XTI Aerospace (XTIA) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 06, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Sysorex Global Holdings Corp.
Entity Central Index Key	1,529,113
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		19,829,236

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 2,242	$ 3,228
Accounts receivable, net	9,315	8,225
Note receivable, related party		90
Notes and other receivables	1,856	1,294
Inventory	892	610
Prepaid licenses and maintenance contracts	7,300	7,151
Other current assets	1,753	1,463
Total Current Assets	23,358	22,061
Prepaid licenses and maintenance contracts, non-current	6,296	6,200
Property and equipment, net	1,478	1,308
Software development costs, net	615	278
Intangible assets, net	19,274	17,676
Goodwill	13,166	13,166
Other assets	1,350	1,371
Total Assets	65,537	62,060
Current Liabilities
Accounts payable	7,660	7,468
Accrued liabilities	3,025	3,299
Deferred revenue	8,969	8,689
Short-term debt	7,570	$ 5,418
Acquisition liability - LightMiner	3,596
Total Current Liabilities	30,820	$ 24,874
Long Term Liabilities
Deferred revenue, non-current	7,274	7,181
Long-term debt	1,729	100
Other liabilities	615	684
Total Liabilities	$ 40,438	$ 32,839
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; 19,807,875 and 19,707,262 issued and outstanding	$ 20	$ 20
Additional paid-in capital	52,603	52,122
Due from Sysorex Consulting Inc.	(666)	(666)
Accumulated other comprehensive loss	(22)	(18)
Accumulated deficit (excluding $2,442 reclassified to additional paid in capital in quasi-reorganization)	(25,237)	(20,641)
Stockholders' Equity Attributable to Sysorex Global Holdings Corp.	26,698	30,817
Non-controlling Interest	(1,599)	(1,596)
Total Stockholders' Equity	25,099	29,221
Total Liabilities and Stockholders' Equity	$ 65,537	$ 62,060

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	19,807,875	19,707,262
Common stock, shares outstanding	19,807,875	19,707,262
Accumulated deficit reclassified to additional paid in capital in quasi-reorganization	$ 2,442	$ 2,442

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues
Products	$ 13,542	$ 14,025	$ 23,930	$ 27,251
Services	4,155	3,119	7,889	6,214
Total Revenues	17,697	17,144	31,819	33,465
Cost of Revenues
Products	10,349	10,047	18,999	20,755
Services	1,652	1,418	3,077	2,680
Total Cost of Revenues	12,001	11,465	22,076	23,435
Gross Profit	5,696	5,679	9,743	10,030
Operating Expenses
Research and development	251	163	414	163
Sales and marketing	3,075	2,523	5,538	4,820
General and administrative	2,953	3,024	6,227	5,340
Acquisition related costs	112	1,091	188	1,195
Amortization of intangibles	1,000	1,249	1,881	1,577
Total Operating Expenses	7,391	8,050	14,248	13,095
Loss from Operations	(1,695)	(2,371)	(4,505)	(3,065)
Other Income (Expense)
Interest expense	(121)	(104)	(220)	(212)
Other	32	$ 12	37	$ 26
Change in the fair value of shares to be issued	$ 89		89
Total Other Income (Expense)		$ (92)	(94)	$ (186)
Loss before Provision for Income Taxes	$ (1,695)	$ (2,463)	$ (4,599)	(3,251)
Provision for Income Taxes				(35)
Net Loss	$ (1,695)	$ (2,463)	$ (4,599)	(3,286)
Net Loss Attributable to Non-controlling Interest	2	(56)	(3)	(98)
Net Loss Attributable to Stockholders of Sysorex Global Holdings Corp.	$ (1,697)	$ (2,407)	$ (4,596)	$ (3,188)
Net Loss Per Share - Basic and Diluted	$ (0.09)	$ (0.13)	$ (0.23)	$ (0.19)
Weighted Average Shares Outstanding
Basic and Diluted	19,806,779	18,641,546	19,786,296	16,455,268

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net Loss	$ (1,695)	$ (2,463)	$ (4,599)	$ (3,286)
Unrealized foreign exchange gain/(loss) from cumulative translation adjustments	$ 3	$ (6)	$ (4)	(6)
Unrealized holding gains in marketable securities including reclassification adjustment of realized gains included in net income				(3)
Comprehensive Loss	$ (1,692)	$ (2,469)	$ (4,603)	$ (3,295)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Due from Sysorex Consulting, Inc.	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Non-controlling Interest
Begining Balance at Dec. 31, 2014	$ 29,221	$ 20	$ 52,122	$ (666)	$ (18)	$ (20,641)	$ (1,596)
Beginning Balance, Shares at Dec. 31, 2014		19,707,262
Common shares issued for services	182		182
Common shares issued for services, Shares		108,113
Stock options granted to employees for services	312		312
Returned shares from AirPatrol holdback	(13)		$ (13)
Returned shares from AirPatrol holdback, Shares		(7,500)
Cumulative translation adjustment	(4)				$ (4)
Net loss	(4,599)					$ (4,596)	$ (3)
Ending Balance at Jun. 30, 2015	$ 25,099	$ 20	$ 52,603	$ (666)	$ (22)	$ (25,237)	$ (1,599)
Ending Balance, Shares at Jun. 30, 2015		19,807,875

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities
Net loss	$ (4,599)	$ (3,286)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	260	125
Amortization of intangible assets	1,881	1,577
Stock based compensation	$ 494	844
Investment income		$ (3)
Amortization of deferred financing costs	$ 23
Change in fair value of shares to be issued	(89)
Compensation expense, note receivable related party	90
Provision for doubtful accounts	(9)
Other	(13)
Changes in operating assets and liabilities:
Accounts receivable and other receivables	(1,643)	$ (2,010)
Inventory	(282)	(87)
Other current assets	(290)	(661)
Prepaid licenses and maintenance contracts	(245)	(2,058)
Other assets	(2)	188
Accounts payable	192	(1,134)
Accrued liabilities	(274)	(1,472)
Deferred revenue	373	2,448
Other liabilities	(69)	(4)
Total Adjustments	397	(2,247)
Net Cash Used in Operating Activities	(4,202)	(5,533)
Cash Flows Used in Investing Activities
Purchase of property and equipment	$ (168)	(194)
Proceeds from the sale of marketable securities		125
Investment in capitalized software	$ (374)	$ (140)
Cash paid for LightMiner	$ (19)
Cash paid for AirPatrol		$ (8,466)
Cash acquired in AirPatrol acquisition		71
Net Cash Flows Used in Investing Activities	$ (561)	(8,604)
Cash Flows from Financing Activities
Advances (repayment) of line of credit	2,213	(1,116)
Repayment of term loan	(431)	$ (125)
Advances from term loan	$ 2,000
Net proceeds from issuance of common stock		$ 2,080
Net proceeds from capital raise		16,615
Net proceeds from conversion of employee options		13
Repayment of notes payable	$ (1)	(245)
Advance to related party		(90)
Repayment of advance from Duroob Technology		(160)
Net Cash Provided by Financing Activities	$ 3,781	16,972
Effect of Foreign Exchange Rate on Changes on Cash	(4)	(6)
Net (Decrease) Increase in Cash and Cash Equivalents	(986)	2,829
Cash and Cash Equivalents - Beginning of period	3,228	2,104
Cash and Cash Equivalents - End of period	2,242	4,933
Cash paid for:
Interest	$ 197	167
Income Taxes		35
Acquisition of AirPatrol:
Assumption of assets other than cash		682
Assumption of liabilities		1,811
Issuance of common stock		$ 10,178
Acquisition of LightMiner:
Assumption of assets other than cash (property and equipment)	$ 225
Assumption of assets - developed technology and export license	$ 3,461

