**FORM      10-QSB**

**(Exact      name of small business issuer as specified in its charter)**

----

----

| SYNERGX                  SYSTEMS INC. AND SUBSIDIARIES                                                      |   |                       |       |
|-------------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|
|                                                                                                        |   |                       |       |
| CONDENSED                  CONSOLIDATED BALANCE SHEET                                                       |   |                       |       |
|                                                                                                        |   |                       |       |
| (Unaudited)                                                                                                 |   |                       |       |
|                                                                                                        |   | March                  31, |       |
|                                                                                                        |   | 2007                       |       |
| ASSETS                                                                                                      |   |                       |       |
|                                                                                                        |   |                       |       |
| CURRENT                  ASSETS                                                                             |   |                       |       |
| Cash                  and cash equivalents                                                                  |   | $                          | 298,723    |   |
| Accounts                  receivable, principally trade, less allowance                                     |   |                       |       |   |
|     for                  doubtful accounts of $350,035                                  |   |                       | 5,193,162  |   |
| Inventories,                  net                                                                           |   |                       | 2,294,614  |   |
| Deferred                  taxes                                                                             |   |                       | 432,300    |   |
| Prepaid                  expenses and other current assets                                                  |   |                       | 784,126    |   |
| Income                  Tax Receivable                                                                      |   |                       | 82,000     |   |
| Note                  Receivable                                                                            |   |                       | 73,455     |   |
|                                                                                                        |   |                       |       |   |
| TOTAL                  CURRENT ASSETS                                                                       |   |                       | 9,158,380  |   |
|                                                                                                        |   |                       |       |   |
| PROPERTY                  AND EQUIPMENT -at cost, less                                                      |   |                       |       |   |
|     accumulated                  depreciation and amortization of $1,706,642            |   |                       | 831,493    |   |
|                                                                                                        |   |                       |       |   |
| OTHER                  ASSETS                                                                               |   |                       | 82,717     |   |
|                                                                                                        |   |                       |            |   |
| DEFERRED                  TAXES                                                                             |   |                       | 99,800     |   |
|                                                                                                        |   |                       |       |   |
| TOTAL                  ASSETS                                                                               |   | $                          | 10,172,390 |   |
|                                                                                                        |   |                       |       |   |
|                                                                                                        |   |                       |       |   |
| See                  accompanying Notes to the Condensed Consolidated Financial                  Statements |   |                       |       |   |
|                                                                                                        |   |                       |       |   |
|                                                                                                        |   |                       | 3          |   |

