Wave Systems Corp. (fka WAVXQ)

[tkc]

Hi Alea. re: the critical importance of time. The end of the runway is in sight. Wave sales must lift off or lighten the cargo soon. W/ a current burn of ~$2.5M and funding limited via the ATM to only $6.7M they are time limited. Quick "back of the napkin" #s EoQ4 cash of 2.1 less current account neg. bal of 1.2 (assume C/L includes 1M bal due SKS) plus 5.4 in Q1 ATM funding yields ~$6.3 of worling capital. Add the 6.7 remaining available thru the ATM = ~13M. Wave, as it currently operates, is time limited. The good news is: Wave is time limited. Thus the new CEO will continue taking actions to lighten the load &/or improve sales. As Dell continued to shrink SMB must have seen a little incremental growth. I doubt Q1 will show much improvement in sales so op ex will likely decrease some. So the saga continues but something will occur soon to provide more clarity of Wave's future.