Organization and Nature of Busi

Organization and Nature of Business	6 Months Ended
	Jun. 30, 2015
Organization and Nature of Business
Organization and Nature of Business	Note 1 - Organization and Nature of Business Overview Sysorex Global Holdings Corp. (“SGHC”), through its wholly-owned subsidiaries, AirPatrol Corporation and AirPatrol Research Corporation (“AirPatrol”), Lilien Systems (“Lilien”), Shoom, Inc. (“Shoom”), Sysorex Government Services, Inc. (“SGS”), Sysorex Federal, Inc. (“Sysorex Federal”) and the majority-owned subsidiary, Sysorex Arabia LLC (“SA”) (collectively the “Company” or “Sysorex”), provides big data analytics and location based products and related services for the cyber-security and Internet of Things markets. Sysorex also provides supporting products and services including enterprise computing and storage, virtualization, business continuity, data migration, custom application development, networking and information technology business consulting services. The Company is headquartered in California, and has subsidiary offices in Virginia, Maryland, Oregon, Hawaii, State of Washington, California, Vancouver, Canada and Riyadh, Saudi Arabia. Liquidity As of June 30, 2015, the Company has a working capital deficiency of approximately $7.5 million. For the six months ended June 30, 2015, the Company incurred a net loss of approximately $4.6 million and utilized cash in operations of approximately $4.2 million. On May 4, 2015 and effective April 29, 2015, the Company amended its bank line of credit to increase the credit limit to $10 million and provide for a second term loan of up to $2 million of which $167,000 was used to pay off the balance of the initial term loan. Additionally, Sysorex was awarded two large IDIQ (indefinite delivery/indefinite quantity) government vehicles as a prime contractor in April 2015. While the Company believes that it will be successful in securing task orders under the contracts and will generate revenue, there are no assurances that any task orders under the contracts will ultimately be awarded to the Company. The Company’s current capital resources as of June 30, 2015, increased bank facility, higher margin business line expansion and recent contract awards are expected to be sufficient to fund planned operations during the succeeding twelve months from the date of filing this quarterly report. The Company also has an effective registration statement on Form S-3 on file allowing it to raise capital in the equity markets should it be necessary. If these sources do not provide the capital necessary to fund the Company’s operations during the next twelve months from the date of filing this quarterly report, the Company may need to curtail certain aspects of its expansion activities or consider obtaining additional financing.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Basis of Presentation/Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Note 2 - Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of the Company’s operations for the three and six month periods ended June 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. These interim condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements and footnotes for the years ended December 31, 2014 and 2013 included in the Form 10-K filed with the Securities and Exchange Commission on March 27, 2015.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Basis of Presentation/Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3 - Summary of Significant Accounting Policies Significant Accounting Policies The Company's complete accounting policies are described in Note 2 to the Company's audited financial statements and footnotes for the years ended December 31, 2014 and 2013. Principles of Consolidation The condensed consolidated financial statements have been prepared using the accounting records of the Company and its wholly-owned subsidiaries, Sysorex Federal, SGS, Lilien, Shoom, AirPatrol (as of April 16, 2014) and its majority-owned subsidiary, SA. All material inter-company balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during each of the reporting periods. Actual results could differ from those estimates. The Company’s significant estimates consist of: ● The valuation of stock-based compensation; ● The allowance for doubtful accounts; ● The valuation of the assets acquired from the AirPatrol and LightMiner Systems Inc. acquisitions; ● The valuation allowance for the deferred tax asset; and ● Impairment of long-lived assets and goodwill. Inventory Inventory is stated at the lower of cost or market utilizing the first-in, first-out method. The Company continually analyzes its slow-moving, excess and obsolete inventories. Based on historical and projected sales volumes and anticipated selling prices, the Company establishes reserves. If the Company does not meet its sales expectations, these reserves are increased. Products that are determined to be obsolete are written down to net realizable value. As of June 30, 2015 and 2014, the Company deemed any such allowance nominal. Revenue Recognition The Company provides IT solutions and services to customers with revenues currently derived primarily from the sale of third-party hardware and software products, software, assurance, licenses and other consulting services, including maintenance services and recognizes revenue once the following four criteria are met: (1) persuasive evidence of an arrangement exists, (2) the price is fixed and determinable, (3) delivery (software and hardware) or fulfillment (maintenance) has occurred, and (4) there is reasonable assurance of collection of the sales proceeds (the “Revenue Recognition Criteria”). In addition, the Company also records revenues in accordance with Accounting Standards Codification (“ASC”) Topic 605-45 “Principal Agent Consideration” (“ASC 605-45”). The Company evaluates the sales of products and services on a case by case basis to determine whether the transaction should be recorded gross or net, including, but not limited to, assessing whether or not the Company: 1) is the primary obligor in the transaction; 2) has inventory risk with respect to the products and/or services sold; 3) has latitude in pricing; and 4) changes the product or performs part of the services sold. The Company evaluates whether revenues received from the sale of hardware and software products, licenses, and services, including maintenance and professional consulting services, should be recognized on a gross or net basis on a transaction by transaction basis. As of June 30, 2015, the Company has determined that all revenues received should be recognized on a gross basis in accordance with applicable standards. Cooperative reimbursements from vendors, which are earned and available, are recorded during the period the related transaction has occurred. Cooperative reimbursements are recorded as a reduction of cost of sales in accordance with ASC Topic 605-50 “Accounting by a Customer (including reseller) for Certain Consideration Received from a Vendor.” Provisions for returns are estimated based on historical sales returns and credit memo analysis for the period. The Company receives Marketing Development Funds (MDF) from vendors based on quarterly or annual sales performance to promote the marketing of vendor products and services. The Company must file claims with vendors for these cooperative reimbursements by providing invoices and receipts for marketing expenses. Reimbursements are recorded as a reduction of marketing expenses and other applicable selling general and administrative expenses during the period in which the expenses have occurred. The Company also enters into sales transactions whereby customer orders contain multiple deliverables, and reports its multiple deliverable arrangements under ASC 605-25 “Revenue Arrangements with Multiple Deliverables” (“ASC-605-25”). These multiple deliverable arrangements primarily consist of the following deliverables: the Company’s design, configuration, installation, integration, warranty/maintenance and consulting services; and third-party computer hardware, software and warranty maintenance services. In situations where the Company bundles all or a portion of the separate elements, Vendor Specific Objective Evidence (“VSOE”) is determined based on prices when sold separately. For the three months ended June 30, 2015 and 2014 revenues recognized as a result of customer contracts requiring the delivery of multiple elements was $9.3 million and $12.3 million, respectively. For the six months ended June 30, 2015 and 2014 revenues recognized as a result of customer contracts requiring the delivery of multiple elements was $16.9 million and $24.6 million, respectively. Hardware, Software and Licensing Revenue Recognition Generally, the Revenue Recognition Criteria are met with respect to the sales of hardware and software products when they are shipped to the customer. The delivery of products to our customers occurs in a variety of ways, including (i) as a physical product shipped from the Company’s warehouse, (ii) via drop-shipment by a third-party vendor, or (iii) via electronic delivery with respect to software licenses. The Company leverages drop-ship arrangements with many of its vendors and suppliers to deliver products to customers without having to physically hold the inventory at its warehouse. In such arrangements, the Company negotiates the sale price with the customer, pays the supplier directly for the product shipped, bears credit risk of collecting payment from its customers and is ultimately responsible for the acceptability of the product and ensuring that such product meets the standards and requirements of the customer. As a result, the Company recognizes the sale of the product and the cost of such upon receiving notification from the supplier that the product has shipped. Vendor rebates and price protection are recorded when earned as a reduction to cost of sales or merchandise inventory, as applicable. Vendor product price discounts are recorded when earned as a reduction to cost of sales. Maintenance and Professional Services Revenue Recognition With respect to sales of our maintenance, consulting and other service agreements including our digital advertising and electronic services, the Revenue Recognition Criteria is met once the service has been provided. Revenue on time and material contracts is recognized based on a fixed hourly rate as direct labor hours are expended. The fixed rate includes direct labor, indirect expenses, and profits. Materials, or other specified direct costs, are reimbursed as actual costs and may include markup. Anticipated losses are recognized as soon as they become known. For the three and six months ended June 30, 2015 and 2014, the Company did not incur any such losses. These amounts are based on known and estimated factors. Revenues from time and material or firm fixed price long-term and short-term contracts are derived principally with various United States Government agencies and commercial customers. The Company recognizes revenue for sales of all services billed as a fixed fee ratably over the term of the arrangement as such services are provided. Billings for such services that are made in advance of the related revenue recognized are recorded as deferred revenue and recognized as revenue ratably over the billing coverage period. Amounts received as prepayments for services to be rendered are recognized as deferred revenue. Revenue from such prepayments is recognized when the services are provided. The Company’s storage and computing segment maintenance services agreements permit customers to obtain technical support from the Company and/or the manufacturer and to update, at no additional cost, to the latest technology if new software updates are introduced during the period that the maintenance agreement is in effect. Since the Company assumes certain responsibility for product staging, configuration, installation, modification, and integration with other client systems, or retains general inventory risk upon customer return or rejection and is most familiar with the customer and its required specifications, it generally serves as the initial contact with the customer with respect to any storage and computing segment maintenance services required and therefore will perform all or part of the required service. Typically, the Company sells maintenance contracts for a separate fee with initial contractual periods ranging from one to three years with renewal for additional periods thereafter. The Company generally bills maintenance fees in advance and records the amounts received as deferred revenue with respect to any portion of the fee for which services have not yet been provided. The Company recognizes the related revenue ratably over the term of the maintenance agreement as services are provided. In situations where the Company bundles all or a portion of the maintenance fee with products, VSOE for maintenance is determined based on prices when sold separately. Customers that have purchased maintenance/warranty services have a right to cancel and receive a refund of the amounts paid for unused services at any time during the service period upon advance written notice to the Company. Cancellation and refund privileges with respect to maintenance/warranty services lapse as to any period during the term of the agreement for which such services have already been provided. Customers do not have the right to a refund of paid fees for maintenance/warranty services that the Company has earned and recognized as revenue. Invoices issued for maintenance/warranty services not yet rendered are recorded as deferred revenue and then recognized as revenue ratably over the service period. As a result (1) the warranty and maintenance service fees payable by each customer are separately accounted for in each customer purchase order as a separate line item, and (2) upon the Company’s receipt and acceptance of a request for refund of maintenance/warranty services not yet provided, the Company’s obligation to perform any additional maintenance/warranty services will end. Sales are recorded net of discounts and returns. Stock-Based Compensation The Company accounts for options granted to employees by measuring the cost of services received in exchange for the award of equity instruments based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. Options and warrants granted to consultants and other non-employees are recorded at fair value as of the grant date and subsequently adjusted to fair value at the end of each reporting period until such options and warrants vest, and the fair value of such instruments, as adjusted, is expensed over the related vesting period. The Company incurred stock-based compensation charges, net of estimated forfeitures of $108,000 and $652,000 for the three months ended June 30, 2015 and 2014 and $494,000 and $844,000 for the six month period ended June 30, 2015 and 2014, respectively. The following table summarizes the nature of such charges for the years then ended (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Compensation and related benefits $ 58 $ 245 $ 312 $ 417 Professional and legal fees 50 87 182 87 Acquisition transaction costs -- 320 -- 340 Totals $ 108 $ 652 $ 494 $ 844 Net Loss Per Share The Company computes basic and diluted earnings per share by dividing net loss by the weighted average number of common shares outstanding during the period. Basic and diluted net loss per common share were the same since the inclusion of common shares issuable pursuant to the exercise of options and warrants in the calculation of diluted net loss per common shares would have been anti-dilutive. The following table summarizes the number of common shares and common share equivalents excluded from the calculation of diluted net loss per common share for the six months ended June 30, 2015 and 2014: For the Six Months Ended June 30, 2015 2014 Options 3,412,480 2,578,658 Warrants 511,262 411,262 Shares accrued but not issued 35,715 35,715 Totals 3,959,457 3,025,635 Reclassification Certain accounts in the prior year’s financial statements have been reclassified for comparative purposes to conform to the presentation in the current year’s financial statements. These reclassifications have no effect on previously reported earnings. Recent Accounting Pronouncements The FASB and the SEC have issued certain other accounting standards updates and regulations that will become effective in subsequent periods; however, management of the Company does not believe that any of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect during 2015 or 2014, and does not believe that any of those pronouncements will have a significant impact on the Company’s consolidated financial statements at the time they become effective. Reverse Stock Split The board of directors was authorized by the Company's stockholders to effect a 1-for-2 reverse stock split of its common stock which was effective April 8, 2014. The financial statements and accompanying notes give effect to the 1-for-2 reverse stock split as if it occurred as of the beginning of the first period presented. Subsequent Events The Company evaluates events and/or transactions occurring after the balance sheet date and before the issue date of the condensed consolidated financial statements to determine if any of those events and/or transactions requires adjustment to or disclosure in the condensed consolidated financial statements.

