Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2013

	Three-months ended March 31,
	2013			2012
Net revenues:
EMBASSY digital security products and services	$	4,620,786		$	5,846,710
Safend endpoint data loss protection products and services	1,172,940			1,135,427
Total net revenues	5,793,726			6,982,137
Net loss:
EMBASSY digital security products and services	(5,403,917		)	(7,227,955		)
Safend endpoint data loss protection products and services	(4,753,302		)	(1,106,630		)
Total segments net loss	(10,157,219		)	(8,334,585		)
Net other income (expense)	1,631			23,600
Net interest expense	(58,167		)	(2,105		)
Net loss	(10,213,755		)	(8,313,090		)

Impairment of Goodwill:
EMBASSY® digital security products and services	—			—
Safend endpoint data loss protection products and services	2,590,000			—
Total Impairment of Goodwill	$	2,590,000		$	—

Depreciation and amortization expense:
EMBASSY digital security products and services	177,128			165,417
Safend endpoint data loss protection products and services	138,781			361,372
Total depreciation and amortization expense	315,909			526,789
Capital expenditures:
EMBASSY digital security products and services	92,309			35,028
Safend endpoint data loss protection products and services	1,614			12,330
Total capital expenditures	$	93,923		$	47,358

	March 31,		December 31,
	2013		2012
Assets:
EMBASSY digital security products and services	$	6,241,683	$	9,695,864
Safend endpoint data loss protection products and services	4,529,392		8,937,294
Total assets	$	10,771,075	$	18,633,158

Schedule of sales by geographic area

	United States of America			Europe			Asia			Total
2013
EMBASSY digital security products and services	$	3,722,988		$	746,693		$	151,105		$	4,620,786
Safend endpoint data loss protection products and services	544,398			558,331			70,211			1,172,940
Total	4,267,386			1,305,024			221,316			5,793,726
% of total revenue	74		%	22		%	4		%	100		%
2012
EMBASSY digital security products and services	$	5,130,404		$	676,306		$	40,000		$	5,846,710
Safend endpoint data loss protection products and services	439,985			600,284			95,158			1,135,427
Total	5,570,389			$	1,276,590		135,158			6,982,137
% of total revenue	80		%	18		%	2		%	100		%

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

		2013			2012
Customer	Segment	Revenue

Dell	EMBASSY	$	2,458,411		$	4,125,990
% of total revenue		42		%	59		%

- Definition

Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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