Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Share-based Compensation

Summary of effect of share based compensation in the entity's statement of operations

The following table summarizes the effect of share based compensation in Wave's statement of operations for the years ended December 31:

	2012		2011		2010
Cost of Sales	$	47,371	$	54,454	$	75,876
Selling, General & Administrative		3,400,978		3,845,116		1,930,529
Research & Development		1,382,482		1,480,391		807,411
Total	$	4,830,831	$	5,379,961	$	2,813,816

Schedule of values for the variables that were used to value options granted

The following values for the indicated variables were used to value options granted during the years ended December 31:

	2012		2011
	Stock Option Plans	Stock Purchase Plan	Stock Option Plans	Stock Purchase Plan
Expected Term	4.9 Years	6 Months	4.8 Years	6 Months
Risk-free Rate—range	0.57% - 1.20%	0.12% - 0.14%	0.88% - 2.30%	0.05% - 0.11%
Risk-free Rate—wt. avg.	0.85%	0.13%	1.82%	0.08%
Expected Volatility—range	91.8% - 96.0%	62.6% - 95.6%	90.7% - 95.4%	68.4% - 88.8%
Expected Volatility—wt. avg.	92.5%	75.5%	91.01%	78.87%
Dividend Yield	0%	0%	0%	0%

Share-based Compensation

Summary of stock option activity

A summary of option activity for all Wave option plans through December 31, 2012 follows:

	2012					2011					2010
	Number of Shares			Weighted Average Exercise Price		Number of Shares			Weighted Average Exercise Price		Number of Shares			Weighted Average Exercise Price
Balance at beginning of year		11,745,573		$	2.55		10,042,332		$	2.47		9,077,477		$	4.13
Granted		2,928,325			2.05		2,856,145			3.98		2,457,050			2.18
Forfeited		(495,499	)		2.72		(167,959	)		3.19		(199,449	)		1.48
Expired		(692,787	)		3.80		(486,327	)		10.20		(404,301	)		38.15
Exercised		(91,199	)		0.87		(498,618	)		1.62		(888,445	)		1.45
Balance at end of year		13,394,413			2.38		11,745,573			2.55		10,042,332			2.47
Exercisable at end of year		8,518,041		$	2.17		6,669,771		$	2.28		5,521,762		$	3.23
Additional shares available for grant at end of year		4,586,733					5,538,016					2,739,875

Summary of information about stock options outstanding

The following table summarizes information about stock options outstanding under the Wave stock options plans as of December 31, 2012:

	Options Outstanding						Options Exercisable
Exercise Price Range	Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.25 - $1.75		2,749,135		6.2	$	0.86		2,509,424	$	0.85
$1.76 - $2.00		3,487,732		5.5		1.92		2,910,264		1.91
$2.01 - $3.00		4,155,463		7.2		2.33		1,433,722		2.53
$3.01 - $4.50		761,307		4.9		3.35		603,162		3.32
$4.51 - $5.00		1,892,444		7.6		4.60		713,137		4.62
$5.01 - $10.00		348,332		1.0		5.37		348,332		5.37
		13,394,413		6.3	$	2.38		8,518,041	$	2.17

1999 Wave express Stock Incentive Plan

Share-based Compensation

Summary of stock option activity

Stock option activity during 2012, 2011 and 2010 is as follows:

	2012					2011					2010
	Number of Shares			Weighted Average Exercise Price		Number of Shares			Weighted Average Exercise Price		Number of Shares			Weighted Average Exercise Price
Balance at Beginning of year		428,066		$	1.20		534,733		$	1.20		556,263		$	1.23
Granted		—			—		—			—		—			—
Expired		(428,066	)		—		(106,667	)		1.20		(21,530	)		2.65
Balance at end of year		—			—		428,066			1.20		534,733			1.20
Exercisable at end of year		—			—		428,066		$	1.20		534,733		$	1.20
Additional shares available for grant at end of year		—					2,044,157					1,937,490