Acquisition of AirPatrol Corpor

Acquisition of AirPatrol Corporation	6 Months Ended
	Jun. 30, 2015
AirPatrol Corporation [Member]
Business Acquisition [Line Items]
Acquisition of AirPatrol Corporation/LightMiner Systems, Inc. Asset Acquisition	Note 4 - Acquisition of AirPatrol Corporation On December 20, 2013, the Company entered into an Agreement of Plan and Merger (the “AirPatrol Agreement”) to acquire 100% of the capital stock of AirPatrol, a provider of mobile cyber-security and location-based services solutions, for a purchase price equal to (a) $10.0 million in cash, subject to certain adjustments, allocated to and among certain creditors, payees and holders of AirPatrol’s issued and outstanding capital stock and (b) 2 million shares (after giving effect to a reverse stock split) of the Company common stock, of which it was agreed that 800,000 shares would be held in escrow for one year, as security to satisfy any indemnity claims that may be owed by the former AirPatrol stockholders to the Company (the “AirPatrol Merger Consideration”). The AirPatrol Merger Consideration also includes an earn-out, half of the value of which shall be in stock and the other half in cash (unless otherwise agreed or required pursuant to the AirPatrol Merger Agreement) payable to the former stockholders of AirPatrol in 2015 in accordance with the following formula: if for the five quarter period ending March 31, 2015, AirPatrol Net Income meets or exceeds $3.5 million, the Company shall pay to the former AirPatrol stockholders an earn-out payment equal to two times AirPatrol Net Income, provided that the total earn-out payment shall not exceed $10.0 million. The merger was consummated on April 18, 2014 with an effective date of acquisition of April 16, 2014, and as a result the Company became the holder of 100% of the outstanding capital stock of AirPatrol. At the closing, the Company (i) paid or initiated actions to pay a total of $8.5 million to various former stockholders, former note holders, former directors, professional service firms and continuing officers, (ii) issued a total of 1,042,809 shares of its common stock to former stockholders, directors, and continuing officers of AirPatrol, and to the investment banking firm of AGC Partners, LLC, and (iii) issued 800,000 shares of its common stock into a holdback escrow. A working capital adjustment applied at closing reduced cash consideration by approximately $486,000 and reduced stock merger consideration by 157,192 shares. The total recorded purchase price for the transaction was $19.7 million which consisted of $9.5 million cash paid and $10.2 million for the value of stock. The Company evaluated the fair value of the contingent earn out liability and deemed it more likely than not that nothing will be owed under such agreement. The Company is in current negotiations with the shareholder representative of AirPatrol regarding the 800,000 shares in the holdback escrow. 478,099 of the holdback shares have been authorized to be released to the AirPatrol security holders, 7,500 shares have been released to the Company for cancellation and 314,401 shares are still under discussion. The following unaudited proforma financial information presents the consolidated results of operations of the Company and AirPatrol for the three and six months ended June 30, 2014, as if the acquisition had occurred on January 1, 2014 instead of on April 16, 2014. The proforma information does not necessarily reflect the results of operations that would have occurred had the entities been a single company during those periods. (in thousands except share amounts) For the Three Months Ended For the Six Months Ended 2014 2014 Revenues $ 17,142 $ 33,739 Net Loss Attributable to Common Shareholder $ (1,654 ) $ (4,196 ) Weighted Average Number of Common Shares Outstanding, basic and diluted 19,526,357 19,358,272 Loss per common share – Basic and Diluted $ (0.08 ) $ (0.22 )

LightMiner Systems, Inc. Asset

LightMiner Systems, Inc. Asset Acquisition	6 Months Ended
	Jun. 30, 2015
LightMiner Systems, Inc.[Member]
Business Acquisition [Line Items]
Acquisition of AirPatrol Corporation/LightMiner Systems, Inc. Asset Acquisition	Note 5 - LightMiner Systems, Inc. Asset Acquisition On April 24, 2015, in accordance with the terms and conditions of an Asset Purchase Agreement (the “APA”), the Company completed the acquisition of substantially all of the assets of LightMiner Systems, Inc. (“LightMiner”), which is in the business of developing and commercializing in-memory SQL databases for manipulation (the “Acquisition”). At closing, the Company paid $19,000 in cash to the owner (the “Owner”), of approximately 19% of LightMiner’s outstanding securities prior to closing and agreed to issue to LightMiner or its’ designees upon the one year anniversary of the closing (the “First Anniversary”), shares of the Company’s common stock in an amount equal to the quotient of (A) $3,200,000 (the “Purchase Price”) divided by (B) the Sysorex Weighted Average Price (as defined below) as of the fifth trading day prior to the First Anniversary (the “Seller Stock Consideration”), less a hold back of Seller Stock Consideration having an aggregate value of $567,150, as determined by the Sysorex Weighted Average Price, for the purpose of satisfying indemnification obligations of LightMiner. The Sysorex Weighted Average Price means the volume-weighted daily average of the price of the Company’s Common Stock for the twenty (20) trading days immediately prior to the date of determination; however, the price may not be less than $2.00 per share. The Company also agreed to issue to the Owner an aggregate of 127,000 restricted shares of Common Stock (the “Owner Stock Consideration”) with a fair value of $286,000 at the date of closing on the First Anniversary and issue to the Owner an option to purchase up to 100,000 shares of Company’s Common Stock in accordance with the terms and conditions of the Company’s 2011 Employee Stock Incentive Plan, as amended, pursuant to an at-will employment offer letter. In addition, the Company agreed to issue such number of additional shares of the Company’s common stock equal to $200,000 divided by the Sysorex Weighted Average Price to another pre-acquisition principal of LightMiner. The total recorded purchase price for the transaction was $3,705,000 which consisted of the cash paid of $19,000 and $3,686,000 for the stock to be issued upon the one year anniversary of the closing. Assets Acquired (in thousands): Fixed Assets $ 225 Export License 14 Developed Technology 3,466 Total purchase price $ 3,705 The final valuation of the assets and purchase price allocation of LightMiner has not been completed as of this reporting period. Consequently, the purchase price was preliminarily allocated based upon the asset amounts in LightMiner’s accounting records with the excess classified to intangible assets. These amounts are subject to revision upon the completion of formal studies which will occur during the third quarter of 2015. Operations of LightMiner during the three and six months ended June 30, 2015 and 2014 were nominal. Therefore the impact on the unaudited proforma financial information for the consolidated results of operations of the Company and LightMiner for those periods had the acquisition occurred on January 1, 2014 instead of on April 24, 2015 would have been immaterial and therefore have not been presented.

IronSky Investment

IronSky Investment	6 Months Ended
	Jun. 30, 2015
IronSky Investment [Abstract]
IronSky Investment	Note 6 - IronSky Investment In October 2013, the Company loaned $130,000 to IronSky Corporation, a company in the field of cyber security solutions, to support its operations in accordance with the terms of a Secured Promissory Note (“IronSky Note”). During 2014, the Company also had $190,000 of accounts receivable from IronSky. As of December 31, 2014, the Company determined that it would accept the IronSky note collateral in lieu of a cash payment of the IronSky note and accounts receivable owed and have deemed the amounts owed as an investment in the business of IronSky. On January 22, 2015, IronSky and the Company entered into an Agreement and Consent to Surrender of Collateral whereby IronSky irrevocably assigned and transferred all rights, title, ownership and interests in and to the Collateral in full satisfaction of the Secured Indebtedness. Preliminary information is not yet available and the Company plans to operate the business within its Sysorex Mobile, IoT & Big Data Products Segment. However, such operations since January 22, 2015 have been minimal.

Notes and Other Receivables

Notes and Other Receivables	6 Months Ended
	Jun. 30, 2015
Notes and Other Receivables [Abstract]
Notes and Other Receivables	Note 7 - Notes and Other Receivables Notes and other receivables at June 30, 2015 and December 31, 2014 consisted of the following (in thousands): June 30, December 31, Notes receivable $ 900 $ 900 Other receivables 956 394 Total Notes and Other Receivables $ 1,856 $ 1,294 Note Receivable On July 17, 2014, the Company loaned $900,000 to a third party pursuant to the terms of a promissory note. The promissory note’s extended due date is December 31, 2015, and accrues interest at a rate of 8% per annum. Other Receivables Other receivables primarily consist of receivables for cooperative reimbursements from vendors; marketing development funds from vendors; and revenue earned under contracts in advance of billings. Note Receivable, Related Party On June 19, 2014, AirPatrol loaned $90,000 to a related party pursuant to the terms of a promissory note. The promissory note was due December 19, 2015 and bore interest at a rate of 0.33% per annum. The note receivable was converted to compensation during the three months ended June 30, 2015.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2015
Inventory [Abstract]
Inventory	Note 8 - Inventory Inventory at June 30, 2015 and December 31, 2014 consisted of the following (in thousands): June 30, December 31, Raw materials $ 84 $ 401 Work in process 347 113 Finished goods 461 96 Total Inventory $ 892 $ 610

Due from Related Parties

Due from Related Parties	6 Months Ended
	Jun. 30, 2015
Due from Related Parties [Abstract]
Due from Related Parties	Note 9 - Due from Related Parties Non-interest bearing amounts due on demand from a related party are $666,000 as of June 30, 2015 and December 31, 2014 and consist primarily of amounts due from Sysorex Consulting, Inc. As Sysorex Consulting, Inc. is a direct shareholder of, and an investor in, the Company, the amounts due from Sysorex Consulting, Inc. as of June 30, 2015 and December 31, 2014 are classified as a reduction of stockholders' equity.

Deferred Revenue

Deferred Revenue	6 Months Ended
	Jun. 30, 2015
Deferred Revenue [Abstract]
Deferred Revenue	Note 10 - Deferred Revenue Deferred revenue as of June 30, 2015 and December 31, 2014 consisted of the following: June 30, December 31, Deferred Revenue, Current Maintenance agreements $ 8,603 $ 8,321 Services 366 368 Total Deferred Revenue, Current 8,969 8,689 Deferred Revenue, Non-Current Maintenance agreements 7,274 7,181 Total Deferred Revenue $ 16,243 $ 15,870 The fair value of the deferred revenue approximates the services to be rendered.