----

| SYNERGX                  SYSTEMS INC. AND SUBSIDIARIES                                                      |   |                       |       |
|-------------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|
|                                                                                                        |   |                       |       |
| CONDENSED                  CONSOLIDATED BALANCE SHEET                                                       |   |                       |       |
|                                                                                                        |   |                       |       |
| (Unaudited)                                                                                                 |   |                       |       |
|                                                                                                        |   | March                  31, |       |
|                                                                                                        |   | 2007                       |       |
|                                                                                                        |   |                       |       |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                       |   |                       |       |
|                                                                                                        |   |                       |       |
| CURRENT                  LIABILITIES                                                                        |   |                       |       |
|                                                                                                        |   |                       |       |
| Note                  payable to bank                                                                       |   | $                          | 1,392,865  |   |
| Notes                  payable - current portion                                                            |   |                       | 24,624     |   |
| Accounts                  payable and accrued expenses                                                      |   |                       | 1,859,124  |   |
| Deferred                  revenue                                                                           |   |                       | 920,522    |   |
|                                                                                                        |   |                       |       |   |
| TOTAL                  CURRENT LIABILITIES                                                                  |   |                       | 4,197,135  |   |
|                                                                                                        |   |                       |       |   |
|                                                                                                        |   |                       |            |   |
|                                                                                                        |   |                       |            |   |
|                                                                                                        |   |                       |       |   |
| Notes                  payable - less current portion                                                       |   |                       | 78,088     |   |
|                                                                                                        |   |                       |       |   |
|                                                                                                        |   |                       |       |   |
| TOTAL                  LIABILITIES                                                                          |   |                       | 4,275,223  |   |
|                                                                                                        |   |                       |       |   |
|                                                                                                        |   |                       |       |   |
|                                                                                                        |   |                       |       |   |
| STOCKHOLDERS'                  EQUITY                                                                       |   |                       |       |   |
|                                                                                                        |   |                       |            |   |
| Preferred                  stock, 2,000,000 shares authorized-                                              |   |                       |            |   |
| none                  issued and outstanding                                                                |   |                       | --         |   |
| Common                  stock, 10,000,000 shares authorized, $.001                                          |   |                       |       |   |
| par                  value; issued and outstanding 5,210,950 shares                                         |   |                       | 5,209      |   |
| Additional                  Paid in Captal                                                                  |   |                       | 6,819,708  |   |
| Accumulated                  deficit                                                                        |   |                       | (927,750   | ) |
| TOTAL                  STOCKHOLDERS' EQUITY                                                                 |   |                       | 5,897,167  |   |
|                                                                                                        |   |                       |       |   |
|                                                                                                        |   |                       |       |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY                                                 |   |  $                    | 10,172,390 |   |
|                                                                                                        |   |                       |       |   |
|                                                                                                        |   |                       |       |   |
| See                  accompanying Notes to the Condensed Consolidated Financial                  Statements |   |                       |       |   |
|                                                                                                        |   |                       |       |   |
|                                                                                                        |   |                       | 4          |   |

