Liquidity

6 Months Ended

Jun. 30, 2011

Liquidity

Liquidity

2.     Liquidity

The accompanying consolidated financial statements have been prepared assuming that Wave will continue as a going concern.  Wave has had substantial operating losses since its inception, and as of June 30, 2011, had an accumulated deficit of $356,244,700.  We also expect Wave will incur an operating loss for the fiscal year 2011.  As of June 30, 2011, we had positive working capital of $3,181,446.

Due to the early stage nature of its market category, Wave is unable to predict with a high enough level of certainty whether enough revenue will be generated to fund its cash flow requirements for the twelve-months ending June 30, 2012.  Given the uncertainty with respect to Wave’s revenue forecast for the twelve-months ending June 30, 2012, Wave may be required to raise additional capital through either equity or debt financing in order to adequately fund its capital requirements for the twelve-months ending June 30, 2012.  As of June 30, 2011, we had approximately $10.9 million of cash on hand and positive working capital of approximately $3.2 million.  Considering our current cash balance and Wave’s projected operating cash requirements, we project that we will have enough liquid assets to continue operating through June 30, 2012.  However, due to our current cash position, our capital needs over the next twelve months and beyond, the fact that we may require additional financing and uncertainty as to whether we will achieve our sales forecast for our products and services, substantial doubt exists with respect to our ability to continue as a going concern.