Debt

Debt	6 Months Ended
	Jun. 30, 2015
Debt [Abstract]
Debt	Note 11 - Debt Debt as of June 30, 2015 and December 31, 2014 consisted of the following (in thousands): June 30, December 31, Short-Term Debt Advances payable $ 722 $ 722 Notes payable 70 423 Revolving line of credit 6,111 3,898 Term loan 667 375 Total Short-Term Debt $ 7,570 $ 5,418 Long-Term Debt Notes payable $ 452 $ 100 Term loan, non-current portion 1,277 -- Total Long-Term Debt $ 1,729 $ 100 Advances Payable During the year ended December 31, 2011, a judgment in the amount of $936,000 was levied against Sysorex Arabia LLC in favor of Creative Edge, Inc. in connection with amounts advanced for operations. Of that amount, $214,000 has been repaid leaving a balance of $722,000 of which $515,000 will be paid through a surety bond and the remaining $207,000 has been accrued as advances payable by Sysorex Arabia as of June 30, 2015 and December 31, 2014. Notes Payable Notes payable and accrued interest as of June 30, 2015 and December 31, 2014 consisted of the following (in thousands): June 30, December 31, Notes Payable, Short-Term Note payable dated August 31, 2013 (A) $ 70 $ 423 Total Notes Payable, Short-Term $ 70 $ 423 Notes Payable, Long-Term Note payable dated August 31, 2013 (A) $ 352 $ -- Note payable dated August 30, 2013 (B) 100 100 Total Notes Payable, Long-Term $ 452 $ 100 (A) Note payable dated August 31, 2013 On August 31, 2013, the Company entered into the Shoom Agreement to acquire Shoom for a purchase price of $2.5 million of cash and 1.4 million shares of common stock (after giving effect to a reverse stock split). Approximately $500,000 of the cash purchase price was deposited in escrow from which any amounts not subject to claims shall be released to the former Shoom stockholders, on a pro-rata basis, in equal installments over seven years on each anniversary date of the closing date. As of June 30, 2015, $422,000 remains in escrow with $70,000 reflected in other current assets and $352,000 reflected in other assets in the accompanying financial statements. Pursuant to the terms of the Shoom Agreement, the delivery of the Shoom consideration to each stockholder was subject to the return of certain documentation thus the Company initially recorded the cash consideration to be paid as a non-interest bearing note in the amount of $2.5 million. As of June 30, 2015 and December 31, 2014, $422,000 and $423,000, respectively, was still payable to the Shoom stockholders and is reflected as a note payable in the accompanying financial statements. (B) Note payable dated August 30, 2013 Note received by AirPatrol from Howard County Economic Development Authority (Maryland) as incentive to relocate the AirPatrol office to the county. The note is unsecured, accrues interest at 3% per annum, and matures on December 31, 2017. Revolving Line of Credit On May 4, 2015 (effective as of April 29, 2015), the Company and Bridge Bank entered into Amendment 4 to Bridge Bank’s Business Financing Agreement (“BFA”) dated March 15, 2013 to add the Company, Sysorex Federal, AirPatrol and Shoom as borrowers under the agreement, amend certain financial covenants, increase the credit limit to $10.0 million and provide for a second term loan of $2 million which matures on April 29, 2018 of which $167,000 was used to pay off the balance of the initial term loan. The term loan accrues interest at the greater of 5.25% or Bridge Bank's prime rate plus 2%. The Company will make payments of $56,000 on the term loan on the first day of each month commencing on May 1, 2015 until the loan amount is paid in full. The balance due on the term loan is scheduled to be paid in full during the year ending December 31, 2018.

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2015
Common Stock [Abstract]
Common Stock	Note 12 - Common Stock During the six months ended June 30, 2015, the Company issued 108,113 shares of common stock for services which were fully vested upon the date of grant. The Company recorded an expense of $182,000 for the fair value of those shares.

Stock Options

Stock Options	6 Months Ended
	Jun. 30, 2015
Stock Options [Abstract]
Stock Options	Note 13 - Stock Options During the three months ended March 31, 2015, the Company granted options for the purchase of 236,500 shares of common stock to employees of the Company. These options vest pro-rata over 48 months and have a life of ten years and an exercise price of $1.56 per share. The Company valued the stock options using the Black-Scholes option valuation model and the fair value of the award was $162,000. The fair value of the common stock as of the grant date was $1.56 per share. During the three months ended June 30, 2015, the Company granted options for the purchase of 650,500 shares of common stock to employees of the Company. These options vest pro-rata over 48 months and have a life of ten years and an exercise price that ranged from $2.14 to $2.32 per share. The Company valued the stock options using the Black-Scholes option valuation model and the fair value of the awards was $654,000. The fair value of the common stock as of the grant date ranged from $2.14 to $2.32 per share. As of June 30, 2015, the fair value of non-vested options totaled $3,183,866 which will be amortized to expense over the weighted average remaining term of 1.75 years. The fair value of each employee option grant is estimated on the date of the grant using the Black-Scholes option-pricing model. Key weighted-average assumptions used to apply this pricing model during the three months ended June 30, 2015 and 2014 were as follows: June 30, 2015 June 30, 2014 Risk-free interest rate 1.87 - 1.93% 2.62 - 2.82% Expected life of option grants 7 years 7 years Expected volatility of underlying stock 39.4% 39.4% Dividends Assumption $-- $-- The expected stock price volatility for the Company’s stock options was determined by the historical volatilities for industry peers and used an average of those volatilities. The Company attributes the value of stock-based compensation to operations on the straight-line single option method. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods.

Credit Risk and Concentrations

Credit Risk and Concentrations	6 Months Ended
	Jun. 30, 2015
Credit Risk and Concentrations [Abstract]
Credit Risk and Concentrations	Note 14 - Credit Risk and Concentrations Financial instruments that subject the Company to credit risk consist principally of trade accounts receivable and cash and cash equivalents. The Company performs certain credit evaluation procedures and does not require collateral for financial instruments subject to credit risk. The Company believes that credit risk is limited because the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk of its customers, establishes an allowance for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowances is limited. The Company maintains cash deposits with financial institutions, which, from time to time, may exceed federally insured limits. Cash is also maintained at a foreign financial institution for its majority-owned subsidiary. Cash in foreign financial institutions as of June 30, 2015 and December 31, 2014 was immaterial. The Company has not experienced any losses and believes it is not exposed to any significant credit risk from cash. The following table sets forth the percentages of revenue derived by the Company from those customers which accounted for at least 10% of revenues during the six months ended June 30, 2015 and 2014 (in thousands): Six Months Ended June 30, Six Months Ended June 30, $ % $ % Customer A 8,439 27% -- -- Customer B 4,131 13% -- -- Customer C -- -- 3,592 11% The following table sets forth the percentages of revenue derived by the Company from those customers which accounted for at least 10% of revenues during the three months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 $ % $ % Customer A 5,869 33% -- -- Customer B 2,988 17% -- -- Customer E -- -- 1,693 10% As of June 30, 2015, Customer A represented approximately 38%, and Customer B represented approximately 9% of total accounts receivable. As of June 30, 2014, Customer C represented approximately 9%, and Customer E represented approximately 16% of total accounts receivable. As of June 30, 2015, two vendors represented approximately 63% and 11% of total gross accounts payable. Purchases from these vendors during the three months ended June 30, 2015 were $7.9 million, and $1.5 million, respectively. Purchases from these vendors during the six months ended June 30, 2015 were $12.7 million, and $2.5 million, respectively. As of June 30, 2014, two vendors represented approximately 49% and 14% of total gross accounts payable. Purchases from these vendors during the three months ended June 30, 2014 were $6.5 million, and $1.9 million, respectively. Purchases from these vendors during the six months ended June 30, 2014 were $14.2 million, and $3.7 million, respectively. For the three months ended June 30, 2015, two vendors represented approximately 63% and 13% of total purchases. For the six months ended June 30, 2015, two vendors represented approximately 63%, and 12% of total purchases. For the three months ended June 30, 2014, three vendors represented approximately 50%, 15% and 14% of total purchases. For the six months ended June 30, 2014, three vendors represented approximately 55%, 15% and 14% of total purchases.

Segment Reporting and Foreign O

Segment Reporting and Foreign Operations	6 Months Ended
	Jun. 30, 2015
Segment Reporting and Foreign Operations [Abstract]
Segment Reporting and Foreign Operations	Note 15 - Segment Reporting and Foreign Operations The Company operates in the following business segments: ● Mobile, IoT & Big Data Products: These products currently include our AirPatrol product line (location-based security and marketing platform for wireless and cellular devices that can detect, monitor and manage the content and behavior of smartphones, tablets and other mobile devices based on their location and user); on-premise big data appliance product (Light Miner Studio “LMS”) and will include future Sysorex owned products. ● Storage and Computing: This segment includes third party hardware, software and related maintenance/warranty products and services that Sysorex resells. It includes but is not limited to products for enterprise computing; storage; virtualization; networking; etc. ● SaaS Revenues: These are Software-as-a-Services (SaaS) or internet based hosted services including the Shoom product line and cloud based big data analytics services (based on our LMS product) and other data science services; analytics services for AirPatrol products and other managed services on a SaaS basis. ● Professional Services: These are general IT services including but not limited to: custom application/software design; architecture and development; project management; C4I system consulting; strategic outsourcing; staff augmentation; data center design and operations services; data migration services and other non-SaaS services. The following tables present key financial information of the Company's reportable segments before unallocated corporate expenses (in thousands): Storage and Computing SaaS Revenues Professional Services Consolidated Three Months Ended June 30, 2015 Net revenues $ 233 $ 13,363 $ 987 $ 3,114 $ 17,697 Cost of net revenues $ (68 ) $ (10,292 ) $ (206 ) $ (1,435 ) $ (12,001 ) Gross profit $ 165 $ 3,071 $ 781 $ 1,679 $ 5,696 Gross margin % 71 % 23 % 79 % 54 % 32 % Depreciation and amortization $ 24 $ 30 $ 23 $ 1 $ 78 Amortization of intangibles $ 672 $ 192 $ 136 $ -- $ 1,000 Three Months Ended June 30, 2014 Net revenues $ 1,106 $ 12,768 $ 1,008 $ 2,262 $ 17,144 Cost of net revenues $ (126 ) $ (10,021 ) $ (198 ) $ (1,120 ) $ (11,465 ) Gross profit $ 980 $ 2,747 $ 810 $ 1,142 $ 5,679 Gross margin % 89 % 22 % 80 % 51 % 33 % Depreciation and amortization $ 30 $ 45 $ 7 $ 4 $ 86 Amortization of intangibles $ 921 $ 192 $ 136 $ -- $ 1,249 Six Months Ended June 30, 2015 Net revenues $ 376 $ 23,640 $ 1,960 $ 5,843 $ 31,819 Cost of net revenues $ (194 ) $ (18,822 ) $ (428 ) $ (2,632 ) $ (22,076 ) Gross profit $ 182 $ 4,818 $ 1,532 $ 3,211 $ 9,743 Gross margin % 48 % 20 % 78 % 55 % 32 % Depreciation and amortization $ 55 $ 62 $ 45 $ 1 $ 163 Amortization of intangibles $ 1,225 $ 384 $ 272 $ -- $ 1,881 Six Months Ended June 30, 2014 Net revenues $ 1,106 $ 25,970 $ 1,980 $ 4,409 $ 33,465 Cost of net revenues $ (126 ) $ (20,452 ) $ (401 ) $ (2,456 ) $ (23,435 ) Gross profit $ 980 $ 5,518 $ 1,579 $ 1,953 $ 10,030 Gross margin % 89 % 21 % 80 % 44 % 32 % Depreciation and amortization $ 30 $ 65 $ 18 $ 12 $ 125 Amortization of intangibles $ -- $ 384 $ 272 $ 921 $ 1,577 Reconciliation of reportable segments’ combined income from operations to the consolidated loss before income taxes is as follows (in thousands): For the Three Months Ended For the Six Months Ended 2015 2014 2015 2014 Income from operations of reportable segments $ 5,696 $ 5,679 $ 9,743 $ 10,030 Unallocated corporate expenses (7,391 ) (8,050 ) (14,248 ) (13,095 ) Interest expense (121 ) (104 ) (220 ) (212 ) Other income (expense) 121 12 126 26 Consolidated loss before income taxes $ (1,695 ) $ (2,463 ) $ (4,599 ) $ (3,251 ) The Company’s operations are located primarily in the United States, Canada and Saudi Arabia. Revenues by geographic area are attributed by country of domicile of our subsidiaries. The financial data by geographic area are as follows (in thousands): United Saudi States Canada Arabia Eliminations Total Three Months Ended June 30, 2015: Revenues by geographic area $ 17,680 $ 17 $ — $ — $ 17,697 Operating loss by geographic area $ (1,478 ) $ (211 ) $ (6 ) $ — $ (1,695 ) Net income (loss) by geographic area $ (1,487 ) $ (211 ) $ 3 $ — $ (1,695 ) Three Months Ended June 30, 2014: Revenues by geographic area $ 17,137 $ 7 $ — $ — $ 17,144 Operating loss by geographic area $ (2,028 ) $ (231 ) $ (112 ) $ — $ (2,371 ) Net loss by geographic area $ (2,119 ) $ (232 ) $ (112 ) $ — $ (2,463 ) Six Months Ended June 30, 2015: Revenues by geographic area $ 31,802 $ 17 $ — $ — $ 31,819 Operating loss by geographic area $ (3,998 ) $ (492 ) $ (15 ) $ — $ (4,505 ) Net loss by geographic area $ (4,101 ) $ (492 ) $ (6 ) $ — $ (4,599 ) Six Months Ended June 30, 2014: Revenues by geographic area $ 33,458 $ 7 $ — $ — $ 33,465 Operating loss by geographic area $ (2,637 ) $ (231 ) $ (197 ) $ — $ (3,065 ) Net loss by geographic area $ (2,858 ) $ (231 ) $ (197 ) $ — $ (3,286 ) As of June 30, 2015: Identifiable assets by geographic area $ 64,458 $ 305 $ 774 $ — $ 65,537 Long lived assets by geographic area $ 34,506 $ 27 $ — $ — $ 34,533 As of December 31, 2014: Identifiable assets by geographic area $ 61,149 $ 133 $ 778 $ — $ 62,060 Long lived assets by geographic area $ 32,398 $ 30 $ — $ — $ 32,428

