Wave Systems Corp. (fka WAVXQ)

[rwk]

dig / the key

difference between your examples and Wave is the existence of signicant sources of revenue. In Wave's case, there has been no significant revenue up to about a year ago. Up to a year ago, nearly every dollar that Wave spent could only come from one source, the issuance of common equity. In the past year or more, Wave has had revenue of say $40mm, which has been consumed in funding ongoing expenses, so that no savings were created that could decrease the accumulated deficit figure. Thus significantly all of the spending that is captured in the accumulated deficit figure must have been funded by issueing shares.