of Merger dated April 18, 2014 with AirPatrol Corporation. (7)                                                                                                                                              |
|    3.1(i)        |   | Articles of Incorporation. (1)                                                                                                                                                                                                                    |
|     3.1(ii) |   | Certificate of Amendment to the Articles of Incorporation, effective April 8, 2014. (8)                                                                                                                                                           |
| 3.2                             |   | Bylaws. (1)                                                                                                                                                                                                                                       |
| 3.3                             |   | Articles of Merger between AirPatrol Acquisition Corp. I and AirPatrol Corporation (as surviving corporation), effective on April 18, 2014. (7)                                                                                                   |
| 3.4                             |   | Articles of Merger between AirPatrol Corporation and AirPatrol Acquisition Corp. II (as surviving corporation), effective on April 18, 2014. (7)                                                                                                  |
| 4.1                             |   | Business Financing Agreement dated March 15, 2013 by and among the Sysorex Government Services, Inc., Lilien Systems and Bridge Bank, N.A. (1).                                                                                                   |
| 4.2                             |   | Warrant to purchase common stock dated March 20, 2013 held by Bridge Bank N.A. (1)                                                                                                                                                                |
| 4.3                             |   | Amendment to Business Financing Agreement, Waiver of Default and Consent dated as of August 29, 2013 between the Sysorex Global Holdings Corp. and Bridge Bank, N.A.(3)                                                                           |
| 4.4                             |   | Amendment 2 to Business Financing Agreement, Waiver of Default and Consent dated as of May 13, 2014 to be effective as of April 16, 2014 between Sysorex Global Holdings Corp. and Bridge Bank, N.A.*                    |

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| Exhibit No. |   | Description                                                                                                                                                                                                                             |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1        |   | Amended Secured Promissory Note dated February 28, 2014 from AirPatrol Corporation to Sysorex Global Holdings Corp. (6)                                                                                                                 |
| 10.2        |   | Securities Purchase Agreement dated February 24, 2014 between Sysorex Global Holdings Corp. and Geneseo Communications, Inc. (6)                                                                                                        |
| 31.1        |   | Certification of the Company’s Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014.* |
| 31.2        |   | Certification of the Company’s Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014.* |
| 32.1        |   | Certification of the Company’s Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                             |
| 32.2        |   | Certification of the Company’s Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                             |
| 99.1        |   | Press Release announcing 2014 First Quarter Results Issued May 15, 2014*                                                                                                                                                                |

| 101.INS |   | XBRL Instant Document +                                  |
|---------|--------|----------------------------------------------------------|
|    |   |                                                     |
| 101.SCH |   | XBRL Taxonomy Extension Schema Document +                |
|    |   |                                                     |
| 101.CAL |   | XBRL Taxonomy Extension Calculation Linkbase Document +  |
|    |   |                                                     |
| 101.DEF |   | XBRL Taxonomy Extension Definition Linkbase Document +   |
|    |   |                                                     |
| 10.LAB  |   | XBRL Taxonomy Extension Label Linkbase Document +        |
|    |   |                                                     |
| 101.PRE |   | XBRL Taxonomy Extension Presentation Linkbase Document + |

| *   | Filed herewith                                                                                                                                                                                                                                                                                                                                                 |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Incorporated by reference to the Company’s Registration Statement on Form S-1 (No. 333-190574) filed with the SEC on August 12, 2013.                                                                                                                                                                                                                    |
| (2) | The schedules to Exhibit 2.1 were not filed with the Registration Statement (No. 333-190574) as they contain due diligence information which the Registrant does not believe is material to an investment decision and which is otherwise described in the Registration Statement including the audited financial statements of Lilien LLC and Lilien Systems. |
| (3) | Incorporated by reference to the Company’s Registration Statement on Form S-1 (No. 333-191648) filed with the SEC on October 9, 2013.                                                                                                                                                                                                                    |
| (4) | Incorporated by reference to the Company’s Amendment No. 3 to its Registration Statement on Form S-1 (No. 333-191648) filed with the SEC on January 21, 2014.                                                                                                                                                                                            |
| (5) | The schedules to Exhibit 2.4 were not been filed with the Registration Statement as they contain due diligence information which the Registrant does not believe is material to investors and which is otherwise described in the Registration Statement including the audited financial statements of AirPatrol Corporation.                             |
| (6) | Incorporated by reference to the Company’s Amendment No. 4 to the Registration Statement (No. 333-191648) filed with the SEC on March 13, 2014.                                                                                                                                                                                                          |
| (7) | Incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on April 24, 2014.                                                                                                                                                                                                                                              |
| (8) | Incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on April 10, 2014.                                                                                                                                                                                                                                              |
| +   | To be filed by amendment in accordance with the grace period provided by Rule 405(a)(2) of Regulation S-T.                                                                                                                                                                                                                                                     |

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|                     | SYSOREX GLOBAL HOLDINGS CORP. |
|--------------------------|-------------------------------|
|                     |                          |
| Dated: May 15, 2014 | By:                           | /s/  Nadir Ali |
|                     |                          | Nadir AliChief Executive Officer |
|                     |                          | (Principal Executive Officer) |
|                     |                          |   |
|                     | By:                           | /s/  Wendy F. Loundermon |
|                     |                          | Wendy F. LoundermonChief Financial Officer |
|                     |                          | (Principal Financial and Accounting Officer) |

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