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 16 - Commitments and Contingencies Litigation Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company, or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed, unless they involve guarantees, in which case the guarantees would be disclosed. There can be no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. During the year ended December 31, 2011, a judgment in the amount of $936,000 was levied against Sysorex Arabia LLC in favor of Creative Edge, Inc. in connection with amounts advanced for operations. Of that amount, $214,000 has been repaid, $515,000 will be paid through a surety bond, and the remaining $207,000 has been accrued as advances payable on the consolidated balance sheet by Sysorex Arabia as of June 30, 2015 and December 31, 2014, respectively. There was no effect upon the statement of operations in connection with this transaction. Contingent Consideration Under the terms of the acquisition of Lilien the Company is liable for the payment of additional cash consideration to the extent that the recipients of the 3,000,000 shares of the Company's common stock referred to above receive less than $6.0 million from the sale of those shares, less customary commissions, on or before March 20, 2015. The former Lilien members did not exercise this option which expired on March 31, 2015. Under the terms of the acquisition of AirPatrol, the AirPatrol Merger Consideration also includes an earn-out, half of the value of which shall be in stock and the other half in cash (unless otherwise agreed or required pursuant to the AirPatrol Agreement) payable to the former stockholders of AirPatrol in 2015 in accordance with the following formula: if for the five quarter period ending March 31, 2015, AirPatrol Net Income meets or exceeds $3.5 million, the Company shall pay to the former AirPatrol stockholders an earn-out payment equal to two times AirPatrol Net Income, provided that the total earn-out payment shall not exceed $10,000,000. AirPatrol did not meet or exceed the required threshold and nothing is owed under such agreement.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 17 - Subsequent Events Common Stock Subsequent to June 30, 2015 the Company issued 20,000 shares of common stock issued pursuant to the Company’s equity incentive plan under the terms of director services agreements which were fully vested upon the date of grant. The Company recorded an expense of $36,000 for the value of those shares. Subsequent to June 30, 2015 the Company issued 1,361 shares of common stock to an employee who exercised employee stock options as a cashless exercise. Options Subsequent to June 30, 2015 the Company granted options for the purchase of 960,938 shares of common stock to employees and consultants of the Company. These options vest pro-rata over 48 months and have a life of 10 years and an exercise price of $1.75 per share. The Company valued the stock options using the Black-Scholes option valuation model and the fair value of the award was $741,000.

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Basis of Presentation/Summary of Significant Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies The Company's complete accounting policies are described in Note 2 to the Company's audited financial statements and footnotes for the years ended December 31, 2014 and 2013.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements have been prepared using the accounting records of the Company and its wholly-owned subsidiaries, Sysorex Federal, SGS, Lilien, Shoom, AirPatrol (as of April 16, 2014) and its majority-owned subsidiary, SA. All material inter-company balances and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during each of the reporting periods. Actual results could differ from those estimates. The Company’s significant estimates consist of: ● The valuation of stock-based compensation; ● The allowance for doubtful accounts; ● The valuation of the assets acquired from the AirPatrol and LightMiner Systems Inc. acquisitions; ● The valuation allowance for the deferred tax asset; and ● Impairment of long-lived assets and goodwill.
Inventory	Inventory Inventory is stated at the lower of cost or market utilizing the first-in, first-out method. The Company continually analyzes its slow-moving, excess and obsolete inventories. Based on historical and projected sales volumes and anticipated selling prices, the Company establishes reserves. If the Company does not meet its sales expectations, these reserves are increased. Products that are determined to be obsolete are written down to net realizable value. As of June 30, 2015 and 2014, the Company deemed any such allowance nominal.
Revenue Recognition	Revenue Recognition The Company provides IT solutions and services to customers with revenues currently derived primarily from the sale of third-party hardware and software products, software, assurance, licenses and other consulting services, including maintenance services and recognizes revenue once the following four criteria are met: (1) persuasive evidence of an arrangement exists, (2) the price is fixed and determinable, (3) delivery (software and hardware) or fulfillment (maintenance) has occurred, and (4) there is reasonable assurance of collection of the sales proceeds (the “Revenue Recognition Criteria”). In addition, the Company also records revenues in accordance with Accounting Standards Codification (“ASC”) Topic 605-45 “Principal Agent Consideration” (“ASC 605-45”). The Company evaluates the sales of products and services on a case by case basis to determine whether the transaction should be recorded gross or net, including, but not limited to, assessing whether or not the Company: 1) is the primary obligor in the transaction; 2) has inventory risk with respect to the products and/or services sold; 3) has latitude in pricing; and 4) changes the product or performs part of the services sold. The Company evaluates whether revenues received from the sale of hardware and software products, licenses, and services, including maintenance and professional consulting services, should be recognized on a gross or net basis on a transaction by transaction basis. As of June 30, 2015, the Company has determined that all revenues received should be recognized on a gross basis in accordance with applicable standards. Cooperative reimbursements from vendors, which are earned and available, are recorded during the period the related transaction has occurred. Cooperative reimbursements are recorded as a reduction of cost of sales in accordance with ASC Topic 605-50 “Accounting by a Customer (including reseller) for Certain Consideration Received from a Vendor.” Provisions for returns are estimated based on historical sales returns and credit memo analysis for the period. The Company receives Marketing Development Funds (MDF) from vendors based on quarterly or annual sales performance to promote the marketing of vendor products and services. The Company must file claims with vendors for these cooperative reimbursements by providing invoices and receipts for marketing expenses. Reimbursements are recorded as a reduction of marketing expenses and other applicable selling general and administrative expenses during the period in which the expenses have occurred. The Company also enters into sales transactions whereby customer orders contain multiple deliverables, and reports its multiple deliverable arrangements under ASC 605-25 “Revenue Arrangements with Multiple Deliverables” (“ASC-605-25”). These multiple deliverable arrangements primarily consist of the following deliverables: the Company’s design, configuration, installation, integration, warranty/maintenance and consulting services; and third-party computer hardware, software and warranty maintenance services. In situations where the Company bundles all or a portion of the separate elements, Vendor Specific Objective Evidence (“VSOE”) is determined based on prices when sold separately. For the three months ended June 30, 2015 and 2014 revenues recognized as a result of customer contracts requiring the delivery of multiple elements was $9.3 million and $12.3 million, respectively. For the six months ended June 30, 2015 and 2014 revenues recognized as a result of customer contracts requiring the delivery of multiple elements was $16.9 million and $24.6 million, respectively. Hardware, Software and Licensing Revenue Recognition Generally, the Revenue Recognition Criteria are met with respect to the sales of hardware and software products when they are shipped to the customer. The delivery of products to our customers occurs in a variety of ways, including (i) as a physical product shipped from the Company’s warehouse, (ii) via drop-shipment by a third-party vendor, or (iii) via electronic delivery with respect to software licenses. The Company leverages drop-ship arrangements with many of its vendors and suppliers to deliver products to customers without having to physically hold the inventory at its warehouse. In such arrangements, the Company negotiates the sale price with the customer, pays the supplier directly for the product shipped, bears credit risk of collecting payment from its customers and is ultimately responsible for the acceptability of the product and ensuring that such product meets the standards and requirements of the customer. As a result, the Company recognizes the sale of the product and the cost of such upon receiving notification from the supplier that the product has shipped. Vendor rebates and price protection are recorded when earned as a reduction to cost of sales or merchandise inventory, as applicable. Vendor product price discounts are recorded when earned as a reduction to cost of sales. Maintenance and Professional Services Revenue Recognition With respect to sales of our maintenance, consulting and other service agreements including our digital advertising and electronic services, the Revenue Recognition Criteria is met once the service has been provided. Revenue on time and material contracts is recognized based on a fixed hourly rate as direct labor hours are expended. The fixed rate includes direct labor, indirect expenses, and profits. Materials, or other specified direct costs, are reimbursed as actual costs and may include markup. Anticipated losses are recognized as soon as they become known. For the three and six months ended June 30, 2015 and 2014, the Company did not incur any such losses. These amounts are based on known and estimated factors. Revenues from time and material or firm fixed price long-term and short-term contracts are derived principally with various United States Government agencies and commercial customers. The Company recognizes revenue for sales of all services billed as a fixed fee ratably over the term of the arrangement as such services are provided. Billings for such services that are made in advance of the related revenue recognized are recorded as deferred revenue and recognized as revenue ratably over the billing coverage period. Amounts received as prepayments for services to be rendered are recognized as deferred revenue. Revenue from such prepayments is recognized when the services are provided. The Company’s storage and computing segment maintenance services agreements permit customers to obtain technical support from the Company and/or the manufacturer and to update, at no additional cost, to the latest technology if new software updates are introduced during the period that the maintenance agreement is in effect. Since the Company assumes certain responsibility for product staging, configuration, installation, modification, and integration with other client systems, or retains general inventory risk upon customer return or rejection and is most familiar with the customer and its required specifications, it generally serves as the initial contact with the customer with respect to any storage and computing segment maintenance services required and therefore will perform all or part of the required service. Typically, the Company sells maintenance contracts for a separate fee with initial contractual periods ranging from one to three years with renewal for additional periods thereafter. The Company generally bills maintenance fees in advance and records the amounts received as deferred revenue with respect to any portion of the fee for which services have not yet been provided. The Company recognizes the related revenue ratably over the term of the maintenance agreement as services are provided. In situations where the Company bundles all or a portion of the maintenance fee with products, VSOE for maintenance is determined based on prices when sold separately. Customers that have purchased maintenance/warranty services have a right to cancel and receive a refund of the amounts paid for unused services at any time during the service period upon advance written notice to the Company. Cancellation and refund privileges with respect to maintenance/warranty services lapse as to any period during the term of the agreement for which such services have already been provided. Customers do not have the right to a refund of paid fees for maintenance/warranty services that the Company has earned and recognized as revenue. Invoices issued for maintenance/warranty services not yet rendered are recorded as deferred revenue and then recognized as revenue ratably over the service period. As a result (1) the warranty and maintenance service fees payable by each customer are separately accounted for in each customer purchase order as a separate line item, and (2) upon the Company’s receipt and acceptance of a request for refund of maintenance/warranty services not yet provided, the Company’s obligation to perform any additional maintenance/warranty services will end. Sales are recorded net of discounts and returns.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for options granted to employees by measuring the cost of services received in exchange for the award of equity instruments based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. Options and warrants granted to consultants and other non-employees are recorded at fair value as of the grant date and subsequently adjusted to fair value at the end of each reporting period until such options and warrants vest, and the fair value of such instruments, as adjusted, is expensed over the related vesting period. The Company incurred stock-based compensation charges, net of estimated forfeitures of $108,000 and $652,000 for the three months ended June 30, 2015 and 2014 and $494,000 and $844,000 for the six month period ended June 30, 2015 and 2014, respectively. The following table summarizes the nature of such charges for the years then ended (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Compensation and related benefits $ 58 $ 245 $ 312 $ 417 Professional and legal fees 50 87 182 87 Acquisition transaction costs -- 320 -- 340 Totals $ 108 $ 652 $ 494 $ 844
Net Loss Per Share	Net Loss Per Share The Company computes basic and diluted earnings per share by dividing net loss by the weighted average number of common shares outstanding during the period. Basic and diluted net loss per common share were the same since the inclusion of common shares issuable pursuant to the exercise of options and warrants in the calculation of diluted net loss per common shares would have been anti-dilutive. The following table summarizes the number of common shares and common share equivalents excluded from the calculation of diluted net loss per common share for the six months ended June 30, 2015 and 2014: For the Six Months Ended June 30, 2015 2014 Options 3,412,480 2,578,658 Warrants 511,262 411,262 Shares accrued but not issued 35,715 35,715 Totals 3,959,457 3,025,635
Reclassification	Reclassification Certain accounts in the prior year’s financial statements have been reclassified for comparative purposes to conform to the presentation in the current year’s financial statements. These reclassifications have no effect on previously reported earnings.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The FASB and the SEC have issued certain other accounting standards updates and regulations that will become effective in subsequent periods; however, management of the Company does not believe that any of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect during 2015 or 2014, and does not believe that any of those pronouncements will have a significant impact on the Company’s consolidated financial statements at the time they become effective.
Reverse Stock Split	Reverse Stock Split The board of directors was authorized by the Company's stockholders to effect a 1-for-2 reverse stock split of its common stock which was effective April 8, 2014. The financial statements and accompanying notes give effect to the 1-for-2 reverse stock split as if it occurred as of the beginning of the first period presented.
Subsequent Events	Subsequent Events The Company evaluates events and/or transactions occurring after the balance sheet date and before the issue date of the condensed consolidated financial statements to determine if any of those events and/or transactions requires adjustment to or disclosure in the condensed consolidated financial statements.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Basis of Presentation/Summary of Significant Accounting Policies [Abstract]
Schedule of stock-based compensation charges	For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Compensation and related benefits $ 58 $ 245 $ 312 $ 417 Professional and legal fees 50 87 182 87 Acquisition transaction costs -- 320 -- 340 Totals $ 108 $ 652 $ 494 $ 844
Schedule of number of common shares and common share equivalents excluded from the calculation of diluted net loss per common share	For the Six Months Ended June 30, 2015 2014 Options 3,412,480 2,578,658 Warrants 511,262 411,262 Shares accrued but not issued 35,715 35,715 Totals 3,959,457 3,025,635

