Wave Systems Corp. (fka WAVXQ)

[rwk]

aleajactaest, some of

your conclusions do not appear to have public evidence backing them up.

For instance, you write that What was said was that funding a venture for a long period after it was clear they were unable to discover a functional business model was reckless. How do you know for certain that there was a "long period" and that it was "reckless"? Also, do you the timing of the cash flows associated with WXP? The majority of the funds could have been spent in the early periods of the venture, not in prolonging it. You would need to be privy to all of the business possibilities and their time lines concerning WXP to say anything with certainty. Since I can reasonably expect you not to have such knowledge, I choose to conclude that you are equating lack of discipline with lack of success.

You also wrote: What they have said is they should have been disciplined about evaluating them. Here again I doubt you have full insider information concerning the process followed in evaluating and taking risks. You choose to assume they were undisciplined. I say we don't know.

You also brought up the issue of WXP induced dilution. Had WXP succeeded, then the story would not have been about dilution. Being willing to take a disciplined risk means also being willing to live with the negative outcomes. So while you say you are in favor of Wave taking business risks, you appear to be unwilling to accept the loss.

Concerning the pay structure of Wave management, the last time I raised the issue I was told by Dig that the pay levels were debateable but that the true irrationality was in paying employees with money rather than shares. So I addressed that. But as you are certain that pay and risk levels and interest alignments were incorrect, possibly you could give some statistical evidence that backs up your conclusions? Otherwise, what you write are only opinions(applies to me also). That's the place where I started with this topic with Dig.

Finally, let me reiterate that the above details are a speck in the horizon in comparision with the monumental achievement of being the definitive supplier of trusted computing technology.
The 99.9999999% trumps all else. That is the message, the rest is noise.

Ultimately we're all on the same team here even though we view some things differently. So let's look forward to success in 2012 for Wave and it's stakeholders.