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Organization and Nature of Business
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3 Months Ended |
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Mar. 31, 2014
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| 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, Lilien Systems, Shoom, Inc., Sysorex Government Services, Inc., Sysorex Federal, Inc. and majority-owned subsidiary, Sysorex Arabia LLC (“SA”) (collectively the “Company”), provides cybersecurity, data analytics, custom application development, cloud solutions, Mobile/BYOD solutions and strategic outsourcing to customers worldwide. The Company is headquartered in California, and has subsidiary offices in Virginia, Oregon, Hawaii, State of Washington, California and Riyadh, Saudi Arabia.
Liquidity
As of March 31, 2014 the Company has a working capital deficiency of approximately $5.5 million. For the three months ended March 31, 2014 the Company incurred a net loss of approximately $824,000 and used cash in operations of approximately $335,000.
The Company raised approximately $2 million in equity financing from a strategic investor during February 2014 and received approximately $17.7 million in April 2014, after deducting the underwriting discounts and commissions, in net proceeds from the sale of 3,166,666 shares in a public offering of which it used approximately $8.5 million of cash in the acquisition of AirPatrol (see note 19). The Company’s current capital resources as of March 31, 2014 and the equity financing and contract awards in the first quarter of 2014 are expected to be sufficient to fund planned operations during the succeeding twelve months.
The Company can give no assurance that it will be successful in implementing its business plan or obtain financing on terms advantageous to the Company if needed. Should the Company not be successful in implementing its business plan or obtaining the necessary financing to fund its short-term operations, the Company may need to curtail certain or all of its expansion activities.
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