Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting

Schedule of reportable segment data

	For the years ended December 31,
	2012			2011			2010
Operating Revenues:
EMBASSY® digital security products and services		23,185,461			34,415,818			26,050,792
Safend endpoint data loss protection products and services		5,659,052			1,723,197			—
Total Operating Revenues	$	28,844,513		$	36,139,015		$	26,050,792
Net Loss:
EMBASSY® digital security products and services		(23,351,556	)		(8,734,824	)		(4,034,193	)
Safend endpoint data loss protection products and services		(10,413,126	)		(2,155,368	)		—
Total Segments Net Loss		(33,764,682	)		(10,890,192	)		(4,034,193	)
Net other income		12,156			175,004			—
Net interest expense		(197,989	)		(4,589	)		(15,842	)
Income tax expense		(12,033	)		(74,959	)		(72,782	)
Net Loss	$	(33,962,548	)	$	(10,794,736	)	$	(4,122,817	)
Impairment of Goodwill and Intangible Assets:
EMBASSY® digital security products and services		—			—			—
Safend endpoint data loss protection products and services		4,054,732			—			—
Total Impairment of Goodwill and Intangible Assets	$	4,054,732		$	—		$	—
Depreciation and Amortization Expense:
EMBASSY® digital security products and services		705,319			592,227			404,795
Safend endpoint data loss protection products and services		1,426,817			412,841			—
Total Depreciation and Amortization Expense	$	2,132,136		$	1,005,068		$	404,795
Capital Expenditures:
EMBASSY® digital security products and services		137,567			982,821			528,138
Safend endpoint data loss protection products and services		32,093			12,582			—
Total Capital Expenditures	$	169,660		$	995,403		$	528,138

	December 31, 2012		As of December 31, 2011		December 31, 2010
Assets:
EMBASSY® digital security products and services		9,695,864		12,373,734		17,083,883
Safend endpoint data loss protection products and services		8,937,294		17,748,523		—
Total Assets	$	18,633,158	$	30,122,257	$	17,083,883

Schedule of sales by geographic area

The following table details Wave's sales by geographic area for the years ended December 31, 2012, 2011 and 2010. Geographic area is based on the location of where the products were shipped or services rendered.

	United States of America			Europe			Asia			Total
2012
EMBASSY® digital security products and services	$	18,857,487		$	3,892,693		$	435,281		$	23,185,461
Safend endpoint data loss protection products and services		2,332,216			2,656,320			670,516			5,659,052
Total	$	21,189,703		$	6,549,013		$	1,105,797		$	28,844,513
% of Total		73	%		23	%		4	%		100	%
2011
EMBASSY® digital security products and services	$	30,260,537		$	3,813,236		$	342,045		$	34,415,818
Safend endpoint data loss protection products and services		743,404			872,494			107,299			1,723,197
Total	$	31,003,941		$	4,685,730		$	449,344		$	36,139,015
% of Total		86	%		13	%		1	%		100	%
2010
EMBASSY® digital security products and services	$	25,167,998		$	72,646		$	810,148		$	26,050,792
Safend endpoint data loss protection products and services		—			—			—			—
Total	$	25,167,998		$	72,646		$	810,148		$	26,050,792
% of Total		97	%		0	%		3	%		100	%

Schedule of customers by segment, from which Wave derived revenue in excess of 10%

Customers, by segment, from which Wave derived revenue in excess of 10% for the years ended December 31^st are as follows:

		2012			2011			2010
Customer	Segment	Revenue
Dell, Inc.	EMBASSY®	$	15,829,535		$	22,259,058		$	20,714,154
% of Total Revenue			55	%		62	%		80	%