Wave Systems Corp. and Subsidiaries
(a development stage company)
Consolidated Balance Sheets
(in thousands)
June 30, Dec. 31,
2004 2003
----------- --------
(unaudited)
Assets
Current Assets
Cash and cash equivalents $2,665 $8,818
Cash collected on behalf of charities - 212
Marketable securities 3,317 6,325
Prepaid expenses and other receivables 116 205
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Total current assets 6,098 15,560
Property & equipment, net 1,939 2,287
Other assets 301 313
----------- --------
Total assets 8,338 18,160
Liabilities and Stockholders' equity
Current Liabilities
Accounts payable and accrued expenses 3,021 2,837
Due to charities - 243
Deferred revenue 60 74
----------- --------
Total current liabilities 3,081 3,154
Liability for warrants containing net cash
settlement provisions 641 992
----------- --------
Total liabilities 3,722 4,146
Total stockholders' equity 4,616 14,014
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Total liabilities and stockholders' equity $8,338 $18,160
Wave Systems Corp. and Subsidiaries
(a development stage corporation)
Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2004 2003 2004 2003
--------- -------- -------- ---------
Revenues $ 6 $ 34 $ 57 $ 50
Cost of Sales 3 5 30 9
--------- -------- -------- ---------
Gross Margin 3 29 27 41
Operating Expenses:
Selling, general and
administrative 3,503 2,859 6,808 6,703
Research and development 1,648 1,594 3,404 4,229
Write-off of impaired assets 301 -- 301 --
--------- -------- -------- ---------
5,452 4,453 10,513 10,932
Net Interest income 7 33 13 56
Gain (loss) on sale of
marketable
Securities 1,218 (5) 2,393 (5)
Recovery of note receivable from
former
officer -- 1,000 -- 1,000
Unrealized (loss) gain in value
of warrant
liability (97) -- 350 --
Other income (expense) -- 2 -- 52
--------- -------- -------- ---------
1,128 1,030 2,756 1,103
Net loss (4,321) (3,394) (7,730) (9,788)
Accrued dividends on preferred
stock (including accretion of
discount of $2,800) -- 2,880 -- 2,880
Net loss to common stockholders (4,321) (6,274) (7,730) (12,668)
========= ======== ======== =========
Net loss per share - basic ($0.06) ($0.12) ($0.11) ($0.24)
========= ======== ======== =========
Weighted average shares
outstanding - basic 67,363 52,096 67,350 52,096