----

| SYNERGX                      SYSTEMS INC. AND SUBSIDIARIES                                                          |   |                                                      |         |   |    |
|---------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------------|--------|---------|
|                                                                                                                |   |                                                      |         |   |    |
| CONDENSED                      CONSOLIDATED STATEMENTS OF OPERATIONS                                                |   |                                                      |         |   |    |
|                                                                                                                |   |                                                      |         |   |    |
|  (Unaudited)                                                                                                   |   |                                                      |         |   |    |
|                                                                                                                |   | For                      the Three Months Ended March 31, |         |
|                                                                                                                |   | 2007                                                      |         | 2006   |    |
|                                                                                                                |   |                                                      |         |   |    |
| Product                      sales                                                                                  |   | $                                                         | 2,718,668    |   | $       | 2,382,832 |   |
| Subcontract                      sales                                                                              |   |                                                      | 59,511       |   |    | 180,388 |   |
| Service                      revenue                                                                                |   |                                                      | 1,285,596    |   |    | 1,278,042 |   |
| Total                      revenues                                                                                 |   |                                                      | 4,063,775    |   |    | 3,841,262 |   |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| Cost                      of product sales                                                                          |   |                                                      | 2,103,219    |   |    | 1,756,084 |   |
| Cost                      of subcontract sales                                                                      |   |                                                      | 48,227       |   |    | 147,735 |   |
| Cost                      of service revenue                                                                        |   |                                                      | 699,632      |   |    | 645,416 |   |
| Selling,                      general and administrative                                                            |   |                                                      | 1,321,570    |   |    | 1,279,370 |   |
| Depreciation                      and amortization                                                                  |   |                                                      | 41,523       |   |    | 23,888 |   |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| Total                      operating expenses                                                                       |   |                                                      | 4,214,171    |   |    | 3,852,493 |   |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| (Loss)                      from operations                                                                         |   |                                                      | (150,396     | )      |    | (11,231 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| Other                      income (expenses):                                                                       |   |                                                      |         |   |    |   |   |
| Interest                      expense                                                                               |   |                                                      | (39,732      | )      |    | (19,965 | ) |
| Gain/(loss)                      on equity investment                                                               |   |                                                      | 82,673       |   |    | (17,000 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
|                                                                                                                |   |                                                      | 42,941       |   |    | (36,965 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| (Loss)                      before (benefit) from income taxes                                                      |   |                                                      | (107,455     | )      |    | (48,196 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| (Benefit)                      provision for income taxes:                                                          |   |                                                      |         |   |    |   |   |
| Current                                                                                                             |   |                                                      | 0            |   |    | (18,000 | ) |
| Deferred                                                                                                            |   |                                                      | 47,000       |   |    | (4,000 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
|                                                                                                                |   |                                                      | 47,000       |   |    | (22,000 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| Income                      (Loss) from continuing operations                                                       |   |                                                      | (154,455     | )      |    | (26,196 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| Discontinued                      operations (Note 7):                                                              |   |                                                      |         |   |    |   |   |
| (Loss)                      from discontinued operations                                                            |   |                                                      |         |   |    | (69,474 | ) |
| Income                      tax (benefit)                                                                           |   |                                                      |    |   |    | (22,000 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| (Loss)                      from discontinued operations                                                            |   |                                                      |         |   |    | (47,474 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| Net                      (Loss)                                                                                     |   |  $                                                   | (154,455     | )      |  $ | (73,670 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
|                                                                                                                |   |                                                      |         |   |    |   |   |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| (Loss)                      Per Common Share                                                                        |   |                                                      |         |   |    |   |   |
| Basic                      (loss) from continuing operations                                                        |   |  $                                                   | (0.03        | )      |  $ | 0.00 |   |
| Basic                      (loss) from discontinued operations                                                      |   |  $                                                   | 0.00         |   |  $ | (0.01 | ) |
| Basic                      (loss) Per Share                                                                         |   |  $                                                   | (0.03        | )      |  $ | (0.01 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| Diluted                      (loss) from continuing operations                                                      |   |  $                                                   | (0.03        | )      |  $ | 0.00 |   |
| Diluted                      (loss) from discontinued operations                                                    |   |  $                                                   | 0.00         |   |  $ | (0.01 | ) |
| Diluted                      (loss) Per Share                                                                       |   |  $                                                   | (0.03        | )      |  $ | (0.01 | ) |
|                                                                                                                |   |                                                      |         |   |    |   |   |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| Weighted                      average number of common shares outstanding                                           |   |                                                      | 5,210,950    |   |    | 5,210,950 |   |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| Weighted                      average number of common and dilutive                                                 |   |                                                      |         |   |    |   |   |
| common                      share equivalents outstanding                                                           |   |                                                      | 5,210,950    |   |    | 5,210,950 |   |
|                                                                                                                |   |                                                      |         |   |    |   |   |
| See                      accompanying Notes to the Condensed Consolidated Financial                      Statements |   |                                                      |         |   |    | 5 |   |