Acquisition of AirPatrol Corp27

Acquisition of AirPatrol Corporation (Tables)	6 Months Ended
	Jun. 30, 2015
Acquisition of AirPatrol Corporation/LightMiner Systems, Inc. Asset Acquisition[Abstract]
Schedule of proforma results of operations	(in thousands except share amounts) For the Three Months Ended For the Six Months Ended 2014 2014 Revenues $ 17,142 $ 33,739 Net Loss Attributable to Common Shareholder $ (1,654 ) $ (4,196 ) Weighted Average Number of Common Shares Outstanding, basic and diluted 19,526,357 19,358,272 Loss per common share – Basic and Diluted $ (0.08 ) $ (0.22 )

LightMiner Systems, Inc. Asse28

LightMiner Systems, Inc. Asset Acquisition (Tables)	6 Months Ended
	Jun. 30, 2015
LightMiner Systems, Inc.[Member]
Business Acquisition [Line Items]
Schedule of assets acquired	Assets Acquired (in thousands): Fixed Assets $ 225 Export License 14 Developed Technology 3,466 Total purchase price $ 3,705

Notes and Other Receivables (Ta

Notes and Other Receivables (Tables)	6 Months Ended
	Jun. 30, 2015
Notes and Other Receivables [Abstract]
Schedule of notes and other receivable	June 30, December 31, Notes receivable $ 900 $ 900 Other receivables 956 394 Total Notes and Other Receivables $ 1,856 $ 1,294

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2015
Inventory [Abstract]
Schedule of inventory	June 30, December 31, Raw materials $ 84 $ 401 Work in process 347 113 Finished goods 461 96 Total Inventory $ 892 $ 610

Deferred Revenue (Tables)

Deferred Revenue (Tables)	6 Months Ended
	Jun. 30, 2015
Deferred Revenue [Abstract]
Schedule of deferred revenue	June 30, December 31, Deferred Revenue, Current Maintenance agreements $ 8,603 $ 8,321 Services 366 368 Total Deferred Revenue, Current 8,969 8,689 Deferred Revenue, Non-Current Maintenance agreements 7,274 7,181 Total Deferred Revenue $ 16,243 $ 15,870

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Debt [Abstract]
Schedule of debt	June 30, December 31, Short-Term Debt Advances payable $ 722 $ 722 Notes payable 70 423 Revolving line of credit 6,111 3,898 Term loan 667 375 Total Short-Term Debt $ 7,570 $ 5,418 Long-Term Debt Notes payable $ 452 $ 100 Term loan, non-current portion 1,277 -- Total Long-Term Debt $ 1,729 $ 100
Schedule of notes payable and accrued interest	June 30, December 31, Notes Payable, Short-Term Note payable dated August 31, 2013 (A) $ 70 $ 423 Total Notes Payable, Short-Term $ 70 $ 423 Notes Payable, Long-Term Note payable dated August 31, 2013 (A) $ 352 $ -- Note payable dated August 30, 2013 (B) 100 100 Total Notes Payable, Long-Term $ 452 $ 100

Stock Options (Tables)

Stock Options (Tables)	6 Months Ended
	Jun. 30, 2015
Stock Options [Abstract]
Schedule of weighted-average assumptions Black-Scholes option-pricing model	June 30, 2015 June 30, 2014 Risk-free interest rate 1.87 - 1.93% 2.62 - 2.82% Expected life of option grants 7 years 7 years Expected volatility of underlying stock 39.4% 39.4% Dividends Assumption $-- $--

Credit Risk and Concentrations

Credit Risk and Concentrations (Tables)	6 Months Ended
	Jun. 30, 2015
Credit Risk and Concentrations [Abstract]
Schedule of risk percentage of revenue from customers	Six Months Ended June 30, Six Months Ended June 30, $ % $ % Customer A 8,439 27% -- -- Customer B 4,131 13% -- -- Customer C -- -- 3,592 11% Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 $ % $ % Customer A 5,869 33% -- -- Customer B 2,988 17% -- -- Customer E -- -- 1,693 10%

