Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Segments are defined by authoritative guidance as components of a company in which separate financial information is available and is evaluated by the chief operating decision maker (CODM), or a decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our chief executive officer.

In the 2013 fiscal year, the Company previously reported two operating segments: EMBASSY® digital security products and services and Safend endpoint data loss security products and services. The data loss security products and services were historically segmented as a result of the acquisition of Safend in September 2011 and the way in which the previous CODM viewed the business.

During the 2014 fiscal year, our CODM decided that our product offerings constitute a single business activity and that our financial results should be evaluated on that basis. Our CODM determined that a functional management approach with centralized roles and responsibilities would be best to enable the Company to efficiently scale and deliver its solutions to its customers. Our CODM assembled an executive team with specific business functional responsibility to move further towards an integrated and scalable operation and drive our business as an integrated offering. In the fourth quarter of the 2014 fiscal yaer our CODM discontinued our historical segmented reporting as a management tool. The Company presents a single segment for purposes of financial reporting and prepared its consolidated financial statements upon that basis.

The following table details Wave's sales by geographic area for the years ended December 31, 2014, 2013 and 2012. Geographic area is based on the location of where the products were delivered or services rendered.

	United States of America			Europe			Asia			Total
2014
Wave products and services	$	11,251,506		$	4,381,551		$	1,337,777		$	16,970,834
% of Total	66		%	26		%	8		%	100		%
2013
Wave products and services	$	16,267,661		$	6,364,707		$	1,768,484		$	24,400,852
% of Total	67		%	26		%	7		%	100		%
2012
Wave products and services	$	21,187,703		$	6,549,013		$	1,105,797		$	28,842,513
% of Total	73		%	23		%	4		%	100		%

Approximately 90% of all long-lived assets of Wave are located within the United States of America and approximately 10% are located in the State of Israel.