----

| SYNERGX                      SYSTEMS INC. AND SUBSIDIARIES                                                          |   |                                                    |         |   |    |
|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------------|--------|---------|
|                                                                                                                |   |                                                    |         |   |    |
| CONDENSED                      CONSOLIDATED STATEMENTS OF OPERATIONS                                                |   |                                                    |         |   |    |
|                                                                                                                |   |                                                    |         |   |    |
| (Unaudited)                                                                                                         |   |                                                    |         |   |    |
|                                                                                                                |   |                                                    |         |   |    |
|                                                                                                                |   |                                                    |         |   |    |
|                                                                                                                |   |                                                    |         |   |    |
|                                                                                                                |   | For                      the Six months ended March 31, |         |
|                                                                                                                |   | 2007                                                    |         | 2006   |    |
|                                                                                                                |   |                                                    |         |   |    |
| Product                      sales                                                                                  |   | $                                                       | 5,040,891    |   | $       | 4,666,402 |   |
| Subcontract                      sales                                                                              |   |                                                    | 166,700      |   |    | 303,285 |   |
| Service                      revenue                                                                                |   |                                                    | 2,511,279    |   |    | 2,469,635 |   |
| -                                                                                                                   |   |                                                    |         |   |    |   |   |
| Total                      revenues                                                                                 |   |                                                    | 7,718,870    |   |    | 7,439,322 |   |
| -                                                                                                                   |   |                                                    |         |   |    |   |   |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| Cost                      of product sales                                                                          |   |                                                    | 3,537,698    |   |    | 3,488,439 |   |
| Cost                      of subcontract sales                                                                      |   |                                                    | 134,387      |   |    | 240,640 |   |
| Cost                      of service revenue                                                                        |   |                                                    | 1,418,089    |   |    | 1,350,795 |   |
| Selling,                      general and administrative                                                            |   |                                                    | 2,799,002    |   |    | 2,590,042 |   |
| Depreciation                      and amortization                                                                  |   |                                                    | 81,546       |   |    | 66,904 |   |
| -                                                                                                                   |   |                                                    |         |   |    |   |   |
| Total                      operating expenses                                                                       |   |                                                    | 7,970,722    |   |    | 7,736,820 |   |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| (Loss)                      from operations                                                                         |   |                                                    | (251,852     | )      |    | (297,498 | ) |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| Other                      income (expenses):                                                                       |   |                                                    |         |   |    |   |   |
| Interest                      expense                                                                               |   |                                                    | (64,602      | )      |    | (53,579 | ) |
| Gain/(loss)                      on equity investment                                                               |   |                                                    | 82,673       |   |    | (48,538 | ) |
| -                                                                                                                   |   |                                                    |         |   |    |   |   |
|                                                                                                                |   |                                                    | 18,071       |   |    | (102,117 | ) |
| -                                                                                                                   |   |                                                    |         |   |    |   |   |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| (Loss)                      before (benefit) from income taxes                                                      |   |                                                    | (233,781     | )      |    | (399,615 | ) |
| -                                                                                                                   |   |                                                    |         |   |    |   |   |
| (Benefit)                      provision for income taxes:                                                          |   |                                                    |         |   |    |   |   |
| Current                                                                                                             |   |                                                    | 2,000        |   |    | (139,000 | ) |
| Deferred                                                                                                            |   |                                                    | (12,000      | )      |    | (24,000 | ) |
| -                                                                                                                   |   |                                                    |         |   |    |   |   |
|                                                                                                                |   |                                                    | (10,000      | )      |    | (163,000 | ) |
| -                                                                                                                   |   |                                                    |         |   |    | - |   |
| (Loss)                      from continuing operations                                                              |   |  $                                                 | (223,781     | )      |  $ | (236,615 | ) |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| Discontinued                      operations (Note 7):                                                              |   |                                                    |         |   |    |   |   |
| (Loss)                      from discontinued operations                                                            |   |                                                    |         |   |  $ | (128,316 | ) |
| Current                      income tax (benefit)                                                                   |   |                                                    |    |   |    | ($44,000 | ) |
| -                                                                                                                   |   |                                                    |         |   |    |   |   |
| (Loss)                      from discontinued operations                                                            |   |                                                    |         |   |    | ($84,316 | ) |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| Net                      (loss)                                                                                     |   |  $                                                 | (223,781     | )      |  $ | (320,931 | ) |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| (Loss)                      Per Common Share:                                                                       |   |                                                    |         |   |    |   |   |
| Basic                      (loss) from continuing operations                                                        |   |  $                                                 | (0.04        | )      |  $ | (0.04 | ) |
| Basic                      (loss) from discontinued operations                                                      |   |  $                                                 | 0.00         |   |  $ | (0.02 | ) |
| Basic                      (loss) Per Share                                                                         |   |  $                                                 | (0.04        | )      |  $ | (0.06 | ) |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| Diluted                      (loss) from continuing operations                                                      |   |  $                                                 | (0.04        | )      |  $ | (0.04 | ) |
| Diluted                      (loss) from discontinued operations                                                    |   |  $                                                 | 0.00         |   |  $ | (0.02 | ) |
| Diluted                      (loss) Per Share                                                                       |   |  $                                                 | (0.04        | )      |  $ | (0.06 | ) |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| Weighted                      average number of common shares outstanding                                           |   |                                                    | 5,210,950    |   |    | 5,201,639 |   |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| Weighted                      average number of common and dilutive                                                 |   |                                                    |         |   |    |   |   |
| common                      share equivalents outstanding                                                           |   |                                                    | 5,210,950    |   |    | 5,201,639 |   |
|                                                                                                                |   |                                                    |         |   |    |   |   |
|                                                                                                                |   |                                                    |         |   |    |   |   |
|                                                                                                                |   |                                                    |         |   |    |   |   |
|                                                                                                                |   |                                                    |         |   |    |   |   |
| See                      accompanying Notes to the Condensed Consolidated Financial                      Statements |   |                                                    |         |   |    |   |   |
|                                                                                                                |   |                                                    |         |   |    | 6 |   |