Segment Reporting and Foreign35

Segment Reporting and Foreign Operations (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting and Foreign Operations [Abstract]
Schedule of segment reporting information	Storage and Computing SaaS Revenues Professional Services Consolidated Three Months Ended June 30, 2015 Net revenues $ 233 $ 13,363 $ 987 $ 3,114 $ 17,697 Cost of net revenues $ (68 ) $ (10,292 ) $ (206 ) $ (1,435 ) $ (12,001 ) Gross profit $ 165 $ 3,071 $ 781 $ 1,679 $ 5,696 Gross margin % 71 % 23 % 79 % 54 % 32 % Depreciation and amortization $ 24 $ 30 $ 23 $ 1 $ 78 Amortization of intangibles $ 672 $ 192 $ 136 $ -- $ 1,000 Three Months Ended June 30, 2014 Net revenues $ 1,106 $ 12,768 $ 1,008 $ 2,262 $ 17,144 Cost of net revenues $ (126 ) $ (10,021 ) $ (198 ) $ (1,120 ) $ (11,465 ) Gross profit $ 980 $ 2,747 $ 810 $ 1,142 $ 5,679 Gross margin % 89 % 22 % 80 % 51 % 33 % Depreciation and amortization $ 30 $ 45 $ 7 $ 4 $ 86 Amortization of intangibles $ 921 $ 192 $ 136 $ -- $ 1,249 Six Months Ended June 30, 2015 Net revenues $ 376 $ 23,640 $ 1,960 $ 5,843 $ 31,819 Cost of net revenues $ (194 ) $ (18,822 ) $ (428 ) $ (2,632 ) $ (22,076 ) Gross profit $ 182 $ 4,818 $ 1,532 $ 3,211 $ 9,743 Gross margin % 48 % 20 % 78 % 55 % 32 % Depreciation and amortization $ 55 $ 62 $ 45 $ 1 $ 163 Amortization of intangibles $ 1,225 $ 384 $ 272 $ -- $ 1,881 Six Months Ended June 30, 2014 Net revenues $ 1,106 $ 25,970 $ 1,980 $ 4,409 $ 33,465 Cost of net revenues $ (126 ) $ (20,452 ) $ (401 ) $ (2,456 ) $ (23,435 ) Gross profit $ 980 $ 5,518 $ 1,579 $ 1,953 $ 10,030 Gross margin % 89 % 21 % 80 % 44 % 32 % Depreciation and amortization $ 30 $ 65 $ 18 $ 12 $ 125 Amortization of intangibles $ -- $ 384 $ 272 $ 921 $ 1,577
Schedule of reconciliation of reportable "segments" combined income from operations	For the Three Months Ended For the Six Months Ended 2015 2014 2015 2014 Income from operations of reportable segments $ 5,696 $ 5,679 $ 9,743 $ 10,030 Unallocated corporate expenses (7,391 ) (8,050 ) (14,248 ) (13,095 ) Interest expense (121 ) (104 ) (220 ) (212 ) Other income (expense) 121 12 126 26 Consolidated loss before income taxes $ (1,695 ) $ (2,463 ) $ (4,599 ) $ (3,251 )
Schedule of financial data by geographic area	United Saudi States Canada Arabia Eliminations Total Three Months Ended June 30, 2015: Revenues by geographic area $ 17,680 $ 17 $ — $ — $ 17,697 Operating loss by geographic area $ (1,478 ) $ (211 ) $ (6 ) $ — $ (1,695 ) Net income (loss) by geographic area $ (1,487 ) $ (211 ) $ 3 $ — $ (1,695 ) Three Months Ended June 30, 2014: Revenues by geographic area $ 17,137 $ 7 $ — $ — $ 17,144 Operating loss by geographic area $ (2,028 ) $ (231 ) $ (112 ) $ — $ (2,371 ) Net loss by geographic area $ (2,119 ) $ (232 ) $ (112 ) $ — $ (2,463 ) Six Months Ended June 30, 2015: Revenues by geographic area $ 31,802 $ 17 $ — $ — $ 31,819 Operating loss by geographic area $ (3,998 ) $ (492 ) $ (15 ) $ — $ (4,505 ) Net loss by geographic area $ (4,101 ) $ (492 ) $ (6 ) $ — $ (4,599 ) Six Months Ended June 30, 2014: Revenues by geographic area $ 33,458 $ 7 $ — $ — $ 33,465 Operating loss by geographic area $ (2,637 ) $ (231 ) $ (197 ) $ — $ (3,065 ) Net loss by geographic area $ (2,858 ) $ (231 ) $ (197 ) $ — $ (3,286 ) As of June 30, 2015: Identifiable assets by geographic area $ 64,458 $ 305 $ 774 $ — $ 65,537 Long lived assets by geographic area $ 34,506 $ 27 $ — $ — $ 34,533 As of December 31, 2014: Identifiable assets by geographic area $ 61,149 $ 133 $ 778 $ — $ 62,060 Long lived assets by geographic area $ 32,398 $ 30 $ — $ — $ 32,428

Organization and Nature of Bu36

Organization and Nature of Business (Details) - USD ($)	May. 04, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Organization and Nature of Business (Textuals)
Working capital deficiency		$ 7,500,000		$ 7,500,000
Net loss		$ (1,695,000)	$ (2,463,000)	(4,599,000)	$ (3,286,000)
Cash used in operations				$ (4,202,000)	$ (5,533,000)
Bank [Member]
Organization and Nature of Business (Textuals)
Increase in line of credit	$ 10,000,000
Term loan	2,000,000
Repayments of term loan	$ 167,000

Summary of Significant Accoun37

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock Based Compensation [Abstract]
Compensation and related benefits	$ 58	$ 245	$ 312	$ 417
Professional and legal fees	$ 50	87	$ 182	87
Acquisition transaction costs		320		340
Totals	$ 108	$ 652	$ 494	$ 844

Summary of Significant Accoun38

Summary of Significant Accounting Policies (Details 1) - shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of common shares and common share equivalents excluded from the calculation of diluted net loss per share	3,959,457	3,025,635
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of common shares and common share equivalents excluded from the calculation of diluted net loss per share	3,412,480	2,578,658
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of common shares and common share equivalents excluded from the calculation of diluted net loss per share	511,262	411,262
Shares accrued but not issued [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of common shares and common share equivalents excluded from the calculation of diluted net loss per share	35,715	35,715

Summary of Significant Accoun39

Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Summary of Significant Accounting Policies (Textual)
Revenues	$ 17,697	$ 17,144	$ 31,819	$ 33,465
Stock based compensation charges	108	652	$ 494	844
Reverse stock split, Description			The board of directors was authorized by the Company's stockholders to effect a 1-for-2 reverse stock split of its common stock which was effective April 8, 2014.
Multiple Deliverable Elements [Member]
Summary of Significant Accounting Policies (Textual)
Revenues	$ 9,300	$ 12,300	$ 16,900	$ 24,600

Acquisition of AirPatrol Corp40

Acquisition of AirPatrol Corporation (Details) - Jun. 30, 2014 - USD ($) $ / shares in Units, $ in Thousands	Total	Total
Acquisition of AirPatrol Corporation/LightMiner Systems, Inc. Asset Acquisition[Abstract]
Revenues	$ 17,142	$ 33,739
Net Loss Attributable to Common Shareholder	$ (1,654)	$ (4,196)
Weighted Average Number of Common Shares Outstanding, basic and diluted	19,526,357	19,358,272
Loss per common share - Basic and Diluted	$ (0.08)	$ (0.22)

Acquisition of AirPatrol Corp41

Acquisition of AirPatrol Corporation (Details Textual) - AirPatrol Corporation [Member] - USD ($)	Dec. 20, 2013	Apr. 18, 2014	Jun. 30, 2015	Jun. 30, 2014
Business Acquisition [Line Items]
Percentage of interest acquired	100.00%	100.00%
Cash paid to acquire Company		$ 8,500,000		$ 9,500,000
Purchase price consideration shares	2,000,000	1,042,809
Number of shares held in escrow	800,000	800,000	800,000
Number of shares authorized to be released from escrow			478,099
Shares released for cancellation			7,500
Number of shares under discussion			314,401
Earn-out payment formula description	If for the five quarter period ending March 31, 2015, AirPatrol Net Income meets or exceeds $3.5 million, the Company shall pay to the former AirPatrol stockholders an earn-out payment equal to two times AirPatrol Net Income, provided that the total earn-out payment shall not exceed $10.0 million.
Purchase price consideration shares value	$ 10,000,000	$ 10,200,000
Purchase Price		19,700,000
Cash merger consideration working capital adjustment		$ 486,000
Merger consideration deducted shares		157,192

LightMiner Systems, Inc. Asse42

LightMiner Systems, Inc. Asset Acquisition (Details) - LightMiner Systems, Inc.[Member] $ in Thousands	Jun. 30, 2015USD ($)
Business Acquisition [Line Items]
Fixed Assets	$ 225
Export License	14
Developed Technology	3,466
Total purchase price	$ 3,705

LightMiner Systems, Inc. Asse43

LightMiner Systems, Inc. Asset Acquisition (Details Textual) - LightMiner Systems, Inc.[Member] - USD ($)	Apr. 24, 2015	Jun. 30, 2015
Business Acquisition [Line Items]
Cash paid to acquire Company	$ 19,000
Ownership percentage	19.00%
Stock purchase price consideration	$ 3,200,000
Acquisition purchase price to be placed in escrow	$ 567,150
Minimum price per share	$ 2
Shares of stock to be issued to acquire a business	127,000
Value of common shares issued for acquisition	$ 3,686,000
Common shares issued for acquisition, Value	$ 200,000
Number of options granted, shares	100,000
Total purchase price of acquisition		$ 3,705,000
Fair Value of common stock to be issued during acquisition	$ 286,000

IronSky Investment (Details)

IronSky Investment (Details) - Iron Sky Corporation [Member] - USD ($)	Nov. 30, 2014	Oct. 31, 2013
Ironsky Investment (Textuals)
Notes receivable net		$ 130,000
Accounts receivable from IronSky	$ 190,000

Notes and Other Receivables (De

Notes and Other Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Notes and Other Receivables [Abstract]
Notes receivable	$ 900	$ 900
Other receivables	956	394
Total Notes and Other Receivables	$ 1,856	$ 1,294

Notes and Other Receivables (46

Notes and Other Receivables (Details Textual) - USD ($)	1 Months Ended
	Jul. 17, 2014	Jun. 19, 2014	Dec. 31, 2014
Notes Receivable (Textual)
Notes receivable, related party			$ 90,000
Third Party [Member]
Notes Receivable (Textual)
Interest rate per annum	8.00%
Debt instrument, Due date	Dec. 31, 2015
Notes receivable net	$ 900,000
AirPatrol Corporation [Member]
Notes Receivable (Textual)
Interest rate per annum		0.33%
Debt instrument, Due date		Dec. 19, 2015
Notes receivable, related party		$ 90,000

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Inventory [Abstract]
Raw materials	$ 84	$ 401
Work in process	347	113
Finished goods	461	96
Total Inventory	$ 892	$ 610

Due from Related Parties (Detai

Due from Related Parties (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Due from Related Parties [Abstract]
Due from Sysorex Consulting Inc.	$ 666	$ 666

Deferred Revenue (Details)

Deferred Revenue (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Deferred Revenue, current
Total Deferred Revenue, current	$ 8,969	$ 8,689
Deferred Revenue, non-current
Total Deferred Revenue, non-current	7,274	7,181
Total Deferred Revenue	16,243	15,870
Maintenance agreements
Deferred Revenue, current
Total Deferred Revenue, current	8,603	8,321
Deferred Revenue, non-current
Total Deferred Revenue, non-current	7,274	7,181
Services [Member]
Deferred Revenue, current
Total Deferred Revenue, current	$ 366	$ 368

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Short-Term Debt
Advances payable	$ 722	$ 722
Notes payable	70	423
Revolving line of credit	6,111	3,898
Term loan	667	375
Total Short-Term Debt	7,570	5,418
Long-Term Debt
Notes payable	452	100
Term loan, non-current portion	1,277
Total Long-Term Debt	$ 1,729	$ 100

Debt (Details 1)

Debt (Details 1) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Notes Payable, Short-Term
Total Notes Payable, Short-Term	$ 70	$ 423
Notes Payable, Long-Term
Total Notes Payable, Long-Term	452	100
Note payable dated August 31, 2013
Notes Payable, Short-Term
Total Notes Payable, Short-Term	70	423
Notes Payable, Long-Term
Total Notes Payable, Long-Term	352
Note payable dated August 30, 2013
Notes Payable, Long-Term
Total Notes Payable, Long-Term	$ 100	$ 100

Debt (Details Textual)

