Wave Systems Corp. (fka WAVXQ)

[internet]

OOTOMMY...re PP...I did ask SKS about the various options available to Wave to raise additional funds. His response was the following:

1) Selling equity is the cleanest way of raising additional funds that Wave has been able to utilize. It's kept us operating without going into debt. Obviously, they would like to sell additional stock AFTER significant news flow. The problem has been that they are NOT in control over the timing of the "flow"! Having said this...I would have serious doubts that the next round will take place before a major announcement....translated...the next round will take place at greater than the current share price...imho
2) Selling an ASSET. Wave has two assets that the market has in essence valued to zero...Sign on line and WaveXpress. As I mentioned in a prior post...I got the impression that Wave wants to keep Sign on Line within the Wave fold. Personally, I think we are seeing the foundation for electronic mortgages being layed down that will payoff tremendously in a few years in the same manner in which Wave helped to lay the trusted computing foundation which is about to be activated in a significant manner in the next 12-24 months.
The second asset is WaveXpress. I did get the feeling that Wave would be more than willing to sell this asset given the right set of circumstances. SKS mentioned a number of times that what the street needed to correctly value WaveXPress was some sort of event that would help to showcase the potential value of the technology. Selling this asset does not mean that Wave will not benefit from people using WaveXpress in the future. For WaveXpress to fully realize it's financial possibilities...TPMs will have to be used in one way or the other....this is where Wave intends to benefit from the growth of WaveXpress...even if it's owned by someone else.
3) Going into the debt market...This surprised me that he even brought it up. Granted I'm not an accountant...but even I know that you don't go there unless you have absolute guarantees of revenue streams. Therefore...it was interesting that he brought that avenue up for discussion.

Sincerely,

Jas