----

| SYNERGX                          SYSTEMS INC. AND SUBSIDIARIES                                                                                                                                           |   |                                                        |     |   |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|----------|--------|---------|
|                                                                                                                                                                                                     |   |                                                        |     |   |    |
| CONSOLIDATED                          STATEMENTS OF CASH FLOWS                                                                                                                                           |   |                                                        |     |   |    |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |
| (Unaudited)                                                                                                                                                                                              |   |                                                        |     |   |    |
|                                                                                                                                                                                                     |   | For                          the Six Months Ended March 31, |     |
|                                                                                                                                                                                                     |   | 2007                                                        |     | 2006   |    |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |
| OPERATING                          ACTIVITIES                                                                                                                                                            |   |                                                        |     |   |    |
| Net                          (Loss) from continuing operations                                                                                                                                           |   |  $                                                     | (223,781 | )      |  $ | (236,615 | ) |
| Adjustments                          to reconcile net (loss) net cash                                                                                                                                    |   |                                                        |     |   |    |   |   |
| provided                          by operating activities:                                                                                                                                               |   |                                                        |     |   |    |   |   |
| Depreciation                          and amortization *                                                                                                                                                 |   |                                                        | 95,796   |   |    | 85,326 |   |
| Deferred                          tax (benefit)                                                                                                                                                          |   |                                                        | (12,000  | )      |    | (14,000 | ) |
| Share-based                          compensation                                                                                                                                                        |   |                                                        | 15,716   |   |    |   |   |
| Gain                          on sale of equity investment                                                                                                                                               |   |                                                        | (82,673  | )      |    |   |   |
| Loss                          on equity investment                                                                                                                                                       |   |                                                        |     |   |    | 48,538 |   |
| Changes                          in operating assets and liabilities:                                                                                                                                    |   |                                                        |     |   |    |   |   |
| Accounts                          receivable, net                                                                                                                                                        |   |                                                        | 825,586  |   |    | 1,175,876 |   |
| Inventories                                                                                                                                                                                              |   |                                                        | (254,174 | )      |    | (199,965 | ) |
| Prepaid                          expenses and other current assets                                                                                                                                       |   |                                                        | (446,215 | )      |    | (208,376 | ) |
| Other                          assets                                                                                                                                                                    |   |                                                        | (635     | )      |    | 14,069 |   |
| Accounts                          payable and accrued expenses                                                                                                                                           |   |                                                        | (215,958 | )      |    | (707,627 | ) |
| Deferred                          revenue                                                                                                                                                                |   |                                                        | 16,088   |   |    | 97,383 |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| Net                          cash (used in) provided by continuing operations                                                                                                                            |   |                                                        | (282,250 | )      |    | 54,609 |   |
| Net                          cash provided by operating activities of discontinued                          operation                                                                                    |   |                                                        | 0        |   |    | 47,233 |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| NET                          CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES                                                                                                                             |   |                                                        | (282,250 | )      |    | 101,842 |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| INVESTING                          ACTIVITIES                                                                                                                                                            |   |                                                        |     |   |    |   |   |
| Proceeds                          from sale of equity investment                                                                                                                                         |   |                                                        | 9,218    |   |    |   |   |