Debt (Details Textual) - Entity [Domain] - USD ($) shares in Millions	May. 04, 2015	Aug. 31, 2013	Jun. 30, 2015	Dec. 31, 2011	Dec. 31, 2014
Debt Instrument [Line Items]
Litigation settlement in favor of Creative Edge, Inc.				$ 936,000
Litigation amount, repaid			$ 214,000
Litigation amount to be paid through a surety bond			515,000
Amount accrued as advances payable			207,000		$ 207,000
Notes payable, current			70,000		423,000
Escrow balance in other current assets			1,753,000		1,463,000
Escrow balance in other assets			1,350,000		1,371,000
Advances payable			$ 722,000		722,000
Line of credit facility, Interest rate during period			5.25%
Bridge Bank [Member]
Debt Instrument [Line Items]
Loans payable	$ 2,000,000
Debt Instrument Periodic Payment Principal	$ 56,000
Line of credit facility, expiration date	Apr. 29, 2018
Line of credit facility, Interest rate description	The term loan accrues interest at the greater of 5.25% or Bridge Bank's prime rate plus 2%.
Line of credit facility, Interest rate during period	5.25%
Increase the credit limit of line of credit	$ 10,000,000
Repayments of term loan	$ 167,000
Acquisition of Shoom Inc
Debt Instrument [Line Items]
Cash paid for Shoom Acquisition		$ 2,500,000
Purchase price consideration shares		1.4
Amounts held in escrow per purchase agreement		$ 500,000	$ 422,000
Business acquisition, escrow description		Approximately $500,000 of the cash purchase price was deposited in escrow from which any amounts not subject to claims shall be released to the former Shoom stockholders, on a pro-rata basis, in equal installments over seven years on each anniversary date of the closing date.
Escrow balance in other current assets			70,000
Escrow balance in other assets			352,000
Note payable dated August 31, 2013
Debt Instrument [Line Items]
Notes payable, current			$ 70,000		$ 423,000
Note payable dated August 30, 2013
Debt Instrument [Line Items]
Debt Instrument, Paid Date			Dec. 31, 2017
Interest rate per annum			3.00%

Common Stock (Details)

Common Stock (Details) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Total
Common shares issued for services	$ 182
Common Stock [Member]
Common shares issued for services
Common shares issued for services, Shares	108,113

Stock Options (Details)

Stock Options (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Expected life of option grants	7 years	7 years
Expected volatility of underlying stock	39.40%	39.40%
Dividends Assumption	$ 0	$ 0
Minimum [Member]
Risk-free interest rate	1.87%	2.62%
Maximum [Member]
Risk-free interest rate	1.93%	2.82%

Stock Options (Details Textual)

Stock Options (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2015	Jun. 30, 2014
Share-based Arrangements with Employees and Nonemployees [Abstract]
Expected life of option grants			7 years	7 years
Employee [Member]
Share-based Arrangements with Employees and Nonemployees [Abstract]
Common stock granted during the period	650,500	236,500
Options vesting period	48 months	48 months
Expected life of option grants	10 years	10 years
Options exercise price		$ 1.56
Total fair value of option grant on grant date	$ 654,000	$ 162,000
Fair value of common stock on option grant date		$ 1.56
Fair value of non-vested options	$ 3,183,866		$ 3,183,866
Weighted average remaining term of non-vested options			1 year 9 months
Employee [Member] | Minimum [Member]
Share-based Arrangements with Employees and Nonemployees [Abstract]
Options exercise price	$ 2.14
Fair value of common stock on option grant date	2.14
Employee [Member] | Maximum [Member]
Share-based Arrangements with Employees and Nonemployees [Abstract]
Options exercise price	2.32
Fair value of common stock on option grant date	$ 2.32

Credit Risk and Concentration56

Credit Risk and Concentrations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Concentration Risk [Line Items]
Revenues	$ 17,697	$ 17,144	$ 31,819	$ 33,465
Customer Concentration Risk [Member] | Customer A [Member]
Concentration Risk [Line Items]
Revenues	$ 5,869		$ 8,439
Concentration risk, percentage	33.00%		27.00%
Customer Concentration Risk [Member] | Customer B [Member]
Concentration Risk [Line Items]
Revenues	$ 2,988		$ 4,131
Concentration risk, percentage	17.00%		13.00%
Customer Concentration Risk [Member] | Customer C [Member]
Concentration Risk [Line Items]
Revenues				$ 3,592
Concentration risk, percentage				11.00%
Customer Concentration Risk [Member] | Customer E [Member]
Concentration Risk [Line Items]
Revenues		$ 1,693
Concentration risk, percentage		10.00%

Credit Risk and Concentration57

Credit Risk and Concentrations (Details Textual) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)Vendor	Jun. 30, 2014USD ($)Vendor
Concentration Risk [Line Items]
Number of vendors			2	3
Vendor one [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	63.00%	50.00%	63.00%	55.00%
Vendor two [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%	15.00%	12.00%	15.00%
Vendor three [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		14.00%		14.00%
Accounts payable [Member]
Concentration Risk [Line Items]
Number of vendors			2	2
Accounts payable [Member] | Vendor one [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			63.00%	49.00%
Purchases from vendors | $	$ 7.9	$ 6.5	$ 12.7	$ 14.2
Accounts payable [Member] | Vendor two [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			11.00%	14.00%
Purchases from vendors | $	$ 1.5	$ 1.9	$ 2.5	$ 3.7
Accounts Receivable [Member] | Customer C [Member]
Concentration Risk [Line Items]
Concentration risk, percentage				9.00%
Accounts Receivable [Member] | Customer B [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			9.00%
Accounts Receivable [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			38.00%
Accounts Receivable [Member] | Customer E [Member]
Concentration Risk [Line Items]
Concentration risk, percentage				16.00%

Segment Reporting and Foreign58

Segment Reporting and Foreign Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Net revenues	$ 17,697	$ 17,144	$ 31,819	$ 33,465
Cost of net revenues	(12,001)	(11,465)	(22,076)	(23,435)
Gross profit	$ 5,696	$ 5,679	$ 9,743	$ 10,030
Gross margin %	32.00%	33.00%	32.00%	32.00%
Depreciation and amortization	$ 78	$ 86	$ 163	$ 125
Amortization of intangibles	1,000	1,249	1,881	1,577
Mobile, IoT & Big Data Products [Member]
Segment Reporting Information [Line Items]
Net revenues	233	1,106	376	1,106
Cost of net revenues	(68)	(126)	(194)	(126)
Gross profit	$ 165	$ 980	$ 182	$ 980
Gross margin %	71.00%	89.00%	48.00%	89.00%
Depreciation and amortization	$ 24	$ 30	$ 55	$ 30
Amortization of intangibles	672	921	1,225
Storage and Computing [Member]
Segment Reporting Information [Line Items]
Net revenues	13,363	12,768	23,640	$ 25,970
Cost of net revenues	(10,292)	(10,021)	(18,822)	(20,452)
Gross profit	$ 3,071	$ 2,747	$ 4,818	$ 5,518
Gross margin %	23.00%	22.00%	20.00%	21.00%
Depreciation and amortization	$ 30	$ 45	$ 62	$ 65
Amortization of intangibles	192	192	384	384
SaaS Revenues [Member]
Segment Reporting Information [Line Items]
Net revenues	987	1,008	1,960	1,980
Cost of net revenues	(206)	(198)	(428)	(401)
Gross profit	$ 781	$ 810	$ 1,532	$ 1,579
Gross margin %	79.00%	80.00%	78.00%	80.00%
Depreciation and amortization	$ 23	$ 7	$ 45	$ 18
Amortization of intangibles	136	136	272	272
Professional Services [Member]
Segment Reporting Information [Line Items]
Net revenues	3,114	2,262	5,843	4,409
Cost of net revenues	(1,435)	(1,120)	(2,632)	(2,456)
Gross profit	$ 1,679	$ 1,142	$ 3,211	$ 1,953
Gross margin %	54.00%	51.00%	55.00%	44.00%
Depreciation and amortization	$ 1	$ 4	$ 1	$ 12
Amortization of intangibles				$ 921

Segment Reporting and Foreign59

Segment Reporting and Foreign Operations (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting and Foreign Operations [Abstract]
Income from operations of reportable segments	$ 5,696	$ 5,679	$ 9,743	$ 10,030
Unallocated corporate expenses	(7,391)	(8,050)	(14,248)	(13,095)
Interest expense	$ (121)	(104)	(220)	(212)
Other income (expense)		(92)	(94)	(186)
Consolidated loss before income taxes	$ (1,695)	$ (2,463)	$ (4,599)	$ (3,251)

Segment Reporting and Foreign60

Segment Reporting and Foreign Operations (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geographic area	$ 17,697	$ 17,144	$ 31,819	$ 33,465
Operating loss by geographic area	(1,695)	(2,371)	(4,505)	(3,065)
Net income (loss) by geographic area	(1,695)	(2,463)	(4,599)	(3,286)
Identifiable assets by geographic area	65,537		65,537		$ 62,060
Long lived assets by geographic area	34,533		34,533		32,428
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geographic area	17,680	17,137	31,802	33,458
Operating loss by geographic area	(1,478)	(2,028)	(3,998)	(2,637)
Net income (loss) by geographic area	(1,487)	(2,119)	(4,101)	(2,858)
Identifiable assets by geographic area	64,458		64,458		61,149
Long lived assets by geographic area	34,506		34,506		32,398
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geographic area	17	7	17	7
Operating loss by geographic area	(211)	(231)	(492)	(231)
Net income (loss) by geographic area	(211)	$ (232)	(492)	$ (231)
Identifiable assets by geographic area	305		305		133
Long lived assets by geographic area	$ 27		$ 27		30
Saudi Arabia
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geographic area
Operating loss by geographic area	$ (6)	$ (112)	$ (15)	$ (197)
Net income (loss) by geographic area	3	$ (112)	(6)	$ (197)
Identifiable assets by geographic area	$ 774		$ 774		$ 778
Long lived assets by geographic area
Eliminations
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geographic area
Operating loss by geographic area
Net income (loss) by geographic area
Identifiable assets by geographic area
Long lived assets by geographic area

Commitments and Contingencies (

Commitments and Contingencies (Details Textual) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2011	Dec. 31, 2014
Business Acquisition [Line Items]
Litigation settlement in favor of Creative Edge, Inc.		$ 936,000
Amount paid towards loss contingency	$ 214,000
Litigation amount to be paid through a surety bond	515,000
Litigation amount accrued as advances payable, expected to be paid within 12 months	207,000		$ 207,000
Required sale value of acquisition shares, pre-split	$ 6,000,000
Acquisition shares issued, post-split	3,000,000
Business combination consideration description	AirPatrol Net Income meets or exceeds $3.5 million, the Company shall pay to the former AirPatrol stockholders an earn-out payment equal to two times AirPatrol Net Income, provided that the total earn-out payment shall not exceed $10,000,000.

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Subsequent Event [Line Items]
Expected life of option grants	7 years	7 years
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of options granted, shares	20,000
Share-based compensation expense	$ 36,000
Subsequent Event [Member] | Employee Stock Option [Member]
Subsequent Event [Line Items]
Number of options granted, shares	960,938
Vested Options exercise price	$ 1.75
Fair value of options vested during the period	$ 741,000
Expected life of option grants	10 years
Common stock issued to employee stock options plan	1,341