| Purchases                          of property and equipment                                                                                                                                             |   |                                                        | (151,327 | )      |    | (261,555 | ) |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| NET                          CASH PROVIDED (USED IN) BY INVESTING ACTIVITIES                                                                                                                             |   |                                                        | (142,109 | )      |    | (261,555 | ) |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| FINANCING                          ACTIVITIES                                                                                                                                                            |   |                                                        |     |   |    |   |   |
| Principal                          payments on notes payable                                                                                                                                             |   |                                                        | (13,519  | )      |    | (20,569 | ) |
| Payments                          and proceeds from note payable bank - net                                                                                                                              |   |                                                        | 463,693  |   |    | (47,740 | ) |
| Proceeds                          from exercise of stock options and warrants                                                                                                                            |   |                                                        |     |   |    | 9,203 |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| NET                          CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                                                                                                                             |   |                                                        | 450,174  |   |    | (59,106 | ) |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| NET                          INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                                                            |   |                                                        | 25,815   |   |    | (218,819 | ) |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| Cash                          and cash equivalents at beginning of period                                                                                                                                |   |                                                        | 272,908  |   |    | 465,650 |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| Cash                          and cash equivalents at end of period                                                                                                                                      |   | $                                                           | 298,723  |   | $       | 246,831 |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| SUPPLEMENTAL                          CASH FLOW INFORMATION:                                                                                                                                             |   |                                                        |     |   |    |   |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| Cash                          paid during the period for:                                                                                                                                                |   |                                                        |     |   |    |   |   |
| Income                          taxes                                                                                                                                                                    |   | $                                                           | 4,700    |   | $       | 44,361 |   |
| Interest                                                                                                                                                                                                 |   | $                                                           | 66,613   |   | $       | 53,579 |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| NON-CASH                          INVESTING AND FINANCING ACTIVITIES                                                                                                                                     |   |                                                        |     |   |    |   |   |
| Note                          receivable in amount of $73,455 obtained in consideration                          for sale of                          equity investment .                                |   |                                                        |     |   |    |   |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| Included                          in the six months ended March 31, 2006, was the purchase                          of equipment for                          $79,354 through financing.                 |   |                                                        |     |   |    |   |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| *                          Depreciation of $14,250 and $18,422 is included in cost                          of product and                          service sales for the six monthsended March 31, 2007 |   |                                                        |     |   |    |   |   |
| and                          2006, respectively.                                                                                                                                                         |   |                                                        |     |   |    |   |   |
|                                                                                                                                                                                                     |   |                                                        |     |   |    |   |   |
| See                          accompanying Notes to the Condensed Consolidated Financial                          Statements                                                                              |   |                                                        |     |   |    | 7 |   |

----

----

**.**

----

|                                             |   |    2006  |    | WeightedAverageExercise                    Price  |   | WeightedAverage                    RemainingContractualTerm    |   |   Intrinsic                    Value |                       |
|--------------------------------------------------|--------|------------------------------|---------|--------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|------------------------------------------------|----------------------------|
| Outstanding                    October 1, 2006   |   |                         | 108,000 |                                                   | $      | 2.50                                                                          |   |                                           | 3.4                    Yrs |   |   | -0- |   |
| Granted                                          |   |                         | 10,000  |                                                   |   | 1.70                                                                          |   |                                           | 4.8                    Yrs |   |   | -0- |   |
| Forfeited                                        |   |                         | (4,000  | )                                                      |   | 2.50                                                                          |   |                                           | 2.9                    Yrs |   |   | -0- |   |
| Outstanding                    March 31, 2007    |   |                         | 114,000 |                                                   |   | 2.43                                                                          |   |                                           | 3.1                    Yrs |   |   | -0- |   |
| Exercisable                    at March 31, 2007 |   |                         | 41,600  |                                                   |   | 2.50                                                                          |   |                                           | 2.9                    Yrs |   |   | -0- |   |

|                                            |   |    2007 |    | WeightedAverageGrant                    DateFair                    Value |   |
|-------------------------------------------------|--------|------------------------|---------|---------------------------------------------------------------------------|--------|
| Nonvested                    at October 1, 2006 |   |                   | 86,400  |                                                                      | $      | 1.21 |   |
| Vested                                          |   |                   | (20,800 | )                                                                         |   | 1.21 |   |
| Granted                                         |   |                   | 10,000  |                                                                      |   | 1.70 |   |
| Forfeited                                       |   |                   | (3,200  | )                                                                         |   | 1.21 |   |
| Nonvested                    at March 31, 2007  |   |                   | 72,400  |                                                                      | $      | 1.28 |   |

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|                                                                                                                                                                    |   | March                    31, 2006 |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                                                                                                                                    |   | Three                    Months   |      | Six                    Months |   |
| Net                    (Loss)                                                                                                                                           |   |  $                           | (36,705   | ) |  $ | (320,931 | ) |
| Less:                    Fair Value of Options issued to      employees                    and                    directors, net of income tax |   |                              | (4,713    | ) |   | (9,426 | ) |
| Pro                    Forma Net (loss)                                                                                                                                 |   |  $                           | (41,418   | ) |  $ | (330,357 | ) |
|                                                                                                                                                                    |   |                              |      |   |   |   |   |
| Weighted                    Average Basic Shares                                                                                                                        |   |                              | 5,210,950 |   |   | 5,201,639 |   |
| Weighted                    Average Diluted Shares                                                                                                                      |   |                              | 5,210,950 |   |   | 5,201,639 |   |
|                                                                                                                                                                    |   |                              |      |   |   |   |   |
| Basic                    Net Loss Per Share as Reported                                                                                                                 |   |  $                           | (.01      | ) |  $ | (.06 | ) |
| Basic                    Pro Forma Net Loss per share                                                                                                                   |   |  $                           | (.01      | ) |  $ | (.06 | ) |
|                                                                                                                                                                    |   |                              |      |   |   |   |   |
| Diluted                    Net Loss Per Share as Reported                                                                                                               |   |  $                           | (.01      | ) |  $ | (.06 | ) |
| Diluted                    Pro Forma Net Loss per share                                                                                                                 |   |  $                           | (.01      | ) |  $ | (.06 | ) |

----

|                                             |   | March                    31, 2006 |     |
|--------------------------------------------------|--------|-----------------------------------|----------|
|                                             |   | Three                    Months   |     | Six                    Months |   |
| Sales                                            |   | $                                 | 529,634  |   | $ | 1,172,757 |   |
| Cost                    of Sales                 |   |                              | 350,756  |   |   | 836,690 |   |
| Operating                    expenses            |   |                              | 248,352  |   |   | 464,383 |   |
| Operating                    (loss) before taxes |   |                              | ($69,474 | ) |   | ($128,316 | ) |

----

|                                             |   | Current                    Assets |      | Current                    Liabilities |   | Working                    Capital |   | Current                    Ratio |      |
|--------------------------------------------------|--------|-----------------------------------|-----------|----------------------------------------|--------|------------------------------------|--------|----------------------------------|-----------|
| As                    reported under GAAP        |   | $                                 | 9,158,380 |                                   | $      | 4,197,135                          |   | $                                | 4,961,245 |   |   | 2.18                    to 1 |   |
| Reclassification                    of Bank Debt |   |                              |      |                                   |   | (1,392,865                         | )      |                             | 1,392,865 |   |   |   |   |
| Non-GAAP                    measurement          |   | $                                 | 9,158,380 |                                   | $      | 2,804,270                          |   | $                                | 6,354,110 |   |   | 3.26                    to 1 |   |

----

|                                                                              |   |  Three                  Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Six                  Months Ended |   |
|-----------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                              |   |                                                 March                31,                                                                                         March 31, |   |
|                                                                              |   |  2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |  2006                        |   |  2007 |   |  2006 |   |
|                                                                              |   | (In                  thousands of dollars)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                              |   |   |   |   |   |   |   |   |   |
| Product                  Revenue                                                  |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2,719  |                              | $      | 2,383 |   | $ | 5,041 |   | $ | 4,666 |   |
| Subcontract                  Revenue                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 60     |                              |   | 180 |   |   | 167 |   |   | 303 |   |
| Service                  Revenue                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 1,285  |                              |   | 1,278 |   |   | 2,511 |   |   | 2,470 |   |
| Total                  Revenue                                                    |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 4,064  |                              | $      | 3,841 |   | $ | 7,719 |   | $ | 7,439 |   |
|                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                              |   |   |   |   |   |   |   |   |   |
| Gross                  Profit Product                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 616    |                              |   | 627 |   |   | 1,503 |   |   | 1,178 |   |
| Gross                  Profit Subcontract                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 12     |                              |   | 32 |   |   | 33 |   |   | 62 |   |
| Gross                  Profit Service                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 585    |                              |   | 633 |   |   | 1,093 |   |   | 1,119 |   |
| Total                  Gross Profit                                               |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 1,213  |                              | $      | 1,292 |   | $ | 2,629 |   | $ | 2,359 |   |
|                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                              |   |   |   |   |   |   |   |   |   |
| Gross                  Margin Product %Gross                  Margin Subcontract% |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2320   | %%                                |   | 2618 | %% |   | 3020 | %% |   | 2520 | %% |
| Gross                  Margin Service %                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 46     | %                                 |   | 50 | % |   | 44 | % |   | 45 | % |

----

** **

----

|                                             |   | Three                    Months |    | Six                    Months |    |
|--------------------------------------------------|--------|---------------------------------|---------|-------------------------------|---------|
|                                             |   | 2006                            |    | 2006                          |    |
| Sales                                       |   | $                               | 529,634 |                          | $       | 1,172,757 |   |
| Cost                    of Sales                 |   |                            | 350,756 |                          |    | 836,690 |   |
| Operating                    expenses            |   |                            | 248,352 |                          |    | 464,383 |   |
| Operating                    (loss) before taxes |   |  $                         | (69,474 | )                             |  $ | (128,316 | ) |

----

----

| (1)   | the                election of seven (7) directors to Synergx’s Board of                Directors, |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (2)   | the                selection of Marcum & Kliegman LLP as Synergx’s independent auditiors                for the fiscal year ending September                2007 |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| MATTER                                                    | FOR       | AGAINST                      | ABSTAINED |
|-----------------------------------------------------------|-----------|------------------------------|-----------|
| Daniel                Tamkin                              | 4,655,048 |                  67,469 |      |
| John                Poserina                              | 4,655,090 |                  67,427 |      |
| J.                Ian Dalrymple                           | 4,697,395 |                  25,122 |      |
| Mark                I. Litwin                             | 4,495,095 | 227,422                      |      |
| Harris                Epstein                             | 4,698,895 |                  23,622 |      |
| Peter                Barotz      | 4,496,395 | 226,122                      |      |
| Orhan                Sadik-Khan                           | 4,494,895 | 227,622                      |      |
|                                                      |      |                         |      |
| Auditors                                                  | 4,686,941 |                  34,510 | 1,066     |
|                                                      |      |                         |      |

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